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PR Newswire·

Yalla Group Limited Announces Unaudited First Quarter 2026 Financial Results

  • Yalla Group Limited reported Q1 2026 revenues of US$79.0 million, a decrease from US$83.9 million in Q1 2025.
  • Chatting services generated US$48.1 million in Q1 2026, while games services contributed US$30.3 million.
  • Net income for Q1 2026 was US$28.4 million, down from US$36.4 million in the prior year period.
  • Non-GAAP net income for Q1 2026 stood at US$33.3 million, compared to US$39.1 million in Q1 2025.
  • Average monthly active users (MAUs) increased by 7.7% year-over-year to 48.0 million in Q1 2026.
  • The number of paying users decreased to 10.5 million in Q1 2026 from 11.8 million in Q1 2025.
  • Revenue decline was primarily attributed to a drop in paying users due to recent geopolitical events in the region.
  • Total costs and expenses rose to US$55.5 million in Q1 2026 from US$52.7 million in Q1 2025.
  • Selling and marketing expenses increased by 40.0% to US$9.7 million in Q1 2026 due to higher advertising costs.
  • General and administrative expenses grew by 17.9% to US$10.3 million in Q1 2026, driven by share-based compensation.
  • Technology and product development expenses rose 16.2% to US$9.1 million in Q1 2026 to support new business development.
  • Operating income for Q1 2026 was US$23.5 million, a decrease from US$31.2 million in Q1 2025.
  • The company repurchased approximately 1.46 million ADSs for US$9.7 million in Q1 2026 under its 2021 share repurchase program.
  • Cash, restricted cash, term deposits, and short-term investments totaled US$806.7 million as of March 31, 2026.
  • Yalla expects Q2 2026 revenues to range between US$75.0 million and US$82.0 million.
  • The company highlighted the official launch of a new SLG game and the progress of its match-3 game, Turbo Match, as key growth initiatives.
  • A partnership with the Saudi Esports Federation included serving as the Presenting Partner for the Yalla Saudi eLeague Women 2026.