Yalla Group beat expectations in the second quarter of 2025, reporting revenue of $84.6 million, up 4.1% year on year, and adjusted net income of $39.4 million, implying a 43.2% net margin. Monthly active users rose 8.8% to 42.4 million, supported by product improvements and stronger monetization tools.
Management stepped up capital returns, repurchasing $41 million of shares in the first half. Paying users declined 7% to 11.2 million, indicating that higher ARPPU and mix are doing more of the work even as the overall user base expands.
Guidance points to $78–85 million in revenue for the third quarter. The pipeline includes two Match-3 titles slated for Q3, a roguelike in Q4, and a “hard-core” title via distribution, underscoring plans to deepen engagement and widen the content slate across MENA.
On valuation, the stock is trading around 10x next-twelve-month earnings, up from roughly 9x last quarter. The median 12-month Street target sits near $7.75 versus a recent share price of $8.72, suggesting expectations in the market are running ahead of consensus even as sentiment remains constructive.
