18:40:50 EDT Mon 09 Mar 2026
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Yalla Group Limited Announces Unaudited Fourth Quarter and Full Year 2025 Financial Results

2026-03-09 17:00 ET - News Release

Yalla Group Limited Announces Unaudited Fourth Quarter and Full Year 2025 Financial Results

PR Newswire

DUBAI, UAE, March 9, 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 fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Financial and Operating Highlights

  • Revenues were US$83.9 million in the fourth quarter of 2025, compared with US$90.8 million in the fourth quarter of 2024.
    • Revenues generated from chatting services in the fourth quarter of 2025 were US$53.8 million.
    • Revenues generated from games services in the fourth quarter of 2025 were US$29.5 million.
  • Net income was US$34.5 million in the fourth quarter of 2025, a 6.2% increase from US$32.5 million in the fourth quarter of 2024. Net margin[1] was 41.2% in the fourth quarter of 2025.
  • Non-GAAP net income[2] was US$36.9 million in the fourth quarter of 2025, a 3.2% increase from US$35.7 million in the fourth quarter of 2024. Non-GAAP net margin[3] was 43.9% in the fourth quarter of 2025.
  • Average MAUs[4] increased by 8.2% to 44.8 million in the fourth quarter of 2025, from 41.4 million in the fourth quarter of 2024.
  • The number of paying users[5]was 10.4 million in the fourth quarter of 2025, compared with 12.3 million in the fourth quarter of 2024.
                   Key Operating Data        For the three months ended

---

                                             December 3                     December 3
                                                 1, 202                         1, 202
                                                    4                             5





   
 Average MAUs (in thousands)     41,445                         44,848





   
 Paying users (in thousands)     12,309                         10,444


 
 [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.

Full Year 2025 Highlights

  • Revenues were US$341.9 million in 2025, representing an increase of 0.7% from 2024.
    • Revenues generated from chatting services in 2025 were US$216.4 million.
    • Revenues generated from games services in 2025 were US$124.0 million.
  • Net income was US$148.1 million in 2025, a 10.4% increase from US$134.2 million in 2024. Net margin was 43.3% in 2025.
  • Non-GAAP net income was US$158.5 million in 2025, a 6.5% increase from US$148.8 million in 2024. Non-GAAP net margin was 46.3% in 2025.

"We delivered solid 2025 results, with full-year revenues rising to US$341.9 million and net income up 10.4% to US$148.1 million," said Mr. Tao Yang, Founder, Chairman and CEO of Yalla. "Strong execution across our product ecosystem drove increased user engagement, underscored by an 8.2% year-over-year increase in MAUs to 44.8 million in the fourth quarter of 2025. Additionally, revenues from games services started to accelerate, delivering a year-over-year increase of 9.1% for the full year thanks to our dedication to gaming innovation and effective marketing campaigns. Our first match-3 game Turbo Match is now available and gathering positive user reviews, and our desert-themed SLG title is set for official promotion in the second quarter of 2026, strengthening our position to tap new user cohorts.

"Meanwhile, we deepened AI integration across our ecosystem, boosting operational efficiency and accelerating our product innovation and localization efforts. We also continued to strengthen our presence in Saudi Arabia as part of our regional growth strategy, establishing a partnership with the Saudi Esports Federation to support the Saudi eLeague 2026 and local talent programs. Looking ahead, we will continue to unlock deeper synergies between our social and gaming ecosystems while building our technological capabilities and product pipeline to strengthen our industry leadership in the rapidly growing MENA market and drive sustainable long-term growth."

Ms. Karen Hu, CFO of Yalla, commented, "In the fourth quarter, we continued to focus on efficiency enhancement to strengthen profitability. Our net income increased by 6.2% year-over-year to US$34.5 million with a net margin of 41.2%, up 5.4 percentage points year-over-year. For the full year, we delivered both top-line and bottom-line growth through strong strategic execution and effective cost control. Our solid balance sheet and healthy cash flow position us to continue returning value to shareholders, highlighted by US$56.6 million returned in 2025 through our share repurchase program and the launch of a new share repurchase program for up to US$150 million over the next 24 months starting March 9,2026. Moving forward, we will continue to invest in long-term opportunities that propel high-quality growth, maximizing value for all stakeholders."

Fourth Quarter 2025 Financial Results

Revenues

Revenues were US$83.9 million in the fourth quarter of 2025, compared with US$90.8 million in the fourth quarter of 2024. The decrease was primarily due to a decrease in paying users as a result of fewer promotion events held by third-party payment platforms in the fourth quarter of 2025 compared with those held in the fourth quarter of 2024.

In the fourth quarter of 2025, revenues generated from chatting services were US$53.8 million, and revenues from games services were US$29.5 million.

Costs and expenses

Total costs and expenses were US$57.2 million in the fourth quarter of 2025, a 5.7% decrease from US$60.7 million in the fourth quarter of 2024.

Cost of revenues was US$26.3 million in the fourth quarter of 2025, a 15.1% decrease from US$31.0 million in the fourth quarter of 2024, primarily due to lower commission fees paid to third-party payment platforms as a result of diversified payment channels. Cost of revenues as a percentage of total revenues decreased to 31.4% in the fourth quarter of 2025 from 34.2% in the fourth quarter of 2024.

Selling and marketing expenses were US$9.4 million in the fourth quarter of 2025, a 26.5% increase from US$7.4 million in the fourth quarter of 2024, primarily due to higher advertising and market promotion expenses attributable to the Company's continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of total revenues increased to 11.2% in the fourth quarter of 2025 from 8.2% in the fourth quarter of 2024.

General and administrative expenses were US$12.1 million in the fourth quarter of 2025, a 7.8% decrease from US$13.1 million in the fourth quarter of 2024, primarily due to a decrease in incentive compensation. General and administrative expenses as a percentage of total revenues was flat at 14.4% in the fourth quarter of 2025 compared with the fourth quarter of 2024.

Technology and product development expenses were US$9.5 million in the fourth quarter of 2025, a 3.2% increase from US$9.2 million in the fourth 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 total revenues increased to 11.3% in the fourth quarter of 2025 from 10.1% in the fourth quarter of 2024.

Operating income

Operating income was US$26.6 million in the fourth quarter of 2025, compared with US$30.1 million in the fourth quarter of 2024.

Non-GAAP operating income[6]

Non-GAAP operating income in the fourth quarter of 2025 was US$28.9 million, compared with US$33.3 million in the fourth quarter of 2024.

Interest income

Interest income was US$6.0 million in the fourth quarter of 2025, compared with US$7.1 million in the fourth quarter of 2024.

Investment (loss) income

Investment income was US$1.1 million in the fourth quarter of 2025, compared with an investment loss of US$1.7 million in the fourth quarter of 2024, primarily due to changes in the fair value of wealth management products.

Income tax (expense) benefit

Income tax benefit was US$0.6 million in the fourth quarter of 2025, compared with income tax expense of US$3.4 million in the fourth quarter of 2024, primarily attributable to the preferential tax rate applicable to a subsidiary since the fourth quarter of 2025.

Net income

Net income was US$34.5 million in the fourth quarter of 2025, a 6.2% increase from US$32.5 million in the fourth quarter of 2024.

Non-GAAP net income

Non-GAAP net income in the fourth quarter of 2025 was US$36.9 million, a 3.2% increase from US$35.7 million in the fourth quarter of 2024.

Earnings per ordinary share

Basic and diluted earnings per ordinary share were US$0.23 and US$0.20, respectively, in the fourth quarter of 2025, while basic and diluted earnings per ordinary share were US$0.20 and US$0.18, respectively, in the fourth quarter of 2024.

Non-GAAP earnings per ordinary share[7]

Non-GAAP basic and diluted earnings per ordinary share were US$0.24 and US$0.21, respectively, in the fourth quarter of 2025, compared with US$0.22 and US$0.20, respectively, in the fourth quarter of 2024.

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

As of December 31, 2025, the Company had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$754.6 million, compared with US$656.3 million as of December 31, 2024.

Full Year 2025 Financial Results

Revenues

Revenues were US$341.9 million in 2025, a 0.7% increase from US$339.7 million in 2024. The increase was primarily driven by the broadening of user base and enhanced user monetization.

Revenues generated from chatting services were US$216.4 million in 2025, and revenues generated from games services were US$124.0 million in 2025.

Costs and expenses

Total costs and expenses were US$219.7 million in 2025, compared with US$218.3 million in 2024.

Cost of revenues was US$111.9 million in 2025, a 7.1% decrease from US$120.5 million last year, primarily due to lower commission fees paid to third-party payment platforms as a result of diversified payment channels. Cost of revenues as a percentage of total revenues decreased to 32.7% in 2025 from 35.5% in 2024.

Selling and marketing expenses were US$34.6 million in 2025, a 10.2% increase from US$31.3 million in 2024, primarily driven by 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 total revenues increased to 10.1% in 2025 from 9.2% in 2024.

General and administrative expenses were US$39.0 million in 2025, a 4.1% increase from US$37.4 million in 2024, primarily due to an increase in foreign exchange loss. General and administrative expenses as a percentage of total revenues increased to 11.4% in 2025 from 11.0% in 2024.

Technology and product development expenses were US$34.3 million in 2025, an 18.0% increase from US$29.0 million in 2024, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in the headcount of our technology and product development staff to support the development of new businesses and expansion of our product portfolio. Technology and product development expenses as a percentage of total revenues increased to 10.0% in 2025 from 8.5% in 2024.

Operating income

Operating income was US$122.2 million in 2025, a 0.7% increase from US$121.4 million in 2024.

Non-GAAP operating income

Non-GAAP operating income in 2025 was US$132.5 million, compared with US$136.1 million in 2024.

Interest income

Interest income was US$25.7 million in 2025, compared with US$28.7 million in 2024.

Investment (loss) income

Investment income was US$3.3 million in 2025, compared with an investment loss of US$2.8 million in 2024, primarily due to changes in the fair value of wealth management products.

Income tax expense

Income tax expense was US$4.0 million in 2025, compared with US$13.9 million in 2024, primarily due to a decrease in UAE corporate tax.

Net income

Net income was US$148.1 million in 2025, a 10.4% increase from US$134.2 million in 2024.

Non-GAAP net income

Non-GAAP net income was US$158.5 million in 2025, a 6.5% increase from US$148.8 million in 2024.

Earnings per ordinary share

Basic and diluted earnings per ordinary share were US$0.96 and US$0.83, respectively, in 2025, compared with US$0.85 and US$0.74, respectively, in 2024.

Non-GAAP earnings per ordinary share

Non-GAAP basic and diluted earnings per ordinary share were US$1.03 and US$0.89, respectively, in 2025, compared with US$0.94 and US$0.82, respectively, in 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.

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, the Company repurchased 8,377,035 American depositary shares ("ADSs"), representing 8,377,035 Class A ordinary shares, from the open market with cash for an aggregate amount of approximately US$56.6 million in 2025. As of December 31, 2025, the Company had cumulatively completed cash repurchases in the open market of 15,682,173 ADSs, representing 15,682,173 Class A ordinary shares, for an aggregate amount of approximately US$106.0 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$44.0 million as of December 31, 2025. In addition, the Company has decided to cancel all shares repurchased in 2025. As of December 31, 2025, the Company had cancelled 6,230,299 ADSs, representing 6,230,299 Class A ordinary shares.

The Company's board of directors has authorized a new share repurchase program under which the Company may repurchase up to US$150 million worth of its outstanding ADS and/or Class A ordinary shares over the 24 months starting March 9, 2026. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size.

Outlook

For the first quarter of 2026, considering the impact of Ramadan, which falls completely within the first quarter this year, Yalla currently expects revenues to be between US$75.0 million and US$82.0 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

Yalla Group Limited will hold a conference call on Monday, March 9, 2026, at 8:00 PM Eastern Time, 4:00 AM Dubai Time on Tuesday, March 10, 2026, or 8:00 AM Beijing Time on Tuesday, March 10, 2026, to discuss the financial results.

Participants should complete online registration using the link provided below before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.

Event Title: Yalla Group Ltd. Fourth Quarter and Full Year 2025 Earnings Conference Call
Registration Link: https://register-conf.media-server.com/register/BId6ac40b44aa146df8531eae7cb1148cf

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

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.

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

                                              
          
            YALLA GROUP LIMITED


                                
          
            UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS




                                                                                                         
          
        As of


                                                                                                                      December 31,                   December 31,
                                                                                                              2024                      2025


                                                                                                                      US$                        US$



 
            ASSETS



 
            Current assets



 Cash and cash equivalents                                                                              488,379,894                 526,972,019



 Restricted cash                                                                                          1,975,616                   1,625,525



 Term deposits                                                                                           94,983,813                  84,800,000



 Short-term investments                                                                                  70,932,713                 141,251,128



 Prepayments and other current assets                                                                    35,429,988                  41,659,226



 
            Total current assets                                                                      691,702,024                 796,307,898



 
            Non-current assets



 Property and equipment, net                                                                             13,962,393                  14,976,818



 Intangible asset, net                                                                                      896,005                     728,348



 Operating lease right-of-use assets                                                                      1,370,914                   1,902,655



 Long-term investments                                                                                   93,698,924                  82,053,772



 Other assets                                                                                                                          250,000



 
            Total non-current assets                                                                  109,928,236                  99,911,593



 
            Total assets                                                                              801,630,260                 896,219,491





 
            LIABILITIES



 
            Current liabilities



 Accounts payable                                                                                           957,717                   1,066,625



 Deferred revenue, current                                                                               58,081,649                  55,178,093



 Operating lease liabilities, current                                                                     1,012,481                     357,525



 Amounts due to a related party                                                                              87,156                      44,177



 Income taxes payable                                                                                     9,117,261                   1,319,111



 Accrued expenses and other current liabilities                                                          32,404,872                  30,350,120



 
            Total current liabilities                                                                 101,661,136                  88,315,651



 
            Non-current liabilities



 Deferred revenue, non-current                                                                                                       1,837,543



 Operating lease liabilities, non-current                                                                    13,495                   1,095,245



 Deferred tax liabilities                                                                                 2,148,022                   2,924,137



 
            Total non-current liabilities                                                               2,161,517                   5,856,925



 
            Total liabilities                                                                         103,822,653                  94,172,576





 
            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                 339,199,644



 Treasury stock                                                                                        (49,438,661)               (42,497,929)



 Accumulated other comprehensive loss                                                                   (3,016,579)                (1,636,586)



 Retained earnings                                                                                      427,907,766                 515,197,658



 
            Total shareholders' equity of Yalla Group Limited                                         704,352,124                 810,278,701



 Non-controlling interests                                                                              (6,544,517)                (8,231,786)



 
            Total equity                                                                              697,807,607                 802,046,915



 
            Total liabilities and equity                                                              801,630,260                 896,219,491

                                                                                               
          
            YALLA GROUP LIMITED


                                                                                   
          
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS


                                                                                                  
          
            OF OPERATIONS




                                                                                                                                     
          
            Three Months Ended                           
     
     Year Ended


                                                                                                                                                 December 31,                                     September 30,                    December 31,                December 31,    December 31,
                                                                                                                                      2024                           2025                          2025               2024                      2025


                                                                                                                                                 US$                                     US$                         US$                                US$                US$



         
            Revenues                                                                                                   90,827,754                       89,636,333                      83,860,924          339,675,845                 341,938,110



         
            Costs and expenses



         Cost of revenues                                                                                                      (31,044,004)                    (28,430,988)                   (26,349,923)       (120,471,064)              (111,925,930)



         Selling and marketing expenses                                                                                         (7,403,643)                     (9,582,434)                    (9,362,742)        (31,347,919)               (34,550,017)



         General and administrative expenses                                                                                   (13,066,301)                     (9,224,448)                   (12,052,397)        (37,424,491)               (38,974,500)



         Technology and product development expenses                                                                            (9,178,864)                     (8,629,226)                    (9,474,910)        (29,030,758)               (34,270,468)



         
            Total costs and expenses                                                                                 (60,692,812)                    (55,867,096)                   (57,239,972)       (218,274,232)              (219,720,915)



         
            Operating income                                                                                           30,134,942                       33,769,237                      26,620,952          121,401,613                 122,217,195



         Interest income                                                                                                          7,101,823                        6,300,342                       6,008,731           28,673,905                  25,661,745



         Government grants                                                                                                          360,194                           63,629                         201,230              800,160                     931,407



         Investment (loss) income                                                                                               (1,711,657)                       2,204,831                       1,101,141          (2,805,945)                  3,310,028



         
            Income before income taxes                                                                                 35,885,302                       42,338,039                      33,932,054          148,069,733                 152,120,375



         Income tax (expense) benefit                                                                                           (3,354,580)                     (1,613,621)                        601,477         (13,918,526)                (3,980,531)



         
            Net income                                                                                                 32,530,722                       40,724,418                      34,533,531          134,151,207                 148,139,844



         Net loss attributable to non-controlling interests                                                                          60,763                          386,428                         327,002            1,533,034                   1,695,147



         
            Net income attributable to Yalla Group                                                                     32,591,485                       41,110,846                      34,860,533          135,684,241                 149,834,991
  Limited's shareholders



         
            Earnings per ordinary share



         --Basic                                                                                                                       0.20                             0.27                            0.23                 0.85                        0.96



         --Diluted                                                                                                                     0.18                             0.23                            0.20                 0.74                        0.83



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



         --Basic                                                                                                                159,672,548                      154,491,280                     153,979,633          160,429,693                 155,977,062



         --Diluted                                                                                                              182,474,460                      179,310,959                     178,066,658          183,156,324                 180,082,810





         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                           
     
     Year Ended


                                                                                                                                                 December 31,                                     September 30,                    December 31,                December 31,    December 31,
                                                                                                                                      2024                           2025                          2025               2024                      2025


                                                                                                                                                 US$                                     US$                         US$                                US$                US$



         Cost of revenues                                                                                                         1,582,874                        1,143,119                       1,060,328            7,220,748                   4,857,684



         Selling and marketing expenses                                                                                             179,964                          131,359                         144,874            1,822,939                     617,565



         General and administrative expenses                                                                                      1,236,586                        1,073,416                       1,068,269            5,005,853                   4,601,123



         Technology and product development expenses                                                                                173,063                           56,160                          43,907              642,197                     240,211



         
            Total share-based compensation expenses                                                                     3,172,487                        2,404,054                       2,317,378           14,691,737                  10,316,583

                                                                
 
            YALLA GROUP LIMITED


                                                            
 
   RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS




                                                                                   
          
            Three Months Ended                                       Year Ended


                                                                                                  December 31,                            September 30,                                  December 31,     December 31,  December 31,
                                                                                   2024                     2025               2025                    2024                    2025


                                                                                                  US$                             US$                                  US$                            US$           US$



         Operating income                                                     30,134,942                 33,769,237           26,620,952               121,401,613               122,217,195



         Share-based compensation expenses                                     3,172,487                  2,404,054            2,317,378                14,691,737                10,316,583



         
            Non-GAAP operating income                               33,307,429                 36,173,291           28,938,330               136,093,350               132,533,778





         Net income                                                           32,530,722                 40,724,418           34,533,531               134,151,207               148,139,844



         Share-based compensation expenses,                                    3,172,487                  2,404,054            2,317,378                14,691,737                10,316,583
  net of tax effect of nil



         
            Non-GAAP net income                                     35,703,209                 43,128,472           36,850,909               148,842,944               158,456,427





         Net income attributable to Yalla                                     32,591,485                 41,110,846           34,860,533               135,684,241               149,834,991
  Group Limited's shareholders



         Share-based compensation expenses,                                    3,172,487                  2,404,054            2,317,378                14,691,737                10,316,583
  net of tax effect of nil



         
            Non-GAAP net income attributable to                     35,763,972                 43,514,900           37,177,911               150,375,978               160,151,574
  Yalla Group Limited's shareholders





         
            Non-GAAP earnings per ordinary share



         --Basic                                                                    0.22                       0.28                 0.24                      0.94                      1.03



         --Diluted                                                                  0.20                       0.24                 0.21                      0.82                      0.89



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



         --Basic                                                             159,672,548                154,491,280          153,979,633               160,429,693               155,977,062



         --Diluted                                                           182,474,460                179,310,959          178,066,658               183,156,324               180,082,810

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SOURCE Yalla Group Limited

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