Cheetah Mobile Reports Q2 2025 Earnings: Revenue Up 58% YoY, Operating Loss Down 86% YoY.

Cheetah Mobile's Q2 2025 earnings call highlights a 58% YoY revenue growth, driven by a 39% increase in internet business and an 86% increase in AI and other segments. Operating loss decreased 86% YoY, and non-GAAP operating loss was down 97% from last year, almost breakeven. Revenue grew by 47% YoY in H1 2025.

Cheetah Mobile Inc. (NYSE: CMCM) reported its unaudited consolidated financial results for the second quarter and six months ended June 30, 2025. The company saw a significant increase in revenue and improvements in profitability, highlighting its strategic transformation efforts. Here's a breakdown of the key financial highlights:

Second Quarter 2025 Financial Results

- Revenue: Total revenues grew by 57.5% year-over-year (YoY) and 14.0% quarter-over-quarter (QoQ), reaching RMB295.2 million (US$41.2 million) in the second quarter of 2025 Cheetah Mobile Announces Second Quarter 2025 Unaudited Consolidated Financial Results^[2].
- Gross Profit: Gross profit increased by 85.0% YoY and 18.6% QoQ, to RMB224.8 million (US$31.4 million) in the second quarter of 2025 Cheetah Mobile Announces Second Quarter 2025 Unaudited Consolidated Financial Results^[2].
- Operating Loss: The operating loss reduced by 85.7% YoY and 58.3% QoQ, to RMB11.1 million (US$1.5 million) in the second quarter of 2025 Cheetah Mobile Announces Second Quarter 2025 Unaudited Consolidated Financial Results^[2].
- Net Loss: Net loss attributable to Cheetah Mobile Shareholders decreased by 81.7% YoY and 32.1% QoQ, to RMB22.6 million (US$3.2 million) in the second quarter of 2025 Cheetah Mobile Announces Second Quarter 2025 Unaudited Consolidated Financial Results^[2].

Segment Performance

- Internet Business: Revenue from the Internet business grew by 39% YoY, contributing significantly to the overall revenue growth Cheetah Mobile Announces Second Quarter 2025 Unaudited Consolidated Financial Results^[2].
- AI and Others Segment: Revenue from the AI and others segment grew by 86.4% YoY, accounting for 46.5% of total revenue Cheetah Mobile Announces Second Quarter 2025 Unaudited Consolidated Financial Results^[2].

Management Comments

Mr. Sheng Fu, Chairman and CEO of Cheetah Mobile, highlighted the company's progress in transitioning to a subscription-based model for its Internet business, which resulted in growing user engagement and retention. The acquisition of UFACTORY, a robotic arm business, is expected to strengthen the company's robotics capabilities and expand its addressable market. Mr. Thomas Ren, CFO, emphasized the company's efforts in improving profitability through disciplined execution and enhanced operational efficiency. Both GAAP and non-GAAP losses narrowed significantly, reflecting progress in loss reduction efforts Cheetah Mobile Announces Second Quarter 2025 Unaudited Consolidated Financial Results^[2].

Six Months Ended June 30, 2025

- Revenue: Revenue grew by 47% YoY in the first half of 2025, reaching RMB554.22 million (US$77.3 million) Cheetah Mobile Inc. Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2025^[1].
- Net Loss: Net loss attributable to Cheetah Mobile Shareholders decreased by 58.8% YoY, to RMB56 million (US$7.8 million) Cheetah Mobile Inc. Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2025^[1].

Financial Position

As of June 30, 2025, Cheetah Mobile had cash and cash equivalents of RMB2,019.6 million (US$281.9 million), ensuring strong liquidity. The company generated RMB361.7 million (US$50.5 million) from its operating activities in the second quarter Cheetah Mobile Announces Second Quarter 2025 Unaudited Consolidated Financial Results^[2].

Cheetah Mobile's Q2 2025 earnings call underscores the company's commitment to sustainable growth and long-term shareholder value, driven by strategic transformations and operational improvements. Investors should closely monitor the company's future developments and earnings calls for further insights into its growth trajectory.