Hello Group (NASDAQ:MOMO) Issues Earnings Results, Beats Estimates By $0.04 EPS

Hello Group (NASDAQ:MOMO) issued its earnings results on Thursday. The information services provider reported $0.26 EPS for the quarter, topping analysts’ consensus estimates of $0.22 by $0.04, FiscalAI reports. The company had revenue of $365.91 million for the quarter, compared to analysts’ expectations of $363.62 million. Hello Group had a net margin of 11.02% and a return on equity of 10.47%. The firm’s revenue was down 5.1% compared to the same quarter last year. During the same quarter last year, the company earned ($0.58) EPS.

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

• Q3 revenue guidance is RMB2.4–2.5 billion, implying a 5.7%–9.4% year-over-year decline, with mainland China revenue expected to fall by the high teens. Management attributed the weaker outlook primarily to reduced spending by high-value users amid deteriorating macroeconomic expectations.
• Overseas revenue grew 52% year over year to RMB673 million in Q2, reaching 27% of group revenue. New MENA products YahaLand and Amar are growing rapidly, with YahaLand reaching operating break-even and the pair expected to surpass SoulChill’s revenue in Q3.
• Q2 adjusted operating margin declined to 11.1% from 17.1% a year earlier, while domestic revenue fell 17% and Momo VAS revenue dropped 16% due to tax scrutiny, weaker consumer sentiment and higher agency payouts. The company also recognized approximately RMB60 million of additional losses related to two released movies.
• Management reported stabilization in Tantan’s domestic user base for the first time since marketing reductions began in 2022, supported by improved retention and AI-powered matching and messaging features. Hello Group also plans to reduce inefficient reactivation spending and diversify Tantan’s payment channels beyond Alipay.
• Management now expects full-year group revenue to decline in the mid-single digits and said the original RMB3 billion 2026 overseas revenue target is likely to be reduced by roughly RMB100–200 million. Although cost controls may help, the company acknowledged that achieving its low-teens adjusted operating margin target will be more challenging.

Hello Group Stock Up 5.3%

Shares of Hello Group stock opened at $5.37 on Friday. The firm has a market cap of $577.65 million, a PE ratio of 5.48 and a beta of 0.45. Hello Group has a 12-month low of $5.05 and a 12-month high of $8.59. The company’s fifty day simple moving average is $5.84 and its two-hundred day simple moving average is $5.97.

Institutional Trading of Hello Group

A number of institutional investors have recently modified their holdings of MOMO. Sei Investments Co. increased its holdings in Hello Group by 25.5% during the 2nd quarter. Sei Investments Co. now owns 256,146 shares of the information services provider’s stock valued at $2,162,000 after purchasing an additional 52,102 shares during the period. XTX Topco Ltd raised its position in Hello Group by 243.2% during the 4th quarter. XTX Topco Ltd now owns 288,913 shares of the information services provider’s stock valued at $1,892,000 after purchasing an additional 204,719 shares during the last quarter. Jump Financial LLC lifted its holdings in Hello Group by 2.9% in the 4th quarter. Jump Financial LLC now owns 231,849 shares of the information services provider’s stock worth $1,519,000 after buying an additional 6,518 shares during the period. Verition Fund Management LLC purchased a new stake in Hello Group in the 4th quarter worth approximately $667,000. Finally, Legal & General Group Plc grew its position in shares of Hello Group by 31.7% in the 2nd quarter. Legal & General Group Plc now owns 39,861 shares of the information services provider’s stock worth $336,000 after buying an additional 9,597 shares during the last quarter. 50.96% of the stock is currently owned by hedge funds and other institutional investors.

More Hello Group News

Here are the key news stories impacting Hello Group this week:

• Positive Sentiment: Hello Group reported second-quarter adjusted EPS of $0.26, above the $0.22 analyst consensus, while revenue of $365.91 million modestly exceeded estimates of $363.62 million. The company also returned to profitability compared with a loss in the year-earlier period. Hello Group second-quarter financial results
• Positive Sentiment: Net profit benefited from narrower tax expenses, helping produce a 7.27% net margin and 7.04% return on equity. Management also appointed a new chief operating officer, which could support execution and operational improvements. Hello Group Q2 profit and COO appointment
• Neutral Sentiment: Hello Group updated its third-quarter 2026 guidance, but the available announcement does not provide a specific EPS figure. Investors will likely focus on whether management can stabilize revenue and engagement trends. Hello Group Q2 earnings call transcript
• Negative Sentiment: Third-quarter revenue is projected at RMB 2.4 billion to RMB 2.5 billion, with domestic revenue expected to decline at a high-teens percentage rate. This signals that the company’s core domestic social-networking business remains under pressure. Hello Group third-quarter revenue outlook
• Negative Sentiment: Despite the quarterly earnings beat, total revenue declined 5.1% year over year. MOMO also remains near its one-year low and below both its 50-day and 200-day moving averages, indicating that investors continue to apply a cautious valuation to the company’s growth prospects.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. Benchmark reaffirmed a “buy” rating on shares of Hello Group in a research note on Thursday, June 4th. Weiss Ratings reissued a “sell (d+)” rating on shares of Hello Group in a research note on Monday, August 3rd. UBS Group set a $10.00 target price on Hello Group in a report on Thursday, June 4th. Finally, Wall Street Zen lowered Hello Group from a “buy” rating to a “hold” rating in a research report on Sunday, July 26th. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Hello Group presently has an average rating of “Hold” and an average price target of $9.05.

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.