Yalla Group, the largest online social networking and gaming company in the Middle East and North Africa, announced its unaudited financial results for the fourth quarter and full year of 2025. Fourth-quarter revenue reached $83.9 million, falling short of market expectations. Net profit was $34.5 million, a year-over-year increase of 6.2%, with a net profit margin of 41.2%. Revenue from chat services in the quarter was $53.8 million, while gaming services contributed $29.5 million. For the full year 2025, total revenue stood at $341.9 million, with a net profit of $148.1 million and a net profit margin of 43.3%. The stock declined 4.57% in after-hours trading.
Operational data showed that monthly active users in the fourth quarter grew 8.2% year-over-year to 44.8 million, compared to 41.4 million in the same period of 2024. However, the number of paying users decreased to 10.4 million, down 15% from 12.3 million in the fourth quarter of 2024. The company held cash and cash equivalents totaling $754.6 million at year-end. In 2025, Yalla Group returned $56.6 million to shareholders through share repurchases and announced a new buyback program authorizing the repurchase of up to $150 million in shares over a 24-month period starting March 9, 2026.
Yang Tao, Founder, Chairman, and CEO of Yalla Group, stated, "The company delivered solid results in 2025. Strong execution across our product ecosystem has driven continuous improvement in user engagement. Thanks to investments in gaming innovation and targeted marketing campaigns, gaming service revenue accelerated, growing 9.1% year-over-year for the full year. Our first match-3 game, Turbo Match, has been launched and received positive user feedback. A desert-themed strategy game is set for full promotion in the second quarter of 2026, which will further strengthen our position among emerging user segments. At the same time, we have deepened the integration of AI technology across our ecosystem, leading to significant improvements in operational efficiency and accelerating product innovation and localization. As part of our regional growth strategy, we continue to enhance our presence in Saudi Arabia, having established a strategic partnership with the Saudi Esports Federation to support the 2026 Saudi Esports League and local talent development initiatives. Looking ahead, we will continue to leverage the synergies between our social and gaming ecosystems while strengthening our technology pipeline and product portfolio to reinforce our leadership in the rapidly evolving MENA market and drive sustainable long-term growth."
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