Yalla Group Limited Q4 FY2025 earnings call

Mr. Tao Yang mentioned continued execution excellence in fourth quarter, strong full-year revenue growth, progress in gaming titles like TurboMatch and dagger-themed SLG, AI initiatives with Siemens model, strategic partnership with Saudi Esports Federation, and share repurchase program. Mr. Saifi Mayu shared MAUs increase, operational performance highlights, and continued focus on localization and community operations. Mrs. Karen Hu discussed financial results, net income growth, cost and expense details.

Fourth quarter revenues reached 83.9 USD. Full year total revenues rose to USD 341.9 million. Revenues from GAINS services grew 9.1% year over year. Net income grew by double digits, up 10.4% to USD 148.1 million.

For the first quarter of 2026, expected revenues between $75 million and $82 million. In 2026, expect revenue from mid-core and hardcore gaming products in second half, and will adjust marketing and R&D spending flexibly based on product performance.

Recent developments in the Middle East, no operations in Iran or Israel, but have arranged employees to work from home, and will closely monitor the situation as it evolves.

Q: Xueqin Zhang from CICC asked about the company's partnership with the Saudi e-sports federation.

A: Our strategic partnership with the Saudi e-sports federation represents a key step in deepening presence in Saudi Arabia, including being official event partner, supporting women's e-league, and launching talent development program.

Q: Chloe Wei from CICC asked about evolving microdynamics in the Middle East.

A: No operations in Iran or Israel, arranged employees to work from home, no material revenue variation in past two weeks, will closely monitor situation.

Q: Tianhao Liu from CITIC asked about product rollout and marketing schedule.

A: Turbo Match initial rollout used internal traffic, will increase external marketing in Q2; desert-themed SLG in final optimization stage, expect revenue in second half.

Q: Xiao Yuehu from Haitong asked about proprietary AI model.

A: In-house multimodal AI model CEMIS is industry-leading in MENA, will deepen AI integration.

Q: Lincoln Kong of Goldman Sachs asked about 2026 guidance and gaming strategy.

A: 2026 revenue from mature businesses flat, margin stable, new games in second half; gaming strategy includes consolidating core and expanding into new segments, focused on Middle East and potential global markets.

Q: Qianyu Guo from Nomura asked about share repurchase program.

A: Executed $56.6 million repurchase in 2025, will execute remaining $44 million, new $150 million repurchase program from 2026-03-09 to 2028-03-08