China's online entertainment firm Hello Group posts Q2 net loss, shares down
Overview
Hello Group Q2 2025 net revenues fall 2.6% yr/yr to RMB2,620.4 mln, shares down 10% premarket
Company reports Q2 net loss of RMB140.2 mln, compared to profit last year
Overseas revenue grows 72.7%, offsetting domestic declines
Outlook
Company expects Q3 2025 revenue between RMB2.59 bln and RMB2.69 bln
Hello Group anticipates Q3 revenue change of -3.2% to +0.6% year-over-year
Result Drivers
OVERSEAS GROWTH - Overseas revenues increased by 72.7% due to strong performance of Soulchill and new apps
DOMESTIC DECLINE - Revenue from Chinese mainland decreased due to lower Momo and Tantan app revenues
TAX IMPACT - Additional withholding tax accrual of RMB547.9 mln affected net income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| RMB 2.62 bln |
|
Q2 Adjusted EPS |
| -RMB 0.58 |
|
Q2 Adjusted Net Income |
| -RMB 96 mln |
|
Q2 Net Income |
| -RMB 140.20 mln |
|
Q2 Adjusted Income from Operations |
| RMB 447.70 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 $9.30, about 12.7% above its September 8 closing price of $8.12
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago
Press Release: ID:nPn3SLrgKa
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