SINGAPORE, March 31, 2026 (GLOBE NEWSWIRE) -- Sound Group Inc. (NASDAQ: SOGP) ("SOGP" or the "Company" or "We"), a global AI-powered audio company, today announced its unaudited financial results for the six months and fiscal year ended December 31, 2025.
Second Half 2025 Financial and Operational Highlights
-- Net revenues were RMB1,745.1 million (US$249.5 million), representing a
58% increase from RMB1,107.8 million for the same period last year.
-- Net income was RMB153.1 million (US$21.9 million), compared with a net
loss of RMB44.5 million for the same period last year.
Fiscal Year 2025 Financial and Operational Highlights
-- Net revenues were RMB3,102.8 million (US$443.7 million), representing a
53% increase from RMB2,031.8 million in 2024.
-- Net income was RMB220.6 million (US$31.6 million), compared with a net
loss of RMB81.0 million in 2024.
Mr. Jinnan (Marco) Lai, Founder and CEO of SOGP, commented, "2025 was a remarkable year for Sound Group, highlighted by a 53% year-over-year increase in net revenues and a return to profitability. These results reflect the progress we are making in expanding our audio-centric ecosystem and the growing revenue contribution from our AI initiatives."
"Throughout the year, we enhanced user engagement by expanding our audio content offerings while actively deploying AI technologies to optimize operational efficiency and drive product innovation. In addition, we accelerated the development of our international AI initiatives and further advanced our capabilities in voice AI technologies, including automatic speech recognition, speech synthesis, and real-time audio intelligence. Leveraging our deep expertise in the audio industry, we developed the SoundSphere technology system to power future AI-driven applications. In January 2026, we officially launched SoundSphereAI, a platform that showcases our technological capabilities and ongoing development within the SoundSphere ecosystem. Looking ahead, we will continue strengthening our technology, product, and data flywheel to deliver sustainable, long-term value to our stakeholders. We believe that the combination of strong underlying infrastructure, growing international traction, and a clear product roadmap will provide a solid foundation for long-term value creation."
Ms. Chengfang Lu, Acting CFO of SOGP, said, "We delivered a strong financial performance in 2025, with significant top-line growth and a return to profitability, reflecting the disciplined execution of our strategy and continued improvements in operational efficiency. To recognize our shareholders' continued support and reaffirm our commitment to returning value, the Board of Directors has declared a special cash dividend of approximately US$5 million. Moving forward, we remain focused on enhancing operational efficiency while making strategic investments in innovation to drive sustainable growth."
Second Half 2025 Unaudited Financial Results
Net revenues were RMB1,745.1 million (US$249.5 million) for the six months ended December 31, 2025, representing a 58% increase from RMB1,107.8 million for the same period of 2024, primarily due to (i) growth in our value-added services, supported by a broader and more diversified audio content offering, and (ii) increased revenue from our subscription services, driven by an expanding AI applications portfolio.
Cost of revenues were RMB1,232.0 million (US$176.2 million) for the six months ended December 31, 2025, representing a 55% increase from RMB797.3 million for the same period of 2024. The increase was mainly attributable to (i) an increase in revenue sharing-fees for content creators which grew in line with net revenues, (ii) increased payment handling costs, and (iii) increased salary and welfare benefits expenses, which were partially offset by a decrease in bandwidth costs.
Gross profit was RMB513.1 million (US$73.4 million) for the six months ended December 31, 2025, representing a 65% increase from RMB310.5 million for the same period of 2024.
Non-GAAP gross profit(1) was RMB513.4 million (US$73.4 million) for the six months ended December 31, 2025, representing a 65% increase from RMB310.9 million for the same period of 2024.
Gross margin was 29% for the six months ended December 31, 2025, compared with 28% for the same period of 2024.
Non-GAAP gross margin was 29% for the six months ended December 31, 2025, compared with 28% for the same period of 2024.
Operating expenses were RMB359.3 million (US$51.4 million) for the six months ended December 31, 2025, representing a 1% increase from RMB355.9 million for the same period of 2024.
Research and development expenses were RMB118.8 million (US$17 million) for the six months ended December 31, 2025, representing an 8% increase from RMB109.8 million for the same period of 2024, primarily due to increased salary and welfare benefits expenses, which were partially offset by decreases in (i) expenses related to research and development services provided by third parties and (ii) rental expenses.
Selling and marketing expenses were RMB194.3 million (US$ 27.8 million) for the six months ended December 31, 2025, representing a 6% increase from RMB184.1 million for the same period of 2024, primarily attributable to increases in (i) branding and marketing expenses and (ii) salary and welfare benefits expenses. The Company continues to carefully control discretionary advertising and promotional expenses and adjusts them accordingly, depending on market conditions.
General and administrative expenses were RMB46.1 million (US$6.6 million) for the six months ended December 31, 2025, representing a 26% decrease from RMB62.1 million for the same period of 2024, mainly driven by decreases in (i) salary and welfare benefits expenses, (ii) share-based compensation expenses, (iii) provisions for litigation contingencies, and (iv) professional service fees .
Operating income was RMB153.8 million (US$22.0 million) for the six months ended December 31, 2025, compared with operating loss of RMB45.4 million for the same period of 2024.
Non-GAAP operating income(2) was RMB155.6 million (US$22.3 million) for the six months ended December 31, 2025, compared with a non-GAAP operating loss of RMB40.6 million for the same period of 2024.
Net income was RMB153.1 million (US$ 21.9 million) for the six months ended December 31, 2025, compared with a net loss of RMB44.5 million for the same period of 2024.
Non-GAAP net income(3) was RMB154.8 million (US$22.1 million) for the six months ended December 31, 2025, compared with a non-GAAP net loss of RMB39.7 million for the same period of 2024.
Net income attributable to Sound Group Inc.'s ordinary shareholders was RMB155.9 million (US$22.3 million) for the six months ended December 31, 2025, compared with a net loss of RMB38.6 million for the same period of 2024.
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(1) Non-GAAP gross profit is a non-GAAP financial measure, which is defined as gross profit excluding share-based compensation expenses. This adjustment amounted to RMB0.3 million (US$0.0 million) and RMB0.2 million for the six months ended December 31, 2025 and 2024, respectively. Please refer to the section below titled "Unaudited Reconciliations of GAAP and Non-GAAP Results" for details.
(2) Non-GAAP operating income is a non-GAAP financial measure, which is defined as operating income excluding share-based compensation expenses. This adjustment amounted to RMB1.7 million (US$0.2 million) and RMB4.8 million for the six months ended December 31, 2025 and 2024, respectively. Please refer to the section below titled "Unaudited Reconciliations of GAAP and Non-GAAP Results" for details.
(3) Non-GAAP net income is a non-GAAP financial measure, which is defined as net income excluding share-based compensation expenses. These adjustments amounted to RMB1.7 million (US$0.2 million) and RMB4.8 million for the six months ended December 31, 2025 and 2024, respectively. Please refer to the section below titled "Unaudited Reconciliations of GAAP and Non-GAAP Results" for details.
Non-GAAP net income attributable to Sound Group Inc.'s ordinary shareholders(4) was RMB157.7 million (US$22.5 million) for the six months ended December 31, 2025, compared with a net loss of RMB33.8 million for the same period of 2024.
Basic and diluted net income per ADS(5) were RMB33.16 and RMB33.05 (US$4.74 and US$4.73), respectively, for the six months ended December 31, 2025, compared with basic and diluted net loss per ADS of RMB7.52 for the same period of 2024.
Non-GAAP basic and diluted net income per ADS6 were RMB33.53 and RMB33.42 (US$4.79 and US$4.78), respectively, for the six months ended December 31, 2025, compared with non-GAAP basic and diluted net loss per ADS of RMB6.58 for the same period of 2024.
Fiscal Year 2025 Unaudited Financial Results
Net revenues were RMB3,102.8 million (US$443.7 million) in 2025, representing a 53% increase from RMB2,031.8 million in the prior year, primarily due to (i) growth in our value-added services, supported by a broader and more diversified audio content offering, and (ii) increased revenue from our subscription services, driven by an expanding AI applications portfolio.
Cost of revenues were RMB2,197.6 million (US$314.3 million) in 2025, representing a 49% increase from RMB1,474.9 million in the prior year. The increase was mainly attributable to (i) an increase in revenue sharing-fees for content creators which grew in line with net revenues, (ii) increased payment handling costs, and (iii) increased salary and welfare benefits expenses, which were partially offset by decreases in (i) bandwidth costs and (ii) share-based compensation expenses.
Gross profit was RMB905.2 million (US$129.4 million) in 2025, representing a 63% increase from RMB556.9 million in the prior year.
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