China's Hello Group Q3 revenue dips

Hello

10/12/2025 08:58

Overview

Social networking firm Hello's Q3 revenue declined 0.9% yr/yr to RMB 2,650.1 mln (US$372.3 million)

Net income attributable to Hello Group fell to RMB 348.9 mln from RMB 449.4 mln

Company repurchased 54.7 mln ADSs for US$341.6 mln under share repurchase program

Outlook

Hello Group expects Q4 net revenues between RMB2.52 bln and RMB2.62 bln

Company anticipates overseas business to drive future revenue growth

Result Drivers

OVERSEAS GROWTH - Revenue from overseas increased by 69% due to expansion of social entertainment and dating brands, particularly in the MENA region

WEAK CONSUMER SENTIMENT - Decrease in value-added service revenues due to weak consumer sentiment on Momo app and decline in Tantan's paying user base

INCREASED COSTS - Rise in costs due to higher revenue sharing and commission fees for overseas apps, and increased amortization of intangible assets

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
RMB 2.65 bln
Q3 Adjusted EPS
RMB 2.38
Q3 EPS
RMB 2.06
Q3 Adjusted Net Income
RMB 404.50 mln
Q3 Net Income
RMB 348.90 mln
Q3 Adjusted Income from Operations
RMB 404 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and 1 "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 $9.35, about 34% above its December 9 closing price of $6.98

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPn4V5Smta

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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.)