Yalla Group Ltd. Sponsored ADR Class A (YALA.US) Q4 revenue fell short of expectations, with a 15% decrease in paid users compared to the same period last year.

Middle East and North Africa (MENA) largest online social networking and gaming company Yalla Group Ltd. Sponsored ADR Class A (YALA.US) announced the unaudited performance for the fourth quarter and full year of 2025 today. The data shows that the revenue for the fourth quarter reached $83.9 million, falling short of the market average expectation, with a net profit of $34.5 million, a year-on-year increase of 6.2%, and a net profit margin of 41.2%. The revenue generated from chat services in the fourth quarter of 2025 was $53.8 million, and the revenue generated from gaming services was $29.5 million. The total revenue for the full year of 2025 was $341.9 million, with a net profit of $148.1 million, and a net profit margin of 43.3%. At the time of writing, the stock fell by 4.57% after hours. Operational data shows that the monthly active users in the fourth quarter increased by 8.2% year-on-year to 44.8 million, compared to 41.4 million in the fourth quarter of 2024. The number of paying users was 10.4 million, compared to 12.3 million in the fourth quarter of 2024, a decrease of 15% year-on-year. As of the end of the year, the company held $754.6 million in cash and cash equivalents. In 2025, the company returned $56.6 million to shareholders through stock buybacks and simultaneously launched a new buyback plan: starting from March 9, 2026, the company can repurchase up to $150 million worth of shares within 24 months. Yang Tao, the founder, chairman, and CEO of the company, stated: "The company delivered solid results in 2025. The strong execution of the product ecosystem has driven continuous improvement in user engagement. Thanks to innovative investment in games and precise marketing activities, game service revenue has begun to accelerate growth, with a year-on-year increase of 9.1%. Our first three-match game, Turbo Match, has been launched and received positive user feedback, and the desert-themed SLG strategy game will be officially promoted in the second quarter of 2026, further consolidating our market position among emerging user groups. At the same time, we have deepened the integration and application of artificial intelligence technology in the entire ecosystem, significantly improving operational efficiency, accelerating product innovation and localization processes. As an important part of our regional growth strategy, we continue to strengthen our market presence in Saudi Arabia, establish strategic cooperation with the Saudi Esports Federation, and jointly support the 2026 Saudi Esports League and local talent development programs. Looking ahead, we will continue to unleash the synergies of the social and gaming ecosystem, while strengthening technological reserves and product line construction to consolidate our industry-leading position in the fast-growing Middle East and North African markets, driving sustainable long-term development."