Page 1

Yalla InvestorRoom Yalla Group Limited Announces Unaudited Second Quarter 2026 Financial Results DUBAI , UAE , Aug. 17 , 2026 / 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 second quarter ended June 30 , 2026 . Second Quarter 2026 Financial and Operating Highlights • Revenues were US $ 82.6 million in the second quarter of 2026 , compared with US $ 84.6 million in the second quarter of 2025 . • Revenues generated from chatting services in the second quarter of 2026 were US $ 47.4 million . • Revenues generated from games services in the second quarter of 2026 were US $ 34.2 million . • Net income was US $ 29.3 million in the second quarter of 2026 , compared with US $ 36.5 million in the second quarter of 2025 . Net margin [ 1 ] was 35.5 % in the second quarter of 2026 . • Non - GAAP net income [ 2 ] was US $ 34.4 million in the second quarter of 2026 , compared with US $ 39.4 million in the second quarter of 2025. Non - GAAP net margin [ 3 ] was 41.7 % in the second quarter of 2026 . Average MAUS [ 4 ] increased by 12.3 % to 47.6 million in the second quarter of 2026 , compared with 42.4 million in the second quarter of 2025 . • The number of paying users [ 5 ] was 10.9 million in the second quarter of 2026 , compared with 11.2 million in the second quarter of 2025 . Key Operating Data For the three months ended June 30 , June 30 , 2025 2026 Average MAUS ( in thousands ) Paying users ( in thousands ) 42,421 47,625 11,186 10,861 [ 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 titled " 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 ; main mobile applications are mobile applications that have exceeded the 0.5 million average MAUS threshold at least once . [ 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 . " We delivered solid results across our flagship products and growing momentum in our gaming business in the second quarter of 2026 , " said Mr. Tao Yang , Founder , Chairman and CEO of Yalla . " Our revenues exceeded the upper end of our guidance , driven by an 11.6 % year - over - year increase in revenues from games services . Meanwhile , our core products continued to build momentum , with refined operations and targeted marketing driving a sequential rebound in paying users for Yalla Ludo and a 12.3 % year - over - year increase in overall average MAUS to 47.6 million . " Beyond the sustained strength of our flagship products , we made progress in expanding our gaming ecosystem . Our new games , including our first self - developed match - 3 title and desert - themed SLG title , continued to advance smoothly with a clear roadmap taking shape for the next stage of development . We also continued to strengthen our pipeline of self - developed products , spanning casual games , hyper - casual games , social products and Al applications , designed to maximize the synergy between our social and gaming ecosystems . Building on years of deep - rooted expertise in MENA , we will continue to unlock local opportunities and broaden our reach globally through strategic partnerships to deliver sustainable growth for our shareholders . " Ms. Karen Hu , CFO of Yalla , commented , " In the second quarter of 2026 , we continued to pursue high - quality development while maintaining solid profitability . Total revenues were US $ 82.6 million , with revenues from games services growing to US $ 34.2 million , increasing the segment's contribution to 41.4 % . While doubling our selling and marketing expenses year over year to support the promotion of new products , we maintained a healthy non - GAAP net margin of 41.7 % through increased efficiency . Our balance sheet and cash flow remain ample to support our investments in business expansion as well as consistent shareholder returns . Going forward , we will continue to invest in long - term growth while driving value creation . "