Yalla Group Ltd (YALA) Plunges 10.1% After Canceling Share Buyback

Yalla Group Ltd (YALA) experienced a significant drop of 10.1% in pre-market trading on May 20, 2025, marking a notable decline in its stock performance.

Yalla Group reported a 6.5% increase in revenue for the first quarter of 2025, reaching US$83.9 million. This growth was accompanied by a 17.0% increase in net income, which amounted to US$36.4 million. Despite rising operational costs and economic challenges, the company unveiled a $50 million share buyback program, demonstrating its commitment to returning value to shareholders. However, the company later decided to cancel all shares repurchased this year, citing a strategic shift in its capital allocation strategy.

During the earnings call, Yalla Group's management highlighted the company's strong financial performance and strategic initiatives. The call provided insights into the company's revenue growth, net income, and operational strategies, offering a comprehensive view of its financial health and future prospects. The company's decision to cancel the share buyback program was a significant development, reflecting its focus on long-term growth and sustainability.