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 June30, 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, drivenby 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.”
SecondQuarter 2025Financial 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 onSeptember 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 RMB7.1636to US$1.00, the exchange rate in effect as of June30, 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 goodwillresulting 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:ir@cmcm.com
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 USDASSETSCurrent assets:Cash and cash equivalents 1,833,031 2,019,598 281,925Short-term investments 335 336 47Accounts receivable, net 473,619 436,074 60,874Prepayments and other current assets, net 1,365,761 1,001,989 139,873Due from related parties, net 106,934 118,748 16,577Total current assets 3,779,680 3,576,745 499,296Non-current assets:Property and equipment, net 51,564 40,856 5,703Operating lease right-of-use assets 26,323 21,680 3,026Intangible assets, net 190,665 176,758 24,674Goodwill 424,099 424,099 59,202Long-term investments 817,330 791,238 110,453Deferred tax assets 128,581 127,696 17,826Other non-current assets 86,059 81,097 11,321Total non-current assets 1,724,621 1,663,424 232,205Total assets 5,504,301 5,240,169 731,501LIABILITIES, MEZZANINE EQUITYAND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable 219,566 227,013 31,690Accrued expenses and other current liabilities 2,756,805 2,576,527 359,669Due to related parties 69,606 19,167 2,676Income tax payable 35,804 43,812 6,116Total current liabilities 3,081,781 2,866,519 400,151Non-current liabilities:Deferred tax liabilities 43,046 40,443 5,646Other non-current liabilities 172,348 167,755 23,418Total non-current liabilities 215,394 208,198 29,064Total liabilities 3,297,175 3,074,717 429,215Mezzanine equity:Redeemable noncontrolling interests 189,725 194,077 27,092Shareholders' equity:Ordinary shares 248 249 35Additional paid-in capital 2,722,504 2,724,540 380,331Accumulated deficit (1,232,577) (1,288,577) (179,878)Accumulated other comprehensive income 410,423 403,029 56,261Total Cheetah Mobile Inc. shareholders' 1,900,598 1,839,241 256,749equityNoncontrolling interests 116,803 132,134 18,445Total shareholders' equity 2,017,401 1,971,375 275,194Total liabilities, mezzanine equity and 5,504,301 5,240,169 731,501shareholders' equity
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 pershare(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 USDRevenues 187,417 295,218 41,211 377,705 554,224 77,366Internet business 113,729 157,837 22,033 222,749 316,978 44,248AI and others 73,688 137,381 19,178 154,956 237,246 33,118Cost 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 57,832Operating 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 413Total 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 2,176Foreign exchange (losses)/gains (7,564) 6,349 886 (10,841) 7,999 1,117Other 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 3,288 6,200 865 6,997 11,448 1,598interestsNet loss attributable to Cheetah Mobile (123,841) (22,643) (3,161) (203,876) (56,000) (7,818)shareholdersNet loss per shareBasic (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 ADSBasic (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 sharesoutstandingBasic 1,495,962,672 1,518,381,903 1,518,381,903 1,495,088,007 1,517,084,516 1,517,084,516Diluted 1,495,962,672 1,518,381,903 1,518,381,903 1,495,088,007 1,517,084,516 1,517,084,516Weighted average number of ADSsoutstandingBasic 29,919,253 30,367,638 30,367,638 29,901,760 30,341,690 30,341,690Diluted 29,919,253 30,367,638 30,367,638 29,901,760 30,341,690 30,341,690Other comprehensive income/(loss), net of taxof nilForeign currency translation adjustments 8,383 (7,643) (1,067) 29,414 (7,915) (1,105)Unrealized gains on available-for-sale securities, (9,206) 188 26 (7,434) 2,848 398netOther 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 2,118 7,113 993 4,544 13,775 1,923to noncontrolling interestsTotal comprehensive loss attributable to (123,494) (31,011) (4,330) (179,443) (63,394) (8,850)Cheetah Mobile shareholders
For The Three Months Ended For The Six Months Ended June 30, June 30, June 30, June 30, June 30, June 30, 2024 2025 2025 2024 2025 2025(a) Share-based compensation expenses RMB RMB USD RMB RMB USDCost of revenues 357 5 1 449 10 1Research and development 116 62 9 408 358 50Selling and marketing 154 229 32 110 300 42General and administrative 7,831 2,065 288 15,076 7,277 1,016Total 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 Non-GAAP GAAP Share-based Amortization Non-GAAP of of Result Compensation intangible Result Result Compensation intangible Result assets* assets* RMB RMB RMB RMB USD RMB RMB RMB RMB USDRevenues 295,218 – – 295,218 41,211 554,224 – – 554,224 77,366Cost 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 57,833Research 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 413Total 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 Result Result Compensation intangible Result assets* assets* RMB RMB RMB RMB RMB RMB RMB RMBRevenues 187,417 – – 187,417 377,705 – – 377,705Cost of revenues (65,895) 357 – (65,538) (135,651) 449 – (135,202)Gross profit 121,522 357 – 121,879 242,054 449 – 242,503Research 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 – – 736Total 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 AI and Consolidated Internet AI and Consolidated Business others Business others RMB RMB RMB USD RMB RMB RMB USDRevenues 157,837 137,381 295,218 41,211 316,978 237,246 554,224 77,366Operating Costs and expensesCost of revenues(i) 26,315 44,106 70,421 9,830 49,307 90,614 139,921 19,533Selling and marketing(i) 62,119 40,086 102,205 14,267 129,615 77,357 206,972 28,892Research and development(i) 33,409 33,612 67,021 9,355 66,252 61,717 127,969 17,864Other segment items(i) 13,744 50,529 64,273 8,973 24,947 84,068 109,015 15,218Adjusted operating income/(losses) 22,250 (30,952) (8,702) (1,214) 46,857 (76,510) (29,653) (4,141)Unallocated amounts-share based (2,361) (330) (7,945) (1,109)compensationsOperating loss (11,063) (1,544) (37,598) (5,250)Reconciliation of segment profit/(loss)Interest income, net 9,980 1,393 15,585 2,176Foreign exchange gains, net 6,349 886 7,999 1,117Other (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 AI and others Consolidated Internet AI and others Consolidated Business Business RMB RMB RMB RMB RMB RMBRevenues 113,729 73,688 187,417 222,749 154,956 377,705Operating Costs and expensesCost of revenues(i) 19,730 45,808 65,538 38,951 96,251 135,202Selling and marketing(i) 39,384 33,858 73,242 77,589 70,833 148,422Research and development(i) 25,444 28,725 54,169 52,231 58,977 111,208Other segment items(i) 15,012 48,539 63,551 31,157 93,786 124,943Adjusted operating income/(losses) 14,159 (83,242) (69,083) 22,821 (164,891) (142,070)Unallocated amounts-share based (8,458) (16,043)compensationsOperating loss (77,541) (158,113)Reconciliation of segment profit/(loss)Interest income, net 9,773 25,089Foreign 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 allocatedto 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 USDNet loss attributable to Cheetah Mobile (123,841) (22,643) (3,161) (203,876) (56,000) (7,818)shareholdersAdd:Income tax (benefits)/expenses (6,391) 3,865 540 (6,193) 8,685 1,212Interest 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 2,867Net income attributable to noncontrolling 3,288 6,200 865 6,997 11,448 1,598interestsOther expense 59,176 11,495 1,605 70,048 13,854 1,934Share-based compensation 8,458 2,361 330 16,043 7,945 1,109Adjusted EBITDA (56,766) 2,055 288 (117,441) (9,114) (1,274)
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