Yalla posts Q2 revenue of US$82.6 million, net income falls to US$29.3 million

Yalla Group Limited reported unaudited second-quarter 2026 revenue and earnings above consensus estimates, with growth in gaming services helping offset declines in its legacy audio business. Revenue was US$82.6 million, down from US$84.6 million a year earlier, while net income fell to US$29.3 million from US$36.5 million. Revenue from chatting services was US$47.4 million and revenue from games services was US$34.2 million, with games contributing 41.4% of total revenue after rising 11.6% year over year. Average monthly active users increased 12.3% to 47.6 million, while paying users declined to 10.9 million from 11.2 million. Non-GAAP net income was US$34.4 million and non-GAAP net margin was 41.7%. Yalla more than doubled selling and marketing expenses to promote new products and continued developing titles across casual games, hyper-casual games, social products and AI applications. The company expects third-quarter 2026 revenue of US$78.0 million to US$85.0 million and plans to continue its 2026 share repurchase program, which allows buybacks of up to US$150 million over 24 months from March 9, 2026.

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