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Cheetah Mobile Announces Second Quarter 2025

Unaudited Consolidated Financial Results

BEIJING, September 11, 2025 - 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, drvien by strong performance of both of our reporting segements. 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.

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•
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

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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;

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•
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

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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

 

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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

 

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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.

 

7

 

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.

8

 

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)

 

9