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Yalla Group Limited Announces Unaudited Second Quarter 2026 Financial Results

Yalla Group Limited Announces Unaudited Second Quarter 2026 Financial Results


DUBAI, UAE, Aug. 17, 2026 /PRNewswire/ — Yalla Group Limited (“Yalla” or the “Company”) (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Financial and Operating Highlights

  • Revenues were US$82.6 million in the second quarter of 2026, compared with US$84.6 million in the second quarter of 2025.
    • Revenues generated from chatting services in the second quarter of 2026 were US$47.4 million.
    • Revenues generated from games services in the second quarter of 2026 were US$34.2 million.
  • Net income was US$29.3 million in the second quarter of 2026, compared with US$36.5 million in the second quarter of 2025. Net margin[1] was 35.5% in the second quarter of 2026.
  • Non-GAAP net income[2] was US$34.4 million in the second quarter of 2026, compared with US$39.4 million in the second quarter of 2025. Non-GAAP net margin[3] was 41.7% in the second quarter of 2026.
  • Average MAUs[4] increased by 12.3% to 47.6 million in the second quarter of 2026, compared with 42.4 million in the second quarter of 2025.
  • The number of paying users[5] was 10.9 million in the second quarter of 2026, compared with 11.2 million in the second quarter of 2025.

Key Operating Data

For the three months ended



June 30, 2025



June 30, 2026








Average MAUs (in thousands)


42,421




47,625








Paying users (in thousands)


11,186




10,861


[1] Net margin is net income as a percentage of revenues.

[2] Non-GAAP net income represents net income excluding share-based compensation. Non-GAAP net income is a non-GAAP financial measure. See the sections titled “Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this press release.

[3] Non-GAAP net margin is non-GAAP net income as a percentage of revenues.

[4] “Average MAUs” refers to the average monthly active users in a given period, calculated by dividing (i) the sum of active users for each month of such period by (ii) the number of months in such period. “Active users” refers to registered users who accessed any of our main mobile applications at least once during a given period; main mobile applications are mobile applications that have exceeded the 0.5 million average MAUs threshold at least once.

[5] “Paying users” refers to registered users who played a game or purchased our virtual items or upgraded services using virtual currencies on our main mobile applications at least once in a given period, except for users who received all of their virtual currencies directly or indirectly from us for free. “Registered users” refers to users who have registered accounts on our main mobile applications as of a given time; a registered user is not necessarily a unique user, as an individual may register multiple accounts on our main mobile applications.

“We delivered solid results across our flagship products and growing momentum in our gaming business in the second quarter of 2026,” said Mr. Tao Yang, Founder, Chairman and CEO of Yalla. “Our revenues exceeded the upper end of our guidance, driven by an 11.6% year-over-year increase in revenues from games services. Meanwhile, our core products continued to build momentum, with refined operations and targeted marketing driving a sequential rebound in paying users for Yalla Ludo and a 12.3% year-over-year increase in overall average MAUs to 47.6 million.

“Beyond the sustained strength of our flagship products, we made progress in expanding our gaming ecosystem. Our new games, including our first self-developed match-3 title and desert-themed SLG title, continued to advance smoothly with a clear roadmap taking shape for the next stage of development. We also continued to strengthen our pipeline of self-developed products, spanning casual games, hyper-casual games, social products and AI applications, designed to maximize the synergy between our social and gaming ecosystems. Building on years of deep-rooted expertise in MENA, we will continue to unlock local opportunities and broaden our reach globally through strategic partnerships to deliver sustainable growth for our shareholders.”

Ms. Karen Hu, CFO of Yalla, commented, “In the second quarter of 2026, we continued to pursue high-quality development while maintaining solid profitability. Total revenues were US$82.6 million, with revenues from games services growing to US$34.2 million, increasing the segment’s contribution to 41.4%. While doubling our selling and marketing expenses year over year to support the promotion of new products, we maintained a healthy non-GAAP net margin of 41.7% through increased efficiency. Our balance sheet and cash flow remain ample to support our investments in business expansion as well as consistent shareholder returns. Going forward, we will continue to invest in long-term growth while driving value creation.”

Second Quarter 2026 Financial Results

Revenues

Revenues were US$82.6 million in the second quarter of 2026, compared with US$84.6 million in the second quarter of 2025, primarily due to a decrease in paying users attributable to the impact of recent geopolitical events in the broader region, partially offset by an increase in revenues from games services.

In the second quarter of 2026, revenues generated from chatting services were US$47.4 million, and revenues from games services were US$34.2 million.

Costs and expenses

Total costs and expenses were US$63.2 million in the second quarter of 2026, compared with US$53.9 million in the second quarter of 2025.

Cost of revenues was US$26.8 million in the second quarter of 2026, a 4.1% decrease from US$27.9 million in the second quarter of 2025, primarily due to lower commission fees paid to third-party payment platforms. Cost of revenues as a percentage of total revenues decreased to 32.4% in the second quarter of 2026 from 33.0% in the second quarter of 2025.

Selling and marketing expenses were US$17.8 million in the second quarter of 2026, a 106.0% increase from US$8.7 million in the second quarter of 2025, primarily due to higher advertising and market promotion expenses attributable to the Company’s continued user acquisition efforts and support for new games. Selling and marketing expenses as a percentage of total revenues increased to 21.6% in the second quarter of 2026 from 10.2% in the second quarter of 2025.

General and administrative expenses were US$8.6 million in the second quarter of 2026, a 4.0% decrease from US$9.0 million in the second quarter of 2025, primarily due to a decrease in incentive compensation, partially offset by an increase in foreign exchange loss. General and administrative expenses as a percentage of total revenues slightly decreased to 10.5% in the second quarter of 2026 from 10.6% in the second quarter of 2025.

Technology and product development expenses were US$9.9 million in the second quarter of 2026, an 18.9% increase from US$8.3 million in the second quarter of 2025, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in headcount to support the development of new businesses and our product portfolio expansion. Technology and product development expenses as a percentage of total revenues increased to 12.0% in the second quarter of 2026 from 9.9% in the second quarter of 2025.

Operating income

Operating income was US$19.4 million in the second quarter of 2026, compared with US$30.6 million in the second quarter of 2025.

Non-GAAP operating income[6]

Non-GAAP operating income in the second quarter of 2026 was US$24.5 million, compared with US$33.5 million in the second quarter of 2025.

Interest income

Interest income was US$5.4 million in the second quarter of 2026, compared with US$6.8 million in the second quarter of 2025.

Investment income

Investment income was US$5.1 million in the second quarter of 2026, compared with US$0.02 million in the second quarter of 2025, primarily due to changes in the fair value of wealth management products.

Income tax expense

Income tax expense was US$0.6 million in the second quarter of 2026, compared with US$1.5 million in the second quarter of 2025.

Net income

Net income was US$29.3 million in the second quarter of 2026, compared with US$36.5 million in the second quarter of 2025.

Non-GAAP net income

Non-GAAP net income in the second quarter of 2026 was US$34.4 million, compared with US$39.4 million in the second quarter of 2025.

Earnings per ordinary share

Basic and diluted earnings per ordinary share were US$0.21 and US$0.18, respectively, in the second quarter of 2026, while basic and diluted earnings per ordinary share were US$0.24 and US$0.20, respectively, in the second quarter of 2025.

Non-GAAP earnings per ordinary share[7]

Non-GAAP basic and diluted earnings per ordinary share were US$0.24 and US$0.21, respectively, in the second quarter of 2026, compared with US$0.25 and US$0.22, respectively, in the second quarter of 2025.

Cash and cash equivalents, restricted cash, term deposits and short-term investments

As of June 30, 2026, the Company had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$824.2 million, compared with US$754.6 million as of December 31, 2025.

[6] Non-GAAP operating income represents operating income excluding share-based compensation. Non-GAAP operating income is a non-GAAP financial measure. See the sections titled “Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this press release.             

[7] Non-GAAP earnings per ordinary share is non-GAAP net income attributable to Yalla Group Limited’s shareholders, divided by the weighted average number of basic and diluted shares outstanding. Non-GAAP net income attributable to Yalla Group Limited’s shareholders represents net income attributable to Yalla Group Limited’s shareholders, excluding share-based compensation. Non-GAAP earnings per ordinary share and non-GAAP net income attributable to Yalla Group Limited’s shareholders are non-GAAP financial measures. See the sections titled “Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this press release.

Share Repurchase Program

Under the Company’s two share repurchase programs launched in 2021 and 2026 (the “2021 Program” and the “2026 Program”), the Company repurchased 4,357,024 American depositary shares (“ADSs”), representing 4,357,024 Class A ordinary shares, for an aggregate amount of approximately US$27.6 million in the first half of 2026. Of this number, 2,896,035 ADSs, representing 2,896,035 Class A ordinary shares, were repurchased during the second quarter of 2026, for an aggregate amount of approximately US$18.0 million.

The 2021 Program expired on May 21, 2026. Under the 2021 Program, the Company was authorized to repurchase up to US$150 million worth of its outstanding ADSs and/or Class A ordinary shares, and the Company repurchased a cumulative total of 18,762,758 ADSs, representing 18,762,758 Class A ordinary shares, from the open market with cash for an aggregate amount of approximately US$126.5 million.

In addition, the Company had cancelled 12,734,059 ADSs, representing 12,734,059 Class A ordinary shares, as of August 14, 2026. The Company will continue executing its 2026 Program, under which the Company may repurchase up to US$150 million worth of its outstanding ADSs and/or Class A ordinary shares over the 24 months starting from March 9, 2026.

Outlook

For the third quarter of 2026, Yalla currently expects revenues to be between US$78.0 million and US$85.0 million.

The above outlook is based on current market conditions and reflects the Company management’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Conference Call

Yalla Group Limited will hold a conference call on Monday, August 17, 2026, at 8:00 PM Eastern Time, 4:00 AM Dubai Time on Tuesday, August 18, 2026, or 8:00 AM Beijing Time on Tuesday, August 18, 2026, to discuss the financial results.

Participants should complete online registration using the link provided below before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.

Event Title:               Yalla Group Ltd. Second Quarter 2026 Earnings Conference Call
Registration Link:     https://register-conf.media-server.com/register/BIa9b95130104d40aa9a598586197e750b

Additionally, a live webcast of the conference call will be available on the Company’s investor relations website at https://ir.yalla.com, and a replay of the webcast will be available following the session.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP financial measures, namely non-GAAP operating income, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per ordinary share, as supplemental measures to review and assess the Company’s operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP operating income as operating income excluding share-based compensation. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net margin as non-GAAP net income as a percentage of revenues. We define non-GAAP net income attributable to Yalla Group Limited’s shareholders as net income attributable to Yalla Group Limited’s shareholders, excluding share-based compensation. We define non-GAAP earnings per ordinary share as non-GAAP net income attributable to Yalla Group Limited’s shareholders, divided by the weighted average number of basic and diluted shares outstanding.

By excluding the impact of share-based compensation expenses, which are non-cash charges, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. Investors can better understand the Company’s operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess its core operating results, as they exclude share-based compensation expenses, which are not expected to result in cash payments. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation has been and may continue to be incurred in the Company’s business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of GAAP and non-GAAP results are set forth at the end of this press release.

About Yalla Group Limited

Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues in 2022. The Company operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games, popular in MENA, with in-game voice chat and localized Majlis functionality. Building on the success of Yalla and Yalla Ludo, the Company continues to add engaging new content, creating a regionally-focused, integrated ecosystem dedicated to fulfilling MENA users’ evolving online social networking and gaming needs. Through its holding subsidiary, Yalla Game Limited, the Company has expanded its capabilities in mid-core and hard-core games in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets. Yalla’s mobile applications deliver a seamless experience that fosters a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users.

For more information, please visit: https://ir.yalla.com.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Statements that are not historical facts, including statements about Yalla Group Limited’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Yalla Group Limited’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Yalla Group Limited does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Yalla Group Limited
Investor Relations
Kerry Gao – IR Director
Tel: +86-571-8980-7962
Email: [email protected]

Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
Email: [email protected]

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: [email protected]

YALLA GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS




As of




December 31,
2025



June 30,
2026




US$



US$


ASSETS







Current assets







Cash and cash equivalents



526,972,019




268,371,117


Restricted cash



1,625,525




1,797,132


Term deposits



84,800,000




217,427,135


Short-term investments



141,251,128




336,596,144


Prepayments and other current assets



41,659,226




31,167,184


Total current assets



796,307,898




855,358,712


Non-current assets







Property and equipment, net



14,976,818




15,146,724


Intangible asset, net



728,348




663,976


Operating lease right-of-use assets



1,902,655




4,840,602


Long-term investments



82,053,772




57,821,227


Other assets



250,000




858,516


Total non-current assets



99,911,593




79,331,045


Total assets



896,219,491




934,689,757









LIABILITIES







Current liabilities







Accounts payable



1,066,625




1,059,103


Deferred revenue, current



55,178,093




52,493,495


Operating lease liabilities, current



357,525




1,781,737


Amounts due to a related party



44,177




15,264


Income taxes payable



1,319,111




2,325,945


Accrued expenses and other current liabilities



30,350,120




25,363,411


Total current liabilities



88,315,651




83,038,955


Non-current liabilities







Deferred revenue, non-current



1,837,543




1,453,259


Operating lease liabilities, non-current



1,095,245




2,686,922


Deferred tax liabilities



2,924,137




2,885,096


Total non-current liabilities



5,856,925




7,025,277


Total liabilities



94,172,576




90,064,232









EQUITY







Shareholders’ equity of Yalla Group Limited







Class A Ordinary Shares



13,441




13,441


Class B Ordinary Shares



2,473




2,473


Additional paid-in capital



339,199,644




349,196,164


Treasury stock



(42,497,929)




(66,242,824)


Accumulated other comprehensive (loss) income



(1,636,586)




668,175


Retained earnings



515,197,658




572,215,132


Total shareholders’ equity of Yalla Group Limited



810,278,701




855,852,561


Non-controlling interests



(8,231,786)




(11,227,036)


Total equity



802,046,915




844,625,525


Total liabilities and equity



896,219,491




934,689,757


YALLA GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

OF OPERATIONS




Three Months Ended



Six Months Ended




June 30,
2025



March 31,
2026



June 30,
2026



June 30,
2025



June 30,
2026




US$



US$



US$



US$



US$


Revenues



84,564,086




79,006,789




82,608,696




168,440,853




161,615,485


Costs and expenses
















Cost of revenues



(27,944,596)




(26,473,813)




(26,802,984)




(57,145,019)




(53,276,797)


Selling and marketing expenses



(8,661,573)




(9,722,665)




(17,841,216)




(15,604,841)




(27,563,881)


General and administrative expenses



(9,002,347)




(10,251,576)




(8,642,276)




(17,697,655)




(18,893,852)


Technology and product development expenses



(8,338,195)




(9,097,323)




(9,915,355)




(16,166,332)




(19,012,678)


Total costs and expenses



(53,946,711)




(55,545,377)




(63,201,831)




(106,613,847)




(118,747,208)


Operating income



30,617,375




23,461,412




19,406,865




61,827,006




42,868,277


Interest income



6,791,492




5,884,059




5,446,054




13,352,672




11,330,113


Government grants



603,115




67,165




4,699




666,548




71,864


Investment income (loss)



21,758




(432,522)




5,090,505




4,056




4,657,983


Income before income taxes



38,033,740




28,980,114




29,948,123




75,850,282




58,928,237


Income tax expense



(1,531,310)




(620,089)




(619,210)




(2,968,387)




(1,239,299)


Net income



36,502,430




28,360,025




29,328,913




72,881,895




57,688,938


Net loss attributable to non-controlling interests



269,782




575,459




2,434,355




981,717




3,009,814


Net income attributable to Yalla Group
Limited’s shareholders



36,772,212




28,935,484




31,763,268




73,863,612




60,698,752


Earnings per ordinary share
















——Basic



0.24




0.19




0.21




0.47




0.40


——Diluted



0.20




0.16




0.18




0.41




0.34


Weighted average number of shares
outstanding used in computing earnings per
ordinary share
















——Basic



155,958,658




152,975,006




150,945,883




157,604,992




151,954,839


——Diluted



180,765,359




177,171,652




175,048,711




181,508,856




176,104,576























Share-based compensation was allocated in cost of revenues, selling and marketing expenses, general and administrative expenses and
technology and product development expenses as follows:
























Three Months Ended



Six Months Ended




June 30,
2025



March 31,
2026



June 30,
2026



June 30,
2025



June 30,
2026




US$



US$



US$



US$



US$


Cost of revenues



1,328,152




2,150,971




2,391,819




2,654,237




4,542,790


Selling and marketing expenses



170,304




440,566




425,808




341,332




866,374


General and administrative expenses



1,328,931




2,161,700




2,097,097




2,459,438




4,258,797


Technology and product development expenses



20,670




146,087




182,472




140,144




328,559


Total share-based compensation expenses



2,848,057




4,899,324




5,097,196




5,595,151




9,996,520


YALLA GROUP LIMITED

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS




Three Months Ended



Six Months Ended




June 30,
2025



March 31,
2026



June 30,
2026



June 30,
2025



June 30,
2026




US$



US$



US$



US$



US$


Operating income



30,617,375




23,461,412




19,406,865




61,827,006




42,868,277


Share-based compensation expenses



2,848,057




4,899,324




5,097,196




5,595,151




9,996,520


Non-GAAP operating income



33,465,432




28,360,736




24,504,061




67,422,157




52,864,797


















Net income



36,502,430




28,360,025




29,328,913




72,881,895




57,688,938


Share-based compensation expenses,
net of tax effect of nil



2,848,057




4,899,324




5,097,196




5,595,151




9,996,520


Non-GAAP net income



39,350,487




33,259,349




34,426,109




78,477,046




67,685,458


















Net income attributable to Yalla Group
Limited’s shareholders



36,772,212




28,935,484




31,763,268




73,863,612




60,698,752


Share-based compensation expenses, net of
tax effect of nil



2,848,057




4,899,324




5,097,196




5,595,151




9,996,520


Non-GAAP net income attributable to
Yalla Group Limited’s shareholders



39,620,269




33,834,808




36,860,464




79,458,763




70,695,272


















Non-GAAP earnings per ordinary share
















——Basic



0.25




0.22




0.24




0.50




0.47


——Diluted



0.22




0.19




0.21




0.44




0.40


Weighted average number of shares
outstanding used in computing earnings
per ordinary share
















——Basic



155,958,658




152,975,006




150,945,883




157,604,992




151,954,839


——Diluted



180,765,359




177,171,652




175,048,711




181,508,856




176,104,576


SOURCE Yalla Group Limited

Yalla Group Limited Announces Unaudited Second Quarter 2026 Financial Results