Cheetah Mobile Announces Second Quarter 2025 Unaudited Consolidated Financial Results

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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 

* This represents amortization of intangible assets resulting from business acquisitions.