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 September 30, 2025.
Management Commentary
Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, remarked, “We are pleased to see continued momentum in our turnaround journey. In the third quarter of 2025, we delivered our first quarterly operating profit in six years-reaching this milestone ahead of expectations. Total revenue grew 49.6% year over year, with the AI and others segment increasing 150.8% and contributing half of total revenue, reflecting the emergence of our next growth engine. Within the AI and others segment, our AI robot business continued to perform well, supported by solid demand for our voice-enabled wheel robots and robotic arms. In parallel, we are developing AI-native tools across PC and mobile, while enhancing existing products with new AI features. Looking ahead, we remain focused on driving growth by building new growth engines through continued investment in AI robots and AI tools.”
Mr. Thomas Ren, Chief Financial Officer of Cheetah Mobile, commented: “Our consistent improvement on bottom-line reflects our disciplined execution and operational improvements. Operating profit was about RMB3.9 million, increasing from an operating loss of RMB72.0 million in the year ago quarter and an operating loss of RMB11.1 million in the previous quarter. Non-GAAP operating profit reached RMB15.1 million, compared with a non-GAAP operating loss of RMB60.5 million in the same period last year and RMB2.1 million in Q2. Our Internet business segment generated RMB68.2 million in adjusted operating profit in the first nine months of 2025, exceeding full-year 2024 levels and growing 86.2% year over year. Meanwhile, adjusted operating loss in our AI and others segment narrowed meaningfully in this quarter. In addition, our balance sheet remains healthy.”
ThirdQuarter 2025Financial Highlight
— Total revenuesgrew by 49.6% year-over-year to RMB287.4 million (US$40.4 million) in the third quarter of 2025, driven by the 150.8% year-over-year increase in AI and others revenues, which already accounted for 50.4% of Cheetah Mobile's third quarter revenues, up from 30.1% in the same period last year.
— Gross profitincreased by 64.4% year-over-year to RMB214.4 million (US$30.1 million) in the third quarter of 2025.Non-GAAP gross profit rose by 64.3% year-over-year to RMB214.4 million (US$30.1 million) in the third quarter of 2025. Gross margin was 74.6% in the third quarter of 2025, up from 67.9% in the year-ago quarter. Non-GAAP gross margin was 74.6% in the third quarter of 2025, up from 67.9% in the year-ago quarter.
— Operating profitwas RMB3.9 million (US$0.6 million) in the third quarter of 2025, improving from operating loss of RMB72.0 million in the same period last year.Non-GAAP operating profit was RMB15.1 million(US$2.1 million) in the third quarter of 2025, improving from non-GAAP operating loss of RMB60.5 million in the same period last year.
— Net loss attributable to Cheetah Mobile Shareholderswas RMB11.0 million (US$1.5 million) in the third quarter of 2025, improving from net loss attributable to Cheetah Mobile Shareholders of RMB46.9 million in the year ago quarter. Non-GAAP net income attributable to Cheetah Mobile Shareholders was RMB0.2 million (US$0.03 million) in the third quarter of 2025, improving from non-GAAP net loss attributable to Cheetah Mobile Shareholders of RMB35.4 million in the same period last year.
— As of September 30, 2025, the Company had cash and cash equivalents of RMB1,597.3 million (US$224.4 million), ensuring strong liquidity.
— As of September 30, 2025, the Company had long-term investments of RMB761.4 million (US$107.0 million).
Conference Call Information
The Company will hold a conference call on November 26, 2025, at 6:00 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: 4896015
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: 4165222
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 RMB7.1190to US$1.00, the exchange rate in effect as of September30, 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 AI service robots and roboticarms 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;
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: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 September 30, 2025 RMB RMB USDASSETSCurrent assets:Cash and cash equivalents 1,833,031 1,597,311 224,373Short-term investments 335 863 121Accounts receivable, net 473,619 443,459 62,292Prepayments and other current assets, net 1,365,761 1,115,204 156,653Due from related parties, net 106,934 126,801 17,812Total current assets 3,779,680 3,283,638 461,251Non-current assets:Property and equipment, net 51,564 40,797 5,731Operating lease right-of-use assets 26,323 19,067 2,678Intangible assets, net 190,665 205,660 28,889Goodwill 424,099 460,034 64,621Long-term investments 817,330 761,408 106,954Deferred tax assets 128,581 119,725 16,818Other non-current assets 86,059 90,317 12,687Total non-current assets 1,724,621 1,697,008 238,378Total assets 5,504,301 4,980,646 699,629LIABILITIES, MEZZANINE EQUITYAND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable 219,566 207,356 29,127Accrued expenses and other current liabilities 2,756,805 2,309,513 324,415Due to related parties 69,606 18,011 2,530Income tax payable 35,804 50,748 7,129Total current liabilities 3,081,781 2,585,628 363,201Non-current liabilities:Deferred tax liabilities 43,046 44,635 6,270Other non-current liabilities 172,348 165,010 23,179Total non-current liabilities 215,394 209,645 29,449Total liabilities 3,297,175 2,795,273 392,650Mezzanine equity:Redeemable noncontrolling interests 189,725 196,191 27,559Shareholders' equity:Ordinary shares 248 254 36Additional paid-in capital 2,722,504 2,724,880 382,762Accumulated deficit (1,232,577) (1,299,551) (182,547)Accumulated other comprehensive income 410,423 391,343 54,972Total Cheetah Mobile Inc. shareholders' 1,900,598 1,816,926 255,223equityNoncontrolling interests 116,803 172,256 24,197Total shareholders' equity 2,017,401 1,989,182 279,420Total liabilities, mezzanine equity and 5,504,301 4,980,646 699,629shareholders' equity
CHEETAH MOBILE INC.Condensed Consolidated Statements of Comprehensive Loss(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number ofshares and pershare (or ADS) data) For The Three Months Ended For The Nine Months Ended September 30, September 30, September 30, September 30, September 30, September 30, 2024 2025 2025 2024 2025 2025 RMB RMB USD RMB RMB USDRevenues 192,083 287,369 40,367 569,788 841,593 118,217Internet business 134,287 142,407 20,004 357,036 459,385 64,529AI and others 57,796 144,962 20,363 212,752 382,208 53,688Cost of revenues (a) (61,714) (73,005) (10,255) (197,365) (212,936) (29,911)Gross profit 130,369 214,364 30,112 372,423 628,657 88,306Operating income and expenses:Research and development (a) (66,269) (67,962) (9,547) (177,885) (196,289) (27,573)Selling and marketing (a) (89,038) (82,806) (11,632) (237,570) (290,078) (40,747)General and administrative (a) (47,349) (60,170) (8,452) (188,104) (179,421) (25,203)Other operating income, net 278 506 71 1,014 3,465 487Total operating income and expenses (202,378) (210,432) (29,560) (602,545) (662,323) (93,036)Operating (loss)/income (72,009) 3,932 552 (230,122) (33,666) (4,730)Other income/(expenses):Interest income, net 9,471 9,560 1,343 34,560 25,145 3,532Foreign exchange gains 21,351 8,628 1,212 10,510 16,627 2,336Other income/(expense), net 1,738 (12,318) (1,730) (57,469) (34,171) (4,800)(Loss)/income before income taxes (39,449) 9,802 1,377 (242,521) (26,065) (3,662)Income tax (expenses)/benefits (2,387) (13,506) (1,897) 3,806 (22,191) (3,117)Net loss (41,836) (3,704) (520) (238,715) (48,256) (6,779)Less: net income attributable to noncontrolling 5,061 7,270 1,021 12,058 18,718 2,629interestsNet loss attributable to Cheetah Mobile (46,897) (10,974) (1,541) (250,773) (66,974) (9,408)shareholdersNet loss per shareBasic (0.0323) (0.0085) (0.0012) (0.1711) (0.0480) (0.0067)Diluted (0.0323) (0.0086) (0.0012) (0.1711) (0.0483) (0.0067)Net loss per ADSBasic (1.6150) (0.4236) (0.0600) (8.5542) (2.4019) (0.3350)Diluted (1.6150) (0.4296) (0.0600) (8.5569) (2.4130) (0.3350)Weighted average number of sharesoutstandingBasic 1,509,057,830 1,548,248,444 1,548,248,444 1,499,799,151 1,527,699,928 1,527,699,928Diluted 1,509,057,830 1,548,248,444 1,548,248,444 1,499,799,151 1,527,699,928 1,527,699,928Weighted average number of ADSsoutstandingBasic 30,181,157 30,964,969 30,964,969 29,995,983 30,553,999 30,553,999Diluted 30,181,157 30,964,969 30,964,969 29,995,983 30,553,999 30,553,999Other comprehensive income/(loss) , net of taxof nilForeign currency translation adjustments (32,036) (16,996) (2,387) (2,622) (24,911) (3,499)Unrealized gains/(losses) on available-for-sale 2,799 3,814 536 (4,635) 6,662 936securities, netOther comprehensive loss (29,237) (13,182) (1,851) (7,257) (18,249) (2,563)Total comprehensive loss (71,073) (16,886) (2,371) (245,972) (66,505) (9,342)Less: Total comprehensive income attributable 7,346 5,774 811 11,890 19,549 2,746to noncontrolling interestsTotal comprehensive loss attributable to (78,419) (22,660) (3,182) (257,862) (86,054) (12,088)Cheetah Mobile shareholders For The Three Months Ended For The Nine Months Ended September 30, September 30, September 30, September 30, September 30, September 30, 2024 2025 2025 2024 2025 2025(a) Share-based compensation expenses RMB RMB USD RMB RMB USDCost of revenues 92 4 1 541 14 2Research and development 236 (172) (24) 644 186 26Selling and marketing (277) 183 26 (167) 483 68General and administrative 4,863 2,714 381 19,939 9,991 1,403Total 4,914 2,729 384 20,957 10,674 1,499
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 September 30, 2025 For The Nine Months Ended September 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 287,369 – – 287,369 40,367 841,593 – – 841,593 118,217Cost of revenues (73,005) 4 – (73,001) (10,254) (212,936) 14 – (212,922) (29,909)Gross profit 214,364 4 – 214,368 30,113 628,657 14 – 628,671 88,308Research and development (67,962) (172) 6,388 (61,746) (8,674) (196,289) 186 18,700 (177,403) (24,920)Selling and marketing (82,806) 183 2,070 (80,553) (11,315) (290,078) 483 3,008 (286,587) (40,257)General and administrative (60,170) 2,714 – (57,456) (8,071) (179,421) 9,991 – (169,430) (23,800)Other operating income, net 506 – – 506 71 3,465 – – 3,465 487Total operating income and expenses (210,432) 2,725 8,458 (199,249) (27,989) (662,323) 10,660 21,708 (629,955) (88,490)Operating income/(loss) 3,932 2,729 8,458 15,119 2,124 (33,666) 10,674 21,708 (1,284) (182)Net (loss)/income attributable to Cheetah Mobile (10,974) 2,729 8,458 213 31 (66,974) 10,674 21,708 (34,592) (4,860)shareholdersDiluted losses per ordinary share (RMB) (0.0086) 0.0018 0.0054 (0.0014) (0.0483) 0.0070 0.0141 (0.0272)Diluted losses per ADS (RMB) (0.4296) 0.0900 0.2696 (0.0700) (2.4130) 0.3500 0.7030 (1.3600)Diluted losses per ADS (USD) (0.0600) 0.0126 0.0376 (0.0098) (0.3350) 0.0492 0.0948 (0.1910)
For The Three Months Ended September 30, 2024 For The Nine Months Ended September 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 192,083 – – 192,083 569,788 – – 569,788Cost of revenues (61,714) 92 – (61,622) (197,365) 541 – (196,824)Gross profit 130,369 92 – 130,461 372,423 541 – 372,964Research and development (66,269) 236 6,156 (59,877) (177,885) 644 18,468 (158,773)Selling and marketing (89,038) (277) 469 (88,846) (237,570) (167) 1,407 (236,330)General and administrative (47,349) 4,863 – (42,486) (188,104) 19,939 – (168,165)Other operating income, net 278 – – 278 1,014 – – 1,014Total operating income and expenses (202,378) 4,822 6,625 (190,931) (602,545) 20,416 19,875 (562,254)Operating loss (72,009) 4,914 6,625 (60,470) (230,122) 20,957 19,875 (189,290)Net loss attributable to Cheetah Mobile shareholders (46,897) 4,914 6,625 (35,358) (250,773) 20,957 19,875 (209,941)Diluted losses per ordinary share (RMB) (0.0323) 0.0033 0.0044 (0.0246) (0.1711) 0.0140 0.0132 (0.1439)Diluted losses per ADS (RMB) (1.6150) 0.1650 0.2200 (1.2300) (8.5569) 0.7000 0.6619 (7.1950)* 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 September 30, 2025 For The Nine Months Ended September 30, 2025 Internet AI and Consolidated Internet AI and Consolidated Business others Business others RMB RMB RMB USD RMB RMB RMB USDRevenues 142,407 144,962 287,369 40,367 459,385 382,208 841,593 118,217Operating Costs and expensesCost of revenues(i) 25,999 47,002 73,001 10,254 75,306 137,616 212,922 29,909Selling and marketing(i) 45,371 37,252 82,623 11,606 174,986 114,609 289,595 40,679Research and development(i) 33,441 34,693 68,134 9,571 99,693 96,410 196,103 27,547Other segment items(i) 16,252 40,698 56,950 8,000 41,199 124,766 165,965 23,313Adjusted operating income/(loss) 21,344 (14,683) 6,661 936 68,201 (91,193) (22,992) (3,231)Unallocated amounts-share based (2,729) (384) (10,674) (1,499)compensationsOperating income/(loss) 3,932 552 (33,666) (4,730)Reconciliation of segment profit/(loss)Interest income, net 9,560 1,343 25,145 3,532Foreign exchange gains, net 8,628 1,212 16,627 2,336Other expense , net (12,318) (1,730) (34,171) (4,800)Income/(loss) before income taxes 9,802 1,377 (26,065) (3,662)
For The Three Months Ended September 30, 2024 For The Nine Months Ended September 30, 2024 Internet AI and others Consolidated Internet AI and others Consolidated Business Business RMB RMB RMB RMB RMB RMBRevenues 134,287 57,796 192,083 357,036 212,752 569,788Operating Costs and expensesCost of revenues(i) 19,687 41,935 61,622 58,638 138,186 196,824Selling and marketing(i) 53,113 36,202 89,315 130,702 107,035 237,737Research and development(i) 32,594 33,439 66,033 84,825 92,416 177,241Other segment items(i) 15,088 27,120 42,208 46,245 120,906 167,151Adjusted operating income/(losses) 13,805 (80,900) (67,095) 36,626 (245,791) (209,165)Unallocated amounts-share based (4,914) (20,957)compensationsOperating loss (72,009) (230,122)Reconciliation of segment profit/(loss)Interest income, net 9,471 34,560Foreign exchange gains, net 21,351 10,510Other income/(expense), net 1,738 (57,469)Loss before income taxes (39,449) (242,521)(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 Nine Months Ended September 30, September 30, September 30, September 30, September 30, September 30, 2024 2025 2025 2024 2025 2025 RMB RMB USD RMB RMB USDNet loss attributable to Cheetah Mobile (46,897) (10,974) (1,541) (250,773) (66,974) (9,408)shareholdersAdd:Income tax expenses/(benefits) 2,387 13,506 1,897 (3,806) 22,191 3,117Interest income, net (9,471) (9,560) (1,343) (34,560) (25,145) (3,532)Depreciation and other amortization 12,205 12,270 1,724 36,834 32,809 4,609Net income attributable to noncontrolling 5,061 7,270 1,021 12,058 18,718 2,629interestsOther (income)/ expense, net (23,089) 3,690 518 46,959 17,544 2,464Share-based compensation 4,914 2,729 384 20,957 10,674 1,499Adjusted EBITDA (54,890) 18,931 2,660 (172,331) 9,817 1,378
https://edge.prnewswire.com/c/img/favicon.png?sn=CN33639&sd=2025-11-26
View original content:https://www.prnewswire.com/news-releases/cheetah-mobile-announces-third-quarter-2025-unaudited-consolidated-financial-results-302626564.html
SOURCE Cheetah Mobile
https://rt.newswire.ca/rt.gif?NewsItemId=CN33639&Transmission_Id=202511260400PR_NEWS_USPR_____CN33639&DateId=20251126