Hello Group (NASDAQ:MOMO) Announces Earnings Results

Hello Group (NASDAQ:MOMO) posted its earnings results on Thursday. The information services provider reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.04, FiscalAI reports. Hello Group had a return on equity of 7.04% and a net margin of 7.27%.The firm had revenue of $365.91 million for the quarter, compared to the consensus estimate of $363.62 million. During the same quarter in the prior year, the business posted ($0.58) earnings per share. The business’s quarterly revenue was down 5.1% on a year-over-year basis.

Here are the key takeaways from Hello Group’s conference call:

• Q3 revenue guidance is RMB2.4–2.5 billion, implying a 5.7%–9.4% year-over-year decline, with mainland China revenue expected to fall by the high teens. Management attributed the weaker outlook primarily to reduced spending by high-value users amid deteriorating macroeconomic expectations.
• Overseas revenue grew 52% year over year to RMB673 million in Q2, reaching 27% of group revenue. New MENA products YahaLand and Amar are growing rapidly, with YahaLand reaching operating break-even and the pair expected to surpass SoulChill’s revenue in Q3.
• Q2 adjusted operating margin declined to 11.1% from 17.1% a year earlier, while domestic revenue fell 17% and Momo VAS revenue dropped 16% due to tax scrutiny, weaker consumer sentiment and higher agency payouts. The company also recognized approximately RMB60 million of additional losses related to two released movies.
• Management reported stabilization in Tantan’s domestic user base for the first time since marketing reductions began in 2022, supported by improved retention and AI-powered matching and messaging features. Hello Group also plans to reduce inefficient reactivation spending and diversify Tantan’s payment channels beyond Alipay.
• Management now expects full-year group revenue to decline in the mid-single digits and said the original RMB3 billion 2026 overseas revenue target is likely to be reduced by roughly RMB100–200 million. Although cost controls may help, the company acknowledged that achieving its low-teens adjusted operating margin target will be more challenging.

Hello Group Price Performance

Shares of MOMO stock opened at $5.10 on Friday. The business has a 50-day moving average of $5.84 and a 200 day moving average of $5.97. Hello Group has a 1-year low of $5.05 and a 1-year high of $8.59. The stock has a market capitalization of $548.61 million, a PE ratio of 7.97 and a beta of 0.45.

Analyst Ratings Changes

MOMO has been the topic of several recent analyst reports. Wall Street Zen cut shares of Hello Group from a “buy” rating to a “hold” rating in a research note on Sunday, July 26th. UBS Group set a $10.00 price target on Hello Group in a report on Thursday, June 4th. Benchmark restated a “buy” rating on shares of Hello Group in a research report on Thursday, June 4th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Hello Group in a report on Monday, August 3rd. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Hello Group currently has an average rating of “Hold” and an average price target of $9.05.

Institutional Investors Weigh In On Hello Group

Institutional investors have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. grew its holdings in Hello Group by 7.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 8,127,428 shares of the information services provider’s stock worth $51,284,000 after acquiring an additional 546,048 shares during the last quarter. Norges Bank purchased a new stake in shares of Hello Group during the fourth quarter worth about $9,146,000. Charles Schwab Investment Management Inc. boosted its holdings in shares of Hello Group by 45.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,207,069 shares of the information services provider’s stock worth $7,906,000 after purchasing an additional 376,232 shares during the period. Man Group plc purchased a new position in Hello Group during the 2nd quarter valued at about $8,904,000. Finally, UBS Group AG increased its holdings in Hello Group by 29.8% during the 3rd quarter. UBS Group AG now owns 888,193 shares of the information services provider’s stock valued at $6,590,000 after purchasing an additional 203,854 shares during the period. Hedge funds and other institutional investors own 50.96% of the company’s stock.

Key Stories Impacting Hello Group

Here are the key news stories impacting Hello Group this week:

• Positive Sentiment: Second-quarter adjusted earnings were $0.26 per share, exceeding the $0.22 consensus estimate. Revenue of approximately $365.9 million also surpassed expectations of $363.6 million. Hello Group Q2 2026 Financial Results
• Positive Sentiment: Hello Group returned to profitability on a year-over-year basis, compared with a $0.58-per-share loss in the prior-year quarter. Net margin was 7.27%, while narrower tax expenses helped support net profit. Hello Group Releases Q2 2026 Financial Results
• Neutral Sentiment: The company appointed a new chief operating officer, a management change that could affect execution and product strategy but does not immediately alter its financial outlook. Hello Group Q2 Results and COO Appointment
• Negative Sentiment: Quarterly revenue declined 5.1% from a year earlier, indicating that the earnings improvement was not driven by top-line growth.
• Negative Sentiment: Hello Group projects third-quarter revenue of RMB 2.4 billion to RMB 2.5 billion, with domestic revenue expected to decline in the high teens. The company’s latest update did not provide a specific EPS guidance figure, leaving investors focused on the persistent revenue contraction. Hello Group Q3 Revenue Guidance

About Hello Group

Hello Group Inc (NASDAQ: MOMO) is a China-based technology company specializing in mobile social networking and interactive entertainment. Its flagship product, the Momo app, offers location-based social discovery services that enable users to find and connect with new friends based on shared interests and geographic proximity. The platform integrates instant messaging, group chat, and content-sharing features, while also providing premium subscriptions and in-app purchases such as virtual gifts and sticker packs.

In addition to Momo, Hello Group’s portfolio includes Tantan, a dating-focused social app designed to help users build meaningful relationships through profile matching and interest-driven swiping.