Hello Group navigates domestic headwinds with 44% surge in overseas revenue

Hello Group (NASDAQ:MOMO), a prominent operator in Asia's online social networking space, announced its unaudited financial results for the first quarter of 2026 on Tuesday morning.

The company’s consolidated net revenues fell 5.3% year-over-year to RMB2,386 million ($329.9 million), down from RMB2,520.1 million in the same period last year, reflecting ongoing stabilization and regulatory shifts within its domestic live-streaming and entertainment units.

Despite the slight contraction in total revenue, the company's multi-year strategic focus on global expansion delivered significant results.

Net revenues from overseas operations jumped 44.1% year-over-year to RMB597.4 million, driven by the steady monetization of localized social products across the Middle East and North Africa (MENA) region and Southeast Asia.

International operations now represent an increasingly vital hedge against broader domestic consumer pullbacks.

The social networking firm implemented tighter cost structures during the quarter to offset the top-line revenue decline.

Total costs and operating expenses decreased 6.5% year-over-year to RMB2,088.7 million, down from RMB2,233.1 million in the first quarter of 2025.

Management attributed the reduction to lower channel marketing outlays and optimized bandwidth efficiencies across its primary platforms, Momo and Tantan.

This expense discipline helped stabilize operational profitability, keeping income from operations at a healthy RMB309.7 million for the three-month period.

Net income attributable to Hello Group shareholders concluded at RMB291 million, compared to RMB358.0 million recorded in the prior-year quarter.

Meanwhile, Hello Group preserved a well-capitalized balance sheet to fund further product incubation and strategic international distribution channels.

As of March 31, 2026, the company held cash, cash equivalents, short-term investments, and long-term bank deposits totaling RMB8,561 million ($1,185 million).

Leveraging its steady cash generation, the board declared and executed a special cash dividend of $0.28 per American Depositary Share (ADS), returning approximately $41.2 million to equity holders.