BEIJING, Sept. 11, 2025 /PRNewswire/ — Cheetah Mobile Inc. (NYSE: CMCM) (“Cheetah Mobile” or the “Company”), a China-based IT company, today announced its unaudited consolidated financial results for the quarter ended June 30, 2025.
Management Commentary
Mr. Sheng Fu, Cheetah Mobile’s Chairman and Chief Executive Officer, remarked, “We delivered another quarter of solid topline growth and meaningful improvement in profitability, underscoring the early progress of our strategic transformation. Total revenue increased 57.5% year-over-year, driven by strong performance of both of our reporting segments. Our Internet business continued to benefit from our transition to a subscription-based model, with growing user engagement and retention. Revenue from our AI and others segment grew 86.4% year-over-year and accounted for 46.5% of total revenue. With the planned addition of UFACTORY, our recently acquired robotic arm business, we aim to strengthen our robotics capabilities and expand our addressable market. We remain committed to investing in AI utility applications and robotics. Encouraged by our business momentum, we will continue to drive sustainable growth and long-term shareholder value.”
Mr. Thomas Ren, Chief Financial Officer of Cheetah Mobile, commented: “We continued to improve profitability in the second quarter, supported by disciplined execution and enhanced operational efficiency. Both GAAP and non-GAAP losses once again narrowed significantly year-over-year and quarter-over-quarter, reflecting meaningful progress in our loss reduction efforts. This demonstrates that our path to profitability is both credible and sustained. Our Internet business remained profitable, while adjusted operating losses from our AI and others segment declined significantly, down 62.8% year-over-year and 32.1% quarter-over-quarter, as we shifted from early exploration to a more focused, efficiency-driven strategy. Leveraging AI to accelerate R&D and scale up real-world use cases has contributed meaningfully to this improvement. Our balance sheet remains healthy, giving us the flexibility to continue investing in innovation while maintaining a clear path toward breakeven.”
Second Quarter 2025 Financial Highlight
Total revenues grew by 57.5% year-over-year and 14.0% quarter-over-quarter, accelerating to RMB295.2 million (US$41.2 million) in the second quarter of 2025.
Gross profit increased by 85.0% year-over-year and 18.6% quarter-over-quarter, to RMB224.8 million (US$31.4 million) in the second quarter of 2025. Non-GAAP gross profit rose by 84.4% year-over-year and 18.6% quarter-over-quarter to RMB224.8 million (US$31.4 million). Gross margin was 76.1% in the second quarter of 2025, up from 64.8% in the year-ago quarter and 73.2% in the previous quarter. Non-GAAP gross margin was 76.1% in the second quarter of 2025, up from 65.0% in the year-ago quarter and 73.2% in the previous quarter.
Operating loss reduced by 85.7% year-over-year and 58.3% quarter-over-quarter to RMB11.1 million (US$1.5 million) in the second quarter of 2025. Non-GAAP operating loss reduced by 96.7% year-over-year and 85.5% quarter-over-quarter to RMB2.1 million (US$0.3 million) in the second quarter of 2025.
Net loss attributable to Cheetah Mobile Shareholders decreased by 81.7% year-over-year and 32.1% quarter-over-quarter to RMB22.6 million (US$3.2 million) in the second quarter of 2025. Non-GAAP net loss attributable to Cheetah Mobile Shareholders decreased by 87.4% year-over-year and 35.4% quarter-over-quarter to RMB13.7 million (US$1.9 million) in the second quarter of 2025.
As of June 30, 2025, the Company had cash and cash equivalents of RMB2,019.6 million (US$281.9 million), ensuring strong liquidity. In the second quarter, the Company generated RMB361.7 million (US$50.5 million) from its operating activities.
As of June 30, 2025, the Company had long-term investments of RMB791.2 million (US$110.5 million).
Conference Call Information
The Company will hold a conference call on September 11, 2025, at 7:00 a.m. Eastern Time (or 7:00 p.m. Beijing Time) to discuss its financial results. Listeners may access the call by dialing the following numbers:
Main Line:
International: 1-412-317-6061
United States Toll Free: 1-888-317-6003
Mainland China Toll Free: +86-4001-206115
Hong Kong Toll Free: 800-963976
Conference ID: 4960957
English Translation:
International: 1-412-317-6061
United States Toll Free: 1-888-317-6003
Mainland China Toll Free: +86-4001-206115
Hong Kong Toll Free: 800-963976
Conference ID: 3115762
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.cmcm.com.
Exchange Rate
This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars in this press release were made at a rate of RMB7.1636 to US$1.00, the exchange rate in effect as of June 30, 2025, as set forth in the H.10 statistical release of the Federal Reserve Board. Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under accounting principles generally accepted in the United States of America (“U.S. GAAP”).
About Cheetah Mobile Inc.
Cheetah Mobile is a China-based IT company with a commitment to AI innovation. It has attracted hundreds of millions of users through an array of internet products and services on PCs and mobile devices. At the same time, it actively engages in the independent research and development of AI technologies, including LLM technologies. Cheetah Mobile provides advertising services to advertisers worldwide, value-added services including the sale of premium membership to its users, multi-cloud management platform to companies globally, as well as service robots to international clients. Cheetah Mobile is also committed to leveraging its cutting-edge AI technologies, including LLM technologies, to empower its products and make the world smarter. It has been listed on the New York Stock Exchange since May 2014.
Safe Harbor Statement
This press release contains forward-looking statements. These statements, including management quotes and business outlook, constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Such statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in the forward-looking statements, including but are not limited to the following: Cheetah Mobile’s growth strategies; Cheetah Mobile’s ability to retain and increase its user base and expand its product and service offerings; Cheetah Mobile’s ability to monetize its platform; Cheetah Mobile’s future business development, financial condition and results of operations; competition with companies in a number of industries including internet companies that provide online marketing services and internet value-added services; expected changes in Cheetah Mobile’s revenues and certain cost or expense items; and general economic and business condition globally and in China. Further information regarding these and other risks is included in Cheetah Mobile’s filings with the U.S. Securities and Exchange Commission. Cheetah Mobile does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Use of Non-GAAP Financial Measures
This release contains non-GAAP financial measures, including but not limited to:
Non-GAAP cost of revenues excludes share-based compensation expenses;
Non-GAAP gross profit excludes share-based compensation expenses;
Non-GAAP gross margin excludes share-based compensation expenses;
Total non-GAAP operating expenses exclude share-based compensation expenses, amortization of intangible assets and impairment of goodwill resulting from business acquisitions;
Non-GAAP research and development expenses exclude share-based compensation expenses, amortization of intangible assets resulting from business acquisitions;
Non-GAAP selling and marketing expenses exclude share-based compensation expenses and amortization of intangible assets resulting from business acquisitions;
Non-GAAP general and administrative expenses exclude share-based compensation expenses;
Non-GAAP operating profit/loss excludes share-based compensation expenses, amortization of intangible assets and impairment of goodwill resulting from business acquisitions;
Non-GAAP net income/loss attributable to Cheetah Mobile shareholders excludes share-based compensation expenses, amortization of intangible assets and impairment of goodwill resulting from business acquisitions;
Non-GAAP diluted earnings/losses per ADS excludes share-based compensation expenses, amortization of intangible assets and impairment of goodwill resulting from business acquisitions; and
Non-GAAP adjusted EBITDA represents net loss attributable to Cheetah Mobile shareholders excluding share-based compensation, interest income, depreciation and amortization, impairment of goodwill, net income attributable to noncontrolling interests, other income/expenses, net and income tax expenses/benefits.
The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of share-based compensation expenses, amortization of intangible assets and impairment of goodwill resulting from business acquisitions, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Cheetah Mobile Inc. Reconciliation of GAAP and non-GAAP Results”.
Investor Relations Contact
Helen Jing Zhu
Cheetah Mobile Inc.
Tel: +86 10 6292 7779
Email: ir@cmcm.com
CHEETAH MOBILE INC.
Condensed Consolidated Balance Sheets
(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
As of
December 31, 2024
June 30, 2025
RMB
RMB
USD
ASSETS
Current assets:
Cash and cash equivalents
1,833,031
2,019,598
281,925
Short-term investments
335
336
47
Accounts receivable, net
473,619
436,074
60,874
Prepayments and other current assets, net
1,365,761
1,001,989
139,873
Due from related parties, net
106,934
118,748
16,577
Total current assets
3,779,680
3,576,745
499,296
Non-current assets:
Property and equipment, net
51,564
40,856
5,703
Operating lease right-of-use assets
26,323
21,680
3,026
Intangible assets, net
190,665
176,758
24,674
Goodwill
424,099
424,099
59,202
Long-term investments
817,330
791,238
110,453
Deferred tax assets
128,581
127,696
17,826
Other non-current assets
86,059
81,097
11,321
Total non-current assets
1,724,621
1,663,424
232,205
Total assets
5,504,301
5,240,169
731,501
LIABILITIES, MEZZANINE EQUITY
AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
219,566
227,013
31,690
Accrued expenses and other current liabilities
2,756,805
2,576,527
359,669
Due to related parties
69,606
19,167
2,676
Income tax payable
35,804
43,812
6,116
Total current liabilities
3,081,781
2,866,519
400,151
Non-current liabilities:
Deferred tax liabilities
43,046
40,443
5,646
Other non-current liabilities
172,348
167,755
23,418
Total non-current liabilities
215,394
208,198
29,064
Total liabilities
3,297,175
3,074,717
429,215
Mezzanine equity:
Redeemable noncontrolling interests
189,725
194,077
27,092
Shareholders’ equity:
Ordinary shares
248
249
35
Additional paid-in capital
2,722,504
2,724,540
380,331
Accumulated deficit
(1,232,577)
(1,288,577)
(179,878)
Accumulated other comprehensive income
410,423
403,029
56,261
Total Cheetah Mobile Inc. shareholders’
equity
1,900,598
1,839,241
256,749
Noncontrolling interests
116,803
132,134
18,445
Total shareholders’ equity
2,017,401
1,971,375
275,194
Total liabilities, mezzanine equity and
shareholders’ equity
5,504,301
5,240,169
731,501
CHEETAH MOBILE INC.
Condensed Consolidated Statements of Comprehensive Loss
(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per
share(or ADS) data)
For The Three Months Ended
For The Six Months Ended
June 30, 2024
June 30, 2025
June 30, 2025
June 30, 2024
June 30, 2025
June 30, 2025
RMB
RMB
USD
RMB
RMB
USD
Revenues
187,417
295,218
41,211
377,705
554,224
77,366
Internet business
113,729
157,837
22,033
222,749
316,978
44,248
AI and others
73,688
137,381
19,178
154,956
237,246
33,118
Cost of revenues (a)
(65,895)
(70,426)
(9,831)
(135,651)
(139,931)
(19,534)
Gross profit
121,522
224,792
31,380
242,054
414,293
57,832
Operating income and expenses:
Research and development (a)
(54,285)
(67,083)
(9,364)
(111,616)
(128,327)
(17,914)
Selling and marketing (a)
(73,396)
(102,434)
(14,299)
(148,532)
(207,272)
(28,934)
General and administrative (a)
(71,610)
(66,627)
(9,301)
(140,755)
(119,251)
(16,647)
Other operating income, net
228
289
40
736
2,959
413
Total operating income and expenses
(199,063)
(235,855)
(32,924)
(400,167)
(451,891)
(63,082)
Operating loss
(77,541)
(11,063)
(1,544)
(158,113)
(37,598)
(5,250)
Other income/(expenses):
Interest income, net
9,773
9,980
1,393
25,089
15,585
2,176
Foreign exchange (losses)/gains
(7,564)
6,349
886
(10,841)
7,999
1,117
Other expense, net
(51,612)
(17,844)
(2,491)
(59,207)
(21,853)
(3,051)
Loss before income taxes
(126,944)
(12,578)
(1,756)
(203,072)
(35,867)
(5,008)
Income tax benefits/(expenses)
6,391
(3,865)
(540)
6,193
(8,685)
(1,212)
Net loss
(120,553)
(16,443)
(2,296)
(196,879)
(44,552)
(6,220)
Less: net income attributable to noncontrolling
interests
3,288
6,200
865
6,997
11,448
1,598
Net loss attributable to Cheetah Mobile
shareholders
(123,841)
(22,643)
(3,161)
(203,876)
(56,000)
(7,818)
Net loss per share
Basic
(0.0841)
(0.0162)
(0.0023)
(0.1390)
(0.0397)
(0.0055)
Diluted
(0.0841)
(0.0163)
(0.0023)
(0.1391)
(0.0398)
(0.0056)
Net loss per ADS
Basic
(4.2042)
(0.8116)
(0.1150)
(6.9488)
(1.9861)
(0.2750)
Diluted
(4.2067)
(0.8152)
(0.1150)
(6.9542)
(1.9923)
(0.2800)
Weighted average number of shares
outstanding
Basic
1,495,962,672
1,518,381,903
1,518,381,903
1,495,088,007
1,517,084,516
1,517,084,516
Diluted
1,495,962,672
1,518,381,903
1,518,381,903
1,495,088,007
1,517,084,516
1,517,084,516
Weighted average number of ADSs
outstanding
Basic
29,919,253
30,367,638
30,367,638
29,901,760
30,341,690
30,341,690
Diluted
29,919,253
30,367,638
30,367,638
29,901,760
30,341,690
30,341,690
Other comprehensive income/(loss), net of tax
of nil
Foreign currency translation adjustments
8,383
(7,643)
(1,067)
29,414
(7,915)
(1,105)
Unrealized gains on available-for-sale securities,
net
(9,206)
188
26
(7,434)
2,848
398
Other comprehensive (loss)/income
(823)
(7,455)
(1,041)
21,980
(5,067)
(707)
Total comprehensive loss
(121,376)
(23,898)
(3,337)
(174,899)
(49,619)
(6,927)
Less: Total comprehensive income attributable
to noncontrolling interests
2,118
7,113
993
4,544
13,775
1,923
Total comprehensive loss attributable to
Cheetah Mobile shareholders
(123,494)
(31,011)
(4,330)
(179,443)
(63,394)
(8,850)
For The Three Months Ended
For The Six Months Ended
June 30,
2024
June 30,
2025
June 30,
2025
June 30,
2024
June 30,
2025
June 30,
2025
(a) Share-based compensation expenses
RMB
RMB
USD
RMB
RMB
USD
Cost of revenues
357
5
1
449
10
1
Research and development
116
62
9
408
358
50
Selling and marketing
154
229
32
110
300
42
General and administrative
7,831
2,065
288
15,076
7,277
1,016
Total
8,458
2,361
330
16,043
7,945
1,109
CHEETAH MOBILE INC.
Reconciliation of GAAP and Non-GAAP Results
(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for per share data )
For The Three Months Ended June 30, 2025
For The Six Months Ended June 30, 2025
GAAP
Share-based
Amortization
of
Non-GAAP
GAAP
Share-based
Amortization
of
Non-GAAP
Result
Compensation
intangible
assets*
Result
Result
Compensation
intangible
assets*
Result
RMB
RMB
RMB
RMB
USD
RMB
RMB
RMB
RMB
USD
Revenues
295,218
–
–
295,218
41,211
554,224
–
–
554,224
77,366
Cost of revenues
(70,426)
5
–
(70,421)
(9,830)
(139,931)
10
–
(139,921)
(19,533)
Gross profit
224,792
5
–
224,797
31,381
414,293
10
–
414,303
57,833
Research and development
(67,083)
62
6,156
(60,865)
(8,496)
(128,327)
358
12,312
(115,657)
(16,145)
Selling and marketing
(102,434)
229
469
(101,736)
(14,202)
(207,272)
300
938
(206,034)
(28,761)
General and administrative
(66,627)
2,065
–
(64,562)
(9,013)
(119,251)
7,277
–
(111,974)
(15,631)
Other operating income, net
289
–
–
289
40
2,959
–
–
2,959
413
Total operating income and expenses
(235,855)
2,356
6,625
(226,874)
(31,671)
(451,891)
7,935
13,250
(430,706)
(60,124)
Operating loss
(11,063)
2,361
6,625
(2,077)
(290)
(37,598)
7,945
13,250
(16,403)
(2,291)
Net loss attributable to Cheetah Mobile shareholders
(22,643)
2,361
6,625
(13,657)
(1,907)
(56,000)
7,945
13,250
(34,805)
(4,859)
Diluted losses per ordinary share (RMB)
(0.0163)
0.0016
0.0043
(0.0104)
(0.0398)
0.0052
0.0086
(0.0260)
Diluted losses per ADS (RMB)
(0.8152)
0.0800
0.2152
(0.5200)
(1.9923)
0.2600
0.4323
(1.3000)
Diluted losses per ADS (USD)
(0.1150)
0.0112
0.0312
(0.0726)
(0.2800)
0.0363
0.0622
(0.1815)
For The Three Months Ended June 30, 2024
For The Six Months Ended June 30, 2024
GAAP
Share-based
Amortization of
Non-GAAP
GAAP
Share-based
Amortization of
Non-GAAP
Result
Compensation
intangible
assets*
Result
Result
Compensation
intangible
assets*
Result
RMB
RMB
RMB
RMB
RMB
RMB
RMB
RMB
Revenues
187,417
–
–
187,417
377,705
–
–
377,705
Cost of revenues
(65,895)
357
–
(65,538)
(135,651)
449
–
(135,202)
Gross profit
121,522
357
–
121,879
242,054
449
–
242,503
Research and development
(54,285)
116
6,156
(48,013)
(111,616)
408
12,312
(98,896)
Selling and marketing
(73,396)
154
469
(72,773)
(148,532)
110
938
(147,484)
General and administrative
(71,610)
7,831
–
(63,779)
(140,755)
15,076
–
(125,679)
Other operating income, net
228
–
–
228
736
–
–
736
Total operating income and expenses
(199,063)
8,101
6,625
(184,337)
(400,167)
15,594
13,250
(371,323)
Operating loss
(77,541)
8,458
6,625
(62,458)
(158,113)
16,043
13,250
(128,820)
Net loss attributable to Cheetah Mobile shareholders
(123,841)
8,458
6,625
(108,758)
(203,876)
16,043
13,250
(174,583)
Diluted losses per ordinary share (RMB)
(0.0841)
0.0057
0.0043
(0.0741)
(0.1391)
0.0107
0.0089
(0.1195)
Diluted losses per ADS (RMB)
(4.2067)
0.2850
0.2167
(3.7050)
(6.9542)
0.5350
0.4442
(5.9750)
* This represents amortization of intangible assets resulting from business acquisitions.
CHEETAH MOBILE INC.
Information about Segment
(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for percentage)
For The Three Months Ended June 30, 2025
For The Six Months Ended June 30, 2025
Internet
Business
AI and
others
Consolidated
Internet
Business
AI and
others
Consolidated
RMB
RMB
RMB
USD
RMB
RMB
RMB
USD
Revenues
157,837
137,381
295,218
41,211
316,978
237,246
554,224
77,366
Operating Costs and expenses
Cost of revenues(i)
26,315
44,106
70,421
9,830
49,307
90,614
139,921
19,533
Selling and marketing(i)
62,119
40,086
102,205
14,267
129,615
77,357
206,972
28,892
Research and development(i)
33,409
33,612
67,021
9,355
66,252
61,717
127,969
17,864
Other segment items(i)
13,744
50,529
64,273
8,973
24,947
84,068
109,015
15,218
Adjusted operating income/(losses)
22,250
(30,952)
(8,702)
(1,214)
46,857
(76,510)
(29,653)
(4,141)
Unallocated amounts-share based
compensations
(2,361)
(330)
(7,945)
(1,109)
Operating loss
(11,063)
(1,544)
(37,598)
(5,250)
Reconciliation of segment profit/(loss)
Interest income, net
9,980
1,393
15,585
2,176
Foreign exchange gains, net
6,349
886
7,999
1,117
Other (expense)/income, net
(17,844)
(2,491)
(21,853)
(3,051)
Loss before income taxes
(12,578)
(1,756)
(35,867)
(5,008)
For The Three Months Ended June 30, 2024
For The Six Months Ended June 30, 2024
Internet
Business
AI and others
Consolidated
Internet
Business
AI and others
Consolidated
RMB
RMB
RMB
RMB
RMB
RMB
Revenues
113,729
73,688
187,417
222,749
154,956
377,705
Operating Costs and expenses
Cost of revenues(i)
19,730
45,808
65,538
38,951
96,251
135,202
Selling and marketing(i)
39,384
33,858
73,242
77,589
70,833
148,422
Research and development(i)
25,444
28,725
54,169
52,231
58,977
111,208
Other segment items(i)
15,012
48,539
63,551
31,157
93,786
124,943
Adjusted operating income/(losses)
14,159
(83,242)
(69,083)
22,821
(164,891)
(142,070)
Unallocated amounts-share based
compensations
(8,458)
(16,043)
Operating loss
(77,541)
(158,113)
Reconciliation of segment profit/(loss)
Interest income, net
9,773
25,089
Foreign exchange losses, net
(7,564)
(10,841)
Other (expense)/income, net
(51,612)
(59,207)
Loss before income taxes
(126,944)
(203,072)
(i) Share-based compensations were not allocated to segments. Other segment items include general and administrative expenses and other operating expenses allocated
to the respective segments.
CHEETAH MOBILE INC.
Reconciliation from Net Loss Attributable to Cheetah Mobile Shareholders to Adjusted EBITDA (Non-GAAP)
(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
For The Three Months Ended
For The Six Months Ended
June 30, 2024
June 30, 2025
June 30, 2025
June 30, 2024
June 30, 2025
June 30, 2025
RMB
RMB
USD
RMB
RMB
USD
Net loss attributable to Cheetah Mobile
shareholders
(123,841)
(22,643)
(3,161)
(203,876)
(56,000)
(7,818)
Add:
Income tax (benefits)/expenses
(6,391)
3,865
540
(6,193)
8,685
1,212
Interest income, net
(9,773)
(9,980)
(1,393)
(25,089)
(15,585)
(2,176)
Depreciation and other amortization
12,317
10,757
1,502
24,629
20,539
2,867
Net income attributable to noncontrolling
interests
3,288
6,200
865
6,997
11,448
1,598
Other expense
59,176
11,495
1,605
70,048
13,854
1,934
Share-based compensation
8,458
2,361
330
16,043
7,945
1,109
Adjusted EBITDA
(56,766)
2,055
288
(117,441)
(9,114)
(1,274)