Slides
Page 1
3rd Quarter 2025 Earnings Presentation Nov 2025
Page 2
2 The information in this presentation is provided to you by Yalla Group Limited (the “Company”) solely for informational purposes and is not an offer to buy or sell, or a solicitation of an offer to buy or sell, any security or instrument of the Company, or to participate in any investment activity or trading strategy, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever, in the United States or anywhere else. The information included herein was obtained from various sources, including certain third parties, and has not been independently verified. No securities of the Company may be offered or sold in the United States without registration with the United States Securities and Exchange Commission (the “SEC”) or an exemption from such registration. Any public offer of the Company’s securities to be made in the United States will be made solely pursuant to an effective registration statement and the statutory prospectus included in the registration statement prepared by the Company that would contain material information not contained herein and to which any prospective purchasers are referred. In the event of any such offering, this presentation shall be deemed superseded, amended and supplemented in its entirety by such prospectus. Such prospectus will contain all material information in respect of the Company and any securities offered thereby and any decision to invest in such securities should be made solely in reliance on such prospectus. The prospectus will be available at the website of the SEC and may be obtained from the potential underwriters participating in such offer or the Company upon such publication. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company, and these materials are qualified in their entirety by reference to the detailed information to appear in the statutory prospectus. This presentation does not constitute a “prospectus” within the meaning of the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Company is not making any offer of its securities at this time, and cannot accept orders for any securities at this time. This presentation does not constitute legal, regulatory, accounting or tax advice to you. We recommend that you seek independent third party legal, regulatory, accounting and tax advice regarding the content of this document. This presentation does not constitute and should not be considered as any form of financial opinion or recommendation by the Company or any other party. No representations, warranties or undertakings, express or implied, are made and no reliance should be placed on the accuracy, fairness or completeness of the information, sources or opinions presented or contained in this presentation. By viewing or accessing the information contained in this presentation, you hereby acknowledge and agree that neither the Company or any authorized representatives, nor any of their respective directors, officers, employees, advisers, nor any of their representatives, affiliates, associated persons or agents accepts any responsibility for or makes any representation or warranty, express or implied, with respect to the truth, accuracy, fairness, completeness or reasonableness of the information contained in, and omissions from, these materials and that neither the Company, any authorized representatives or any underwriters, nor any of their respective directors, officers, employees, advisers, nor any of their representatives, affiliates, associated persons or agents accepts any liability whatsoever for any loss howsoever arising from any information presented or contained in these materials. The information presented or contained in this presentation is subject to change without notice and its accuracy is not guaranteed. This presentation contains statements that constitute forward -looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers about the future. Such forward -looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward -looking statements as a result of various factors and assumptions, many of which are beyond the Company’s control. Neither the Company or any authorized representatives, nor any of their respective directors, officers, employees, advisers, nor any of their representatives, affiliates, associated persons or agents has any obligation to, nor do any of them undertake to, revise or update the forward -looking statements contained in this presentation to reflect future events or circumstances. Disclaimer
Page 3
3 Agenda 3rd Quarter 2025 Achievements and Growth Strategies Recent Developments 3rd Quarter 2025 Financial Performance Overview 01 02 03
Page 4
3rd Quarter 2025 Achievements and Growth Strategies
Page 5
5 Robust 3rd Quarter 2025 Results Further Strengthen Yalla’s Position as the Largest MENA-based Online Social Networking and Gaming Company US$89.6MM 3Q2025 Revenues 3Q2025 Net Income US$40.7MM 3Q2025 Net Margin 45.4% Core Competitive Strengths In voice-centric mobile social networking and entertainment in MENAFirst Mover Focusing on users’ interaction and social networking experience lead to leading position in MENAInnovative Business Model Encourages user engagement and helps build a healthy and cohesive user communityPure UGC Platform Product features specifically designed to fit the social networking and entertainment needs of MENA usersLocalized and Customized Continually diversifying our platform’s product offerings to extend our brand and deepen user loyaltyExpanding Product Portfolio
Page 6
Recent Developments
Page 7
7 Our Thriving Integrated Ecosystem Casual Games 101 Okey Yalla Turkish board game Yalla Baloot & Hand Saudi Arabian card game Yalla Parchis South American Ludo exploring opportunities overseas YallaChat IM product tailored for Arabic users WeMuslim Supports Arabic users in observing their customs Social Mid-core and Hard-core Games Yalla Group voice-chatting Yalla Ludo MENA casual games+social networking 6 Turbo Match Match-3 game featuring vehicle customization theme Boom Survivor Rouge-like game More to come More to come
Page 8
8 Yalla Game: Steady Product Pipeline Growth and Progress Turbo Match, met expectations in initial user metrics during its Android soft launch. Our self-developed roguelike game Boom Survivor is set to launch later this month, demonstrating our growing expertise in creating engaging mid-core titles. We are collaborating with a top-tier studio to distribute a MENA-focused SLG title, on track for year-end launch following successful testing. ◼ Leveraging our existing user base and cultural insights, we continue to deepen penetration in the region’s mid- and hard-core gaming markets.
Page 9
9 Flagship Applications: Driving Engagement Through Targeted Events ◼ The Yalla Ludo Carnival set a new revenue record for the event series in its third consecutive quarter, driven by refined gameplay and enhanced visuals that significantly boosted in- game spending. ◼ Yalla deepened user engagement through the culturally resonant Yalla Season campaign, creating an immersive, festive experience aligned with Riyadh Season under Saudi Vision 2030. Note: 1. Record refers to the highest gold coin consumption achieved within Yalla's anniversary event series. This quarter's precision-targeted online activities showcased our core operational strengths in blending user insights with creative execution.
Page 10
10 US$51.9M Amount Repurchased 7,716,483 ADSs Repurchased 6,230,299 Shares Canceled Share Repurchase Progress ◼ Share Repurchase Program The Company’s $150 million share repurchase program began on May 21, 2021, with an extended expiration date of May 21, 2026. As of November 7, 2025, the Company had cumulatively completed cash repurchases in the open market for an aggregate amount of approximately US$101.4 million, since the inception of the current share repurchase program. ◼ 2025 Progress and More From January 1 through November 7, 2025, the Company repurchased 7,716,483 ADSs from the open market with cash for an aggregate amount of approximately US$51.9 million,achieving our full-year 2025 repurchase commitment of 50 million USD well ahead of schedule. We are on track to complete our current US$150 million share repurchase program within the next year, at which point we plan to launch a new program. ◼ Share Cancellation & Value Impact The Company has decided to cancel all shares repurchased in 2025. As of August 11, 2025, the Company had cancelled 6,230,299 ADSs.
Page 11
3rd Quarter 2025 Financial Performance Overview
Page 12
12 39,181 40,724 44.1% 45.4% -300.0% - 10,000 20,000 30,000 40,000 50,000 60,000 3Q24 3Q25 Net Income Margin US$000 Robust Financial Performance in 3Q2025 Revenues 88,922 89,636 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 42,000 43,000 44,000 45,000 46,000 47,000 48,000 49,000 50,000 51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 61,000 62,000 63,000 64,000 65,000 66,000 67,000 68,000 69,000 70,000 71,000 72,000 73,000 74,000 75,000 76,000 77,000 78,000 79,000 80,000 81,000 82,000 83,000 84,000 85,000 86,000 87,000 88,000 89,000 90,000 91,000 92,000 93,000 94,000 95,000 96,000 97,000 98,000 99,000 100,000 3Q24 3Q25 Revenues US$000 Net Income
Page 13
13 MAUs and Paying Users Average Monthly Active Users 000s Quarterly Paying Users 000s 40,176 43,420 3Q24 3Q25 YoY growth: 8.1% 12,582 11,366 3Q24 3Q25
Page 14
14 Continued Efficient Operations with Stable Cost Margin – Cost of Revenues US$000 Cost of Revenues 31,830 28,431 35.8% 31.7% 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 3Q24 3Q25 Cost of Revenues Cost of Revenues as % of Total Revenues
Page 15
15 Continued Efficient Operations with Stable Cost Margin – Selling and Marketing Expenses US$000 Selling and Marketing Expenses 7,353 9,582 8.3% 10.7% -0.3 -0.25 -0.2 -0.15 -0.1 -0.05 0 0.05 0.1 0.15 0 2000 4000 6000 8000 10000 12000 14000 3Q24 3Q25 Selling and Marketing Expenses Selling and Marketing Expenses as % of Total Revenues
Page 16
16 Continued Efficient Operations with Stable Cost Margin – General and Administrative Expenses US$000 General and Administrative Expenses 10,133 9,224 11.4% 10.3% 0 2000 4000 6000 8000 10000 12000 14000 3Q24 3Q25 General and Administrative Expenses General and Administrative Expenses as % of Total Revenues
Page 17
17 Continued Efficient Operations with Stable Cost Margin – Technology and Product Development Expenses US$000 Technology and Product Development Expenses 7,108 8,629 8.0% 9.6% 3Q24 3Q25 Technology and Product Development Expenses Technology and Product Development Expenses as % of Total Revenues
Page 18
18 Profit Margin Expanded Operating Income US$000 Net Income US$000 Notes: 1. Non-GAAP operating income represents operating income excluding share-based compensation. Non-GAAP operating income is a non-GAAP financial measure. 2. Non-GAAP net income represents net income excluding share-based compensation. Non-GAAP net income is a non-GAAP financial measure. 32,498 33,769 35,929 36,173 36.5% 37.7% 40.4% 40.4% -250.0% -200.0% -150.0% -100.0% -50.0% 0.0% 50.0% - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 3Q2024 3Q2025 Operating Income Non-GAAP Operating Income Operating Income as % of Total Revenues Non-GAAP Operating Income as % of Total Revenues 39,181 40,724 42,612 43,128 44.1% 45.4% 47.9% 48.1% -200.0% -150.0% -100.0% -50.0% 0.0% 50.0% - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 3Q2024 3Q2025 Net Income Non-GAAP Net Income Net Income as % of Total Revenues Non-GAAP Net Income as % of Total Revenues (1) (2)
Page 19
19 Continued Strong Cash Flow Position 570,060 656,272 690,930 704,112 739,533 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 US$000 Cash and Cash Equivalents & Restricted Cash & Term Deposits & Short -term Investments
Page 20
Appendix
Page 21
21 STATEMENTS OF OPERATIONS US$ Three months ended Nine months ended September 30, 2024 September 30, 2025 September 30, 2024 September 30, 2025 Revenues 88,922,031 89,636,333 248,848,091 258,077,186 Costs and expenses Cost of revenues (31,830,126) (28,430,988) (89,427,060) (85,576,007) Selling and marketing expenses (7,352,820) (9,582,434) (23,944,276) (25,187,275) General and administrative expenses (10,133,394) (9,224,448) (24,358,190) (26,922,103) Research and development expenses (7,108,024) (8,629,226) (19,851,894) (24,795,558) Total costs and expenses (56,424,364) (55,867,096) (157,581,420) (162,480,943) Operating income 32,497,667 33,769,237 91,266,671 95,596,243 Interest income 7,829,223 6,300,342 21,572,082 19,653,014 Government grant 7,603 63,629 439,966 730,177 Investment income (loss) 133,606 2,204,831 (1,094,288) 2,208,887 Income before income taxes 40,468,099 42,338,039 112,184,431 118,188,321 Income tax expense (1,287,156) (1,613,621) (10,563,946) (4,582,008) Net income 39,180,943 40,724,418 101,620,485 113,606,313 Net loss atrributable to non-controlling interests 673,856 386,428 1,472,271 1,368,145 Net income attributable to Yalla Group Limited’s shareholders 39,854,799 41,110,846 103,092,756 114,974,458
Page 22
22 RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS US$ Three months ended Nine months ended September 30, 2024 September 30, 2025 September 30, 2024 September 30, 2025 Operating income 32,497,667 33,769,237 91,266,671 95,596,243 Share-based compensation expenses 3,431,077 2,404,054 11,519,250 7,999,205 Non-GAAP operating income 35,928,744 36,173,291 102,785,921 103,595,448 Net income 39,180,943 40,724,418 101,620,485 113,606,313 Share-based compensation expenses, net of tax effect of nil 3,431,077 2,404,054 11,519,250 7,999,205 Non-GAAP net income 42,612,020 43,128,472 113,139,735 121,605,518
Page 23
23 BALANCE SHEETS Replace with the version in the appendix of the word of the word attached-p30 US$ As of December 31, As of September 30, 2024 2025 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
Page 24
24