YALA

Interested in Yalla Group Limited Sponsored ADR? Here are five stocks we like better. Q2 revenue exceeded guidance at $82.6 million, supported by an 11.6% increase in game-services revenue to $34.2 million. However, total revenue and net income declined year over year as geopolitical events pressured paying users. Yalla increased investment in growth, with selling and marketing expense more than doubling to $17.8 million and product-development costs rising 18.9%. The company is expanding Turbo Match and its strategy game globally while developing additional casual and hyper-casual titles for 2027 and 2028. Management forecast Q3 revenue of $78 million to $85 million and maintained its expectation that full-year 2026 revenue will be broadly in line with 2025. Yalla also repurchased $27.6 million of shares in the first half and continues a $150 million buyback program. Yalla Group (NYSE:YALA) reported second-quarter 2026 revenue of $82.6 million, exceeding the upper end of its prior guidance, as growth in game services and a recovery in flagship products helped offset pressure on its core business from regional geopolitical events. Revenue declined from $84.6 million a year earlier, which Chief Financial Officer Karen Hu attributed primarily to a decrease in paying users related to recent geopolitical events in the broader region. However, game-services revenue rose 11.6% year over year to $34.2 million and accounted for 41.4% of total revenue. → Applied Materials Beat Everything but Wall Street’s Expectations for Margins Net income fell to $29.3 million from $36.5 million in the prior-year quarter. Non-GAAP net income was $34.4 million, compared with $39.4 million a year earlier, while the company’s non-GAAP net margin was 41.7%. Yalla increased spending to support new games and user acquisition. Selling and marketing expense more than doubled year over year to $17.8 million, or 21.6% of revenue, from $8.7 million, or 10.2% of revenue, in the second quarter of 2025. → Texas Roadhouse and Brinker International Have the Recipe Rivals Are Missing Technology and product development expense increased 18.9% to $9.9 million, driven by higher salaries and benefits associated with increased headcount supporting new businesses and portfolio expansion. General and administrative expenses declined 4% to $8.6 million. Operating income declined to $19.4 million from $30.6 million a year earlier. The company also recorded $5.1 million in investment income, compared with $0.02 million in the prior-year quarter, primarily due to changes in the fair value of wealth-management products. → AirJoule Technologies: Short Squeeze Setup Amid Rising Risks As of June 30, Yalla held $824.2 million in cash and cash equivalents, restricted cash, term deposits and short-term investments, up from $754.6 million at the end of 2025. Chairman and Chief Executive Officer Tao Yang said the company’s gaming business gained momentum during the quarter. Turbo Match, Yalla’s first self-developed Match-3 title, continued expanding its user base and maintaining healthy retention trends in the Middle East and North Africa region, as well as in the U.S. and Europe. Turbo Match was featured by Apple’s App Store in MENA markets including Saudi Arabia in mid-July, according to Yang. During the second half of 2026, Yalla plans to scale commercialization of the title and accelerate its expansion into global markets. The company also continued a paced launch for its desert-themed strategy game, or SLG title, during the first two months of the quarter. Yalla completed a co-promotion campaign between the game and Yalla Ludo and is developing a major version update intended to add gameplay content, deepen engagement and improve conversion and monetization. Management said user-acquisition spending for the SLG title may slow in the third quarter as the company prepares for a larger campaign after the planned fourth-quarter version release. Yalla also said it has initiated development of multiple casual and hyper-casual titles that it expects to support growth in 2027 and 2028, while pursuing external distribution relationships with global developers. President Saifi Ismail said average monthly active users reached 47.6 million, an increase of 12.3% from a year earlier. The figure moderated sequentially from the first quarter’s Ramadan-driven levels, though Ismail said management expects sequential MAU growth to resume in the third quarter through operational campaigns. Yalla Ludo posted a sequential recovery in the second quarter, aided by the continuation of its Carnival Season 6 campaign and the launch of the Yalla Season Series, a longer-term engagement program. Management said these efforts supported a rebound in paying-user growth and monetization conversion. The company also cited its 10th-anniversary activities for its Yalla product, regional community initiatives, and its involvement with the Saudi eLeague 2026 as contributors to engagement. Yalla served as the official event partner of Saudi eLeague 2026 and presenting partner of Yalla Saudi eLeague Women 2026. Yalla said it has expanded the use of artificial intelligence in research and development. The company integrated AI-assisted coding into its development workflow and introduced a proprietary AI model-based system for Match-3 level generation and difficulty evaluation. Management said the system can speed level-design iterations, reduce development costs and help match content with player preferences and skill levels. The company repurchased approximately 4.4 million ADSs or Class A ordinary shares for $27.6 million during the first half of 2026, including 2.9 million shares for about $18 million in the second quarter. Its 2021 repurchase program expired May 21 after Yalla bought back a total of $126.5 million under that authorization. Yalla is continuing its newer repurchase plan, authorized for up to $150 million over the 20 months beginning March 9, 2026. As of Aug. 14, the company had canceled 12.7 million ADSs or Class A ordinary shares. For the third quarter, Yalla forecast revenue of $78 million to $85 million. For the full year, management maintained its expectation that overall 2026 revenue will be broadly in line with 2025, with a slight decline in core-business revenue offset by contributions from new games. The company said it sees potential for full-year GAAP net margin of around 30%, though it may increase user-acquisition spending if new products receive particularly strong market feedback. Yalla Group (NYSE:YALA) operates a voice-centric social networking and entertainment platform designed to connect users through live audio chat rooms, interactive voice channels and mobile gaming. Its core product, the Yalla app, allows participants in the Middle East and North Africa (MENA) region to join real-time voice discussion groups, host audio shows and send virtual gifts. Through the PokerBROS brand, the company offers a mobile-first social poker platform featuring Texas Hold'em, Chinese Poker and other variants, enabling casual and competitive gaming among a growing user base. Founded in 2016 and incorporated in the Cayman Islands, Yalla Group established its headquarters in Riyadh with additional offices in Dubai and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Yalla Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: USD82.6 million in Q2 2026, exceeding the upper end of guidance, compared with USD84.6 million in Q2 2025. Game Services Revenue: USD34.2 million, up 11.6% year over year, contributing 41.4% of total revenues. Non-GAAP Net Margin: 41.7% in Q2 2026. Cost of Revenues: USD26.8 million, down 4.1% year over year; as a percentage of total revenues, decreased to 32.4% from 33%. Selling and Marketing Expenses: USD17.8 million, up 106% year over year; as a percentage of total revenues, increased to 21.6% from 10.2%. General and Administrative Expenses: USD8.6 million, down 4% year over year; as a percentage of total revenues, slightly decreased to 10.5% from 10.6%. Technology and Product Development Expenses: USD9.9 million, up 18.9% year over year; as a percentage of total revenues, increased to 12% from 9.9%. Operating Income: USD19.4 million in Q2 2026, compared with USD30.6 million in Q2 2025. Non-GAAP Operating Income: USD24.5 million in Q2 2026, compared with USD33.5 million in Q2 2025. Investment Income: USD5.1 million in Q2 2026, compared with USD0.02 million in Q2 2025. Income Tax Expense: USD0.6 million in Q2 2026, compared with USD1.5 million in Q2 2025. Net Income: USD29.3 million in Q2 2026, compared with USD36.5 million in Q2 2025. Non-GAAP Net Income: USD34.4 million in Q2 2026, compared with USD39.4 million in Q2 2025. Cash Position: Cash and cash equivalents, restricted cash, term deposits, and short-term investments totaled USD824.2 million as of June 30, 2026, compared with USD754.6 million as of December 31, 2025. Average MAUs: 47.6 million in Q2 2026, up 12.3% year over year. Share Repurchases: Repurchased 4.4 million ADS or Class A ordinary shares for USD27.6 million in the first half of 2026; 2.9 million shares repurchased in Q2 for approximately USD18 million. Q3 2026 Outlook: Revenue expected between USD78 million and USD85 million. Warning! GuruFocus has detected 3 Warning Sign with YALA. Is YALA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Yalla Group Ltd (NYSE:YALA) delivered a solid Q2 2026 with revenues of USD82.6 million, exceeding the upper end of guidance, driven by a rebound in flagship products and strong user engagement. Game services revenue grew 11.6% year over year to USD34.2 million, with the segment's contribution to total revenues increasing to 41.4%, highlighting the success of the gaming business expansion. The company maintained a healthy non-GAAP net margin of 41.7% despite doubling selling and marketing expenses, demonstrating effective cost management and operational efficiency. Yalla Group Ltd (NYSE:YALA) continued to strengthen its shareholder return program, repurchasing USD27.6 million in shares in H1 2026 and canceling 12.7 million shares, reflecting confidence in long-term growth. The company is leveraging AI technology to enhance R&D efficiency, including a proprietary AI model for Match 3 level generation, which has accelerated game development and improved user experience. Total revenues decreased year over year to USD82.6 million from USD84.6 million, primarily due to a decline in paying users impacted by recent geopolitical events in the region. Selling and marketing expenses surged 106% year over year to USD17.8 million, significantly increasing the cost structure and pressuring operating income, which fell to USD19.4 million from USD30.6 million. The company's Q3 2026 revenue guidance of USD78-85 million suggests potential sequential decline, reflecting uncertainty in new game performance and market conditions. User acquisition for new games, particularly the SLG title, is expected to slow in Q3 as the company prepares for a major version update, potentially delaying growth momentum. Full-year 2026 revenue is expected to remain broadly in line with last year, indicating limited top-line growth despite investments in new products and market expansion. Q: Given the better expected performance in the second quarter, could management provide the guidance of the company's revenue trend and margin outlook for the second half of 2026?A: Karen Hu (CFO): Q2 revenues were mainly driven by the rebound of flagship products. For the full year, we maintained the guidance shared last quarter, expecting a slight decline in revenue from core businesses offset by contributions from new games, with overall 2026 revenues broadly in line with last year. In the second half, costs and expenses are expected to remain broadly similar to the first half. We see potential for the full-year GAAP net margin to remain at around 30%. If new products receive particularly strong market feedback, we may increase user acquisition investment to pursue greater market share. Q: My question is about your new games. Can management share the latest progress of the new games along with the operational and go-to-market plans for the next two quarters?A: Jianfeng Xu (COO): Our core new products are progressing at different paces. For Turbo Match, our self-developed Match 3 title, we maintained healthy user acquisition and retention trends in Q2, and will focus on scaling up commercialization and accelerating global expansion, including the US and Europe, in the second half. For our desert-themed SLG title, we completed co-promotion with Yalla Ludo in Q2 to drive initial user acquisition. We are now focusing on the next major version update with richer gameplay content and optimized monetization. User acquisition may slow down in Q3 as we prepare to deliver momentum for the next round of user acquisition campaigns. Q: My question is about the capital allocation. With our net cash reserves exceeding $800 million, could management provide more color on the current cash flow conversion efficiency and also the strategic priorities for capital allocation going forward?A: Karen Hu (CFO): We have always been committed to maximizing shareholder value. In March, the company announced a newly authorized 2-year share repurchase program of up to USD150 million, and we remain committed to executing our shareholder return program. Our ample cash reserves provide significant strategic financial flexibility. As we deepen our local advantages in MENA, we are evaluating strategic partnership opportunities and potential investments in or acquisitions of top-tier R&D teams while further expanding our product pipeline and accelerating penetration into overseas markets. Q: Could you please share an update on the company's latest shareholder return initiatives, including progress of the share repurchase program and the priorities for future capital allocation?A: Karen Hu (CFO): In the first half of this year, the company repurchased a total of approximately 4.3 million shares under our 2021 and 2026 share repurchase programs, totaling around USD27.6 million. Our 2021 program expired in May 2026, with a total of USD126.5 million repurchased under it. Moving forward, we will continue to execute our new 2026 program with an authorization of up to USD150 million. As of August 14, 2026, the company has canceled a total of 12.7 million repurchased shares. Q: So let's turn to gaming. For in-house game development and the expansion of external partnerships, what are the growth opportunities and the strategic outlook?A: Jianfeng Xu (COO): In Q2, revenues from game services grew 11.6% year over year to USD34.2 million. We will continue to execute a strategy pairing in-house game development with external distribution partnerships. For self-developed games, we are steadily growing our team and attracting experienced product and publishing professionals. We've built a highly skilled team for Match 3 games and are exploring new growth opportunities. Since the end of last year, we have internally initiated development of multiple new products across casual and hyper-casual games, laying the foundation for growth in 2027 and 2028. For game distribution, we continue to seek high-quality partners globally to bring more hardcore gaming content to MENA. Q: In the second quarter, the company's performance exceeded the upper end of its guidance. Could management share what are the key drivers behind this strong performance?A: Saifi Ismail (President): Our Q2 results beat the high end of guidance mainly driven by the rebound of our flagship products, validating the strong user stickiness and resilience of our core products, while new game contributions were in line with expectations. For our social ecosystem, the tenth anniversary celebration of Yalla drove strong growth in our social network business. In our gaming ecosystem, Yalla Ludo achieved a strong sequential recovery, building on the success of Carnival Season 6 and the launch of the Yalla Season series, which significantly enhanced user engagement and monetization conversion. Q: My question is about AI. Could you provide more color on how AI technology is applied in the company's R&D and daily operations?A: Tao Yang (Chairman & CEO): In Q2, we accelerated the application of cutting-edge technologies in our R&D process, deeply integrating AI into our technology infrastructure. Our tech team integrated AI-assisted coding into our development workflow. For Match 3 titles and other games, we launched a proprietary AI model-based system for level generation and difficulty evaluation. The system can rapidly generate high-quality levels at scale and use AI-powered automated testing to evaluate level completion probabilities. This innovation has significantly shortened the cycle time for level design and version iterations while reducing R&D costs, and enables us to dynamically deliver levels that better match players' preferences and skill levels, improving player experience and optimizing user retention. Q: Could management share the latest progress on the company's operational performance and product performance in the second quarter?A: Saifi Ismail (President): In Q2, average MAUs reached 47.6 million, an increase of 12.3% year over year, with expected sequential moderation from Ramadan's high levels in Q1. We anticipate sequential MAU growth to resume in Q3. Yalla Ludo showed a clear recovery from Q1, with Carnival Season 6 extending its success. We launched the Yalla Season series, a new long-term operational campaign. To mark the tenth anniversary of Yalla, we launched locally resonant online campaigns tailored to Middle Eastern culture, driving significant engagement and strong willingness to spend among loyal high-level users. We also served as official event partner of SEL 2026 and capitalized on World Cup excitement with soccer-themed campaigns. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

DUBAI, UAE, Aug. 17, 2026 /PRNewswire/ -- Yalla Group Limited ("Yalla" or the "Company") (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced its unaudited financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial and Operating Highlights Revenues were US$82.6 million in the second quarter of 2026, compared with US$84.6 million in the second quarter of 2025. Net income was US$29.3 million in the second quarter of 2026, compared with US$36.5 million in the second quarter of 2025. Net margin[1] was 35.5% in the second quarter of 2026. Non-GAAP net income[2] was US$34.4 million in the second quarter of 2026, compared with US$39.4 million in the second quarter of 2025. Non-GAAP net margin[3] was 41.7% in the second quarter of 2026. Average MAUs[4] increased by 12.3% to 47.6 million in the second quarter of 2026, compared with 42.4 million in the second quarter of 2025. The number of paying users[5] was 10.9 million in the second quarter of 2026, compared with 11.2 million in the second quarter of 2025. "We delivered solid results across our flagship products and growing momentum in our gaming business in the second quarter of 2026," said Mr. Tao Yang, Founder, Chairman and CEO of Yalla. "Our revenues exceeded the upper end of our guidance, driven by an 11.6% year-over-year increase in revenues from games services. Meanwhile, our core products continued to build momentum, with refined operations and targeted marketing driving a sequential rebound in paying users for Yalla Ludo and a 12.3% year-over-year increase in overall average MAUs to 47.6 million. "Beyond the sustained strength of our flagship products, we made progress in expanding our gaming ecosystem. Our new games, including our first self-developed match-3 title and desert-themed SLG title, continued to advance smoothly with a clear roadmap taking shape for the next stage of development. We also continued to strengthen our pipeline of self-developed products, spanning casual games, hyper-casual games, social products and AI applications, designed to maximize the synergy between our social and gaming ecosystems. Building on years of deep-rooted expertise in MENA, we will continue to unlock local opportunities and broaden our reach globally through strategic partnerships to deliver sustainable growth for our shareholders." Ms. Karen Hu, CFO of Yalla, commented, "In the second quarter of 2026, we continued to pursue high-quality development while maintaining solid profitability. Total revenues were US$82.6 million, with revenues from games services growing to US$34.2 million, increasing the segment's contribution to 41.4%. While doubling our selling and marketing expenses year over year to support the promotion of new products, we maintained a healthy non-GAAP net margin of 41.7% through increased efficiency. Our balance sheet and cash flow remain ample to support our investments in business expansion as well as consistent shareholder returns. Going forward, we will continue to invest in long-term growth while driving value creation." Second Quarter 2026 Financial Results Revenues Revenues were US$82.6 million in the second quarter of 2026, compared with US$84.6 million in the second quarter of 2025, primarily due to a decrease in paying users attributable to the impact of recent geopolitical events in the broader region, partially offset by an increase in revenues from games services. In the second quarter of 2026, revenues generated from chatting services were US$47.4 million, and revenues from games services were US$34.2 million. Costs and expenses Total costs and expenses were US$63.2 million in the second quarter of 2026, compared with US$53.9 million in the second quarter of 2025. Cost of revenues was US$26.8 million in the second quarter of 2026, a 4.1% decrease from US$27.9 million in the second quarter of 2025, primarily due to lower commission fees paid to third-party payment platforms. Cost of revenues as a percentage of total revenues decreased to 32.4% in the second quarter of 2026 from 33.0% in the second quarter of 2025. Selling and marketing expenses were US$17.8 million in the second quarter of 2026, a 106.0% increase from US$8.7 million in the second quarter of 2025, primarily due to higher advertising and market promotion expenses attributable to the Company's continued user acquisition efforts and support for new games. Selling and marketing expenses as a percentage of total revenues increased to 21.6% in the second quarter of 2026 from 10.2% in the second quarter of 2025. General and administrative expenses were US$8.6 million in the second quarter of 2026, a 4.0% decrease from US$9.0 million in the second quarter of 2025, primarily due to a decrease in incentive compensation, partially offset by an increase in foreign exchange loss. General and administrative expenses as a percentage of total revenues slightly decreased to 10.5% in the second quarter of 2026 from 10.6% in the second quarter of 2025. Technology and product development expenses were US$9.9 million in the second quarter of 2026, an 18.9% increase from US$8.3 million in the second quarter of 2025, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in headcount to support the development of new businesses and our product portfolio expansion. Technology and product development expenses as a percentage of total revenues increased to 12.0% in the second quarter of 2026 from 9.9% in the second quarter of 2025. Operating income Operating income was US$19.4 million in the second quarter of 2026, compared with US$30.6 million in the second quarter of 2025. Non-GAAP operating income[6] Non-GAAP operating income in the second quarter of 2026 was US$24.5 million, compared with US$33.5 million in the second quarter of 2025. Interest income Interest income was US$5.4 million in the second quarter of 2026, compared with US$6.8 million in the second quarter of 2025. Investment income Investment income was US$5.1 million in the second quarter of 2026, compared with US$0.02 million in the second quarter of 2025, primarily due to changes in the fair value of wealth management products. Income tax expense Income tax expense was US$0.6 million in the second quarter of 2026, compared with US$1.5 million in the second quarter of 2025. Net income Net income was US$29.3 million in the second quarter of 2026, compared with US$36.5 million in the second quarter of 2025. Non-GAAP net income Non-GAAP net income in the second quarter of 2026 was US$34.4 million, compared with US$39.4 million in the second quarter of 2025. Earnings per ordinary share Basic and diluted earnings per ordinary share were US$0.21 and US$0.18, respectively, in the second quarter of 2026, while basic and diluted earnings per ordinary share were US$0.24 and US$0.20, respectively, in the second quarter of 2025. Non-GAAP earnings per ordinary share[7] Non-GAAP basic and diluted earnings per ordinary share were US$0.24 and US$0.21, respectively, in the second quarter of 2026, compared with US$0.25 and US$0.22, respectively, in the second quarter of 2025. Cash and cash equivalents, restricted cash, term deposits and short-term investments As of June 30, 2026, the Company had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$824.2 million, compared with US$754.6 million as of December 31, 2025. Share Repurchase Program Under the Company's two share repurchase programs launched in 2021 and 2026 (the "2021 Program" and the "2026 Program"), the Company repurchased 4,357,024 American depositary shares ("ADSs"), representing 4,357,024 Class A ordinary shares, for an aggregate amount of approximately US$27.6 million in the first half of 2026. Of this number, 2,896,035 ADSs, representing 2,896,035 Class A ordinary shares, were repurchased during the second quarter of 2026, for an aggregate amount of approximately US$18.0 million. The 2021 Program expired on May 21, 2026. Under the 2021 Program, the Company was authorized to repurchase up to US$150 million worth of its outstanding ADSs and/or Class A ordinary shares, and the Company repurchased a cumulative total of 18,762,758 ADSs, representing 18,762,758 Class A ordinary shares, from the open market with cash for an aggregate amount of approximately US$126.5 million. In addition, the Company had cancelled 12,734,059 ADSs, representing 12,734,059 Class A ordinary shares, as of August 14, 2026. The Company will continue executing its 2026 Program, under which the Company may repurchase up to US$150 million worth of its outstanding ADSs and/or Class A ordinary shares over the 24 months starting from March 9, 2026. Outlook For the third quarter of 2026, Yalla currently expects revenues to be between US$78.0 million and US$85.0 million. The above outlook is based on current market conditions and reflects the Company management's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Conference Call Yalla Group Limited will hold a conference call on Monday, August 17, 2026, at 8:00 PM Eastern Time, 4:00 AM Dubai Time on Tuesday, August 18, 2026, or 8:00 AM Beijing Time on Tuesday, August 18, 2026, to discuss the financial results. Participants should complete online registration using the link provided below before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Event Title: Yalla Group Ltd. Second Quarter 2026 Earnings Conference CallRegistration Link: https://register-conf.media-server.com/register/BIa9b95130104d40aa9a598586197e750b Additionally, a live webcast of the conference call will be available on the Company's investor relations website at https://ir.yalla.com, and a replay of the webcast will be available following the session. Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP financial measures, namely non-GAAP operating income, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per ordinary share, as supplemental measures to review and assess the Company's operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP operating income as operating income excluding share-based compensation. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net margin as non-GAAP net income as a percentage of revenues. We define non-GAAP net income attributable to Yalla Group Limited's shareholders as net income attributable to Yalla Group Limited's shareholders, excluding share-based compensation. We define non-GAAP earnings per ordinary share as non-GAAP net income attributable to Yalla Group Limited's shareholders, divided by the weighted average number of basic and diluted shares outstanding. By excluding the impact of share-based compensation expenses, which are non-cash charges, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company's past performance and future prospects. Investors can better understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess its core operating results, as they exclude share-based compensation expenses, which are not expected to result in cash payments. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company's operations. Share-based compensation has been and may continue to be incurred in the Company's business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Reconciliations of GAAP and non-GAAP results are set forth at the end of this press release. About Yalla Group Limited Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues in 2022. The Company operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games, popular in MENA, with in-game voice chat and localized Majlis functionality. Building on the success of Yalla and Yalla Ludo, the Company continues to add engaging new content, creating a regionally-focused, integrated ecosystem dedicated to fulfilling MENA users' evolving online social networking and gaming needs. Through its holding subsidiary, Yalla Game Limited, the Company has expanded its capabilities in mid-core and hard-core games in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets. Yalla's mobile applications deliver a seamless experience that fosters a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users. For more information, please visit: https://ir.yalla.com. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Statements that are not historical facts, including statements about Yalla Group Limited's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Yalla Group Limited's filings with the SEC. All information provided in this press release is as of the date of this press release, and Yalla Group Limited does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: Yalla Group LimitedInvestor RelationsKerry Gao - IR DirectorTel: +86-571-8980-7962Email: [email protected] Piacente Financial CommunicationsJenny CaiTel: +86-10-6508-0677Email: [email protected] In the United States: Piacente Financial CommunicationsBrandi PiacenteTel: +1-212-481-2050Email: [email protected] View original content:https://www.prnewswire.com/news-releases/yalla-group-limited-announces-unaudited-second-quarter-2026-financial-results-302852771.html

DUBAI, UAE, Aug. 7, 2026 /PRNewswire/ -- Yalla Group Limited ("Yalla" or the "Company") (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced that it will report its unaudited financial results for the second quarter 2026 after the U.S. market closes on Monday, August 17, 2026. Yalla Group Limited will hold a conference call on Monday, August 17, 2026, at 8:00 PM Eastern Time, 4:00 AM Dubai Time on Tuesday, August 18, 2026, or 8:00 AM Beijing Time on Tuesday, August 18, 2026, to discuss the financial results. Participants should complete online registration using the link provided below before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Additionally, a live webcast of the conference call will be available on the Company's investor relations website at https://ir.yalla.com, and a replay of the webcast will be available following the session. About Yalla Group Limited Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues in 2022. The Company operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games, popular in MENA, with in-game voice chat and localized Majlis functionality. Building on the success of Yalla and Yalla Ludo, the Company continues to add engaging new content, creating a regionally-focused, integrated ecosystem dedicated to fulfilling MENA users' evolving online social networking and gaming needs. Through its holding subsidiary, Yalla Game Limited, the Company has expanded its capabilities in mid-core and hard-core games in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets. Yalla's mobile applications deliver a seamless experience that fosters a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users. For more information, please visit: https://ir.yalla.com. Investor Relations Contact Yalla Group LimitedInvestor RelationsKerry Gao – IR DirectorTel: +86-571-8980-7962Email: [email protected] Piacente Financial CommunicationsJenny CaiTel: +86-10-6508-0677Email: [email protected] In the United States: Piacente Financial CommunicationsBrandi PiacenteTel: +1-212-481-2050Email: [email protected]

Image source: The Motley Fool. Monday, May 18, 2026 at 8 p.m. ET Chairman and Chief Executive Officer — Tao Yang President — Saifi Ismail Chief Financial Officer — Karen Hu Chief Operating Officer — Jeff Xu Tao Yang, our Chairman and Chief Executive Officer, who will provide an overview of our latest achievements and growth strategies. He will be followed by Mr. Saifi Ismail, the company's President, who will briefly review our recent business developments. Mrs. Karen Hu, our Chief Financial Officer, will then provide additional details on the company's financial results and discuss our financial outlook. Following management's prepared remarks, we will open the call to questions. Mr. Jeff Xu, our Chief Operating Officer, will join the Q&A session. With that said, I would now like to turn the call over to our Chairman and Chief Executive Officer, Mr. Tao Yang. Please go ahead, sir. Tao Yang: Thank you, everyone, for joining our first quarter 2026 earnings conference call. We delivered resilient first quarter results with revenues of USD 79 million, in line with our expectations given the shifting geopolitical environment and the impact of Ramadan. Refined operations and focused market strategies drove a 7.7% increase in average MAUs, but notable uptick reflecting continued strong user reach and engagement, underscoring the essential role our platform plays in the daily lives of MENA users. Our core product ecosystem performed steadily, and our gaming business reinforced its position as the company's key growth engine. We continue to monitor the impact of regional situation on our business with our March survey indicating a moderate effect on user sentiment supported by years of accumulated user loyalty and deep community connections as well as consistent upgrades. We are confident that our legacy product will continue to serve as a resilient foundation underpinning the company's overall stability. Once more, we expect our mid-core and hard-core games to contribute to revenues in the second half of this year and beyond boosting our Games segment performance and elevating the group's overall revenue scale. Let's take a closer look at our mid-core and hard-core games business. First, for our SLG game initiatives. We are pleased to announce our partnership with BlazeAerie Interactive Entertainment, the International division of our top SLG game studio whose gross billing in the SLG category has ranked among the top 5 globally over the past 5 years. This partnership harnesses our complementary respective strength. The BlazeAerie team leads R&D, leveraging its proven game development expertise to craft a game rooted in MENA's heritage and visual taste, while Yalla Group leads distribution using its deep local know-how and accumulated gamer community to deliver the title across MENA. Our SLG title was officially launched on Android in April and has already shown stable performance and solid early user feedback. It's also debuted on iOS in early May. According to Sensor Tower data, it ranked as high as #1 on iOS in 5 GCC countries in terms of downloads under the strategy game category. We are closely monitoring data and managing marketing strategies accordingly, and we will keep you posted on the games progress and key milestones. Our self-developed Match-3 title Turbo Match has also performed well in its early stage following our recent ramp-up of user acquisition campaigns. It ranked in the top 10 downloads under the puzzle games category across diverse MENA markets, including UAE and Saudi Arabia according to Sensor Tower data. Our recent co-promotion with Yalla Ludo resulted in improved user engagement and retention metrics. We will gradually increase our budget for user acquisition from external channels to steadily reach more users from additional overseas market in the upcoming months. We continue to see significant growth potential for SLG and Match-3 games, and we'll continue to invest in these two game genres. In both new titles early performance has been encouraging, laying the groundwork for future growth. In addition, we continued to expand our games team over the past year and have been exploring additional gaming verticals, including the casual and hyper-casual sectors across more overseas markets. We will share a more detailed overview of these new initiatives in due course. Additionally, we keep leveraging AI technologies to enhance our product capabilities and overall operational efficiency. We are exploring in-product AI applications to further improve user engagement and drive interaction, including experimenting with new forms of social and interactive experiences. Internally, we are encouraging employees to actively adopt AI tools in their daily work while providing the necessary resources and support. We are also building a dedicated management platform to better monitor and optimize token usage, thereby improving productivity and efficiency. These initiatives together with our SMEs model, not only help Safeguard community safety, but also leverage technology and local insights to continuously drive operational leverage and innovation. We continued to deliver on our shareholder return commitment. As of March 31, 2026, the company had repurchased 1,460,989 ADSs or Class A ordinary shares for an aggregate amount of USD 9.7 million in this year, bringing a total number of shares repurchased under the 2021 share repurchase program to 17,143,162 with an aggregate amount of USD 115.7 million. We will continue to execute the 2021 program through May 21, 2026, and subsequently implement our newly authorized 2026 share repurchase program of up to USD 150 million over the 24 months starting from March 9, 2026. Once again, I would like to emphasize that we continue to consistently place shareholder interest at the core of our capital allocation decisions, maximizing shareholder value through continuously optimized return framework. 2026 will be a pivotal year for Yalla's evolution as a leader in MENA's digital transformation. We will continue to strengthen our products and maximize synergies between our social and gaming ecosystem, boosting cross-product engagement and user lifetime value. By leveraging our strong in-house R&D years of accumulated local resources and expertise and expanding collaboration with leading global partners, we will continue unlocking the MENA Market's immense growth potential. Supported by a strong balance sheet, solid profitability and healthy cash flow, we are confident in our resilience and our ability to capture growth opportunities, consistently creating long-term value for global investors. Now I will turn this call over to our President, Saifi Ismail. Saifi, please go ahead. Saifi Ismail: Thank you. Hello, everyone. Thanks for joining us today. Let's take a closer look at our first quarter operations and product performance. Our operations continued to progress smoothly in the first quarter of 2026. Our team members in the areas impacted by the conflict are safe and have shifted to a flexible work from home arrangement with remote work and support and dedicated living allowances provided by Yalla. As the region celebrated Ramadan in the first quarter, we conducted a wide-reaching marketing campaign to better reach local users and support them in observing their traditions, driving a strong increase in average MAUs up 7.7% year-over-year to 48 million during the quarter. This accelerated growth underscored our community's strong position and highlighted Yalla's growing role as a hub of the regional digital culture, social interaction and emotional connection. On the product side, Ramadan was a key focus this quarter. Through a wide array of culturally resonant online celebrations, we transcended physical boundaries enabling users to rediscover the holiday's traditional world in the digital world, notably 101 Okey Yalla's Ramadan campaign not only achieved record high participation, but also new historical highs in unique users across both the gaming and chatroom segments, driving all-time highs in 101 Okey Yalla's product DAUs and quarterly revenue. Beyond our product platform, we continued to deepen our regional presence through strategic partnerships and high-level industry engagement. This year, we began building a partnership with the Saudi Esports Federation to drive growth across the regional esport ecosystem. We served as an official event partner for the SEF Saudi eLeague 2026. The nation's premier esports competition. Specifically, we are also pleased to announce that Yalla serves as the Presenting Partner of Yalla Saudi eLeague Women 2026. This event is designed to highlight and elevate female players in the professional environment across 4 major game titles. The Saudi eLeague is currently underway and attracting attention across the region, demonstrating the development potential of esport and particularly women's esports in Saudi Arabia and throughout MENA, a segment, we view as one of the most significant growth opportunities in competitive gaming today. Looking ahead we will continue to refine operations and user experience while deepening content localization and leveraging AI tech to enhance user engagement, supported by deep insight into Middle Eastern culture and consistently strong execution. We are confident that Yalla is well positioned to strengthen its leadership of MENA's digital entertainment market. Yang Hu: Thank you, Saifi, and hello, everyone. Thank you for joining us today. In the first quarter, we continued to focus on efficiency enhancement and pursue high-quality development. Our revenues were USD 79 million, with revenues from Game services grew to USD 30.3 million, accounting for 38.3% of total revenues. We continue to enhance our overall efficiency and maintain healthy margins. Our non-GAAP net margin was -- non-GAAP net income was USD 33.3 million with a net margin of 42.1%. Our strong balance sheet and healthy cash flow continue to support our investments in business development as well as consistent shareholder returns. We will continue to invest in long-term growth opportunities to drive high-quality growth and maximize value for all stakeholders. Let's move on to our detailed financials for the first quarter of 2026. Our revenues were USD 79 million in the first quarter of 2026 compared with USD 83.9 million in the same period last year primarily due to a decrease in paying users attributable to the impact of the recent geopolitical events in the broader region. Turning to costs and expenses. Total costs and expenses were USD 55.5 million in the first quarter of 2026 compared with USD 52.7 million in the same period last year. Our cost of revenues was USD 26.5 million in the first quarter of 2026, a 9.3% decrease from USD 29.2 million in the same period last year, primarily due to lower commission fees paid to third-party payment platforms. Cost of revenues as a percentage of total revenues decreased to 33.5% in the first quarter of 2026 from 34.8% in the same period last year. Our selling and marketing expenses were USD 9.7 million in the first quarter of 2026, a 40% increase from USD 6.9 million in the same period last year, primarily due to higher advertising and marketing promotion expenses attributable to the company's continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of total revenues increased to 12.3% in the first quarter of 2026 from 8.3% in the same period last year. Our G&A expenses were USD 10.3 million in the first quarter of 2026, a 11.9% increase from USD 8.7 million in the same period last year, primarily due to an increase in share-based compensation and foreign exchange loss partially offset by a decrease in incentive compensation. G&A expenses as a percentage of total revenues increased to 13% in the first quarter of 2026 from 10.4% in the same period last year. Our technology and product development expense was USD 9.1 million in the first quarter of 2026, a 16.2% increase from USD 7.8 million in the same period last year primarily due to an increase in salaries and benefits for our technology and product development staff driven by an increase in the headcount to support the development of new businesses and our product portfolio expansion. Technology and product development expenses as a percentage of total revenues increased to 11.5% in the first quarter of 2026 from 9.3% in the same period last year. As such, our operating income was USD 23.5 million in the first quarter of 2026 compared with USD 31.2 million in the same period last year. Interest income was USD 5.9 million in the first quarter of 2026 compared with USD 6.6 million in the same period last year. Investment loss was USD 0.4 million in the first quarter of 2026 compared with USD 11,700 in the same period last year primarily due to the fluctuations in the fair value of wealth management products. Income tax expense was USD 0.6 million in the first quarter of 2026 compared with USD 1.4 million in the same period last year. As a result of foregoing, our net income was USD 28.4 million in the first quarter of 2026 compared with USD 36.4 million in the same period last year. Our non-GAAP net income in the first quarter of 2026, was USD 33.3 million compared with USD 39.1 million in the same period last year. Moving to our liquidity and capital resources. Our cash position remains solid and healthy. As of March 31, 2026, the company had cash and cash equivalents, restricted cash, term deposits and short-term investments of USD 806.7 million, compared with USD 754.6 million as of December 31, 2025. Moving to our outlook. For the second quarter of 2026, we expect our revenues to be between USD 75 million and USD 82 million. The above outlook is based on our current market conditions and reflects the company's management's current and preliminary estimates of the market and operating conditions and customer demand, which are all subject to change. In the interest of time, please refer to our earnings press release for further details on our first quarter 2024 (sic) [ 2026 ] financial results. This concludes our prepared remarks for today. Operator, we are now ready to take questions. Operator: [Operator Instructions] The first question comes from the line of Xueqing Zhang from CICC. Xueqing Zhang: My question is about your core business. Given the complex geopolitical situation in the Middle East, how does management assess the future stability of your core business? Tao Yang: Xueqing, thank you for your question. As noted in our prepared remarks, our March survey shows the regional situation has impacted user sentiment to some extent. While we have no direct business presence in Iran, our users in the broader region have not been immune to the uncertainty, and we have seen a slight moderation in their willingness to pay. First quarter revenues declined modestly year-over-year and seeing the current conditions, we expect full year revenue from our legacy business to be down by a low to mid-single-digit percentage year-over-year. Overall, the impact on our business is manageable. Thanks to our resilient business model and solid fundamentals, this is not the only challenging event we have endured over the past decades of operating in the Middle East. For more than 10 years, we have built strong brand loyalty and trust among local users, which has translated into clear business resilience during periods like this one. A complex macro backdrop places a premium on local operation -- operating experience and capability and ultimately tests the company's ability to sustain a long-term presence in any given region. By that measure, Yalla's operational resilience and stability in the Middle East have been well demonstrated and thoroughly validated, and this continues to be a market where we -- where our competitive strengths are clear. We still believe strongly in the MENA region's long-term economic growth and digital transformation prospects. With that said, as our gaming business develops, we are also actively exploring overseas markets, including the U.S. and Europe as part of our broader diversification strategy. Overall, we see our legacy business remaining relatively stable and resilient, while our gaming business continues to create new energy. We are excited about the potential growth opportunities that our new game pipeline could bring in this second half of this year. I hope this answered your question, Xueqing. Operator: Our next question comes from the line of Chloe Wei from CICC. Meng Wei: First, congratulations on your solid results. And my question is about -- can management maybe share some colors on the outlook for the full year 2026? And also, how do you think about the revenue trend heading to 2027? Yang Hu: Thank you, Chloe. This is Yang, and I will answer this question. As Mr. Yang just mentioned, factoring in the recent regional developments, we currently expect our legacy business revenue to decline by a low- to mid-single-digit percentage year-over-year in 2026. However, both of our new game titles, Turbo Match and our new themed SLG title have not officially launched and are in active promotion. We expect the new games to start contributing the total revenues gradually in the second half of the year, supporting group level revenue. As a result, for 2026 we expect our total revenues to be broadly flat compared with 2025. Looking into 2027, as the 2 new titles mature in terms of scale and revenue generation, this is a potential if everything progresses well for us to move towards double-digit year-over-year growth. We will closely observe the monetization performance and the user traction of both games before providing more specific guidance. Operator: Our next question comes from the line of Tianhao Liu of Citic. Tianhao Liu: I think the market is highly focused on the performance of Yalla's mid- and hard-core games. So could management elaborate on the current rollout and the marketing cadence for the new games? Jianfeng Xu: Thank you for your question, Tianhao. Entering the second quarter, we advanced an internal cross promotion initiative between Turbo Match and Yalla Ludo, driving increased Turbo Match downloads and stronger user retention. More recently, we have started to step up external user acquisition efforts for Turbo Match and will gradually roll out focused marketing campaigns across multiple markets. Given that Turbo Match is designed for global users, we plan to promote it across various international markets, including the U.S. and Europe. This means its market penetration time line will be relatively longer which also implies a larger potential user base and a longer product life cycle. For the SLG title, the go-to-market pace will be faster. Following its recent official launch on both Android and iOS, we have already begun scaling paid user acquisition across the Middle East. If everything progresses as planned, we expand -- we expect marketing spending to ramp up significantly over the next 6 months driving a steeper revenue contribution curve. Operator: Our next question comes from the line of Jenny Yuan of UBS. Yicheng Yuan: My question is regarding our capital allocation plans. Also, we see the company's cash balance continues to increase. Could management please share its capital allocation priorities? Would you consider M&A or other investment opportunities going forward? Tao Yang: Thank you, Jenny. Our capital allocation strategy has always been centered on maximizing long-term shareholder value. We believe current market conditions present attractive opportunity to return capital to shareholders, which is why we just launched a new 2-year USD 150 million share repurchase program. We will maintain a strong cash position to support our business development, particularly our gaming marketing and R&D requirements. As for M&A, we remain pretty open, but also highly disciplined. Any potential target must be a strong strategic fit for Yalla in terms of business synergies. For now, share repurchases remain one of our key tools to return value to our long-term shareholders. Operator: Our next question comes from the line of Rachel Wang of Haitong International. Rachel Wang: My question is that the official partner of the Saudi Esports League 2026. What tangible impact will this have on Yalla's business development in Saudi Arabia? Saifi Ismail: Thanks, Rachel, for the question. Our partnership with the SEF embeds Yalla deeply into Saudi Arabia's national esports ecosystem. It also reflects and further enhance Yalla's brand recognition in one of our strategically important markets. This year, we also served as the Presenting Partner of Saudi eLeague Women, enabling us to precisely reach female players, a high potential segment that represent an increasingly important part of the gaming community. In addition, we co-promoted our new game title with SEF during these national competition, reaching more local gaming users and further increasing our product visibility and user awareness. Beyond the immediate brand impact, the SEF partnership helps us deepening our understanding of the strategic development direction and resources of the local esport and gaming ecosystem while also enabling us to actively participate and shape its long-term growth. We believe this partnership carriers meaningful strategic importance for Yalla's sustainable development in this core market. Operator: Our next question comes from the line of Lincoln Kong from Goldman Sachs. Lincoln Kong: So could management share more color on the company's internal AI adoption and related strategic plan going forward? Tao Yang: Thank you, Lincoln. I'll take this question. Like many leading Internet companies, we are embracing this technological wave and have already deeply integrated AI into our operations and daily workflows. Our AI model, SMEs, has significantly improved Arabic content moderation efficiency, while lower costs. And we have recently begun accelerating the incubation of new AI-driven social networking products to enrich our future product pipeline with the goal of delivering a more vibrant and engaging user experience. We will deploy such investments prudently, consistent with our long-standing practice. Additionally, for our legacy products, we have been exploring AI-powered interactive in-app features designed to diversify social game play and strengthen user retention. We are also actively encouraging employees to leverage AI tools to improve R&D efficiency while providing AI resources. We are building internal management system to better monitor token usage, manage resource allocation and improve overall ROI. The AI wave is irreversible. We remain committed to exploring AI applications tailored to Arabic language and local culture context and have established dedicated teams to closely track AI development and identify areas where we can meaningfully participate. Operator: Our next question comes from the line of Rachel Guo of Nomura. Rachel Guo: My question is about your profit margin. I noticed that the profit margins declined this quarter. Could management elaborate on the key reasons behind this compression? And what's your outlook for margin trend going forward? Yang Hu: Thank you for your question, Rachel. The margin fluctuations in Q1 were driven by a combination of factors. First, our legacy business revenue came under some pressure due to geopolitical events and adjustments during the Ramadan. At the same time, we increased the marketing spending for one of our social products to better engage local users for Ramadan in Q1. So, in addition, we kicked off several new products at the group level late last year. So we expanded our R&D team. These incremental investments in Q1 were mainly directed towards products that have not yet started to generate revenue, leading to some margin compression. Looking ahead, given that neither marketing nor R&D expenses are expected to decline materially in the near term, we believe a margin level of around 35% is a reasonable expectation for our existing legacy business this year. On top of that, if the new gaming projects progress as planned, we may further increase marketing spend in the second half of the year. As we have previously guided, we intend to allocate around 5% of group revenue as promotion budget for the new games. That said, marketing spend and revenue will scheme together. And it is too early to pinpoint precisely where margins will settle given this dynamic relationship. We will provide more specific guidance once the monetization models of the games become clear. Gaming businesses typically go through an upfront investment phase during which margins come under some pressure. Once our investment phase is completed, we expect marketing expenses will normalize and profitability to be achieved. We hope this helps clarify the margin dynamics going forward. Operator: As there are no further questions now, I would like to turn the call back over to management for closing remarks. Yuwei Gao: Thank you once again for joining us today. We look forward to speaking with you in the next quarter. If you have further questions, please feel free to contact Yalla's Investor Relations or Piacente Financial Communications. Both parties' contact information is available in today's press release as well as on our company website. Thank you. Operator: This concludes this conference call. You may now disconnect your lines. Thank you. Before you buy stock in Yalla Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Yalla Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Interested in Yalla Group Limited Sponsored ADR? Here are five stocks we like better. Q1 revenue fell to $79 million from $83.9 million a year earlier, as geopolitical uncertainty in the Middle East hurt user sentiment and paying users. Even so, management said results were in line with expectations and monthly active users rose 7.7% to 48 million. Gaming is becoming the main growth driver, with Yalla pushing into mid-core and hard-core titles like its Blaze Entertainment strategy game and self-developed Turbo Match. Management said both games are showing early traction and could expand more meaningfully in the second half of 2026. Yalla expects 2026 revenue to be broadly flat versus 2025, with legacy business revenue likely declining in the low- to mid-single digits and new games gradually offsetting that weakness. The company also ended the quarter with $806.7 million in cash and continued share buybacks, including a new $150 million repurchase authorization. Yalla Group (NYSE:YALA) reported first-quarter 2026 revenue of $79 million, down from $83.9 million a year earlier, as management said geopolitical uncertainty in the Middle East weighed on user sentiment and paying users. The Dubai-based social networking and gaming company said results were in line with expectations, with average monthly active users rising 7.7% year-over-year to 48 million during a quarter that included Ramadan. Chairman and Chief Executive Officer Tao Yang said the company delivered “resilient” results despite a shifting geopolitical environment and the seasonal impact of Ramadan. He said Yalla’s core product ecosystem remained stable, while its gaming business continued to develop as a key growth engine. → Why Applied Optoelectronics Stock May Be Near a Turning Point “We continue to monitor the impact of regional situation on our business, with our March survey indicating a moderate effect on user sentiment,” Yang said. He added that user loyalty, community ties and product upgrades supported the company’s legacy products. Management highlighted Yalla’s push into mid-core and hard-core games, including a strategy game developed through a partnership with Blaze Entertainment, described by Yang as the international division of a top global SLG game studio. Yang said Blaze is leading research and development, while Yalla is leading distribution across the Middle East and North Africa. → Is Everspin Technologies the Next AI Edge Breakout? The SLG title launched on Android in April and on iOS in early May. Yang said Sensor Tower data showed the game ranked as high as No. 1 on iOS in five Gulf Cooperation Council countries for downloads in the strategy game category. He said the company is monitoring early data and adjusting marketing strategies accordingly. Yalla also discussed its self-developed Match-3 game, Turbo Match. Yang said the title performed well in its early stage after the company increased user acquisition campaigns. He said Sensor Tower data showed Turbo Match ranked among the top 10 downloads in the puzzle games category in markets including the United Arab Emirates and Saudi Arabia. A co-promotion with Yalla Ludo improved user engagement and retention, he said. → Datadog Soars, Dynatrace Slumps: Gap Widens in AI Agent Stocks In the question-and-answer session, management said Turbo Match is designed for global users and will be promoted in international markets including the United States and Europe, which could result in a longer market penetration timeline but a larger potential user base. For the SLG title, management said the go-to-market pace is expected to be faster, with paid user acquisition already scaling in the Middle East and marketing spending expected to ramp up over the next six months if progress continues as planned. Chief Financial Officer Karen Hu said first-quarter revenue declined primarily because of a decrease in paying users tied to recent geopolitical events in the broader region. Revenue from game services rose to $30.3 million, representing 38.3% of total revenue. Total costs and expenses were $55.5 million, up from $52.7 million a year earlier. Cost of revenue fell 9.3% to $26.5 million, mainly due to lower commission fees paid to third-party payment platforms. Selling and marketing expenses rose 40% to $9.7 million, reflecting higher advertising and promotional expenses tied to user acquisition and an expanding product portfolio. General and administrative expenses increased 11.9% to $10.3 million, which Hu attributed to higher share-based compensation and foreign exchange loss, partly offset by lower incentive compensation. Technology and product development expenses rose 16.2% to $9.1 million, driven by higher salaries and benefits as Yalla expanded headcount to support new businesses and product development. Operating income fell to $23.5 million from $31.2 million a year earlier. Net income was $28.4 million, down from $36.4 million, while non-GAAP net income was $33.3 million, compared with $39.1 million. Non-GAAP net margin was 42.1%. In response to an analyst question on margins, management said first-quarter margin compression reflected pressure on legacy business revenue, increased Ramadan-related marketing for a social product and investment in new products that have not yet begun generating revenue. Management said a margin level of around 35% is a reasonable expectation for the existing legacy business this year, while noting that additional marketing for new games in the second half could further affect margins. For the second quarter of 2026, Yalla guided for revenue between $75 million and $82 million. Management said the outlook is based on current market conditions and preliminary estimates of operating conditions and customer demand. During the Q&A session, management said it expects full-year revenue from legacy business to decline by a low- to mid-single-digit percentage year-over-year due to regional developments. However, the company expects new games to begin contributing gradually in the second half of 2026, supporting group-level revenue. For 2026 as a whole, management said total revenue is expected to be broadly flat compared with 2025. Looking ahead to 2027, management said that if the two new titles mature in scale and revenue generation as expected, the company could move toward double-digit year-over-year growth, though it said more specific guidance will depend on monetization performance and user traction. President Saifi Ismail said Yalla’s operations progressed smoothly in the first quarter. He said employees in areas affected by conflict are safe and have shifted to flexible work-from-home arrangements, with remote working support and dedicated living allowances provided by the company. Ismail said Ramadan campaigns helped drive user engagement, with average monthly active users reaching 48 million. He highlighted 101 Okey Yalla’s Ramadan campaign, saying it achieved record participation and new highs in paying users across both gaming and chat room segments, driving all-time highs in the product’s MAU and quarterly revenue. Yalla also emphasized its partnership with the Saudi Esports Federation. Ismail said the company served as an official event partner for the SEF Saudi eLeague 2026 and as presenting partner of the Yalla Saudi eLeague Women 2026. In the Q&A session, management said the partnership strengthens Yalla’s brand recognition in Saudi Arabia, helps the company reach female players and supports visibility for new game titles. Yalla ended the quarter with $806.7 million in cash and cash equivalents, restricted cash, term deposits and short-term investments, up from $754.6 million at the end of 2025. Yang said the company repurchased 1,460,989 ADSs or Class A ordinary shares for $9.7 million during the year through March 31, bringing total repurchases under its 2021 program to 17,143,162 shares for $115.7 million. He said Yalla will continue executing the 2021 program through May 21, 2026, and then implement its newly authorized 2026 share repurchase program of up to $150 million over 24 months starting March 9, 2026. Management said share repurchases remain a key tool for returning value to long-term shareholders, while the company also maintains cash to support business development, including gaming, marketing and research and development. On mergers and acquisitions, management said Yalla remains open but disciplined, with any potential target needing to be a strong strategic fit. Executives also discussed artificial intelligence initiatives, including the company’s Themis model for Arabic content moderation. Yang said Yalla is exploring AI-powered in-app features and new AI-driven social networking products, while also encouraging employees to use AI tools to improve research and development efficiency. Yalla Group (NYSE:YALA) operates a voice-centric social networking and entertainment platform designed to connect users through live audio chat rooms, interactive voice channels and mobile gaming. Its core product, the Yalla app, allows participants in the Middle East and North Africa (MENA) region to join real-time voice discussion groups, host audio shows and send virtual gifts. Through the PokerBROS brand, the company offers a mobile-first social poker platform featuring Texas Hold'em, Chinese Poker and other variants, enabling casual and competitive gaming among a growing user base. Founded in 2016 and incorporated in the Cayman Islands, Yalla Group established its headquarters in Riyadh with additional offices in Dubai and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Yalla Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Yalla Group Limited has released its first quarter 2026 results, reporting sales of US$79.01 million and net income of US$28.94 million, both lower than the same period last year. The decline in both revenue and earnings per share raises questions about how Yalla’s core platform and newer initiatives are holding up against competition and changing user behavior. With revenue and net income both lower than a year ago, we’ll explore how this earnings update affects Yalla Group’s investment narrative. Invest in the nuclear renaissance through our list of 88 elite nuclear energy infrastructure plays powering the global AI revolution. To own Yalla Group, you need to believe its MENA-focused social and gaming ecosystem can stay relevant as user habits shift and competition intensifies. The Q1 2026 results, with revenue and net income both below last year, put a spotlight on whether newer products and games are offsetting softness in the core platform. For now, the miss looks more like a reminder of execution risk than a clear break in the story, but it does sharpen questions around monetization. The most relevant recent announcement is management’s Q1 2026 revenue guidance of US$75.0 million to US$82.0 million, issued in March. The reported US$79.01 million sits within that range, suggesting the quarter broadly tracked internal expectations, even if year-on-year comparisons are weaker. For investors watching the biggest short term catalyst user engagement across newer games and services this alignment with guidance matters, because it frames the miss more around growth quality than outright surprise. Yet while the top line landed inside guidance, the softer earnings and dependence on the MENA region highlight a risk investors should be aware of if... Read the full narrative on Yalla Group (it's free!) Yalla Group's narrative projects $375.3 million revenue and $167.2 million earnings by 2029. This requires 3.2% yearly revenue growth and an earnings increase of about $17.4 million from $149.8 million today. Uncover how Yalla Group's forecasts yield a $8.60 fair value, a 27% upside to its current price. Before this earnings miss, the most optimistic analysts were assuming Yalla could lift revenue to about US$378.7 million and earnings to roughly US$168.6 million, so if you worry about rising tech and game development costs squeezing margins, you may see this quarter very differently from those who expected AI and localization to power a much faster earnings trajectory. Explore 6 other fair value estimates on Yalla Group - why the stock might be worth just $7.60! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Yalla Group research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision. Our free Yalla Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Yalla Group's overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: Find 52 companies with promising cash flow potential yet trading below their fair value. Uncover the next big thing with 29 elite penny stocks that balance risk and reward. The latest GPUs need a type of rare earth metal called Terbium and there are only 29 companies in the world exploring or producing it. Find the list for free. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include YALA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Release Date: May 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Yalla Group Ltd (NYSE:YALA) reported resilient first-quarter results with revenues of $79 million, aligning with expectations despite geopolitical challenges. The company saw a 7.7% increase in average monthly active users (MAUs), highlighting strong user engagement and reach. Yalla Group Ltd (NYSE:YALA) launched a successful SLG game in partnership with Blaze Aerie Interactive Entertainment, achieving top rankings in GCC countries. The company is leveraging AI technologies to enhance product capabilities and operational efficiency, including AI-driven social networking products. Yalla Group Ltd (NYSE:YALA) continues to deliver on shareholder return commitments, with a new $150 million share repurchase program authorized for the next 24 months. Revenues decreased from $83.9 million in the same period last year, primarily due to a decrease in paying users affected by geopolitical events. Selling and marketing expenses increased by 40% year-over-year, impacting overall profitability. General and administrative expenses rose by 11.9%, driven by increased share-based compensation and foreign exchange losses. Operating income declined to $23.5 million from $31.2 million in the same period last year. The company expects full-year revenue from its legacy business to decline by a low to mid-single-digit percentage year-over-year due to regional instability. Warning! GuruFocus has detected 3 Warning Sign with YALA. Is YALA fairly valued? Test your thesis with our free DCF calculator. Q: Given the complex geopolitical situation in the Middle East, how does management assess the future stability of your core business? A: Our March survey indicates a moderate impact on user sentiment due to regional uncertainties. While revenues have declined modestly, our resilient business model and strong brand loyalty in the Middle East provide stability. We expect our legacy business to remain stable, with our gaming segment driving future growth. (Tao Yang, CEO) Q: Can management share some insights on the outlook for the full year 2026 and the revenue trend heading into 2027? A: We anticipate a low to mid-single-digit decline in legacy business revenue for 2026. However, new game titles like Turbo Match are expected to contribute to revenues in the second half, keeping total revenues flat compared to 2025. For 2027, we foresee potential double-digit growth as these games mature. (Yang, CFO) Q: Could management elaborate on the current rollout and marketing strategy for the new games? A: We are advancing cross-promotion initiatives and external user acquisition for Turbo Match, targeting global markets. The SLG title has launched on Android and iOS, with marketing efforts ramping up in the Middle East. We expect significant revenue contributions over the next six months. (Jeff Xu, COO) Q: What are the company's capital allocation priorities, and are there plans for M&A or other investments? A: Our strategy focuses on maximizing shareholder value, with a new $150 million share repurchase program. We maintain a strong cash position for business development, particularly in gaming. While open to M&A, any target must align strategically with Yalla. (Tao Yang, CEO) Q: As the official partner of the Saudi Esports League 2026, what impact will this have on Yalla's business development in Saudi Arabia? A: Our partnership with the Saudi Esports Federation enhances Yalla's brand recognition and allows us to reach high-potential segments like female gamers. This collaboration deepens our understanding of the local esports ecosystem and supports our long-term growth in this core market. (Safi Ismail, President) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

DUBAI, UAE, May 18, 2026 /PRNewswire/ -- Yalla Group Limited ("Yalla" or the "Company") (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced its unaudited financial results for the first quarter ended March 31, 2026. First Quarter 2026 Financial and Operating Highlights Revenues were US$79.0 million in the first quarter of 2026, compared with US$83.9 million in the first quarter of 2025. Net income was US$28.4 million in the first quarter of 2026, compared with US$36.4 million in the first quarter of 2025. Net margin[1] was 35.9% in the first quarter of 2026. Non-GAAP net income[2] was US$33.3 million in the first quarter of 2026, compared with US$39.1 million in the first quarter of 2025. Non-GAAP net margin[3] was 42.1% in the first quarter of 2026. Average MAUs[4] increased by 7.7% to 48.0 million in the first quarter of 2026, compared with 44.6 million in the first quarter of 2025. The number of paying users[5] was 10.5 million in the first quarter of 2026, compared with 11.8 million in the first quarter of 2025. "We delivered resilient first quarter results despite the shifting macro environment and the impact of Ramadan," said Mr. Tao Yang, Founder, Chairman and CEO of Yalla. "Refined operations and strong execution of focused market strategies drove a 7.7% year-over- year increase in average MAUs to 48 million, a notable uptick demonstrating our growing reach and deepening user engagement. Our core product ecosystem performed steadily, while our gaming business reinforced its position as the Company's key growth engine. We continued to invest in our mid- and hard-core games, with the official launch of our SLG game garnering encouraging early feedback and our match-3 game, Turbo Match, progressing smoothly. "We also elevated our regional presence through strategic partnerships and high-level industry engagement. As part of our partnership with the Saudi Esports Federation, in April we served as the Presenting Partner of Yalla Saudi eLeague Women 2026, promoting local women's participation in esports and exploring the significant growth opportunities in this strategically important region. Looking ahead, we will continue to maximize synergies between our social and gaming ecosystems and strengthen our AI capabilities to enrich user experience, extend user lifetime value, and drive operational leverage. We remain confident in our resilience and ability to capture market opportunities, creating sustainable value for all stakeholders." Ms. Karen Hu, CFO of Yalla, commented, "In the first quarter, we continued to focus on efficiency enhancement and pursue high-quality development. Total revenues were US$79.0 million, in line with our expectations, with revenues from games services growing to US$30.3 million, accounting for 38.3% of total revenues. Net income was US$28.4 million, and non-GAAP net income was US$33.3 million with a net margin of 42.1%. Supported by our strong balance sheet and healthy cash flow, we will continue returning value to our shareholders while investing strategically in business development, driving high-quality growth and long-term value creation." First Quarter 2026 Financial Results Revenues Revenues were US$79.0 million in the first quarter of 2026, compared with US$83.9 million in the first quarter of 2025, primarily due to a decrease in paying users attributable to the impact of the recent geopolitical events in the broader region. In the first quarter of 2026, revenues generated from chatting services were US$48.1 million, and revenues from games services were US$30.3 million. Costs and expenses Total costs and expenses were US$55.5 million in the first quarter of 2026, compared with US$52.7 million in the first quarter of 2025. Cost of revenues was US$26.5 million in the first quarter of 2026, a 9.3% decrease from US$29.2 million in the first quarter of 2025, primarily due to lower commission fees paid to third-party payment platforms. Cost of revenues as a percentage of total revenues decreased to 33.5% in the first quarter of 2026 from 34.8% in the first quarter of 2025. Selling and marketing expenses were US$9.7 million in the first quarter of 2026, a 40.0% increase from US$6.9 million in the first quarter of 2025, primarily due to higher advertising and market promotion expenses attributable to the Company's continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of total revenues increased to 12.3% in the first quarter of 2026 from 8.3% in the first quarter of 2025. General and administrative expenses were US$10.3 million in the first quarter of 2026, a 17.9% increase from US$8.7 million in the first quarter of 2025, primarily due to an increase in share-based compensation and foreign exchange loss, partially offset by a decrease in incentive compensation. General and administrative expenses as a percentage of total revenues increased to 13.0% in the first quarter of 2026 from 10.4% in the first quarter of 2025. Technology and product development expenses were US$9.1 million in the first quarter of 2026, a 16.2% increase from US$7.8 million in the first quarter of 2025, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in the headcount to support the development of new businesses and our product portfolio expansion. Technology and product development expenses as a percentage of total revenues increased to 11.5% in the first quarter of 2026 from 9.3% in the first quarter of 2025. Operating income Operating income was US$23.5 million in the first quarter of 2026, compared with US$31.2 million in the first quarter of 2025. Non-GAAP operating income[6] Non-GAAP operating income in the first quarter of 2026 was US$28.4 million, compared with US$34.0 million in the first quarter of 2025. Interest income Interest income was US$5.9 million in the first quarter of 2026, compared with US$6.6 million in the first quarter of 2025. Investment loss Investment loss was US$0.4 million in the first quarter of 2026, compared with US$17.7 thousand in the first quarter of 2025, primarily due to fluctuations in the fair value of wealth management products. Income tax expense Income tax expense was US$0.6 million in the first quarter of 2026, compared with US$1.4 million in the first quarter of 2025. Net income Net income was US$28.4 million in the first quarter of 2026, compared with US$36.4 million in the first quarter of 2025. Non-GAAP net income Non-GAAP net income in the first quarter of 2026 was US$33.3 million, compared with US$39.1 million in the first quarter of 2025. Earnings per ordinary share Basic and diluted earnings per ordinary share were US$0.19 and US$0.16, respectively, in the first quarter of 2026, while basic and diluted earnings per ordinary share were US$0.23 and US$0.20, respectively, in the first quarter of 2025. Non-GAAP earnings per ordinary share[7] Non-GAAP basic and diluted earnings per ordinary share were US$0.22 and US$0.19, respectively, in the first quarter of 2026, compared with US$0.25 and US$0.22, respectively, in the first quarter of 2025. Cash and cash equivalents, restricted cash, term deposits and short-term investments As of March 31, 2026, the Company had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$806.7 million, compared with US$754.6 million as of December 31, 2025. Share repurchase program Pursuant to the Company's share repurchase program beginning on May 21, 2021, with an extended expiration date of May 21, 2026 (the "2021 Program"), the Company repurchased 1,460,989 American depositary shares ("ADSs"), representing 1,460,989 Class A ordinary shares, from the open market with cash for an aggregate amount of approximately US$9.7 million, in the first quarter of 2026. As of March 31, 2026, the Company had cumulatively completed cash repurchases in the open market of 17,143,162 ADSs, representing 17,143,162 Class A ordinary shares, for an aggregate amount of approximately US$115.7 million, since the inception of the 2021 Program. The Company will continue to execute its 2021 Program until May 21, 2026, upon which date the Company will begin executing its new share repurchase program authorized by the Company's board of directors in March 2026, under which the Company may repurchase up to US$150 million worth of its outstanding ADS and/or Class A ordinary shares over the 24 months starting from March 9, 2026. The Company will provide an update on the progress of both programs in due course. Outlook For the second quarter of 2026, Yalla currently expects revenues to be between US$75.0 million and US$82.0 million. The above outlook is based on current market conditions and reflects the Company management's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Conference Call Yalla Group Limited will hold a conference call on Monday, May 18, 2026, at 8:00 PM Eastern Time, 4:00 AM Dubai Time on Tuesday, May 19, 2026, or 8:00 AM Beijing Time on Tuesday, May 19, 2026, to discuss the financial results. Participants should complete online registration using the link provided below before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Event Title: Yalla Group Ltd. First Quarter 2026 Earnings Conference CallRegistration Link: https://register-conf.media-server.com/register/BI2da0a6c7f4b54fc19ab854c822afa58a Additionally, a live webcast of the conference call will be available on the Company's investor relations website at https://ir.yalla.com, and a replay of the webcast will be available following the session. Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP financial measures, namely non-GAAP operating income, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per ordinary share, as supplemental measures to review and assess the Company's operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP operating income as operating income excluding share-based compensation. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net margin as non-GAAP net income as a percentage of revenues. We define non-GAAP net income attributable to Yalla Group Limited's shareholders as net income attributable to Yalla Group Limited's shareholders, excluding share-based compensation. We define non-GAAP earnings per ordinary share as non-GAAP net income attributable to Yalla Group Limited's shareholders, divided by the weighted average number of basic and diluted shares outstanding. By excluding the impact of share-based compensation expenses, which are non-cash charges, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company's past performance and future prospects. Investors can better understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess its core operating results, as they exclude share-based compensation expenses, which are not expected to result in cash payments. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company's operations. Share-based compensation has been and may continue to be incurred in the Company's business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Reconciliations of GAAP and non-GAAP results are set forth at the end of this press release. About Yalla Group Limited Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues in 2022. The Company operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games, popular in MENA, with in-game voice chat and localized Majlis functionality. Building on the success of Yalla and Yalla Ludo, the Company continues to add engaging new content, creating a regionally-focused, integrated ecosystem dedicated to fulfilling MENA users' evolving online social networking and gaming needs. Through its holding subsidiary, Yalla Game Limited, the Company has expanded its capabilities in mid-core and hard-core games in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, WeMuslim, a product that supports Arabic users in observing their customs, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets. Yalla's mobile applications deliver a seamless experience that fosters a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users. For more information, please visit: https://ir.yalla.com. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Statements that are not historical facts, including statements about Yalla Group Limited's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Yalla Group Limited's filings with the SEC. All information provided in this press release is as of the date of this press release, and Yalla Group Limited does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: Yalla Group LimitedInvestor RelationsKerry Gao - IR DirectorTel: +86-571-8980-7962Email: [email protected] Piacente Financial CommunicationsJenny CaiTel: +86-10-6508-0677Email: [email protected] In the United States: Piacente Financial CommunicationsBrandi PiacenteTel: +1-212-481-2050Email: [email protected] View original content:https://www.prnewswire.com/news-releases/yalla-group-limited-announces-unaudited-first-quarter-2026-financial-results-302774557.html