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MOMO
Earnings call · Jun 2026 (Q2 FY26)

Hello Group Q2 FY26 earnings call MOMO

Sep 3, 2026 Source

Executive summary

Hello Group Q2 FY26 — Overseas Growth Offsets Domestic Headwinds

Hello Group navigated a challenging domestic market in Q2 FY26, marked by macro headwinds impacting high-spending users, while its diversified overseas portfolio demonstrated strong growth and improved profitability. The company is strategically leveraging AI for product innovation across Momo and Tantan to enhance user experience and engagement, alongside disciplined cost management to maintain overall profitability.

Highlights

4

  • Overseas revenue grew 52% year-over-year and 13% quarter-over-quarter to RMB 673 million, now accounting for 27% of total revenue.

  • Yaahlan achieved net income breakeven for the first time in Q2, with Amar's net loss narrowing quickly.

  • Momo's paying users increased by 200,000 quarter-over-quarter to 3.9 million.

  • Tantan's domestic user scale stabilized for the first time since early 2022, driven by refined targeting strategies.

Concerns

4

  • Total group revenue decreased 5% year-over-year to RMB 2.49 billion.

  • Domestic revenue decreased 17% year-over-year to RMB 1.81 billion, with Q3 expected to decline by high teens year-over-year.

  • Non-GAAP net income attributable to shareholders decreased to RMB 273.9 million from RMB 328.8 million quarter-over-quarter.

  • Full-year overseas revenue target adjusted down by RMB 100 million to RMB 200 million from the original RMB 3 billion target.

Guidance & targets

CategoryTargetConfidence
Q3 Revenue
RMB 2.4 billion to RMB 2.5 billion
high materiality
High
Q3 Domestic Revenue Growth
decline by high teens percentage-wise
high materiality
High
Q3 Overseas Revenue Growth
grow by high 30s percentage wise
high materiality
High
Full-year 2026 Overseas Revenue
RMB 2.8 billion to RMB 2.9 billion
high materiality
Medium
Full-year 2026 Group Revenue Growth
mid-single-digit range decline
high materiality
Medium
Full-year 2026 Adjusted Operating Margin
low teens
medium materiality
Medium
Amar Profitability
contribute to group's profit
medium materiality
High
Yaahlan Profitability
contribute to group's profit
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Total Group
Maintained steady business momentum in Q2, with total revenue down year-over-year but up quarter-over-quarter. Adjusted operating income was RMB 276 million.
RMB 2.49 billion-5%4%11% (Adjusted Operating Margin)
Domestic (PRC Mainland)
Revenue decline primarily due to continuous tax scrutiny on Momo's agencies and weak consumer sentiment. Sequential growth was weaker than previous years due to tax-related pressures on agencies.
RMB 1.81 billion-17%1%—
Overseas
Acceleration in year-over-year growth driven by strong momentum from new MENA products and consolidation of acquired overseas dating products. Sequential growth reflects recovery from seasonal Ramadan low and product/operational initiatives.
Share of total revenue: 27%
RMB 673 million52%13%—
Momo
Year-over-year decline in VAS revenue due to tax tightening and macro softness. Sequential growth impacted by agencies scaling back operations, but recovered after targeted subsidies. User-oriented product iteration lifted platform engagement and overall user base.
VAS revenue: RMB 1.54 billionVAS revenue growth YoY: -16%VAS revenue growth QoQ: 2%Paying users: 3.9 millionPaying users QoQ change: +200,000Overall VAS revenue share and ratio: rose by low single-digit percentage points YoY and QoQ
————
Tantan
Revenue decline mainly due to temporary pressure on membership renewals from Alipay's policy adjustments. Domestic user scale was stable with a slight uptick, marking the first stabilization since early 2022. Channel ROI remained above 100% payback despite decline QoQ.
Paying users: 0.5 millionPaying users QoQ change: -40,000
RMB 156 million-18%-3%—
Yaahlan (MENA)
Demonstrated strong growth momentum. Achieved net income breakeven for the first time in Q2. Combined revenue with Amar already approaching SoulChill's scale.
———Net income breakeven
Amar (MENA)
Demonstrated strong growth momentum. Turned marginal contribution positive earlier this year. Combined revenue with Yaahlan already approaching SoulChill's scale.
———Net loss narrowing quickly
Happn (Developed Markets)
Improved paid conversion and ARPPU through iterating on membership benefits and precision targeting. Exploring neighboring markets like Korea, Taiwan, and U.K. with encouraging early results.
—Continued growthContinued growth—

MOMO operating KPIs by quarter

MOMO operating KPIs stated on its earnings calls, by fiscal quarter
KPI Mar 2026 Q1 FY26This call Jun 2026 Q2 FY26Change vs prior quarter
Paid subscribers Tantan
600K As of the end of Q1, Tantan had 0.6 million paying users a modest decrease of 30,000 quarter-over-quarter. Source transcript
500K As of the end of Q2, Tantan had 0.5 million paying users, a modest decrease of 40,000 quarter-over-quarter, mainly due to pressure on paying conversion from Alipay's adjustments to its auto renewal deduction rules. Source transcript
-16.7%
Employees
1,396 We ended the quarter with 1,396 total employees compared to 1,336 from a year ago. Source transcript
1,399 We ended the quarter with 1,399 total employees compared to 1,268 from a year ago. Source transcript
+0.2%
R&D personnel as a percentage of total employees
56% The R&D personnel as a percentage of total employees for the group was 56% compared with 58% from Q1 last year. Source transcript
56% The R&D personnel as a percentage of total employees for the group was 56% compared with 58% from Q2 last year. Source transcript
0 pt

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
Momo AI Chat Assistantsupdate
Momo AI Matching/Icebreaker (grade testing)launch
Tantan AI Icebreaker and AI Chat Assistantupdate
Tantan AI Matching Featureupdate
Tantan AI One Registration and Profile Optimizationupdate
Tantan Lifetime Membership Productlaunch
Tantan Payment Infrastructure Upgradeupdate

Deals & partnerships

Unnamed Consolidation of overseas dating products

The consolidation of overseas dating products acquired last year contributed to the acceleration in year-over-year growth for overseas revenue.

Risks & headwinds

Domestic Revenue Pressure from Consumption Downgrading Second half of 2026

Q3 domestic business expected to decline by high teens year-over-year, widening from Q2's 17% year-over-year decline.

Mitigation:Tiered operating approach focusing on deepening social connections for top-tier users and low-barrier scenarios for mid-tier/long-tail users; continued cost management.

Tax Scrutiny on Momo's Agencies Ongoing

Contributed to Momo's VAS revenue decline of 16% year-over-year.

Mitigation:Rolled out targeted subsidies to ease operating pressure on agencies; moderately raised revenue sharing ratio and subsidy support for core agencies.

Tantan Membership Renewal Pressure Q2 FY26

Tantan paying users decreased by 40,000 quarter-over-quarter to 0.5 million; Tantan revenue down 18% year-over-year and 3% quarter-over-quarter.

Mitigation:Launched lifetime membership product; integrated Douyin Pay and WeChat Pay to reduce reliance on Alipay; optimized matching strategy behind Flash Chat.

Overseas Geopolitical Tension Since April (Q2 FY26)

Impacted SoulChill's operating environment in parts of the Middle East.

Mitigation:Diversified product portfolio (Yaahlan, Amar) to strengthen resilience; SoulChill showing recovery trend from Q1 trough.

SoulChill App Store Removal Earlier this year (FY26)

Contributed to SoulChill underperforming original expectations.

Mitigation:SoulChill showing recovery trend; diversified product portfolio to mitigate single-product risk.

Increased User Acquisition Costs Q2 FY26

External factors pushed up unit acquisition costs year-over-year for Tantan.

Mitigation:Narrowed channel budget; organic traffic retains better, partially offsetting pressure; overall ROI remained above 100% payback.

Film Production Losses Q2 FY26

RMB 60 million of additional losses recognized in Q2.

Mitigation:Offsetting pressure through cost management and improving operating efficiency to maintain full-year adjusted operating margin target.

What to watch in Q3 FY26

Domestic Revenue Decline Rate

Q4 FY26
Current high teens percentage-wise (Q3 FY26 guidance)
Target Narrowing from Q3's high teens decline

Why it matters

Indicates whether macro headwinds and consumption downgrading among high-spending users are stabilizing or worsening, impacting overall group performance.

The key reason Q3 is coming in below our quarter ago expectation is that as [ Tang Zong ] mentioned just now, the domestic business has been facing greater pressure than we anticipated, particularly on user spending sentiment among the very top cohort users in live streaming [ showroom. ]

Q&A highlights

Why is the Q3 domestic revenue decline widening compared to H1, contrary to previous expectations, and what measures is the company taking in response?

The revised outlook is due to new trends in Momo live streaming, specifically consumption downgrading among high-spending users (high net worth individuals) driven by macro volatility. Mid-tier and long-tail users remain stable. The company is implementing a tiered operating approach: deepening social connections for top-tier users and focusing on low-barrier, high-retention scenarios for mid-tier/long-tail users.

“Our revised outlook for the domestic business is mainly based on some new trends that we've seen in the Momo live streaming revenue since entering the second half of the year. The data shows that the revenue pressure is concentrated mainly in consumption downgrading among high-spending paying users.”

asked by Thomas Chong · answered by Ashley Jing

2 min read 6 chapters

Detailed narrative

Momo's Product Innovation & User Engagement

Momo continues to refine its deep tech matching strategy and leverage AI chat assistants to enhance user engagement and retention. The platform also initiated 'grade testing' for an AI-powered feature that identifies common interests and generates personalized icebreakers, aiming to improve matching efficiency. The company utilized themed operational events around the World Cup and seasonal occasions to drive paying user growth, which increased by 200,000 quarter-over-quarter.

Tantan's AI-Driven User Experience

Tantan is focusing on AI-driven improvements to user experience, including AI icebreaker and AI chat assistant features that leverage semantic understanding of user photos to generate personalized opening lines, particularly boosting female user retention. A new AI matching feature helps reduce decision fatigue by surfacing optimal chat partners, and AI-powered registration and profile optimization streamline onboarding while building a foundation for a future AI social manager.

Overseas Business Diversification & Resilience

The overseas product portfolio is shifting from reliance on a single product (SoulChill) to a diversified multi-product matrix, including Yaahlan, Amar, and acquired dating products like Happn. This diversification, with products differing in gameplay, target users, and regional focus, is enhancing the group's resilience to external risks and agility in capturing growth opportunities, allowing for more stable regional revenue even if one product faces short-term pressure.

Domestic Revenue Headwinds & Tiered Operating Approach

The domestic business faces significant revenue pressure, particularly from consumption downgrading among high-spending Momo live streaming users due to macro volatility and weaker wealth expectations. In response, the company is adopting a tiered operating approach: for top-tier users, focusing on deepening social connections and providing exclusive content; for mid-tier and long-tail users, emphasizing low-barrier, high-retention scenarios like audio-based interactive features and social mini-games.

Cost Management and Operating Efficiency

Despite a more challenging revenue environment, Hello Group is actively managing its cost structure to mitigate pressure on the bottom line. This includes continued discipline around personnel costs and optimizing sales and marketing spending, especially in the domestic businesses. The goal is to maintain the full-year adjusted operating margin in the low teens by improving operating efficiency.

Tantan's Payment Infrastructure Upgrade

Tantan experienced pressure on membership renewals due to Alipay's adjustments to auto renewal deduction rules. To address this, the company launched a lifetime membership product and upgraded its payment infrastructure by integrating Douyin Pay and WeChat Pay. This strategy aims to reduce reliance on a single channel and improve the stability of membership renewals.

AI-generated summary of the company's earnings call. Not investment advice.