Hello Group (NASDAQ:MOMO) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Hello Group beat expectations with $0.24 EPS versus a $0.22 estimate and revenue of $368.2M (vs. $363.5M est), but revenue was down 2.3% YoY and EPS plunged from $1.30 in the prior-year quarter.
• Overseas growth is now a material engine—Q4 overseas revenue rose ~70% to RMB 608m and FY overseas revenue hit RMB 2.0bn (+71%), while domestic revenue weakened (Q4 domestic down 14%) and management expects mainland declines to persist into 2026.
• Profitability and shareholder returns improved—Q4 adjusted operating income rose 26% to RMB 354m and the board approved a special cash dividend of $0.28 per ADS—yet cash fell from RMB 14.73bn to RMB 8.68bn and overseas units lost ~RMB 200m in 2025, which could pressure future margins.

Hello Group (NASDAQ:MOMO - Get Free Report) issued its quarterly earnings results on Wednesday. The information services provider reported $0.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.02, FiscalAI reports. The business had revenue of $368.16 million during the quarter, compared to analyst estimates of $363.45 million. Hello Group had a return on equity of 10.07% and a net margin of 5.96%.Hello Group's revenue for the quarter was down 2.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.30 EPS.

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

• Overseas growth became a material engine — Q4 overseas revenue was RMB 608m (+70% YoY) and FY overseas revenue hit RMB 2.0bn (+71% YoY)
• Domestic weakness persisted: Q4 domestic revenue was RMB 1.97bn (‑14% YoY) and FY domestic revenue fell 11%; management expects mainland revenue to decline mid‑ to high‑teens in Q1 and low‑ to mid‑teens for full‑year 2026, with stabilization likely only in H2 if macro/regulatory conditions improve.
• Profitability showed resilience — Q4 adjusted operating income rose 26% YoY to RMB 354m (13.7% margin) and FY adjusted operating income was RMB 1.55bn, and the board approved a special cash dividend of $0.28 per ADS (~$42.6m), marking the 8th consecutive year of dividends.
• Balance sheet and investment pressures — cash and equivalents fell to RMB 8.68bn from RMB 14.73bn due to dividends, acquisitions, loan repayments and buybacks, while overseas remained directionally loss‑making (~RMB 200m in 2025) and will require continued investment that could pressure 2026 margins despite guidance to keep adjusted operating margin above ~10%.

Hello Group Stock Performance

NASDAQ MOMO opened at $6.24 on Thursday. Hello Group has a one year low of $5.12 and a one year high of $9.22. The company has a market capitalization of $744.18 million, a P/E ratio of 7.52 and a beta of 0.35. The stock has a 50 day moving average price of $6.57 and a 200-day moving average price of $6.90.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. Zacks Research upgraded Hello Group from a "strong sell" rating to a "hold" rating in a research report on Monday, December 15th. Weiss Ratings reissued a "hold (c)" rating on shares of Hello Group in a report on Monday, December 22nd. Finally, Jefferies Financial Group set a $8.10 price target on Hello Group in a research note on Wednesday, December 10th. Two investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $8.10.

Institutional Investors Weigh In On Hello Group

Several institutional investors have recently modified their holdings of the stock. XTX Topco Ltd boosted its holdings in shares of Hello Group by 243.2% in the 4th quarter. XTX Topco Ltd now owns 288,913 shares of the information services provider's stock worth $1,892,000 after purchasing an additional 204,719 shares during the period. Verdad Advisers LP bought a new stake in Hello Group in the fourth quarter worth $715,000. Numerai GP LLC purchased a new position in Hello Group during the fourth quarter worth $720,000. Engineers Gate Manager LP purchased a new position in Hello Group during the fourth quarter worth $179,000. Finally, Capitolis Liquid Global Markets LLC bought a new position in Hello Group during the fourth quarter valued at $3,128,000. 50.96% of the stock is owned by institutional investors.

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.

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