Cheetah Mobile (CMCM) Q2 2025 earnings summary

Executive summary

• Achieved best results since Q1 2021, with revenue up 58% year-over-year and significant improvements in profitability.

• Revenue reached RMB295.2 million ($41.2 million) in Q2 2025, up 57.5% year-over-year and 14% quarter-over-quarter.

• AI and other segments revenue surged 86% year-over-year, while internet business grew 39% year-over-year.

• Operating loss decreased 86% year-over-year, nearing break-even; long-term operating loss down 97%.

• Strategic transformation and focus on AI and robotics, including the planned addition of UFactory, are driving business momentum.

Financial highlights

• Q2 2024 revenue reached RMB 295 million, up 58% year-over-year and 14% quarter-over-quarter.

• Gross profit increased 85% year-over-year to RMB 224.8 million ($31.4 million); gross margin improved to 76.1%.

• Operating loss narrowed to RMB 11.1 million ($1.5 million), down 86% year-over-year.

• Non-GAAP operating loss declined to RMB 2.1 million ($0.3 million), down 97% year-over-year.

• Net loss attributable to shareholders decreased by 81.7% year-over-year to RMB 22.6 million ($3.2 million).

Outlook and guidance

• Expects to maintain fast growth in H2 2025, targeting about 100% year-over-year revenue growth in AI and other segments.

• Confident in achieving profitability in the near term, supported by a strong cash position and zero debt.

• Management remains committed to investing in AI utility applications and robotics to drive sustainable growth and long-term shareholder value.

• Focus on leveraging AI to accelerate R&D and scale real-world use cases.

• Internet business growth expected to remain healthy, with sustainable profit contribution.