Core Viewpoint - Yalla Group, the largest online social and gaming company in the MENA region, reported strong financial performance for Q3 2025, with revenues exceeding expectations and a focus on high-quality growth through operational efficiency and product optimization [1][2]. Financial Performance - For Q3 2025, Yalla Group achieved total revenue of $89.636 million, with social services contributing $55.459 million and gaming services contributing $33.798 million [1]. - The company reported a net profit of $40.724 million, reflecting a year-on-year growth of 3.9%, with a net profit margin of 45.4%, an increase of 1.4 percentage points from the previous year [1][2]. Shareholder Returns - As of November 7, 2025, Yalla Group returned approximately $51.90 million to shareholders through a stock buyback program, exceeding its initial target of $50 million for the year [2]. - The company is continuing its $150 million buyback plan and plans to establish a new long-term shareholder return strategy after its completion [2]. Business Expansion - The gaming segment is identified as a key driver for market expansion, with the soft launch of the first match-3 game, Turbo Match, on Android showing promising initial user acquisition and retention [2]. - Yalla Group plans to release additional games, including a self-developed roguelike game and strategy games in collaboration with top studios, to strengthen its presence in the MENA gaming market [2]. Future Outlook - Yalla Group anticipates Q4 2025 revenues to be between $78 million and $85 million [3].

Core Insights - Yalla Group reported strong Q3 2025 performance with revenues of $89.64 million, exceeding guidance [1] - The company achieved a net profit of $40.72 million, a year-on-year increase of 3.9%, with a net profit margin of 45.4% [1] - The gaming segment is a key driver for market expansion, with new game releases planned to enhance user engagement [1] Financial Performance - Q3 2025 revenue breakdown: social services revenue was $55.46 million, and gaming services revenue was $33.80 million [1] - The net profit margin increased by 1.4 percentage points year-on-year, reaching 45.4% [1] - The company returned approximately $51.90 million to shareholders through a stock buyback program, exceeding its initial target of $50 million [1] Future Outlook - Yalla Group expects Q4 2025 revenue to be between $78 million and $85 million [2] - The company plans to continue executing its $150 million stock buyback program and aims to create sustainable long-term value for investors [1]

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]

This presentation contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers about the future. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in th ...

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]