Yalla Group's stock plunged 7.59% in post-market trading on Monday, following the release of its fourth quarter and full year 2025 financial results.
The decline came after the Middle East and North Africa-based social networking and gaming company reported Q4 revenue of $83.9 million, which missed analyst estimates of $85.2 million and represented an 8% decrease from $90.8 million in the same period last year. A key concern for investors was the 15% drop in paying users to 10.4 million from 12.3 million a year earlier.
The company attributed the revenue decline to fewer promotional events held by third-party payment platforms. Despite the top-line miss, Yalla Group reported adjusted earnings per share of $0.21, up from $0.20 a year earlier, and announced a new share repurchase program authorizing up to $150 million in buybacks over the next 24 months. For the first quarter of 2026, the company expects revenue between $75 million and $82 million, citing the impact of Ramadan falling completely within the period.
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