# MOMO earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/MOMO) · [Earnings tab](https://www.lopjlb.com/stock/MOMO?tab=earnings) Updated: 2026-09-04T05:55:56 Quarters analyzed: 8 ## Cross-quarter narrative Across eight quarterly CallCards, Hello Group’s revenue trajectory shifted from a steady double‑digit domestic decline offset by accelerating overseas growth. Early quarters highlighted macro‑driven spending softness and regulatory adjustments that compressed margins and eroded paying users on Momo and Tantan. Management responded with aggressive share buybacks and special dividends, but liquidity constraints soon limited repurchases. From Q4 2024 onward, the focus turned to cost discipline, ROI‑driven user acquisition and scaling AI‑enhanced features. Overseas expansion, especially the Soulchill and other regional apps, delivered 70%‑plus revenue growth but remained execution‑risky. Margin pressure persisted as tax scrutiny and higher payout ratios hit domestic VAS, while gross margins fell with the overseas mix shift. AI product rollouts moved from pilot to delivery, and Tantan’s costly marketing was trimmed in favor of profitability targets. Capital allocation transitioned from buyback‑heavy to disciplined overseas investment and selective M&A. Despite recurring macro and regulatory headwinds, the company reported a rebound in Momo paying users by Q4 2025 and maintained an operating‑margin target above 10% for 2026, signalling a tentative stabilization anchored on AI and overseas diversification. ## Latest CallCard · Q2 Hello Group Q2 2026: domestic revenue down 17% YoY on tax pressure and macro weakness; overseas revenue up 52% YoY to 27% of total; adjusted operating margin 11%; full-year revenue guidance lowered to mid-single-digit decline; overseas revenue target of RMB 3B now a stretch, likely reduced by 100-20 **Guidance:** lowered — Full-year group revenue decline revised from slight to mid-single-digit; overseas revenue target of RMB 3B now considered a stretch, likely reduced by 100-200M; adjusted operating margin target of low teens still deemed achievable with cost execution. **Tone:** mgmt -0.2 · Q&A pressure 0.4 · divergence 0.3 Prepared remarks highlight overseas growth and product innovation but acknowledge sustained tax pressure, macro softness, and Alipay policy impact on Tantan; CFO notes domestic headwinds and movie losses. ### Demand visibility Domestic demand pressured by tax scrutiny on agencies, weak consumer sentiment, and Alipay renewal policy changes; overseas demand recovering post-Ramadan with new MENA products scaling and dating apps expanding into new markets. Momo VAS revenue down 16% YoY due to tax tightening and macro softness; Tantan paying users down 40k QoQ from Alipay auto-renewal rule changes; overseas revenue up 52% YoY driven by MENA new products (Yahalan, Ammar) and acquired dating brands (Happn), with SoulChill recovering from Q1 low after Turkey app store removal and regional conflict. ### Margins / costs Gross margin compressed to 35.8% from 38.8% YoY; adjusted operating margin 11%; cost of revenue flat YoY; management targeting cost optimization (personnel, sales & marketing) to defend low-teens operating margin target. Non-GAAP cost of revenue RMB 1.6B flat YoY; gross margin decline reflects revenue mix shift and domestic pressure; VAS revenue sharing ratio rose low single-digit points to support agency supply side; movie investments added ~RMB 60M losses in Q2; further personnel and marketing spend optimization planned domestically. ### Capital allocation Disciplined investment in overseas dating app expansion balancing top-line growth and bottom-line health; movie content investments incurred losses; no mention of buybacks, dividends, or M&A. Overseas dating brands (Happn) expanding into Korea, Taiwan, UK with disciplined marketing spend; MENA products Yahalan and Ammar scaling with improving profitability; movie projects recognized ~RMB 60M additional losses in Q2; management emphasizes sustainable ecosystem building over short-term growth. ### Milestones - **Momo AI Xiaomi gray testing** [new]: AI browses user photos to identify common interests, screen matches, and generate personalized icebreakers. - **Momo moment boost feature gray testing** [new]: Users pay to increase post exposure; validated new small-ticket payment scenario. - **Tantan AI icebreaker and chat assistant** [on_track]: Improved semantic understanding of photos, personalized opening lines, strong pull on female retention. - **Tantan AI curated matching** [on_track]: Scans matches to surface best chat partners, reducing decision fatigue for female users. - **Tantan AI 1-click registration and profile optimization** [on_track]: Lowers onboarding barrier, builds high-quality data foundation for AI-driven social manager. - **Tantan payment infrastructure upgrade** [delivered]: Integrated DouyinPay and WeChat Pay to reduce reliance on single channel (Alipay). - **Yahalan MENA product breakeven** [delivered]: Achieved net income breakeven for first time in Q2. - **Ammar MENA product narrowing losses** [on_track]: Marginal contribution positive earlier this year; net loss narrowing quickly on revenue growth and operating leverage. ### Fears / risks - **Tax policy**: Continued tightening on tax front has sustained material impact on Momo agencies and broadcasters. - **Macro consumer weakness**: Softness in consumer spending due to broader macro pressures weighing on domestic VAS revenue. - **Platform policy changes**: Alipay's adjustments to auto-renewal deduction rules pressuring Tantan paying conversion and renewals. - **Geopolitical risk**: Regional conflict in Middle East since April impacting operating environment for MENA products. - **Regulatory risk**: SoulChill removed from Turkish app store earlier this year, hindering growth. - **Rising acquisition costs**: External factors pushed up unit acquisition cost YoY for Tantan, combined with narrowed channel budget. - **Channel ROI decline**: Tantan channel ROI declined QoQ due to rising unit cost and Alipay policy impact on ARPU. - **Growth vs profitability balance**: Overseas expansion requires balancing pace of top-line growth with healthy bottom line and sustainable ecosystem building. ### Key quotes > “Overseas revenue accounted for 27% of total revenue, compared to 17% in the same period last year.” > “The year over year decline was mainly driven by 2 factors. Number 1, continued tightening on the tax front, which has had a sustained and material impact on our agencies and broadcasters. Number 2, softness in consumer spending due to” > “Once the new products are established, even if 1 of them comes under short term pressure from external regulatory or geopolitical factors. The others can still support the stability of overall regional revenue.” > “Given the additional pressure we are seeing in the domestic business in the second half, we currently expect the full year group revenue decline to be somewhat larger, maybe to the mid-single-digit range.” > “Therefore, my current view is that the original 3 billion renminbi target for overseas revenue for 2026, at this point, looks a little bit of a stretch. We would rather take 100 or 200 million down from that target.” ## Quarter one-liners - **2026 Q2:** Hello Group Q2 2026: domestic revenue down 17% YoY on tax pressure and macro weakness; overseas revenue up 52% YoY to 27% of total; adjusted operating margin 11%; full-year revenue guidance lowered to mid-single-digit decline; overseas revenue target of RMB 3B now a stretch, likely reduced by 100-20 - **2026 Q1:** Hello Group posted Q1 2026 revenue down 5% YoY, with domestic decline offset by 44% overseas growth, while tax scrutiny and seasonal factors pressure margins; management remains optimistic on AI and overseas expansion. - **2025 Q4:** Hello Group Q4 2025: domestic revenue -14% YoY, overseas +70% to 24% of total; Momo paying users rebound to 3.9M; Tantan targets ~RMB 100M annual profit; 2026 guidance vague with flat revenue, operating margin target >10%. - **2025 Q3:** Hello Group posted flat Q3 revenue, with domestic decline offset by 69% overseas growth, while tax scrutiny and higher payout ratios pressure margins and profitability. - **2025 Q2:** Hello Group Q2 revenue down 3% YoY to RMB 2.62B; domestic -11%, overseas +73%; one-time tax hit RMB 548M; guiding flattish 2025 top line with margin pressure from tax scrutiny and mix shift. - **2025 Q1:** Hello Group posted Q1 revenue of RMB2.52bn, beating guidance, with overseas revenue up 72% while domestic fell, and management stays upbeat on overseas growth despite macro headwinds. - **2024 Q4:** Hello Group Q4 revenue fell 12% YoY to RMB2.64B; Momo app down 18%, standalone new apps up 37% driven by overseas Soulchill; Tantan revenue down 22%; 2025 strategy shifts to drastic Tantan marketing cuts targeting ROI positivity, continued special dividend and upsized buyback. - **2024 Q3:** Revenue fell 12% YoY to RMB2.67 bn, margins compressed, Momo app sees product tweaks and KOL spend, Tantan struggles with user decline, while management highlights overseas app growth and ongoing share buybacks despite liquidity limits. ## Theme arcs - **Domestic demand softness** (deteriorating): Sequential revenue declines and paying‑user erosion on Momo and Tantan persisted despite occasional marketing cuts. - **Overseas revenue expansion** (improving): Overseas revenue grew 70%+ YoY from Q4 2024 to Q2 2026, though execution risk remained. - **Margin pressure** (deteriorating): Gross margins compressed by tax scrutiny, higher payout ratios and low‑margin overseas mix. - **Regulatory and tax risk** (deteriorating): Regulatory adjustments early, later intensified tax scrutiny affecting agencies and broadcasters. - **AI product rollout** (improving): AI chat, greeting and video features moved from on‑track to delivered across quarters. - **Capital allocation shift** (new): From buyback‑focused to ROI‑driven acquisition spend and selective M&A. - **User acquisition ROI focus** (improving): ROI >100% milestones achieved for Momo and Tantan in Q2 2025. ## Fear persistence - **Macro weakness** [recurring]: Cited as primary driver of spending softness across all quarters. - **Regulatory and tax risk** [recurring]: From early regulatory adjustments to later tax scrutiny impacting agencies and broadcasters. - **User retention challenges** [recurring]: Tantan MAU and paying‑user declines persisted despite product upgrades. - **Overseas execution risk** [recurring]: Scaling new apps and regional penetration remained uncertain. - **Margin compression** [recurring]: Ongoing pressure from payout ratios, tax issues and low‑margin overseas mix. - **Platform policy changes** [new]: Alipay auto‑renewal rule changes emerged in 2026, affecting Tantan conversions. - **Geopolitical risk** [recurring]: Middle‑East unrest and Turkey app‑store removal impacted overseas VAS. ## Guidance path 2024 Q3:maintained → 2024 Q4:vague → 2025 Q1:maintained → 2025 Q2:maintained → 2025 Q3:vague → 2025 Q4:vague → 2026 Q1:lowered → 2026 Q2:lowered --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/MOMO`