Yalla Group's stock plummeted 9.28% in pre-market trading on Tuesday, following the release of its fourth-quarter financial results.
The Middle East and North Africa-based social networking and gaming company reported Q4 2025 revenue of $83.9 million, representing an 8% year-over-year decline and missing analyst estimates. 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.
Comments