Core Viewpoint - Hello Group Inc. reported a decline in net income and operating profit for the second quarter of 2025, despite a significant increase in overseas revenue, indicating challenges in its domestic operations and cost management [2][3][6]. Financial Performance - For Q2 2025, total net revenues were RMB 26.2 billion (approximately USD 3.66 billion), a decrease of 2.6% from RMB 26.91 billion in Q2 2024 [5][6]. - The operating profit for Q2 2025 was RMB 4.04 billion (approximately USD 563 million), down 5.9% from RMB 4.25 billion in the same period last year [11][13]. - Net loss for Q2 2025 was RMB 1.39 billion (approximately USD 195 million), compared to a net profit of RMB 3.98 billion in Q2 2024, marking a decline of 145.5% [14][16]. Revenue Breakdown - Domestic revenue for Q2 2025 was RMB 21.779 billion (approximately USD 3 billion), a decrease of 10.56% from RMB 24.351 billion in Q2 2024, primarily due to declines in revenue from Momo and Tantan apps [6][9]. - Overseas revenue reached RMB 4.42 billion (approximately USD 618 million), a significant increase of 72.7% from RMB 2.563 billion in the previous year, driven by growth from Souchill and emerging brand revenues [6][10]. Cost and Expenses - Total costs and expenses for Q2 2025 were RMB 22.28 billion (approximately USD 3.11 billion), a decrease of 2.1% from RMB 22.75 billion in Q2 2024 [7][9]. - The reduction in costs was attributed to ongoing cost control measures and a decrease in marketing expenses for Tantan, although this was partially offset by increased marketing costs for overseas applications [10]. Tax and Liabilities - The company recorded a significant increase in income tax expenses for Q2 2025, amounting to RMB 6.384 billion (approximately USD 891 million), compared to RMB 1.026 billion in Q2 2024, due to a tax rate adjustment for Momo Beijing [13]. - As of June 30, 2025, total liabilities were RMB 55.22 billion (approximately USD 7.7 billion), while shareholder's equity stood at RMB 110 billion (approximately USD 15.35 billion) [19]. Future Outlook - Hello Group Inc. expects total net revenues for Q3 2025 to be between RMB 25.9 billion and RMB 26.9 billion, reflecting a year-over-year decline of 3.2% to a growth of 0.6% [20].