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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2025

 

Commission File Number: 001-39552

 

YALLA GROUP LIMITED

#226, Building 16, Dubai Internet City

Dubai, United Arab Emirates

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

 

 

 


 

EXHIBIT INDEX

 

Exhibit 99.1

Press release: Yalla Group Limited Announces Unaudited Third Quarter 2025 Financial Results

 

 


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

YALLA GROUP LIMITED

 

By:

/s/ Yang Hu

Name:

Yang Hu

Title:

Chief Financial Officer

 

Date: November 12, 2025

 


EX-99.1 2 yala-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

Yalla Group Limited Announces Unaudited Third Quarter 2025 Financial Results

 

DUBAI, UAE, November 10, 2025 /PRNewswire/ -- 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 unaudited financial results for the third quarter ended September 30, 2025.

 

Third Quarter 2025 Financial and Operating Highlights

Revenues were US$89.6 million in the third quarter of 2025, representing an increase of 0.8% from the third quarter of 2024.
o
Revenues generated from chatting services in the third quarter of 2025 were US$55.5 million.
o
Revenues generated from games services in the third quarter of 2025 were US$33.8 million.
Net income was US$40.7 million in the third quarter of 2025, a 3.9% increase from US$39.2 million in the third quarter of 2024. Net margin1 was 45.4% in the third quarter of 2025.
Non-GAAP net income2 was US$43.1 million in the third quarter of 2025, a 1.2% increase from US$42.6 million in the third quarter of 2024. Non-GAAP net margin3 was 48.1% in the third quarter of 2025.
Average MAUs4 increased by 8.1% to 43.4 million in the third quarter of 2025, from 40.2 million in the third quarter of 2024.
The number of paying users5 on our platform decreased by 9.7% to 11.4 million in the third quarter of 2025, from 12.6 million in the third quarter of 2024.

 

 

Key Operating Data

For the three months ended

 

 

September 30, 2024

 

 

September 30, 2025

 

 

 

 

 

 

 

Average MAUs (in thousands)

 

40,176

 

 

 

43,420

 

 

 

 

 

 

 

Paying users (in thousands)

 

12,582

 

 

 

11,366

 

 

 

1 Net margin is net income as a percentage of revenues.

2 Non-GAAP net income represents net income excluding share-based compensation. Non-GAAP net income is a non-GAAP financial measure. See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this press release.

3 Non-GAAP net margin is non-GAAP net income as a percentage of revenues.

4 “Average MAUs” refers to the average monthly active users in a given period, calculated by dividing (i) the sum of active users for each month of such period by (ii) the number of months in such period. “Active users” refers to registered users who accessed any of our main mobile applications at least once during a given period.

5 “Paying users” refers to registered users who played a game or purchased our virtual items or upgraded services using virtual currencies on our main mobile applications at least once in a given period, except for users who received all of their virtual currencies directly or indirectly from us for free. “Registered users” refers to users who have registered accounts on our main mobile applications as of a given time; a registered user is not necessarily a unique user, as an individual may register multiple accounts on our main mobile applications.

 

 

1


“We’re pleased to deliver a strong set of results for the third quarter of 2025,” said Mr. Tao Yang, Founder, Chairman and CEO of Yalla. “Our revenues reached US$89.6 million, once again beating the high end of our guidance. Our dedication to enhancing operational efficiency continued to pay off, with net margin increasing by 1.4 percentage points year-over-year to 45.4%. We also continued to optimize our product portfolio and enhance user engagement, driving an 8.1% year-over-year increase in average MAUs to 43.4 million.

“Our thriving game pipeline served as our primary market expansion driver during the third quarter. We soft-launched our first match-3 title, Turbo Match, on Android during the quarter, and we were pleased to see its initial user acquisition and retention metrics meeting our expectations. We also expect to debut our self-developed roguelike game and an SLG game in collaboration with an industry-leading gaming studio in the coming weeks, deepening our penetration of MENA’s mid- and hard-core game market.

“Yalla Group celebrated the fifth anniversary of its IPO with a bell-ringing ceremony at NYSE in September, a proud symbol of our years of growth, learning, persistence, and achievement. Going forward, we will remain dedicated to maximizing the synergy between our social and gaming ecosystems and enhancing our AI-fueled technological edge, bringing us ever closer to our vision of becoming the most popular platform for online social networking and entertainment activities in MENA,” Mr. Yang concluded.

Ms. Karen Hu, CFO of Yalla, commented, “In the third quarter, we continued to pursue high-quality growth and profitability enhancement. Excellent execution of our ongoing cost management and efficiency improvement initiatives, including AI development and application, drove an increase in our net income to US$40.7 million. Supported by these healthy results and our robust fundamentals, we continued to return value to shareholders. As of November 7, 2025, we had returned a total of US$51.9 million to shareholders in 2025 through our share repurchase program. We will continue to deepen our commitment to shareholder returns, and look forward to completing our current US$150 million share repurchase program within the next year, delivering sustainable, long-term value to all stakeholders.”

 

Third Quarter 2025 Financial Results

Revenues

Our revenues were US$89.6 million in the third quarter of 2025, a 0.8% increase from US$88.9 million in the third quarter of 2024. The increase was primarily driven by our broadening user base and enhanced monetization capability.

In the third quarter of 2025, revenues generated from chatting services were US$55.5 million, and revenues from games services were US$33.8 million.

 

Costs and expenses

Our total costs and expenses were US$55.9 million in the third quarter of 2025, a 1.0% decrease from US$56.4 million in the third quarter of 2024.

Our cost of revenues was US$28.4 million in the third quarter of 2025, a 10.7% decrease from US$31.8 million in the third quarter of 2024, primarily due to lower commission fees paid to third-party payment platforms as a result of diversified payment channels and lower share-based compensation expenses recognized in the third quarter of 2025. Cost of revenues as a percentage of our total revenues decreased to 31.7% in the third quarter of 2025 from 35.8% in the third quarter of 2024.

Our selling and marketing expenses were US$9.6 million in the third quarter of 2025, a 30.3% increase from US$7.4 million in the third quarter of 2024, primarily due to higher advertising and market promotion expenses attributable to our continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of our total revenues increased to 10.7 % in the third quarter of 2025 from 8.3% in the third quarter of 2024.

 

Our general and administrative expenses were US$9.2 million in the third quarter of 2025, a 9.0% decrease from US$10.1 million in the third quarter of 2024, primarily due to a decrease in incentive compensation and professional service fees. General and administrative expenses as a percentage of our total revenues decreased to 10.3% in the third quarter of 2025 from 11.4% in the third quarter of 2024.

Our technology and product development expenses were US$8.6 million in the third quarter of 2025, a 21.4% increase from US$7.1 million in the third quarter of 2024, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in the headcount to support the development of new businesses and expansion of our product portfolio. Technology and product development expenses as a percentage of our total revenues increased to 9.6% in the third quarter of 2025 from 8.0% in the third quarter of 2024.

2


Operating income

Operating income was US$33.8 million in the third quarter of 2025, a 3.9% increase from US$32.5 million in the third quarter of 2024.

 

Non-GAAP operating income6

Non-GAAP operating income in the third quarter of 2025 increased to US$36.2 million, a 0.7% increase from US$35.9 million in the third quarter of 2024.

 

Interest income

Interest income was US$6.3 million in the third quarter of 2025, compared with US$7.8 million in the third quarter of 2024.

 

Investment income

Investment income was US$2.2 million in the third quarter of 2025, compared with US$0.1 million in the third quarter of 2024, primarily due to increased investments in wealth management products.

 

Income tax expense

Income tax expense was US$1.6 million in the third quarter of 2025, compared with US$1.3 million in the third quarter of 2024.

 

Net income

As a result of the foregoing, our net income was US$40.7 million in the third quarter of 2025, a 3.9% increase from US$39.2 million in the third quarter of 2024.

 

Non-GAAP net income

Non-GAAP net income in the third quarter of 2025 was US$43.1 million, a 1.2% increase from US$42.6 million in the third quarter of 2024.

 

Earnings per ordinary share

Basic and diluted earnings per ordinary share were US$0.27 and US$0.23, respectively, in the third quarter of 2025, while basic and diluted earnings per ordinary share were US$0.25 and US$0.22, respectively, in the third quarter of 2024.

 

Non-GAAP earnings per ordinary share7

Non-GAAP basic and diluted earnings per ordinary share were US$0.28 and US$0.24, respectively, in the third quarter of 2025, compared with US$0.27 and US$0.24, respectively, in the third quarter of 2024.

 

 

6 Non-GAAP operating income represents operating income excluding share-based compensation. Non-GAAP operating income is a non-GAAP financial measure. See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this press release.

7 Non-GAAP earnings per ordinary share is non-GAAP net income attributable to Yalla Group Limited’s shareholders, divided by weighted average number of basic and diluted shares outstanding. Non-GAAP net income attributable to Yalla Group Limited’s shareholders represents net income attributable to Yalla Group Limited’s shareholders, excluding share-based compensation. Non-GAAP earnings per ordinary share and non-GAAP net income attributable to Yalla Group Limited’s shareholders are non-GAAP financial measures. See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this press release.

 

3


Cash and cash equivalents, restricted cash, term deposits and short-term investments

As of September 30, 2025, we had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$739.5 million, compared with US$656.3 million as of December 31, 2024.

 

Share repurchase program

Pursuant to the Company’s share repurchase program beginning on May 21, 2021, with an extended expiration date of May 21, 2026, from January 1 through November 7, 2025, the Company repurchased 7,716,483 American depositary shares (“ADSs”), representing 7,716,483 Class A ordinary shares, from the open market with cash for an aggregate amount of approximately US$51.9 million. As of November 7, 2025, the Company had cumulatively completed cash repurchases in the open market of 15,021,621 ADSs, representing 15,021,621 Class A ordinary shares, for an aggregate amount of approximately US$101.4 million, since the inception of the current share repurchase program. The aggregate value of ADSs and/or Class A ordinary shares that remain available for purchase under the current share repurchase program was US$48.6 million as of November 7, 2025. In addition, the Company has decided to cancel all shares repurchased in 2025. As of August 11, 2025, the Company had cancelled 6,230,299 ADSs, representing 6,230,299 Class A ordinary shares.

 

Outlook

For the fourth quarter of 2025, Yalla currently expects revenues to be between US$78.0 million and US$85.0 million.

The above outlook is based on current market conditions and reflects the Company management’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

 

 

Conference Call

The Company’s management will host an earnings conference call on Monday, November 10, 2025, at 8:00 PM U.S. Eastern Time, which is Tuesday, November 11, 2025, at 5:00 AM Dubai Time, or Tuesday, November 11, 2025, at 9:00 AM Beijing/Hong Kong time.

 

Dial-in details for the earnings conference call are as follows:

United States Toll Free:

+1-888-317-6003

International:

+1-412-317-6061

United Arab Emirates Toll Free:

80-003-570-3598

Mainland China Toll Free:

400-120-6115

Hong Kong, China Toll Free:

800-963-976

Access Code:

4820370

 

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.yalla.com.

 

A replay of the conference call will be accessible until November 17, 2025, by dialing the following telephone numbers:

United States Toll Free:

+1-855-669-9658

International:

+1-412-317-0088

Access Code:

5560759

 

4


Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP financial measures, namely non-GAAP operating income, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per ordinary share, as supplemental measures to review and assess the Company’s operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP operating income as operating income excluding share-based compensation. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net margin as non-GAAP net income as a percentage of revenues. We define non-GAAP net income attributable to Yalla Group Limited’s shareholders as net income attributable to Yalla Group Limited’s shareholders, excluding share-based compensation. We define non-GAAP earnings per ordinary share as non-GAAP net income attributable to Yalla Group Limited’s shareholders, divided by the weighted average number of basic and diluted shares outstanding.

By excluding the impact of share-based compensation expenses, which are non-cash charges, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. Investors can better understand the Company’s operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess its core operating results, as they exclude share-based compensation expenses, which are not expected to result in cash payments. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation has been and may continue to be incurred in the Company’s business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of GAAP and non-GAAP results are set forth at the end of this press release.

 

About Yalla Group Limited

Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues 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 games 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.

For more information, please visit: https://ir.yalla.com.

 

5


Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Statements that are not historical facts, including statements about Yalla Group Limited’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Yalla Group Limited’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Yalla Group Limited does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

For investor and media inquiries, please contact:

Yalla Group Limited

Investor Relations

Kerry Gao - IR Director

Tel: +86-571-8980-7962

Email: ir@yalla.com

 

Piacente Financial Communications

Jenny Cai

Tel: +86-10-6508-0677

Email: yalla@tpg-ir.com

 

In the United States:

 

Piacente Financial Communications

Brandi Piacente

Tel: +1-212-481-2050

Email: yalla@tpg-ir.com

 

SOURCE Yalla Group Limited

 

6


YALLA GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

As of

 

 

December 31,
2024

 

 

September 30,
2025

 

 

US$

 

 

US$

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

 

488,379,894

 

 

 

422,572,636

 

Restricted cash

 

 

1,975,616

 

 

 

1,645,579

 

Term deposits

 

 

94,983,813

 

 

 

84,800,000

 

Short-term investments

 

 

70,932,713

 

 

 

230,514,582

 

Prepayments and other current assets

 

 

35,429,988

 

 

 

31,913,969

 

Total current assets

 

 

691,702,024

 

 

 

771,446,766

 

Non-current assets

 

 

 

 

 

 

Property and equipment, net

 

 

13,962,393

 

 

 

14,440,027

 

Intangible asset, net

 

 

896,005

 

 

 

748,040

 

Operating lease right-of-use assets

 

 

1,370,914

 

 

 

1,082,968

 

Long-term investments

 

 

93,698,924

 

 

 

81,737,548

 

Total non-current assets

 

 

109,928,236

 

 

 

98,008,583

 

Total assets

 

 

801,630,260

 

 

 

869,455,349

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

 

957,717

 

 

 

781,364

 

Deferred revenue, current

 

 

58,081,649

 

 

 

55,446,794

 

Operating lease liabilities, current

 

 

1,012,481

 

 

 

232,331

 

Amounts due to a related party

 

 

87,156

 

 

 

57,940

 

Income taxes payable

 

 

9,117,261

 

 

 

2,414,471

 

Accrued expenses and other current liabilities

 

 

32,404,872

 

 

 

28,029,561

 

Total current liabilities

 

 

101,661,136

 

 

 

86,962,461

 

Non-current liabilities

 

 

 

 

 

 

Deferred revenue, non-current

 

 

 

 

 

2,173,826

 

Operating lease liabilities, non-current

 

 

13,495

 

 

 

257,128

 

Deferred tax liabilities

 

 

2,148,022

 

 

 

2,704,619

 

Total non-current liabilities

 

 

2,161,517

 

 

 

5,135,573

 

Total liabilities

 

 

103,822,653

 

 

 

92,098,034

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Shareholders’ equity of Yalla Group Limited

 

 

 

 

 

 

Class A Ordinary Shares

 

 

14,064

 

 

 

13,441

 

Class B Ordinary Shares

 

 

2,473

 

 

 

2,473

 

Additional paid-in capital

 

 

328,883,061

 

 

 

336,882,266

 

Treasury stock

 

 

(49,438,661

)

 

 

(34,635,502

)

Accumulated other comprehensive loss

 

 

(3,016,579

)

 

 

(2,396,947

)

Retained earnings

 

 

427,907,766

 

 

 

485,401,009

 

Total shareholders’ equity of Yalla Group Limited

 

 

704,352,124

 

 

 

785,266,740

 

Non-controlling interests

 

 

(6,544,517

)

 

 

(7,909,425

)

Total equity

 

 

697,807,607

 

 

 

777,357,315

 

Total liabilities and equity

 

 

801,630,260

 

 

 

869,455,349

 

 

7


YALLA GROUP LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

OF OPERATIONS

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,
2024

 

 

June 30,
2025

 

 

September 30,
2025

 

 

September 30,
2024

 

 

September 30,
2025

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

Revenues

 

 

88,922,031

 

 

 

84,564,086

 

 

 

89,636,333

 

 

 

248,848,091

 

 

 

258,077,186

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

(31,830,126

)

 

 

(27,944,596

)

 

 

(28,430,988

)

 

 

(89,427,060

)

 

 

(85,576,007

)

Selling and marketing expenses

 

 

(7,352,820

)

 

 

(8,661,573

)

 

 

(9,582,434

)

 

 

(23,944,276

)

 

 

(25,187,275

)

General and administrative expenses

 

 

(10,133,394

)

 

 

(9,002,347

)

 

 

(9,224,448

)

 

 

(24,358,190

)

 

 

(26,922,103

)

Technology and product development expenses

 

 

(7,108,024

)

 

 

(8,338,195

)

 

 

(8,629,226

)

 

 

(19,851,894

)

 

 

(24,795,558

)

Total costs and expenses

 

 

(56,424,364

)

 

 

(53,946,711

)

 

 

(55,867,096

)

 

 

(157,581,420

)

 

 

(162,480,943

)

Operating income

 

 

32,497,667

 

 

 

30,617,375

 

 

 

33,769,237

 

 

 

91,266,671

 

 

 

95,596,243

 

Interest income

 

 

7,829,223

 

 

 

6,791,492

 

 

 

6,300,342

 

 

 

21,572,082

 

 

 

19,653,014

 

Government grants

 

 

7,603

 

 

 

603,115

 

 

 

63,629

 

 

 

439,966

 

 

 

730,177

 

Investment income (loss)

 

 

133,606

 

 

 

21,758

 

 

 

2,204,831

 

 

 

(1,094,288

)

 

 

2,208,887

 

Income before income taxes

 

 

40,468,099

 

 

 

38,033,740

 

 

 

42,338,039

 

 

 

112,184,431

 

 

 

118,188,321

 

Income tax expense

 

 

(1,287,156

)

 

 

(1,531,310

)

 

 

(1,613,621

)

 

 

(10,563,946

)

 

 

(4,582,008

)

Net income

 

 

39,180,943

 

 

 

36,502,430

 

 

 

40,724,418

 

 

 

101,620,485

 

 

 

113,606,313

 

Net loss attributable to non-controlling interests

 

 

673,856

 

 

 

269,782

 

 

 

386,428

 

 

 

1,472,271

 

 

 

1,368,145

 

Net income attributable to Yalla Group
   Limited’s shareholders

 

 

39,854,799

 

 

 

36,772,212

 

 

 

41,110,846

 

 

 

103,092,756

 

 

 

114,974,458

 

Earnings per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

——Basic

 

 

0.25

 

 

 

0.24

 

 

 

0.27

 

 

 

0.64

 

 

 

0.73

 

——Diluted

 

 

0.22

 

 

 

0.20

 

 

 

0.23

 

 

 

0.56

 

 

 

0.64

 

Weighted average number of shares
   outstanding used in computing earnings
   per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

——Basic

 

 

160,944,036

 

 

 

155,958,658

 

 

 

154,491,280

 

 

 

160,681,773

 

 

 

156,555,683

 

——Diluted

 

 

183,354,110

 

 

 

180,765,359

 

 

 

179,310,959

 

 

 

183,383,311

 

 

 

180,764,819

 

 

Share-based compensation was allocated in cost of revenues, selling and marketing expenses, general and administrative expenses and technology and product development expenses as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,
2024

 

 

June 30,
2025

 

 

September 30,
2025

 

 

September 30,
2024

 

 

September 30,
2025

 

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

Cost of revenues

 

 

1,867,294

 

 

 

1,328,152

 

 

 

1,143,119

 

 

 

5,637,874

 

 

 

3,797,356

 

Selling and marketing expenses

 

 

261,825

 

 

 

170,304

 

 

 

131,359

 

 

 

1,642,975

 

 

 

472,691

 

General and administrative expenses

 

 

1,114,753

 

 

 

1,328,931

 

 

 

1,073,416

 

 

 

3,769,267

 

 

 

3,532,854

 

Technology and product development expenses

 

 

187,205

 

 

 

20,670

 

 

 

56,160

 

 

 

469,134

 

 

 

196,304

 

Total share-based compensation expenses

 

 

3,431,077

 

 

 

2,848,057

 

 

 

2,404,054

 

 

 

11,519,250

 

 

 

7,999,205

 

 

8


YALLA GROUP LIMITED

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,
2024

 

 

June 30,
2025

 

 

September 30,
2025

 

 

September 30,
2024

 

 

September 30,
2025

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

Operating income

 

 

32,497,667

 

 

 

30,617,375

 

 

 

33,769,237

 

 

 

91,266,671

 

 

 

95,596,243

 

Share-based compensation expenses

 

 

3,431,077

 

 

 

2,848,057

 

 

 

2,404,054

 

 

 

11,519,250

 

 

 

7,999,205

 

Non-GAAP operating income

 

 

35,928,744

 

 

 

33,465,432

 

 

 

36,173,291

 

 

 

102,785,921

 

 

 

103,595,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

39,180,943

 

 

 

36,502,430

 

 

 

40,724,418

 

 

 

101,620,485

 

 

 

113,606,313

 

Share-based compensation expenses,
   net of tax effect of nil

 

 

3,431,077

 

 

 

2,848,057

 

 

 

2,404,054

 

 

 

11,519,250

 

 

 

7,999,205

 

Non-GAAP net income

 

 

42,612,020

 

 

 

39,350,487

 

 

 

43,128,472

 

 

 

113,139,735

 

 

 

121,605,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Yalla
   Group Limited’s shareholders

 

 

39,854,799

 

 

 

36,772,212

 

 

 

41,110,846

 

 

 

103,092,756

 

 

 

114,974,458

 

Share-based compensation expenses,
   net of tax effect of nil

 

 

3,431,077

 

 

 

2,848,057

 

 

 

2,404,054

 

 

 

11,519,250

 

 

 

7,999,205

 

Non-GAAP net income attributable to
   Yalla Group Limited’s shareholders

 

 

43,285,876

 

 

 

39,620,269

 

 

 

43,514,900

 

 

 

114,612,006

 

 

 

122,973,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP earnings per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

——Basic

 

 

0.27

 

 

 

0.25

 

 

 

0.28

 

 

 

0.71

 

 

 

0.79

 

——Diluted

 

 

0.24

 

 

 

0.22

 

 

 

0.24

 

 

 

0.62

 

 

 

0.68

 

Weighted average number of shares
   outstanding used in computing earnings
   per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

——Basic

 

 

160,944,036

 

 

 

155,958,658

 

 

 

154,491,280

 

 

 

160,681,773

 

 

 

156,555,683

 

——Diluted

 

 

183,354,110

 

 

 

180,765,359

 

 

 

179,310,959

 

 

 

183,383,311

 

 

 

180,764,819

 

 

9