Aurora Mobile's Q3 2025: Contradictions Emerge on EngageLab Growth, Profitability vs. Growth Investments, and Global Expansion Focus

Date of Call: November 13, 2025

Financials Results

• Revenue: RMB 19.9 million, up 15% YOY and up 1% sequential

Guidance:

• Q4 2025 revenue expected to be RMB 94 million to RMB 96 million, up ~1%–3% YOY.
• Management expects EngageLab revenue momentum to continue over the next 12–24 months.
• Board authorized share repurchase program up to US$10 million over 12 months (100% increase), to be funded from existing cash.

Business Commentary:

• Revenue Growth and Key Product Performance:
• Aurora Mobile reported revenue of RMB 19.9 million for Q3, achieving a 15% year-over-year and 1% sequential growth.

• The growth was driven by the strong performance of its global flagship product, EngageLab, which recorded a 160% year-over-year increase in ARR.

• Financial Risk Management and Operational Efficiency:

• 
• The Financial Risk Management business recorded its highest quarterly revenue of RMB 22.6 million, with a 33% year-over-year growth.

• This growth was due to a strong 44% increase in customer numbers, reflecting operational efficiency and effective customer acquisition strategies.

• Cash Flow and Profitability:

• Aurora Mobile achieved a net operating cash inflow of RMB 23.3 million, marking the highest level since Q4 2020.

• This positive cash flow is attributed to strong business performance, gross profit growth, and effective expense management.

• Gross Profit and Margin Improvement:

• Gross profit grew by 20% year-over-year and achieved its highest level in 15 quarters.
• The improvement in gross margin is due to high-margin revenue contributions and operational efficiency.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management highlighted back-to-back GAAP net profit, group revenue +15% YOY, EngageLab ARR RMB 53.7M (+160% YOY), gross profit +20% YOY (highest in 15 quarters), and net operating cash inflow of RMB 23.3M (best since Q4 2020).

Q&A:

• Question from Calvin Wong (Spicer Capital): Based on my reading of the earnings release, I noticed the strength of EngageLab business and how it strengthened the group's financial results. So I would appreciate if management could tell us more about EngageLab and why the growth trajectory has been so strong since day 1?
  Response: EngageLab's growth is driven by continuous product improvements and one-stop multi-channel engagement (app/web push, email, SMS, WhatsApp, OTP), heavy investment in global infrastructure (8 data centers, new Turkey center), strong customer service, broad international adoption and ARR of RMB 53.7M (+160% YOY).

• Question from Jack Sun (Gelonghui Research): Help me to recap what went well in Q3 that delivered another quarter with GAAP net profit?
  Response: Strong top-line across all segments (group revenue +15% YOY), high-margin mix leading to gross profit +20% YOY, OpEx growth (12.8% YOY) controlled below revenue growth, NDR 104%, high deferred revenue RMB 166.3M and strong operating cash inflow drove the second consecutive GAAP profit.

Contradiction Point 1

EngageLab's Growth Trajectory

It involves differing expectations and explanations regarding the growth trajectory of EngageLab, a strategic business line, which impacts investor perceptions of the company's growth potential.

Can you elaborate on EngageLab and why its growth has been strong from the outset? - Calvin Wong (Spicer Capital)

2025Q3: EngageLab has grown significantly since its inception, with an ARR of RMB 53.7 million in September 2025, a 160% increase from the previous year. The growth is due to continuous product improvements and a unique value proposition, offering a comprehensive engagement solution with effective customer service. - Shan-Nen Bong(CFO)

Can you discuss the current and future state of the EngageLab business? - Unidentified Analyst (Gelonghui Research)

2025Q2: EngageLab is the group's next growth engine, serving customers in 45 countries with a total signed contract amount of RMB 113 million and 67% year-on-year revenue growth. Its global market footprint is expanding, with localized presence in several regions. Both Chris and Shan-Nen are confident in EngageLab's growth trajectory due to its regional depth and technological advantage. - Shan-Nen Bong(CFO)

Contradiction Point 2

Quarterly GAAP Net Profit Sustainability

It involves differing expectations and explanations regarding the sustainability of quarterly GAAP net profit, which is a crucial financial metric for investors to assess the company's financial health.

What drove the Q3 success and GAAP net profit? - Jack Sun (Gelonghui Research)

2025Q3: The success of Q3 is attributed to strong revenue growth across all business lines, record-breaking financial performance in key areas such as gross profit and deferred revenue, and effective cash flow management. These factors, along with the strategic investment in global growth, have contributed to the overall positive financial outcomes. - Shan-Nen Bong(CFO)

What drove the strong Q2 results? Will quarterly GAAP net profit continue? - Unidentified Analyst (Speaker Capital)

2025Q2: The quarterly GAAP net profit in Q2 is attributed to these long-term capabilities and strategic execution, which will continue to improve performance in the future. - Shan-Nen Bong(CFO)

Contradiction Point 3

EngageLab Growth and Contract Value

It involves the growth trajectory and contract value of EngageLab, which are critical for understanding the company's revenue and growth strategy.

What has driven EngageLab's strong growth since its inception? - Calvin Wong(Spicer Capital)

2025Q3: EngageLab has grown significantly since its inception, with an ARR of RMB 53.7 million in September 2025, a 160% increase from the previous year. - Shan-Nen Bong(CFO)

Could management provide guidance on the EngageLab business outlook, given the newly signed contract value of RMB 60 million in Q1? - Calvin Wong(Spicer Capital)

2025Q1: We have achieved CNY 60 million in contract value in a single quarter, proving our ability to win big contracts globally. - Shan-Nen Bong(CFO)

Contradiction Point 4

Profitability and Investments in Growth

It involves the company's profitability and investments in growth, which are crucial for understanding the company's financial strategy and future prospects.

What drove the Q3 success and GAAP net profit? - Jack Sun(Gelonghui Research)

2025Q3: Our strong financial performance in the third quarter clearly demonstrates our ability to balance growth and profitability while investing in innovation and global expansion. - Shan-Nen Bong(CFO)

Your revenue grew 38% year-over-year, gross profit rose 27%, and adjusted EBITDA has been positive for seven consecutive quarters, yet the company remains unprofitable. When do you expect to achieve quarterly net profitability? - Marco Zhang(Gelonghui Research)

2025Q1: We are growing our revenue while increasing expenses for R&D and marketing. These investments are crucial for future growth. If we freeze these expenses now, we won't achieve net profit but will also hinder future growth. - Shan-Nen Bong(CFO)

Contradiction Point 5

Focus on Global Customers and Overseas Expansion

It involves shifts in the company's strategic focus, which can impact business growth and investor expectations.

What drove Q3's success and the GAAP net profit? - Jack Sun (Gelonghui Research)

2025Q3: The success of Q3 is attributed to strong revenue growth across all business lines, record-breaking financial performance in key areas such as gross profit and deferred revenue, and effective cash flow management. These factors, along with the strategic investment in global growth, have contributed to the overall positive financial outcomes. - Shan-Nen Bong(CFO)

What actions did management take to achieve the strong quarterly results? - William Chen (Spica Capital)

2024Q4: The focus on global customers and overseas expansion has been a key growth driver. - Shan-Nen Bong(CFO)