Hello Group (NASDAQ:MOMO) Announces Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Hello Group (NASDAQ:MOMO) released its earnings results on Thursday. The information services provider reported $0.26 EPS for the quarter, beating the consensus estimate of $0.22 by $0.04, FiscalAI reports. Hello Group had a net margin of 7.27% and a return on equity of 7.04%. The firm had revenue of $365.91 million for the quarter, compared to analysts’ expectations of $363.62 million. During the same quarter last year, the company earned ($0.58) EPS. Hello Group’s quarterly revenue was down 5.1% on a year-over-year basis.

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 Down 7.1%

NASDAQ:MOMO opened at $5.10 on Friday. The stock has a fifty day simple moving average of $5.84 and a 200 day simple moving average of $5.97. The firm has a market capitalization of $548.61 million, a price-to-earnings ratio of 7.97 and a beta of 0.45. Hello Group has a 1-year low of $5.05 and a 1-year high of $8.59.

Key Hello Group News

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

• Positive Sentiment: Second-quarter adjusted earnings were $0.26 per share, exceeding the $0.22 consensus estimate. Revenue of approximately $365.9 million also surpassed expectations of $363.6 million. Hello Group Q2 2026 Financial Results
• Positive Sentiment: Hello Group returned to profitability on a year-over-year basis, compared with a $0.58-per-share loss in the prior-year quarter. Net margin was 7.27%, while narrower tax expenses helped support net profit. Hello Group Releases Q2 2026 Financial Results
• Neutral Sentiment: The company appointed a new chief operating officer, a management change that could affect execution and product strategy but does not immediately alter its financial outlook. Hello Group Q2 Results and COO Appointment
• Negative Sentiment: Quarterly revenue declined 5.1% from a year earlier, indicating that the earnings improvement was not driven by top-line growth.
• Negative Sentiment: Hello Group projects third-quarter revenue of RMB 2.4 billion to RMB 2.5 billion, with domestic revenue expected to decline in the high teens. The company’s latest update did not provide a specific EPS guidance figure, leaving investors focused on the persistent revenue contraction. Hello Group Q3 Revenue Guidance

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in MOMO. Balyasny Asset Management L.P. lifted its holdings in shares of Hello Group by 295.6% in the fourth quarter. Balyasny Asset Management L.P. now owns 44,689 shares of the information services provider’s stock valued at $293,000 after purchasing an additional 33,392 shares in the last quarter. Headlands Technologies LLC raised its position in Hello Group by 165.2% during the fourth quarter. Headlands Technologies LLC now owns 32,691 shares of the information services provider’s stock valued at $214,000 after buying an additional 20,363 shares during the period. Nomura Holdings Inc. purchased a new stake in Hello Group in the 3rd quarter worth about $161,000. Millennium Management LLC grew its stake in Hello Group by 27.1% during the 3rd quarter. Millennium Management LLC now owns 41,562 shares of the information services provider’s stock valued at $308,000 after acquiring an additional 8,854 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Hello Group by 331.0% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 44,011 shares of the information services provider’s stock worth $327,000 after buying an additional 33,799 shares in the last quarter. 50.96% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several brokerages have recently weighed in on MOMO. Wall Street Zen lowered Hello Group from a “buy” rating to a “hold” rating in a report on Sunday, July 26th. Benchmark reaffirmed a “buy” rating on shares of Hello Group in a report on Thursday, June 4th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Hello Group in a research report on Monday, August 3rd. Finally, UBS Group set a $10.00 price objective on shares of Hello Group in a research report on Thursday, June 4th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $9.05.

Hello Group Company Profile

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.