Ten straight quarters of year-over-year revenue decline, with the rate moderating to -5.0% in 2026Q2, have been accompanied by severe gross margin compression from 41.3% to 35.7%, squeezing operating income despite elevated SG&A expenses.
Hello Group Inc. (MOMO) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 10.1B | 10.37B | 10.56B | 12B | 12.7B | 14.58B | 15.02B | 17.02B | 13.41B | 8.89B | 3.71B | 869.83M | 277.62M | 18.96M | 0 |
| Revenue Growth % | -3.37% | -1.85% | -11.99% | -5.52% | -12.84% | -2.99% | -11.7% | 26.9% | 50.89% | 139.7% | 326.22% | 213.32% | 1364.04% | - | - |
| Cost of Goods Sold | 6.33B | 6.45B | 6.45B | 7.03B | 7.42B | 8.38B | 7.98B | 8.49B | 7.18B | 4.37B | 1.62B | 196.78M | 97.77M | 17.74M | 919.3K |
| COGS % of Revenue | - | 62.18% | 61.04% | 58.53% | 58.42% | 57.52% | 53.09% | 49.91% | 53.57% | 49.21% | 43.68% | 22.62% | 35.22% | 93.54% | - |
| Gross Profit | 3.77B | 3.92B | 4.12B | 4.98B | 5.28B | 6.19B | 7.05B | 8.52B | 6.23B | 4.51B | 2.09B | 673.05M | 179.85M | 1.22M | -919.3K |
| Gross Margin % | 37.29% | 37.82% | 38.96% | 41.47% | 41.58% | 42.48% | 46.91% | 50.09% | 46.43% | 50.79% | 56.32% | 77.38% | 64.78% | 6.46% | - |
| Gross Profit Growth % | - | -4.74% | -17.31% | -5.79% | -14.69% | -12.13% | -17.31% | 36.9% | 37.95% | 116.14% | 210.24% | 274.23% | 14591.3% | 233.16% | - |
| Operating Expenses | 2.58B | 2.57B | 2.58B | 2.67B | 3.66B | 4.18B | 4.52B | 4.97B | 2.96B | 2.08B | 1.11B | 636.6M | 341.98M | 57.94M | 23.11M |
| OpEx % of Revenue | - | 24.75% | 24.45% | 22.26% | 28.77% | 28.71% | 30.06% | 29.2% | 22.07% | 23.39% | 30.02% | 73.19% | 123.18% | 305.53% | - |
| Selling, General & Admin | 1.85B | 1.82B | 1.84B | 1.92B | 2.67B | 3.23B | 3.58B | 4.22B | 2.45B | 1.89B | 906.95M | 490.2M | 284.67M | 36.53M | 14.01M |
| SG&A % of Revenue | - | 17.59% | 17.4% | 15.98% | 21.01% | 22.15% | 23.81% | 24.79% | 18.29% | 21.26% | 24.46% | 56.36% | 102.54% | 192.65% | - |
| Research & Development | 760.07M | 779.45M | 804.42M | 884.59M | 1.01B | 1.13B | 1.17B | 1.1B | 760.64M | 346.14M | 208.65M | 151.03M | 57.47M | 21.4M | 9.09M |
| R&D % of Revenue | - | 7.52% | 7.62% | 7.37% | 7.92% | 7.76% | 7.77% | 6.44% | 5.67% | 3.9% | 5.63% | 17.36% | 20.7% | 112.88% | - |
| Other Operating Expenses | -3M | -37.59M | -59M | -130.1M | -20.63M | -175.95M | -228.78M | -344.84M | -253.7M | -156.76M | -2.66M | -4.63M | -161.28K | 0 | 0 |
| Operating Income | 1.19B | 1.35B | 1.53B | 2.31B | 1.63B | 2.01B | 2.53B | 3.55B | 3.27B | 2.43B | 975.09M | 36.45M | -162.13M | -56.71M | -24.03M |
| Operating Margin % | 11.75% | 13.07% | 14.51% | 19.2% | 12.81% | 13.77% | 16.85% | 20.89% | 24.36% | 27.39% | 26.3% | 4.19% | -58.4% | -299.07% | - |
| Operating Income Growth % | - | -11.63% | -33.5% | 41.63% | -18.92% | -20.7% | -28.79% | 8.83% | 34.18% | 149.64% | 2575.51% | 122.48% | -185.88% | -136.03% | - |
| EBITDA | 1.28B | 1.44B | 1.59B | 2.38B | 1.74B | 2.27B | 2.9B | 3.91B | 3.51B | 2.52B | 1.03B | 79.59M | -144.73M | -51.61M | -23.11M |
| EBITDA Margin % | 12.68% | 13.86% | 15.07% | 19.87% | 13.69% | 15.59% | 19.29% | 22.98% | 26.16% | 28.33% | 27.81% | 9.15% | -52.13% | -272.16% | - |
| EBITDA Growth % | -9.54% | -9.75% | -33.26% | 37.07% | -23.43% | -21.59% | -25.91% | 11.5% | 39.3% | 144.24% | 1195.32% | 154.99% | -180.44% | -123.34% | - |
| D&A (Non-Cash Add-back) | 93.89M | 81.81M | 58.73M | 79.61M | 112.13M | 264.6M | 366.25M | 356.19M | 241.27M | 83.67M | 55.84M | 43.14M | 17.4M | 5.1M | 919.3K |
| EBIT | 1.39B | 1.73B | 1.95B | 2.71B | 2.11B | -2.02B | 2.98B | 3.95B | 3.5B | 2.55B | 990.41M | 36.45M | -162.13M | -56.71M | -24.03M |
| Net Interest Income | 236.68M | 293.8M | 383.12M | 374.03M | 285.35M | 310.5M | 365.6M | 328.93M | 216.44M | 145.57M | 54.6M | 50.67M | 4.48M | 193.93K | 0 |
| Interest Income | 255.13M | 364.26M | 510.96M | 436.25M | 368.88M | 384.28M | 444.47M | 407.54M | 272.95M | 145.57M | 54.6M | 50.67M | 4.48M | 193.93K | 18.73K |
| Interest Expense | 18.44M | 70.46M | 127.85M | 62.22M | 83.53M | 73.78M | 78.87M | 78.61M | 56.5M | 0 | 0 | 0 | 0 | 0 | 18.73K |
| Other Income/Expense | 213.92M | 294.83M | 351.82M | 276.7M | 414.75M | -4.11B | 324.58M | 289.87M | 221.9M | 155.21M | 38.51M | 53.07M | 4.48M | 193.93K | 18.76K |
| Pretax Income | 1.4B | 1.65B | 1.88B | 2.58B | 2.04B | -2.1B | 2.86B | 3.84B | 3.49B | 2.59B | 1.01B | 89.52M | -157.65M | -56.52M | -24.01M |
| Pretax Margin % | 13.87% | 15.91% | 17.84% | 21.51% | 16.08% | -14.43% | 19.01% | 22.6% | 26.02% | 29.14% | 27.34% | 10.29% | -56.79% | -298.05% | - |
| Income Tax | 283.57M | 842.87M | 845.02M | 630.02M | 562.28M | 822.56M | 755.62M | 883.8M | 699.65M | 445M | 34.64M | 597.25K | 0 | 0 | 0 |
| Effective Tax Rate % | 20.24% | 51.1% | 44.84% | 24.4% | 27.53% | -39.11% | 26.46% | 22.99% | 20.06% | 17.19% | 3.42% | 0.67% | 0% | 0% | 0% |
| Net Income | 1.11B | 804.01M | 1.04B | 1.96B | 1.48B | -2.91B | 2.1B | 2.97B | 2.82B | 2.15B | 978.97M | 88.92M | -157.65M | -56.52M | -17.72M |
| Net Margin % | 11.04% | 7.76% | 9.84% | 16.31% | 11.68% | -19.99% | 14% | 17.46% | 21% | 24.17% | 26.41% | 10.22% | -56.79% | -298.05% | - |
| Net Income Growth % | 30.5% | -22.66% | -46.89% | 31.89% | 150.94% | -238.52% | -29.2% | 5.51% | 31.08% | 119.42% | 1000.97% | 156.4% | -178.94% | -218.89% | - |
| Net Income (Continuing) | 1.12B | 806.52M | 1.04B | 1.95B | 1.48B | -2.93B | 2.1B | 2.96B | 2.79B | 2.14B | 978.97M | 88.92M | -157.65M | -56.52M | -24.01M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 206.34M | 187.27M | 181.84M | 153.33M | 138.96M | 196.35M | 188.72M | 92.3M | 18.6M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 7.12 | 4.62 | 5.58 | 9.84 | 7.30 | -14.42 | 9.66 | 13.18 | 13.00 | 10.05 | 5.00 | 0.39 | -0.82 | -0.30 | -0.82 |
| EPS Growth % | 42.86% | -17.2% | -43.29% | 34.79% | 150.62% | -249.28% | -26.71% | 1.38% | 29.35% | 101% | 1182.05% | 147.56% | -173.33% | 63.41% | - |
| EPS (Basic) | - | 4.68 | 5.58 | 10.36 | 7.60 | -14.42 | 10.10 | 14.32 | 13.18 | 10.58 | 5.28 | 0.52 | -0.90 | -0.30 | -0.86 |
| Diluted Shares Outstanding | 156.55M | 169.3M | 186.8M | 200.92M | 202.35M | 202.35M | 226.04M | 225.6M | 216.54M | 207.63M | 203.52M | 200.7M | 193.71M | 186.48M | 28.98M |
| Basic Shares Outstanding | 154.26M | 166.18M | 186.8M | 198.94M | 195.09M | 202.34M | 217.75M | 207.66M | 213.64M | 197.27M | 188.67M | 171.32M | 173.37M | 186.48M | 27.73M |
| Dividend Payout Ratio | - | 41.88% | 68.9% | 48.94% | 56.66% | - | 53.43% | 29.53% | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying MOMO stock.
For fiscal year 2025, Hello Group Inc. (MOMO) reported total revenue of $10.37B.
Hello Group Inc. (MOMO) is profitable, generating $804.0M in net income for the fiscal year ending 2025 with a net profit margin of 7.8%.
Hello Group Inc. (MOMO) reported an operating income of $1.35B, resulting in an operating profit margin of 13.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Hello Group Inc. (MOMO) generated $3.92B in gross profit for the year, representing a gross profit margin of 37.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Sustained revenue contraction
Consistent Top-Line Erosion
Hello Group's revenue has contracted year-over-year for ten consecutive quarters, with the rate of decline moderating slightly from -14.2% in 2024Q2 to -5.0% in 2026Q2, as per the reported financials.
The persistent negative growth trajectory suggests fundamental demand challenges in its core markets, not merely cyclical headwinds. While the deceleration in the rate of decline could indicate stabilization, the company remains in a prolonged contraction phase, which pressures margin structures and limits operating leverage.
Significant Gross Margin Compression
Gross margins have deteriorated markedly, falling from 41.3% in 2024Q1 to 35.7% in 2026Q2, indicating a structural shift in cost of revenue relative to pricing power.
This ~560 basis point erosion over ten quarters appears to reflect increased content costs, user acquisition expenses, or a mix shift toward lower-margin services. The margin profile now sits well below peers like MTCH (72.8%) and BMBL (68.3%), suggesting Hello Group operates in a more commoditized segment of the communication services industry.
Fixed Cost Burden on Shrinking Revenue
Despite revenue declines, absolute SG&A expenses have remained elevated, ranging from $424.8M to $486.3M per quarter, which has severely squeezed operating profitability.
The inability to scale SG&A proportionally with revenue suggests a high fixed-cost base or management's reluctance or inability to cut expenses aggressively. This creates negative operating leverage, as seen when operating margins fell from 18.0% to 9.1% over the period, even as gross profit dollars declined.
Q2 2025: The Anomaly of Negative EPS
The single most critical inflection was in 2025Q2, when the company reported a net loss of -$140.2M despite maintaining positive operating income of $403.5M.
This stark divergence between operating and net income was driven by a massive non-operating charge or tax item, completely eroding shareholder value for the period. It highlights the volatility and unpredictability of non-core items in the company's earnings stream, warranting scrutiny of the underlying cause.
Margin Sustainability is the Core Risk
The most significant challenge to the narrative is whether gross margins can stabilize near 35%, given the downward trend, as this directly determines operating breakeven in a contracting revenue environment.
If the margin compression reflects permanent structural changes rather than temporary investments, the company's operating income may continue to decline even if revenue stabilization is achieved. Investors should monitor if cost of revenue continues to outpace any future revenue growth, potentially leading to operating losses and the need for further asset monetization or capital raises.