Cheetah Mobile Announces Second Quarter 2025 Unaudited Consolidated Financial Results

Core Viewpoint - Cheetah Mobile Inc. reported a strong financial performance for the second quarter of 2025, with significant revenue growth and improved profitability, indicating progress in its strategic transformation towards AI and robotics [2][7]. Financial Performance - Total revenue for Q2 2025 reached RMB 295.2 million (US$ 41.2 million), marking a 57.5% increase year-over-year and a 14.0% increase quarter-over-quarter [7]. - Gross profit increased by 85.0% year-over-year to RMB 224.8 million (US$ 31.4 million), with a gross margin of 76.1%, up from 64.8% in the same quarter last year [7]. - Operating loss was reduced by 85.7% year-over-year to RMB 11.1 million (US$ 1.5 million) [7]. - Net loss attributable to Cheetah Mobile shareholders decreased by 81.7% year-over-year to RMB 22.6 million (US$ 3.2 million) [7]. Segment Performance - Revenue from the Internet business was RMB 157.8 million (US$ 22.0 million), while the AI and others segment generated RMB 137.4 million (US$ 19.2 million), reflecting growth rates of 38.8% and 86.4% year-over-year, respectively [17]. - The AI and others segment accounted for 46.5% of total revenue, highlighting the company's focus on AI applications and robotics [2]. Strategic Initiatives - The company is committed to enhancing its robotics capabilities through the acquisition of UFACTORY, a robotic arm business, and aims to expand its addressable market [2]. - Cheetah Mobile is focused on investing in AI utility applications and robotics to drive sustainable growth and long-term shareholder value [2]. Operational Efficiency - The company reported a significant narrowing of both GAAP and non-GAAP losses, indicating improved operational efficiency and a credible path to profitability [2]. - Adjusted operating losses from the AI and others segment declined by 62.8% year-over-year, reflecting a shift to a more focused and efficiency-driven strategy [2]. Liquidity Position - As of June 30, 2025, Cheetah Mobile had cash and cash equivalents of RMB 2,019.6 million (US$ 281.9 million), ensuring strong liquidity for ongoing investments [7].