Yalla Group announces strong financial results in Q2 2025 with steady growth in revenues
· Yalla Group's net income jumps to AED 134.1 million in Q2
· Average Monthly Active Users increase by 8.8% to 42.4 million
· Yalla's H1 revenues up to AED 618.8 million and net income to AED 267.7 million
UAE, Dubai: Yalla Group Limited ("Yalla" or the "Company") (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced its financial results for the second quarter (Q2) of the fiscal year 2025, ending on June 30.
In the second quarter, Yalla Group reported revenues of AED 310.7 million (US$84.6 million), up 4.1% year-on-year. Net income rose sharply to AED 134.1 million (US$36.5 million), a 16.4% increase from AED 115.3 million (US$31.4 million) in the same period of 2024. For the first half of the year, the company posted revenues of AED 618.8 million and net income of AED 267.7 million.
Additionally, Yalla Group's net margin rose to 43.2% in the second quarter of 2025, underscoring the company's ongoing improvements in operating efficiency. Average Monthly Active Users (MAUs) also increased by 8.8% year-on-year, reaching 42.4 million in Q2 2025 compared to 39.0 million in the same period of 2024.
Remarkable financial results
Mr. Yang Tao, Founder, Chairman and Chief Executive Officer of Yalla, lauded the remarkable financial results achieved by Yalla in the second quarter saying said: 'We delivered another strong set of results in the second quarter of 2025. Our total revenues grew to 84.6 million USD, once again beating the high end of our guidance. We also made significant strides in improving our operational efficiency by optimizing user acquisition strategies and refining our internal processes, which contributed to a year-over-year improvement in our net margin to 43.2%.
This impressive performance demonstrates our ability to increase user engagement across our ecosystem and achieve high-quality, efficient growth by anticipating and meeting MENA's evolving social networking and entertainment needs.'
'Throughout Yalla's history, the Company has been committed to the long-term development of MENA's local internet industry. We were one of the first to explore online entertainment in the region, and over the past 10 years, our team has grown from 6 people to over 800 employees, serving over 40 million MAUs across the MENA region,' Tao added.
He stated: 'Our product strategy prioritizes creating products with the potential to reach a massive user base, while also demonstrating a long lifecycle. We strive to develop sustainable business models for long-term growth, and we are confident that our commitment and patience will pay off as it has over the last decade.'
'We will continue to refine our gaming business strategy and plan to ramp up external partnerships and our game distribution capabilities going forward to more effectively diversify our product portfolios. This will allow us to explore a broader range of game genres and offer users more diverse options, while gaining deeper insight into market dynamics and a more precise understanding of user appetites in the MENA region,' Tao noted.
Sustainable growth
Commending Q2 financial results, Saifi Ismail, President of Yalla Group, said: 'Our strong financial performance reflects the resilience of our business model and the strength of our user community. Such results demonstrate our ability to drive sustainable growth while continuing to deliver exceptional value to our users across the MENA region.'
'We complemented this financial success with impactful campaigns and strategic partnerships that deepened engagement. Highlights included our co-branded Yalla Ludo campaign with the Dubai Department of Economy and Tourism, which brought Dubai's cultural landmarks into gameplay, and our 9th anniversary celebrations, which set a record for gold coin consumption. These initiatives not only energized our community but also strengthened our brand's market leadership,' Ismail added.
'Looking ahead, we are committed to innovation, strategic expansion, and social impact and we will continue to enhance our product portfolio, deepen partnerships, and create meaningful experiences for our growing user base,' He stated.
About Yalla Group Limited
Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenue in 2022. The Company operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games, popular in MENA, with in-game voice chat and localized Majlis functionality. Building on the success of Yalla and Yalla Ludo, the Company continues to add engaging new content, creating a regionally focused, integrated ecosystem dedicated to fulfilling MENA users' evolving online social networking and gaming needs.
Through its holding subsidiary, Yalla Game Limited, the Company has expanded its capabilities in mid-core and hard-core game in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, WeMuslim, a product that supports Arabic users in observing their customs, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets.
Yalla's mobile applications deliver a seamless experience that fosters a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users.
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