Cheetah Mobile Announces Third Quarter 2025 Unaudited Consolidated Financial Results

Core Insights - Cheetah Mobile Inc. reported its first quarterly operating profit in six years for Q3 2025, with total revenue increasing by 49.6% year-over-year to RMB287.4 million (US$40.4 million) [2][8] - The AI and others segment saw a significant revenue increase of 150.8%, contributing to over half of the total revenue, indicating a strong growth engine for the company [2][8] - The company is focusing on AI innovations, including the development of AI-native tools and enhancements to existing products [2] Financial Performance - Total revenue for Q3 2025 was RMB287.4 million (US$40.4 million), a 49.6% increase from the previous year [8] - Gross profit rose by 64.4% year-over-year to RMB214.4 million (US$30.1 million), with a gross margin of 74.6%, up from 67.9% in the same quarter last year [8] - Operating profit was RMB3.9 million (US$0.6 million), a significant improvement from an operating loss of RMB72.0 million in Q3 2024 [8] - Non-GAAP operating profit reached RMB15.1 million (US$2.1 million), compared to a non-GAAP operating loss of RMB60.5 million in the same period last year [8] Segment Performance - The Internet business segment generated RMB142.4 million in revenue, while the AI and others segment contributed RMB145.0 million [8] - The AI and others segment's revenue accounted for 50.4% of total revenue, up from 30.1% in the same period last year [8] - The adjusted operating loss in the AI and others segment narrowed significantly in this quarter [2] Balance Sheet and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of RMB1,597.3 million (US$224.4 million), indicating strong liquidity [8] - Long-term investments stood at RMB761.4 million (US$107.0 million) [8]