Yalla Group records $83.9m revenue in Q1 2025 despite 8% decline in paying users

Yalla Group's revenue increased 6.5% year-over-year to $83.9 million from $78.7m in the first quarter of 2024.

That's according to the company's latest financials, which showed that game services generated $30.1m while chat services contributed $53.5m. 

Moreover, Yalla Group’s net income rose 17% YoY to $36.4m, with a net margin of 43.4%, while non-GAAP net income reached $39.1m, up 10.9% from the previous year, with a non-GAAP net margin of 46.6%.

The company's average monthly active users (MAUs) grew 17.9% to 44.6m from 37.8m, while the number of paying users declined by 8% to 11.8m compared to 12.8m in the same period of 2024. 

Furthermore, Yalla Group's total costs and expenses were $52.7m in Q1 2025, a 6.2% increase from $49.6m in the first quarter of 2024.

Expanding boundaries 

The company said the increase in revenue was primarily driven by broadening its user base and “enhanced" monetisation capability. 

Yalla Group further stated that all repurchased shares in 2025 will be cancelled to boost long-term shareholder value. 

“We kicked off 2025 with a strong first quarter," said Yalla Group founder, chairman and CEO Mr. Yang Tao. “Our product portfolio is thriving and primed for expansion."

He added: "We completed first-round product testing on an exciting Match-3 title slated for launch in the third quarter of 2025 and boast a robust lineup of promising mid-core games in our pipeline. 

“To deepen our commitment to returning shareholder value, we plan to further accelerate our share buyback program, raising this year’s target by an additional $22 million to a total of $50 million for 2025. 

“Looking ahead, we will remain dedicated to harnessing technological innovation as our engine and user needs as our compass, expanding the boundaries of MENA’s digital ecosystem as we realise our vision of building the largest destination for online social networking and entertainment activities in MENA,” said Mr.Tao.