Hello Group's Q2 2025 Earnings: Revenue Down 2.6%, EPS Misses Expectations

Hello Group reported Q2 2025 earnings with revenue down 2.6% to CN¥2.62b and a net loss of CN¥140.2m, a 135% decrease from Q2 2024. EPS missed analyst estimates, while revenue is forecast to grow 3.0% p.a. over the next 3 years. The company's shares are down 8.5% from last week.

Hello Group Inc. (MOMO) reported its Q2 2025 earnings, revealing a significant miss in earnings per share (EPS) against expectations. The company posted an EPS of -0.84, falling short of the forecasted 1.66, marking a surprise of -150.6%. Despite the revenue slightly exceeding expectations at 2.62 billion RMB versus the forecasted 2.58 billion RMB, the market reacted negatively. In premarket trading, the stock fell by 12.56% to 7.1, reflecting investor concerns over the earnings miss Earnings call transcript: Hello Group Q2 2025 results miss forecasts^[1].

Hello Group's overall performance in Q2 2025 showed mixed results. The company achieved a total revenue of 2.62 billion RMB, a 3% year-over-year decline but a 4% increase from the previous quarter. Domestic revenue was down by 11% year-over-year, reflecting ongoing challenges in the Chinese social entertainment market. However, overseas revenue grew by 17.3%, highlighting the potential in international markets Earnings call transcript: Hello Group Q2 2025 results miss forecasts^[1].

The company's non-GAAP net loss was 96.0 million RMB, an improvement from 449.2 million RMB in Q2 2024. Adjusted operating income was 448 million RMB, down 6% from Q2 2024, with a margin of 17.1%. The company's EPS of -0.84 was significantly below the forecasted 1.66, resulting in a -150.6% surprise. This miss marks a notable deviation from expectations and contrasts with the company’s historical performance, where earnings typically aligned more closely with forecasts Earnings call transcript: Hello Group Q2 2025 results miss forecasts^[1].

Looking ahead, Hello Group forecasts Q3 2025 revenue between 2.59 billion RMB and 2.69 billion RMB. The company anticipates a mid-to-low teens decline in domestic business, while overseas revenue is expected to grow by mid-60s. Continued emphasis on AI and product innovation is central to the company’s strategy moving forward Earnings call transcript: Hello Group Q2 2025 results miss forecasts^[1].

The market reacted swiftly to Hello Group’s earnings announcement. In premarket trading, the company’s stock fell by 12.56%, dropping to 7.1. This decline reflects investor concerns over the substantial EPS miss, despite a slight revenue beat. The stock’s movement is significant compared to its 52-week range, with the current price closer to its low of 5.05 than its high of 9.22 Earnings call transcript: Hello Group Q2 2025 results miss forecasts^[1].

Hello Group Inc. faces several challenges, including continued macroeconomic pressures in China, sustaining growth in overseas markets, regulatory changes, and innovation dependency. The company is focusing on AI-driven product innovations to address these challenges and drive growth in the long term Earnings call transcript: Hello Group Q2 2025 results miss forecasts^[1].

References:
Earnings call transcript: Hello Group Q2 2025 results miss forecasts^[1]: Investing.com, "Hello Group Inc. (MOMO) Q2 2025 Earnings Call Transcript," accessed September 10, 2025.