Yalla Group (YALA.US) Q3 Revenue Beats Estimates, Paying Users Decline 9.7% YoY

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Yalla Group (YALA.US), the largest online social networking and gaming company in the Middle East and North Africa (MENA) region, reported unaudited financial results for Q3 2025, ending September 30, 2025. The company posted revenue of $89.6 million, up 0.8% year-over-year (YoY), surpassing market expectations. Non-GAAP diluted earnings per share (EPS) stood at $0.23, compared to $0.22 in the same period last year.

Net profit rose 3.9% YoY to $40.7 million, with a net profit margin of 45.4%. Non-GAAP net profit reached $43.1 million, representing a Non-GAAP net profit margin of 48.1%.

Revenue breakdown showed chat services contributed $55.5 million, while gaming services generated $33.8 million. Cost of revenue declined 10.7% to $28.4 million.

Average monthly active users (MAUs) grew 8.1% to 43.4 million, but paying users dropped 9.7% YoY to 11.4 million. As of September 30, 2025, Yalla Group held $739.5 million in cash, cash equivalents, and short-term investments.

The company repurchased $51.9 million worth of American Depositary Shares (ADS) in 2025, bringing total buybacks to $101.4 million. For Q4 2025, Yalla Group expects revenue between $78 million and $85 million, below analysts' average estimate of $88.7 million.

Following the earnings release, the stock fell 1.56% in after-hours trading to $7.531 per share.

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