Cheetah Mobile reports 43% revenue surge as AI segment now comprises nearly half of total business

Cheetah Mobile (NYSE:CMCM) today reported unaudited financial results for the full year ended December 31, 2025, marking a definitive milestone in its multi-year strategic pivot toward artificial intelligence.

Total revenue for the year reached RMB 1,150.4 million (US$164.5 million), representing a robust 42.6% increase year-over-year.

The growth was primarily propelled by the "AI and Others" segment, which saw revenue skyrocket 84.7% to RMB 535.2 million, now accounting for a record 46.5% of the company's total top line.

The company’s focus on high-margin AI services and cost-efficient mobile advertising led to a significant improvement in profitability.

Gross profit rose 53% year-over-year to RMB 834.1 million, with gross margins expanding to an impressive 72.5%, up from 67.6% in 2024.

This margin expansion helped the company drastically narrow its GAAP operating loss by 59% to RMB 179.4 million.

On a non-GAAP basis, which excludes share-based compensation, Cheetah Mobile achieved an operating profit of RMB 14.2 million, signaling that the core business has reached a sustainable inflection point.

Operationally, the surge in AI revenue reflects the successful commercialization of the company’s service robot ecosystem and its proprietary large language model (LLM) integrations for enterprise clients.

As of December 31, 2025, Cheetah Mobile maintains a healthy liquidity position with RMB 1,506.6 million (US$215.3 million) in cash and cash equivalents.