Cheetah Mobile Announces Second Quarter 2025 Unaudited Consolidated Financial Results

PR Newswire


BEIJING
, Sept. 11, 2025 /PRNewswire/ — Cheetah Mobile Inc. (NYSE: CMCM) (“Cheetah Mobile” or the “Company”), a China-based IT company, today announced its unaudited consolidated financial results for the quarter ended June 30, 2025.


Management Commentary

Mr. Sheng Fu, Cheetah Mobile’s Chairman and Chief Executive Officer, remarked, “We delivered another quarter of solid topline growth and meaningful improvement in profitability, underscoring the early progress of our strategic transformation. Total revenue increased 57.5% year-over-year, driven by strong performance of both of our reporting segments. Our Internet business continued to benefit from our transition to a subscription-based model, with growing user engagement and retention. Revenue from our AI and others segment grew 86.4% year-over-year and accounted for 46.5% of total revenue. With the planned addition of UFACTORY, our recently acquired robotic arm business, we aim to strengthen our robotics capabilities and expand our addressable market. We remain committed to investing in AI utility applications and robotics. Encouraged by our business momentum, we will continue to drive sustainable growth and long-term shareholder value.”

Mr. Thomas Ren, Chief Financial Officer of Cheetah Mobile, commented: “We continued to improve profitability in the second quarter, supported by disciplined execution and enhanced operational efficiency. Both GAAP and non-GAAP losses once again narrowed significantly year-over-year and quarter-over-quarter, reflecting meaningful progress in our loss reduction efforts. This demonstrates that our path to profitability is both credible and sustained. Our Internet business remained profitable, while adjusted operating losses from our AI and others segment declined significantly, down 62.8% year-over-year and 32.1% quarter-over-quarter, as we shifted from early exploration to a more focused, efficiency-driven strategy. Leveraging AI to accelerate R&D and scale up real-world use cases has contributed meaningfully to this improvement. Our balance sheet remains healthy, giving us the flexibility to continue investing in innovation while maintaining a clear path toward breakeven.”


Second Quarter 2025 Financial Highlight

  • Total revenues grew by 57.5% year-over-year and 14.0% quarter-over-quarter, accelerating to RMB295.2 million (US$41.2 million) in the second quarter of 2025.
  • Gross profit increased by 85.0% year-over-year and 18.6% quarter-over-quarter, to RMB224.8 million (US$31.4 million) in the second quarter of 2025. Non-GAAP gross profit rose by 84.4% year-over-year and 18.6% quarter-over-quarter to RMB224.8 million (US$31.4 million). Gross margin was 76.1% in the second quarter of 2025, up from 64.8% in the year-ago quarter and 73.2% in the previous quarter. Non-GAAP gross margin was 76.1% in the second quarter of 2025, up from 65.0% in the year-ago quarter and 73.2% in the previous quarter.
  • Operating loss reduced by 85.7% year-over-year and 58.3% quarter-over-quarter to RMB11.1 million (US$1.5 million) in the second quarter of 2025. Non-GAAP operating loss reduced by 96.7% year-over-year and 85.5% quarter-over-quarter to RMB2.1 million (US$0.3 million) in the second quarter of 2025.
  • Net loss attributable to Cheetah Mobile Shareholders decreased by 81.7% year-over-year and 32.1% quarter-over-quarter to RMB22.6 million (US$3.2 million) in the second quarter of 2025. Non-GAAP net loss attributable to Cheetah Mobile Shareholders decreased by 87.4% year-over-year and 35.4% quarter-over-quarter to RMB13.7 million (US$1.9 million) in the second quarter of 2025.
  • As of June 30, 2025, the Company had cash and cash equivalents of RMB2,019.6 million (US$281.9 million), ensuring strong liquidity. In the second quarter, the Company generated RMB361.7 million (US$50.5 million) from its operating activities.
  • As of June 30, 2025, the Company had long-term investments of RMB791.2 million (US$110.5 million).


Conference Call Information

The Company will hold a conference call on September 11, 2025, at 7:00 a.m. Eastern Time (or 7:00 p.m. Beijing Time) to discuss its financial results. Listeners may access the call by dialing the following numbers:

Main Line:
International: 1-412-317-6061
United States Toll Free: 1-888-317-6003
Mainland China Toll Free: +86-4001-206115
Hong Kong Toll Free: 800-963976
Conference ID: 4960957

English Translation:
International: 1-412-317-6061
United States Toll Free: 1-888-317-6003
Mainland China Toll Free: +86-4001-206115
Hong Kong Toll Free: 800-963976
Conference ID: 3115762

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.cmcm.com


Exchange Rate

This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars in this press release were made at a rate of RMB7.1636 to US$1.00, the exchange rate in effect as of June 30, 2025, as set forth in the H.10 statistical release of the Federal Reserve Board. Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under accounting principles generally accepted in the United States of America (“U.S. GAAP”).


About Cheetah Mobile Inc.

Cheetah Mobile is a China-based IT company with a commitment to AI innovation. It has attracted hundreds of millions of users through an array of internet products and services on PCs and mobile devices. At the same time, it actively engages in the independent research and development of AI technologies, including LLM technologies. Cheetah Mobile provides advertising services to advertisers worldwide, value-added services including the sale of premium membership to its users, multi-cloud management platform to companies globally, as well as service robots to international clients. Cheetah Mobile is also committed to leveraging its cutting-edge AI technologies, including LLM technologies, to empower its products and make the world smarter. It has been listed on the New York Stock Exchange since May 2014.


Safe Harbor Statement

This press release contains forward-looking statements. These statements, including management quotes and business outlook, constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Such statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in the forward-looking statements, including but are not limited to the following: Cheetah Mobile’s growth strategies; Cheetah Mobile’s ability to retain and increase its user base and expand its product and service offerings; Cheetah Mobile’s ability to monetize its platform; Cheetah Mobile’s future business development, financial condition and results of operations; competition with companies in a number of industries including internet companies that provide online marketing services and internet value-added services; expected changes in Cheetah Mobile’s revenues and certain cost or expense items; and general economic and business condition globally and in China. Further information regarding these and other risks is included in Cheetah Mobile’s filings with the U.S. Securities and Exchange Commission. Cheetah Mobile does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.


Use of Non-GAAP Financial Measures

This release contains non-GAAP financial measures, including but not limited to:

  • Non-GAAP cost of revenues excludes share-based compensation expenses;
  • Non-GAAP gross profit excludes share-based compensation expenses;
  • Non-GAAP gross margin excludes share-based compensation expenses;
  • Total non-GAAP operating expenses exclude share-based compensation expenses, amortization of intangible assets and impairment of goodwill resulting from business acquisitions;
  • Non-GAAP research and development expenses exclude share-based compensation expenses, amortization of intangible assets resulting from business acquisitions;
  • Non-GAAP selling and marketing expenses exclude share-based compensation expenses and amortization of intangible assets resulting from business acquisitions;
  • Non-GAAP general and administrative expenses exclude share-based compensation expenses;
  • Non-GAAP operating profit/loss excludes share-based compensation expenses, amortization of intangible assets and impairment of goodwill resulting from business acquisitions;
  • Non-GAAP net income/loss attributable to Cheetah Mobile shareholders excludes share-based compensation expenses, amortization of intangible assets and impairment of goodwill resulting from business acquisitions;
  • Non-GAAP diluted earnings/losses per ADS excludes share-based compensation expenses, amortization of intangible assets and impairment of goodwill resulting from business acquisitions; and
  • Non-GAAP adjusted EBITDA represents net loss attributable to Cheetah Mobile shareholders excluding share-based compensation, interest income, depreciation and amortization, impairment of goodwill, net income attributable to noncontrolling interests, other income/expenses, net and income tax expenses/benefits.

The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of share-based compensation expenses, amortization of intangible assets and impairment of goodwill resulting from business acquisitions, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Cheetah Mobile Inc. Reconciliation of GAAP and non-GAAP Results”.


Investor Relations Contact

Helen Jing Zhu

Cheetah Mobile Inc.
Tel: +86 10 6292 7779
Email: [email protected] 

 


CHEETAH MOBILE INC.


Condensed Consolidated Balance Sheets


(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))


As of


December 31, 2024


June 30, 2025


RMB


RMB


USD


ASSETS


Current assets:

Cash and cash equivalents

1,833,031

2,019,598

281,925

Short-term investments

335

336

47

Accounts receivable, net

473,619

436,074

60,874

Prepayments and other current assets, net

1,365,761

1,001,989

139,873

Due from related parties, net

106,934

118,748

16,577


Total current assets


3,779,680


3,576,745


499,296


Non-current assets:

Property and equipment, net

51,564

40,856

5,703

Operating lease right-of-use assets

26,323

21,680

3,026

Intangible assets, net

190,665

176,758

24,674

Goodwill

424,099

424,099

59,202

Long-term investments

817,330

791,238

110,453

Deferred tax assets

128,581

127,696

17,826

Other non-current assets

86,059

81,097

11,321


Total non-current assets


1,724,621


1,663,424


232,205


Total assets


5,504,301


5,240,169


731,501


LIABILITIES, MEZZANINE EQUITY


AND SHAREHOLDERS’ EQUITY


Current liabilities:

Accounts payable

219,566

227,013

31,690

Accrued expenses and other current liabilities

2,756,805

2,576,527

359,669

Due to related parties

69,606

19,167

2,676

Income tax payable

35,804

43,812

6,116


Total current liabilities


3,081,781


2,866,519


400,151


Non-current liabilities:

Deferred tax liabilities

43,046

40,443

5,646

Other non-current liabilities

172,348

167,755

23,418


Total non-current liabilities


215,394


208,198


29,064


Total liabilities


3,297,175


3,074,717


429,215


Mezzanine equity:

Redeemable noncontrolling interests

189,725

194,077

27,092


Shareholders’ equity:

Ordinary shares

248

249

35

Additional paid-in capital

2,722,504

2,724,540

380,331

Accumulated deficit

(1,232,577)

(1,288,577)

(179,878)

Accumulated other comprehensive income

410,423

403,029

56,261


Total Cheetah Mobile Inc. shareholders’


equity


1,900,598


1,839,241


256,749


Noncontrolling interests


116,803


132,134


18,445


Total shareholders’ equity


2,017,401


1,971,375


275,194


Total liabilities, mezzanine equity and


shareholders’ equity


5,504,301


5,240,169


731,501

 


CHEETAH MOBILE INC.


Condensed Consolidated Statements of Comprehensive Loss


(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per


share(or ADS) data)


For The Three Months Ended


For The Six Months Ended


June 30, 2024


June 30, 2025


June 30, 2025


June 30, 2024


June 30, 2025


June 30, 2025


RMB


RMB


USD


RMB


RMB


USD


Revenues


187,417


295,218


41,211


377,705


554,224


77,366

     Internet business

113,729

157,837

22,033

222,749

316,978

44,248

     AI and others

73,688

137,381

19,178

154,956

237,246

33,118

Cost of revenues (a)

(65,895)

(70,426)

(9,831)

(135,651)

(139,931)

(19,534)


Gross profit


121,522


224,792


31,380


242,054


414,293


57,832


Operating income and expenses:

Research and development (a)

(54,285)

(67,083)

(9,364)

(111,616)

(128,327)

(17,914)

Selling and marketing (a)

(73,396)

(102,434)

(14,299)

(148,532)

(207,272)

(28,934)

General and administrative (a)

(71,610)

(66,627)

(9,301)

(140,755)

(119,251)

(16,647)

Other operating income, net

228

289

40

736

2,959

413


Total operating income and expenses


(199,063)


(235,855)


(32,924)


(400,167)


(451,891)


(63,082)


Operating loss


(77,541)


(11,063)


(1,544)


(158,113)


(37,598)


(5,250)


Other income/(expenses):

Interest income, net

9,773

9,980

1,393

25,089

15,585

2,176

Foreign exchange (losses)/gains

(7,564)

6,349

886

(10,841)

7,999

1,117

Other expense, net

(51,612)

(17,844)

(2,491)

(59,207)

(21,853)

(3,051)


Loss before income taxes


(126,944)


(12,578)


(1,756)


(203,072)


(35,867)


(5,008)

Income tax benefits/(expenses)

6,391

(3,865)

(540)

6,193

(8,685)

(1,212)


Net loss


(120,553)


(16,443)


(2,296)


(196,879)


(44,552)


(6,220)

Less: net income attributable to noncontrolling

interests

3,288

6,200

865

6,997

11,448

1,598


Net loss attributable to Cheetah Mobile


shareholders


(123,841)


(22,643)


(3,161)


(203,876)


(56,000)


(7,818)


Net loss per share

Basic

(0.0841)

(0.0162)

(0.0023)

(0.1390)

(0.0397)

(0.0055)

Diluted

(0.0841)

(0.0163)

(0.0023)

(0.1391)

(0.0398)

(0.0056)


Net loss per ADS

Basic

(4.2042)

(0.8116)

(0.1150)

(6.9488)

(1.9861)

(0.2750)

Diluted

(4.2067)

(0.8152)

(0.1150)

(6.9542)

(1.9923)

(0.2800)


Weighted average number of shares


outstanding

Basic

1,495,962,672

1,518,381,903

1,518,381,903

1,495,088,007

1,517,084,516

1,517,084,516

Diluted

1,495,962,672

1,518,381,903

1,518,381,903

1,495,088,007

1,517,084,516

1,517,084,516


Weighted average number of ADSs


outstanding

Basic

29,919,253

30,367,638

30,367,638

29,901,760

30,341,690

30,341,690

Diluted

29,919,253

30,367,638

30,367,638

29,901,760

30,341,690

30,341,690


Other comprehensive income/(loss), net of tax


of nil

Foreign currency translation adjustments

8,383

(7,643)

(1,067)

29,414

(7,915)

(1,105)

Unrealized gains on available-for-sale securities,

net

(9,206)

188

26

(7,434)

2,848

398


Other comprehensive (loss)/income


(823)


(7,455)


(1,041)


21,980


(5,067)


(707)


Total comprehensive loss


(121,376)


(23,898)


(3,337)


(174,899)


(49,619)


(6,927)


Less: Total comprehensive income attributable


to noncontrolling interests


2,118


7,113


993


4,544


13,775


1,923


Total comprehensive loss attributable to


Cheetah Mobile shareholders


(123,494)


(31,011)


(4,330)


(179,443)


(63,394)


(8,850)

 


For The Three Months Ended


For The Six Months Ended


June 30,


2024


June 30,


2025


June 30,


2025


June 30,


2024


June 30,


2025


June 30,


2025


(a) Share-based compensation expenses


RMB


RMB


USD


RMB


RMB


USD

Cost of revenues

357

5

1

449

10

1

Research and development

116

62

9

408

358

50

Selling and marketing

154

229

32

110

300

42

General and administrative

7,831

2,065

288

15,076

7,277

1,016


Total


8,458


2,361


330


16,043


7,945


1,109

 


CHEETAH MOBILE INC.


Reconciliation of GAAP and Non-GAAP Results


(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for per share data )


For The Three Months Ended June 30, 2025


For The Six Months Ended June 30, 2025


GAAP


Share-based


Amortization


of


Non-GAAP


GAAP


Share-based


Amortization


of


Non-GAAP


Result


Compensation


intangible


assets*


Result


Result


Compensation


intangible


assets*


Result


RMB


RMB


RMB


RMB


USD


RMB


RMB


RMB


RMB


USD

Revenues

295,218

295,218

41,211

554,224

554,224

77,366

Cost of revenues

(70,426)

5

(70,421)

(9,830)

(139,931)

10

(139,921)

(19,533)

Gross profit

224,792

5

224,797

31,381

414,293

10

414,303

57,833

Research and development

(67,083)

62

6,156

(60,865)

(8,496)

(128,327)

358

12,312

(115,657)

(16,145)

Selling and marketing

(102,434)

229

469

(101,736)

(14,202)

(207,272)

300

938

(206,034)

(28,761)

General and administrative

(66,627)

2,065

(64,562)

(9,013)

(119,251)

7,277

(111,974)

(15,631)

Other operating income, net

289

289

40

2,959

2,959

413

Total operating income and expenses

(235,855)

2,356

6,625

(226,874)

(31,671)

(451,891)

7,935

13,250

(430,706)

(60,124)

Operating loss

(11,063)

2,361

6,625

(2,077)

(290)

(37,598)

7,945

13,250

(16,403)

(2,291)

Net loss attributable to Cheetah Mobile shareholders

(22,643)

2,361

6,625

(13,657)

(1,907)

(56,000)

7,945

13,250

(34,805)

(4,859)

Diluted losses per ordinary share (RMB)

(0.0163)

0.0016

0.0043

(0.0104)

(0.0398)

0.0052

0.0086

(0.0260)

Diluted losses per ADS (RMB)

(0.8152)

0.0800

0.2152

(0.5200)

(1.9923)

0.2600

0.4323

(1.3000)

Diluted losses per ADS (USD)

(0.1150)

0.0112

0.0312

(0.0726)

(0.2800)

0.0363

0.0622

(0.1815)

 


For The Three Months Ended  June 30, 2024


For The Six Months Ended  June 30, 2024


GAAP


Share-based


Amortization of


Non-GAAP


GAAP


Share-based


Amortization of


Non-GAAP


Result


Compensation


intangible


assets*


Result


Result


Compensation


intangible


assets*


Result


RMB


RMB


RMB


RMB


RMB


RMB


RMB


RMB

Revenues

187,417

187,417

377,705

377,705

Cost of revenues

(65,895)

357

(65,538)

(135,651)

449

(135,202)

Gross profit

121,522

357

121,879

242,054

449

242,503

Research and development

(54,285)

116

6,156

(48,013)

(111,616)

408

12,312

(98,896)

Selling and marketing

(73,396)

154

469

(72,773)

(148,532)

110

938

(147,484)

General and administrative

(71,610)

7,831

(63,779)

(140,755)

15,076

(125,679)

Other operating income, net

228

228

736

736

Total operating income and expenses

(199,063)

8,101

6,625

(184,337)

(400,167)

15,594

13,250

(371,323)

Operating loss

(77,541)

8,458

6,625

(62,458)

(158,113)

16,043

13,250

(128,820)

Net loss attributable to Cheetah Mobile shareholders

(123,841)

8,458

6,625

(108,758)

(203,876)

16,043

13,250

(174,583)

Diluted losses per ordinary share (RMB)

(0.0841)

0.0057

0.0043

(0.0741)

(0.1391)

0.0107

0.0089

(0.1195)

Diluted losses per ADS (RMB)

(4.2067)

0.2850

0.2167

(3.7050)

(6.9542)

0.5350

0.4442

(5.9750)

* This represents amortization of intangible assets resulting from business acquisitions.

 


CHEETAH MOBILE INC.


Information about Segment


(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for percentage)


For The Three Months Ended June 30, 2025


For The Six Months Ended June 30, 2025


Internet


Business


AI and


others


Consolidated


Internet


Business


AI and


others


Consolidated


RMB


RMB


RMB


USD


RMB


RMB


RMB


USD


Revenues


157,837


137,381


295,218


41,211


316,978


237,246


554,224


77,366


Operating Costs and expenses

Cost of revenues(i)

26,315

44,106

70,421

9,830

49,307

90,614

139,921

19,533

Selling and marketing(i)

62,119

40,086

102,205

14,267

129,615

77,357

206,972

28,892

Research and development(i)

33,409

33,612

67,021

9,355

66,252

61,717

127,969

17,864

Other segment items(i)

13,744

50,529

64,273

8,973

24,947

84,068

109,015

15,218


Adjusted operating income/(losses)


22,250


(30,952)


(8,702)


(1,214)


46,857


(76,510)


(29,653)


(4,141)

Unallocated amounts-share based

compensations

(2,361)

(330)

(7,945)

(1,109)


Operating loss


(11,063)


(1,544)


(37,598)


(5,250)


Reconciliation of segment profit/(loss)

Interest income, net

9,980

1,393

15,585

2,176

Foreign exchange gains, net

6,349

886

7,999

1,117

Other (expense)/income, net

(17,844)

(2,491)

(21,853)

(3,051)


Loss before income taxes


(12,578)


(1,756)


(35,867)


(5,008)

 


For The Three Months Ended June 30, 2024


For The Six Months Ended June 30, 2024


Internet


Business


AI and others


Consolidated


Internet


Business


AI and others


Consolidated


RMB


RMB


RMB


RMB


RMB


RMB


Revenues


113,729


73,688


187,417


222,749


154,956


377,705


Operating Costs and expenses

Cost of revenues(i)

19,730

45,808

65,538

38,951

96,251

135,202

Selling and marketing(i)

39,384

33,858

73,242

77,589

70,833

148,422

Research and development(i)

25,444

28,725

54,169

52,231

58,977

111,208

Other segment items(i)

15,012

48,539

63,551

31,157

93,786

124,943


Adjusted operating income/(losses)


14,159


(83,242)


(69,083)


22,821


(164,891)


(142,070)

Unallocated amounts-share based

compensations

(8,458)

(16,043)


Operating loss


(77,541)


(158,113)


Reconciliation of segment profit/(loss)

Interest income, net

9,773

25,089

Foreign exchange losses, net

(7,564)

(10,841)

Other (expense)/income, net

(51,612)

(59,207)


Loss before income taxes


(126,944)


(203,072)

 

(i) Share-based compensations were not allocated to segments. Other segment items include general and administrative expenses and other operating expenses allocated

to the respective segments.

 


CHEETAH MOBILE INC.


Reconciliation from Net Loss Attributable to Cheetah Mobile Shareholders to Adjusted EBITDA (Non-GAAP)


(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))


For The Three Months Ended


For The Six Months Ended


June 30, 2024


June 30, 2025


June 30, 2025


June 30, 2024


June 30, 2025


June 30, 2025


RMB


RMB


USD


RMB


RMB


USD

Net loss attributable to Cheetah Mobile

shareholders

(123,841)

(22,643)

(3,161)

(203,876)

(56,000)

(7,818)

Add:

Income tax (benefits)/expenses

(6,391)

3,865

540

(6,193)

8,685

1,212

Interest income, net

(9,773)

(9,980)

(1,393)

(25,089)

(15,585)

(2,176)

Depreciation and other amortization

12,317

10,757

1,502

24,629

20,539

2,867

Net income attributable to noncontrolling

interests

3,288

6,200

865

6,997

11,448

1,598

Other expense

59,176

11,495

1,605

70,048

13,854

1,934

Share-based compensation

8,458

2,361

330

16,043

7,945

1,109


Adjusted EBITDA


(56,766)


2,055


288


(117,441)


(9,114)


(1,274)

 

Cision View original content:https://www.prnewswire.com/news-releases/cheetah-mobile-announces-second-quarter-2025-unaudited-consolidated-financial-results-302553771.html

SOURCE Cheetah Mobile