China's Hello Group Q1 revenue falls 5.3% on domestic weakness

Hello

02/06/2026 08:47

Overview
China online social networking firm's preliminary Q1 revenue fell 5.3% yr/yr
Adjusted EPS and net income declined yr/yr as domestic user base shrank
Company paid special cash dividend and repurchased shares under ongoing buyback program

Outlook
Hello Group expects Q2 2026 net revenues between RMB2.45 bln and RMB2.55 bln
Company forecasts Q2 2026 revenue to decline 6.5% to 2.7% year over year

Result Drivers
DOMESTIC WEAKNESS - Revenue and paying user declines on Momo and Tantan apps, mainly due to external factors affecting broadcaster and agency operations and a smaller user base, weighed on results
OVERSEAS GROWTH - Revenue from overseas apps rose, driven by expansion of audio- and video-based products in the MENA region and new dating brands
COST REDUCTIONS - Lower revenue sharing with broadcasters on Momo, reduced personnel costs, and lower share-based compensation helped reduce expenses

Company press release: ID:nPn6qsdhHa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
RMB 2.39 bln
 
Q1 Adjusted EPS
 
RMB 2.05
 
Q1 EPS
 
RMB 1.81
 
Q1 Adjusted Net Income
 
RMB 328.80 mln
 
Q1 Net Income
 
RMB 291 mln
 
Q1 Adjusted Income from Operations
 
RMB 349.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Hello Group Inc is $8.75, about 42.7% above its June 1 closing price of $6.13
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)