Yalla Group (NYSE:YALA), the largest Middle East-focused social networking and gaming platform, reported unaudited fourth-quarter and full-year 2025 financial results that underscore its sector-leading profitability despite a cooling in its paying user base.
The Dubai-based company posted a full-year net income of $148.1 million on revenues of $341.9 million, yielding a net margin of 43.3%.
For the fourth quarter, revenues reached $83.9 million with a net income of $34.5 million, maintaining a consistent margin of 41.2%.
Yalla’s ecosystem continued to expand its reach, with average Monthly Active Users (MAUs) rising 8.2% year-over-year to 44.8 million in the fourth quarter.
However, the company faced headwinds in monetization as the number of paying users declined to 10.4 million.
Management has historically attributed such fluctuations to a strategic shift toward higher-value users and the diversification of its gaming portfolio, which includes flagship titles Yalla Ludo and newer hardcore gaming ventures.
Meanwhile, Yalla continues to operate with one of the strongest balance sheets in the regional tech sector.
As of Dec. 31, 2025, the company held $754.6 million in cash and cash equivalents.