4 th Quarter 2025 Earnings Presentation Mar 2026 Disclaimer Agenda 4 th Quarter 2025 Achievements and Growth Strategies Recent Developments 4 th Quarter 2025 Financial Performance Overview 01 02 03 The information in this presentation is provided to you by Yalla Group Limited (the "Company") solely for informational purposes and is not an offer to buy or sell, or a solicitation of an offer to buy or sell, any security or instrument of the Company, or to participate in any investment activity or trading stra ...

Core Viewpoint - Yalla Group Limited has announced a new share repurchase program authorizing the repurchase of up to US$150 million worth of its outstanding shares over the next 24 months, reflecting the company's confidence in its long-term growth and financial strength [1][1][1] Company Overview - Yalla Group Limited is the largest online social networking and gaming company based in the Middle East and North Africa (MENA), with significant revenues in 2022 [1][1] - The company operates two main mobile applications: Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring popular board games in MENA [1][1] - Yalla has expanded its capabilities in mid-core and hard-core games through its subsidiary, Yalla Game Limited, leveraging local expertise to innovate gaming content [1][1] Financial Strategy - The share repurchase program will be funded using the company's available cash reserves, indicating a strong balance sheet and healthy cash flow [1][1] - The repurchases may occur on the open market or through other legally permissible means, depending on market conditions [1][1] Market Position and Expansion - Yalla is actively exploring opportunities outside of MENA with products like Yalla Parchis, a Ludo game aimed at the South American market [1][1] - The company is focused on creating a regionally integrated ecosystem that meets the evolving online social networking and gaming needs of MENA users [1][1]

Core Insights - Yalla Group Limited reported unaudited financial results for Q4 and full year 2025, showing a slight revenue increase for the year but a decline in Q4 revenues compared to the previous year [1][2]. Financial Performance Fourth Quarter 2025 Highlights - Revenues were US$83.9 million, down from US$90.8 million in Q4 2024, primarily due to a decrease in paying users [1]. - Game services generated US$29.5 million, while chatting services contributed US$53.8 million [1]. - Average monthly active users (MAUs) increased to 44.8 million, an 8.2% year-over-year rise [1]. - Net income rose by 6.2% to US$34.5 million, with a net margin of 41.2%, up 5.4 percentage points year-over-year [1]. Full Year 2025 Highlights - Total revenues reached US$341.9 million, a 0.7% increase from US$339.7 million in 2024 [1]. - Revenues from games services were US$124.0 million, while chatting services accounted for US$216.4 million [1]. - Net income increased by 10.4% to US$148.1 million [1]. Cost and Expense Management - Total costs and expenses in Q4 2025 were US$57.2 million, a 5.7% decrease from US$60.7 million in Q4 2024 [1]. - Cost of revenues decreased by 15.1% to US$26.3 million, primarily due to lower commission fees [1]. - Selling and marketing expenses rose by 26.5% to US$9.4 million, reflecting increased advertising efforts [1]. Share Repurchase Program - In 2025, the company repurchased 8,377,035 ADSs for approximately US$56.6 million, with a cumulative repurchase amount of US$106.0 million since the program's inception [2]. - A new share repurchase program was authorized for up to US$150 million over the next 24 months starting March 9, 2026 [2]. Outlook - For Q1 2026, Yalla expects revenues to be between US$75.0 million and US$82.0 million, considering the impact of Ramadan [2].

Core Viewpoint - Yalla Group Limited, the largest MENA-based online social networking and gaming company, will report its unaudited financial results for Q4 and full year 2025 on March 9, 2026, after U.S. market close [1] Company Overview - Yalla Group Limited operates two main mobile applications: Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming app featuring online board games popular in MENA [1] - The company has expanded its capabilities in mid-core and hard-core games through its subsidiary, Yalla Game Limited, leveraging local expertise to provide innovative gaming content [1] - Yalla's ecosystem includes additional products like YallaChat, tailored for Arabic users, and WeMuslim, which supports Arabic customs [1] - The company is also exploring markets outside MENA with Yalla Parchis, a Ludo game designed for South America [1] Financial Reporting - A conference call to discuss the financial results will take place on March 9, 2026, at 8:00 PM Eastern Time, with registration required for participants [1] - A live webcast of the conference call will be available on the company's investor relations website, along with a replay following the session [1]

Core Insights - Yalla Group Limited has formed a strategic partnership with the Saudi Esports Federation to enhance the national esports ecosystem in Saudi Arabia, focusing on inclusivity and local talent development [1][2][3] Group 1: Partnership Details - Yalla has been appointed as the Official Event Partner of the Saudi eLeague 2026, which is the premier national esports competition in the Kingdom [3] - The partnership includes two Memoranda of Understanding aimed at developing esports and creating pathways for aspiring talent in Saudi Arabia [2] Group 2: Focus on Women's Participation - A significant aspect of the partnership is the support for the Women's Saudi eLeague, promoting female participation in competitive gaming [3] - Yalla aims to cultivate female talent and establish structured pathways for women's involvement in esports [3] Group 3: Talent Development Initiatives - Yalla will launch a talent development program in collaboration with the Saudi Esports Academy, focusing on training, mentorship, and competitive experience for local esports talent [4] - This initiative is designed to strengthen talent pipelines and enhance the long-term competitiveness of Saudi Arabia's esports ecosystem [4] Group 4: Strategic Importance - The partnership aligns with Saudi Arabia's Vision 2030 and the National Gaming and Esports Strategy, emphasizing the importance of local engagement and sustainable growth in the gaming sector [2][5] - Yalla's involvement is expected to amplify the prestige of the Saudi eLeague and contribute to a world-class experience for players and fans [5]

Financial Data and Key Metrics Changes - Total revenues grew to $89.6 million, a 0.8% increase from $88.9 million in the same period last year [16] - Net income increased by 3.9% year-over-year to $40.7 million, with a net margin of 45.4%, up 1.4 percentage points year-over-year [5][15] - Total costs and expenses decreased by 1% to $55.9 million from $56.4 million in the same period last year [16] - Cost of revenues as a percentage of total revenues decreased to 31.7% from 35.8% in the same period last year [17] Business Line Data and Key Metrics Changes - Average monthly active users (MAUs) increased by 8.1% year-over-year to 43.4 million [12] - Selling and marketing expenses rose by 30.3% to $9.6 million, primarily due to higher advertising and marketing promotion expenses [17] - Technology and product development expenses increased by 21.4% to $8.6 million, driven by increased salaries and benefits for staff [18] Market Data and Key Metrics Changes - The Middle East digital economy is expected to reach around $7.1 billion in 2025, with 75% year-over-year growth in the gaming market [5] - The company is focusing on expanding its presence in both the MENA region and new markets, leveraging its gaming titles to penetrate diverse regional markets [29] Company Strategy and Development Direction - The company aims to capture the growing digital entertainment ecosystem in the MENA region and enhance its product portfolio [6] - A dual-track strategy focusing on self-developed titles and game distribution has been established to build a competitive edge in mid-core and hardcore games [33] - The company plans to maintain a similar level of share repurchases in 2026 as in 2025, with a commitment to maximizing shareholder value [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the gaming market in the MENA region and the company's ability to innovate and adapt [5][11] - The outlook for Q4 2025 anticipates revenues between $78 million and $85 million, with expectations for new business initiatives to become more visible in the coming quarters [21][43] - Full-year 2025 net margin is expected to reach about 40%, with R&D spending trends remaining similar to 2025 [43] Other Important Information - The company has repurchased over 7.7 million ADS for an aggregate amount of $51.9 million as of November 7, 2025, achieving its full-year repurchase commitment ahead of schedule [9][41] - The company celebrated its fifth anniversary of public listing, highlighting its growth and leading position in the online social networking and gaming market [10] Q&A Session Summary Question: Can Management brief us on the advancements in mid-core and hardcore games? - Management highlighted the soft-launch of two match-three titles, Turbo Match and a roguelike product, with plans for further investment based on positive test results [24][25] Question: How should we think about the strategic role of our match game? - Management indicated that match-three games serve as an entry point for exploring diversified regional markets, with plans to increase marketing budgets in strong-performing areas [29][30] Question: Could Management share the company's upcoming gaming strategy? - Management outlined a dual-track strategy focusing on self-developed casual and mid-core games, alongside partnerships for game distribution to enhance the product pipeline [33][34] Question: Can we get Management's view on the quarterly performance of flagship products? - Management reported significant breakthroughs in product innovation for Yalla and Yalla Ludo, with expectations for stable growth and new feature introductions [37][38] Question: Could Management outline the plans for future shareholder returns? - Management confirmed the completion of the 2025 repurchase commitment and plans to maintain a similar level of share repurchases in 2026 [41][42] Question: What is the revenue and profitability outlook for Q4 and 2026? - Management expects limited contribution from new business initiatives in Q4, with full-year 2025 revenue anticipated to be broadly in line with 2024 [43]

Financial Data and Key Metrics Changes - Total revenues grew to $89.6 million, a 0.8% increase from $88.9 million in the same period last year [16] - Net income increased by 3.9% year-over-year to $40.7 million, with a net margin of 45.4%, up 1.4 percentage points [5][15] - Total costs and expenses decreased by 1% to $55.9 million, with cost of revenues down 10.7% to $28.4 million [16][17] Business Line Data and Key Metrics Changes - Average monthly active users (MAUs) increased by 8.1% year-over-year to 43.4 million, driven by user acquisition channel optimization and AI-powered upgrades [12] - Selling and marketing expenses rose by 30.3% to $9.6 million, reflecting higher advertising and marketing promotion expenses [17] - Technology and product development expenses increased by 21.4% to $8.6 million, due to higher salaries and benefits for staff [18] Market Data and Key Metrics Changes - The Middle East gaming market is projected to reach around $7.1 billion in 2025, with a year-over-year growth of 75% [5] - The company is focusing on expanding its presence in both the MENA region and new markets, leveraging its gaming titles to penetrate diverse regional markets [29][30] Company Strategy and Development Direction - The company aims to capture the growing digital entertainment ecosystem in the Middle East and enhance its product portfolio [6] - A dual-track strategy is established, focusing on self-developed titles and game distribution to build a competitive edge in mid-core and hardcore games [33][34] - The company is committed to maximizing shareholder returns through a $150 million share repurchase program [9][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the gaming market in the MENA region and the company's ability to innovate and adapt [5][11] - The outlook for Q4 2025 anticipates revenues between $78 million and $85 million, with expectations for new business initiatives to contribute more significantly in the future [21][43] Other Important Information - The company celebrated its fifth anniversary of public listing, highlighting its growth and leading position in the online social networking and gaming market [10] - The company has repurchased over 7.7 million ADS for a total of $51.9 million, achieving its full-year repurchase commitment ahead of schedule [9][41] Q&A Session Summary Question: Can Management brief us on the advancements in mid-core and hardcore games? - Management highlighted the soft-launch of two match-three titles, Turbo Match and a roguelike product, with plans for further investment based on positive test results [24][25] Question: How should we think about the strategic role of our match game? - Management indicated that match-three games serve as an entry point for exploring diversified regional markets, with plans to increase marketing budgets in strong-performing areas [29][30] Question: Could Management share the company's upcoming gaming strategy? - Management outlined a dual-track strategy focusing on self-developed casual and mid-core games, alongside partnerships for game distribution to enhance the product pipeline [33][34] Question: Can we get Management's view on the quarterly performance of flagship products? - Management reported significant breakthroughs in product innovation for Yalla and Yalla Ludo, with expectations for stable growth through new features and operational activities [36][38] Question: Could Management outline the plans for future shareholder returns? - Management confirmed the completion of the $50 million repurchase commitment and plans to maintain a similar level of share repurchase in 2026 [41][42] Question: What is the revenue and profitability outlook for Q4 and 2026? - Management expects limited contribution from new business initiatives in Q4, with full-year 2025 revenue anticipated to be broadly in line with 2024 [43]

Financial Data and Key Metrics Changes - Total revenues for the third quarter of 2025 reached $89.6 million, a 0.8% increase from $88.9 million in the same period last year [18] - Net income grew by 3.9% year-over-year to $40.7 million, with a net margin of 45.4%, up 1.4 percentage points from the previous year [5][17] - Total costs and expenses decreased by 1% to $55.9 million, with cost of revenues down 10.7% to $28.4 million [18][19] Business Line Data and Key Metrics Changes - Average monthly active users (MAUs) increased by 8.1% year-over-year to 43.4 million, driven by user acquisition and AI-powered innovations [13] - Selling and marketing expenses rose by 30.3% to $9.6 million, reflecting higher advertising costs for user acquisition [19] - Technology and product development expenses increased by 21.4% to $8.6 million, due to higher salaries and benefits for staff [20] Market Data and Key Metrics Changes - The Middle East gaming market is projected to reach approximately $7.1 billion in 2025, with a year-over-year growth rate of 75% [5] - The company is focusing on expanding its presence in both the MENA region and new markets, leveraging successful game titles [30] Company Strategy and Development Direction - The company aims to capture the growing digital entertainment ecosystem in the MENA region and enhance its product portfolio [6] - A dual-track strategy is being implemented, focusing on self-developed titles and game distribution partnerships [35] - The company plans to maintain a similar level of share repurchases in 2026 as in 2025, with a commitment to maximizing shareholder value [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the gaming market and the company's ability to innovate and adapt [5][12] - The outlook for Q4 2025 anticipates revenues between $78 million and $85 million, with expectations for new business initiatives to contribute more significantly in the following quarters [24][42] - Full-year 2025 net margin is expected to reach about 40%, with continued investment in R&D to support long-term growth [42] Other Important Information - The company has repurchased over 7.7 million ADS or Class A ordinary shares, totaling $51.9 million, achieving its full-year repurchase commitment ahead of schedule [10][40] - Yalla Group celebrated its fifth anniversary of public listing, marking significant growth and achievements in the past five years [11] Q&A Session Summary Question: Can Management brief us on the advancements in mid-core and hardcore games? - Management highlighted the soft launch of two match-three titles, Turbo Match and a roguelike product, with plans for further investment based on positive test results [26][27] Question: How should we think about the strategic role of our match game? - Management indicated that match-three games serve as an entry point for exploring new regional markets, with plans to increase marketing budgets in high-performing areas [29][30] Question: Could Management share the company's upcoming gaming strategy? - The company is focusing on casual and mid-core game segments, with a dual-track strategy for self-developed titles and game distribution partnerships [34][35] Question: Can we get Management's view on the quarterly performance of flagship products? - Both flagship products, Yalla and Yalla Ludo, achieved significant breakthroughs, with expectations for stable business scale and continued growth through new features [37][38] Question: Could Management outline the plans for future shareholder returns? - The company plans to maintain a similar level of share repurchase in 2026 and remains committed to prioritizing shareholder interests [39][40]

Core Insights - Yalla Group Limited reported strong financial results for Q3 2025, with revenues of US$89.6 million, a 0.8% increase from US$88.9 million in Q3 2024, driven by a broader user base and enhanced monetization capabilities [10][17] - The company achieved a net income of US$40.7 million, reflecting a 3.9% increase year-over-year, with a net margin of 45.4%, up 1.4 percentage points from the previous year [6][23] - Average monthly active users (MAUs) increased by 8.1% year-over-year to 43.4 million, while the number of paying users decreased by 9.7% to 11.4 million [17] Financial Performance - Revenues from chatting services were US$55.5 million, while revenues from gaming services were US$33.8 million in Q3 2025 [11] - Total costs and expenses decreased by 1.0% to US$55.9 million, with a notable 10.7% reduction in cost of revenues to US$28.4 million [12][13] - Selling and marketing expenses rose by 30.3% to US$9.6 million, attributed to increased advertising and user acquisition efforts [14] Non-GAAP Measures - Non-GAAP net income for Q3 2025 was US$43.1 million, a 1.2% increase from US$42.6 million in Q3 2024, with a non-GAAP net margin of 48.1% [24] - Non-GAAP operating income increased to US$36.2 million, a 0.7% rise from US$35.9 million in the same quarter last year [19] Shareholder Returns - The company returned US$51.9 million to shareholders through its share repurchase program in 2025, with a total of US$150 million planned for the current program [9][28] - As of November 7, 2025, Yalla had completed cash repurchases of approximately US$101.4 million since the inception of the program [28] Future Outlook - For Q4 2025, Yalla expects revenues to be between US$78.0 million and US$85.0 million, based on current market conditions [29]

Core Insights - Yalla Group Limited, the largest MENA-based online social networking and gaming company, will report its unaudited financial results for Q3 2025 on November 10, 2025, after U.S. market close [1][2]. Company Overview - Yalla Group Limited operates two main mobile applications: Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming app featuring online board games popular in MENA [3]. - The company has expanded its offerings through its subsidiary, Yalla Game Limited, focusing on mid-core and hard-core games in the MENA region, leveraging local expertise to provide innovative gaming content [3]. - Yalla's ecosystem includes additional products like YallaChat, an IM product for Arabic users, and WeMuslim, which supports Arabic customs, along with casual games designed to foster local gaming communities [3]. - The company is also exploring opportunities outside MENA with Yalla Parchis, a Ludo game aimed at South American markets [3].