Cheetah Mobile Announces First Quarter 2025 Unaudited Consolidated Financial Results

BEIJING, June 19, 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 March 31, 2025.

Management Commentary

Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, remarked, "We kicked off 2025 with strong momentum - total revenue grew 36.1% year-over-year in the first quarter, and margins improved significantly. Our Internet business continued to perform robustly, with revenue increasing 46.0% year-over-year. Meanwhile, revenue from our AI and Others segment grew by 22.9% year-over-year and accelerated to 29.8% quarter-over-quarter. We narrowed our operating losses this quarter while maintaining strong investment in AI and robotics. We remain encouraged by the momentum we're seeing and expect continued progress as we execute against our AI strategy. Looking ahead, we see agentic AI as a true game-changer. AI models are moving beyond conversation and into real-world action, and Cheetah Mobile's long track record of productizing cutting-edge technology positions us to capture this shift. By doubling down on R&D and infusing AI Agents into both our consumer applications and robotics portfolio, we are helping usher China's LLM industry from infrastructure build-out to application-driven innovation. Our focus remains clear: to keep generating steady revenue and profit growth from our legacy businesses, while strengthening our position in new AI ventures by creating practical, utility-focused AI tools and robots that understand people and help them accomplish more."

Mr. Thomas Ren, Chief Financial Officer of Cheetah Mobile, commented: "We made significant progress in narrowing our losses in Q1 2025, supported by disciplined execution, cost optimization, and steady topline growth. In particular, our Internet business posted a notable improvement in operating margin, reaching 15.5% in the quarter, up from 7.9% a year ago. We also continued to improve efficiency in our AI and Others segment by focusing on scalable use cases, leveraging open-source models and AI tools and streamlining product development. While we continue to invest in the significant opportunity that LLM technology represents, we remain focused on consistent margin expansion and loss reduction, while maintaining a strong balance sheet."

First Quarter 2025 Financial Highlight

• Total revenues grew by 36.1% year-over-year and 9.2% quarter-over-quarter, accelerating to RMB259.0 million (US$35.7 million) in the first quarter of 2025.
• Gross profit increased by 67.2% year-over-year and 9.7% quarter-over-quarter, to RMB189.5 million (US$26.1 million) in the first quarter of 2025. Non-GAAP gross profit rose by 67.1% year-over-year and 10.0% quarter-over-quarter to RMB189.5 million (US$26.1 million).
• Operating loss reduced significantly in the first quarter of 2025 to RMB26.5 million (US$3.7 million), compared to RMB80.6 million in the same period of last year and RMB207.1 million in the previous quarter. Non-GAAP operating loss in the first quarter of 2025 improved to RMB14.3 million (US$2.0 million) from RMB66.4 million in the same period of last year and RMB42.5 million in the previous quarter.
• Net loss attributable to Cheetah Mobile Shareholders was RMB33.4 million (US$4.6 million), compared to RMB80.0 million in the same period of last year and RMB366.8 million in the previous quarter. Non-GAAP net loss attributable to Cheetah Mobile Shareholders was RMB21.1 million (US$2.9 million), compared to RMB65.8 million in the same period of last year and RMB202.1 million in the previous quarter.
• As of March 31, 2025, the Company had cash and cash equivalents of RMB1,699.2 million (US$234.2 million), ensuring strong liquidity.
• As of March 31, 2025, the Company had long-term investments of RMB813.1million (US$112.1 million).

Conference Call Information

The Company will hold a conference call on June 19, 2025, at 8:00 a.m. Eastern Time (or 8:00 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: 4001-206115
Hong Kong Toll Free: 800-963976
Conference ID: 8588778

English Translation:
International: 1-412-317-6061
United States Toll Free: 1-888-317-6003
Mainland China Toll Free: 4001-206115
Hong Kong Toll Free: 800-963976
Conference ID: 2026449

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 RMB7.2567 to US$1.00, the exchange rate in effect as of March 31, 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: [phone]
Email: [email protected]

CHEETAH MOBILE INC. Condensed Consolidated Balance Sheets (Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))
	As of
	December 31, 2024		March 31, 2025
	RMB		RMB		USD
ASSETS
Current assets:
Cash and cash equivalents	1,833,031		1,699,237		234,161
Short-term investments	335		321		44
Accounts receivable, net	473,619		393,503		54,226
Prepayments and other current assets, net	1,365,761		1,006,307		138,673
Due from related parties, net	106,934		109,053		15,028
Total current assets	3,779,680		3,208,421		442,132
Non-current assets:
Property and equipment, net	51,564		41,590		5,731
Operating lease right-of-use assets	26,323		23,346		3,217
Intangible assets, net	190,665		183,518		25,289
Goodwill	424,099		424,099		58,442
Long-term investments	817,330		813,119		112,051
Deferred tax assets	128,581		124,493		17,156
Other non-current assets	86,059		84,896		11,701
Total non-current assets	1,724,621		1,695,061		233,587
Total assets	5,504,301		4,903,482		675,719
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	219,566		220,088		30,329
Accrued expenses and other current liabilities	2,756,805		2,178,388		300,190
Due to related parties	69,606		70,896		9,770
Income tax payable	35,804		35,680		4,917
Total current liabilities	3,081,781		2,505,052		345,206
Non-current liabilities:
Deferred tax liabilities	43,046		42,023		5,791
Other non-current liabilities	172,348		169,416		23,346
Total non-current liabilities	215,394		211,439		29,137
Total liabilities	3,297,175		2,716,491		374,343
Mezzanine equity:
Redeemable noncontrolling interests	189,725		191,984		26,456
Shareholders' equity:
Ordinary shares	248		248		34
Additional paid-in capital	2,722,504		2,730,456		376,267
Accumulated deficit	(1,232,577)		(1,265,934)		(174,450)
Accumulated other comprehensive income	410,423		411,397		56,692
Total Cheetah Mobile Inc. shareholders' equity	1,900,598		1,876,167		258,543
Noncontrolling interests	116,803		118,840		16,377
Total shareholders' equity	2,017,401		1,995,007		274,920
Total liabilities, mezzanine equity and shareholders' equity	5,504,301		4,903,482		675,719

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
		March 31, 2024		December 31, 2024		March 31, 2025		March 31, 2025
		RMB		RMB		RMB		USD
Revenues		190,288		237,089		259,006		35,692
Internet business		109,020		160,152		159,141		21,930
AI and others		81,268		76,937		99,865		13,762
Cost of revenues (a)		(76,952)		(64,317)		(69,505)		(9,578)
Gross profit		113,336		172,772		189,501		26,114
Operating income and expenses:
Research and development (a)		(57,331)		(65,506)		(61,244)		(8,440)
Selling and marketing (a)		(67,940)		(104,851)		(104,838)		(14,447)
General and administrative (a)		(69,145)		(56,281)		(52,624)		(7,252)
Impairment of goodwill		-		(152,890)		-		-
Other operating income/(expense), net		508		(377)		2,670		368
Total operating income and expenses		(193,908)		(379,905)		(216,036)		(29,771)
Operating loss		(80,572)		(207,133)		(26,535)		(3,657)
Other income/(expenses):
Interest income, net		15,316		9,862		5,605		772
Foreign exchange (losses)/gains		(3,277)		(32,236)		1,650		227
Other expense, net		(7,595)		(82,300)		(4,009)		(552)
Loss before income taxes		(76,128)		(311,807)		(23,289)		(3,210)
Income tax expenses		(198)		(51,064)		(4,820)		(664)
Net loss		(76,326)		(362,871)		(28,109)		(3,874)
Less: net income attributable to noncontrolling interests		3,709		3,913		5,248		723
Net loss attributable to Cheetah Mobile shareholders		(80,035)		(366,784)		(33,357)		(4,597)
Net loss per share
Basic		(0.0549)		(0.2438)		(0.0235)		(0.0032)
Diluted		(0.0550)		(0.2439)		(0.0236)		(0.0033)
Net loss per ADS
Basic		(2.7450)		(12.1907)		(1.1749)		(0.1600)
Diluted		(2.7500)		(12.1947)		(1.1814)		(0.1650)
Weighted average number of shares outstanding
Basic		1,494,213,830		1,512,707,145		1,515,787,128		1,515,787,128
Diluted		1,494,213,830		1,512,707,145		1,515,787,128		1,515,787,128
Weighted average number of ADSs outstanding
Basic		29,884,277		30,254,143		30,315,743		30,315,743
Diluted		29,884,277		30,254,143		30,315,743		30,315,743
Other comprehensive income/(loss), net of tax of nil
Foreign currency translation adjustments		21,031		51,667		(272)		(37)
Unrealized gains on available-for-sale securities, net		1,772		7,277		2,660		367
Other comprehensive income		22,803		58,944		2,388		330
Total comprehensive loss		(53,523)		(303,927)		(25,721)		(3,544)
Less: Total comprehensive income attributable to noncontrolling interests		2,426		2,199		6,662		918
Total comprehensive loss attributable to Cheetah Mobile shareholders		(55,949)		(306,126)		(32,383)		(4,462)

		For The Three Months Ended
		March 31, 2024		December 31, 2024		March 31, 2025		March 31, 2025
(a) Share-based compensation expenses		RMB		RMB		RMB		USD
Cost of revenues		92		(460)		5		1
Research and development		292		1,280		296		41
Selling and marketing		(44)		(495)		71		10
General and administrative		7,245		4,819		5,212		718
Total		7,585		5,144		5,584		770

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 March 31, 2025
	GAAP	Share-based	Amortization of	Non-GAAP
	Result	Compensation	intangible assets*	Result
	RMB	RMB	RMB	RMB	USD
Revenues	259,006	-	-	259,006	35,692
Cost of revenues	(69,505)	5	-	(69,500)	(9,577)
Gross profit	189,501	5	-	189,506	26,115
Research and development	(61,244)	296	6,156	(54,792)	(7,551)
Selling and marketing	(104,838)	71	469	(104,298)	(14,372)
General and administrative	(52,624)	5,212	-	(47,412)	(6,534)
Other operating income, net	2,670	-	-	2,670	368
Total operating income and expenses	(216,036)	5,579	6,625	(203,832)	(28,089)
Operating loss	(26,535)	5,584	6,625	(14,326)	(1,974)
Net loss attributable to Cheetah Mobile shareholders	(33,357)	5,584	6,625	(21,148)	(2,914)
Diluted losses per ordinary share (RMB)	(0.0236)	0.0037	0.0043	(0.0156)
Diluted losses per ADS (RMB)	(1.1814)	0.1850	0.2164	(0.7800)
Diluted losses per ADS (USD)	(0.1650)	0.0255	0.0320	(0.1075)

	For The Three Months Ended December 31, 2024
	GAAP	Share-based	Amortization of	Impairment	Non-GAAP
	Result	Compensation	intangible assets*	of goodwill	Result
	RMB	RMB	RMB	RMB	RMB
Revenues	237,089	-	-	-	237,089
Cost of revenues	(64,317)	(460)	-	-	(64,777)
Gross profit	172,772	(460)	-	-	172,312
Research and development	(65,506)	1,280	6,156	-	(58,070)
Selling and marketing	(104,851)	(495)	469	-	(104,877)
General and administrative	(56,281)	4,819	-	-	(51,462)
Impairment of goodwill	(152,890)	-	-	152,890	-
Other operating loss, net	(377)	-	-	-	(377)
Total operating income and expenses	(379,905)	5,604	6,625	152,890	(214,786)
Operating loss	(207,133)	5,144	6,625	152,890	(42,474)
Net loss attributable to Cheetah Mobile shareholders	(366,784)	5,144	6,625	152,890	(202,125)
Diluted losses per ordinary share (RMB)	(0.2439)	0.0034	0.0044	0.1011	(0.1350)
Diluted losses per ADS (RMB)	(12.1947)	0.1700	0.2200	5.0547	(6.7500)

	For The Three Months Ended March 31, 2024
	GAAP	Share-based	Amortization of	Non-GAAP
	Result	Compensation	intangible assets*	Result
	RMB	RMB	RMB	RMB
Revenues	190,288	-	-	190,288
Cost of revenues	(76,952)	92	-	(76,860)
Gross profit	113,336	92	-	113,428
Research and development	(57,331)	292	6,156	(50,883)
Selling and marketing	(67,940)	(44)	469	(67,515)
General and administrative	(69,145)	7,245	-	(61,900)
Other operating income, net	508	-	-	508
Total operating income and expenses	(193,908)	7,493	6,625	(179,790)
Operating loss	(80,572)	7,585	6,625	(66,362)
Net loss attributable to Cheetah Mobile shareholders	(80,035)	7,585	6,625	(65,825)
Diluted losses per ordinary share (RMB)	(0.0550)	0.0052	0.0043	(0.0455)
Diluted losses per ADS (RMB)	(2.7500)	0.2600	0.2150	(2.2750)
* 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 March 31, 2025
		Internet Business		AI and others		Consolidated
		RMB		RMB		RMB		USD
Revenues		159,141		99,865		259,006		35,692
Operating Costs and expenses
Cost of revenues(i)		22,992		46,508		69,500		9,577
Selling and marketing(i)		67,496		37,271		104,767		14,437
Research and development(i)		32,843		28,105		60,948		8,399
Other segment items(i)		11,203		33,539		44,742		6,166
Adjusted operating income/(losses)		24,607		(45,558)		(20,951)		(2,887)
Unallocated amounts-share based compensations						(5,584)		(770)
Operating loss						(26,535)		(3,657)
Reconciliation of segment profit/(loss)
Interest income, net						5,605		772
Foreign exchange gains, net						1,650		227
Other (expense)/income, net						(4,009)		(552)
Loss before income taxes						(23,289)		(3,210)

		For The Three Months Ended December 31, 2024
		Internet Business		AI and others		Consolidated
		RMB		RMB		RMB
Revenues		160,152		76,937		237,089
Operating Costs and expenses
Cost of revenues(i)		21,174		43,603		64,777
Selling and marketing(i)		70,243		35,103		105,346
Research and development(i)		30,651		33,575		64,226
Other segment items(i)		11,877		192,852		204,729
Adjusted operating income/(losses)		26,207		(228,196)		(201,989)
Unallocated amounts-share based compensations						(5,144)
Operating loss						(207,133)
Reconciliation of segment profit/(loss)
Interest income, net						9,862
Foreign exchange losses, net						(32,236)
Other (expense)/income, net						(82,300)
Loss before income taxes						(311,807)

		For The Three Months Ended March 31, 2024
		Internet Business		AI and others		Consolidated
		RMB		RMB		RMB
Revenues		109,020		81,268		190,288
Operating Costs and expenses
Cost of revenues(i)		19,221		57,639		76,860
Selling and marketing(i)		38,205		29,779		67,984
Research and development(i)		26,787		30,252		57,039
Other segment items(i)		16,145		45,247		61,392
Adjusted operating income/(losses)		8,662		(81,649)		(72,987)
Unallocated amounts-share based compensations						(7,585)
Operating loss						(80,572)
Reconciliation of segment profit/(loss)
Interest income, net						15,316
Foreign exchange losses, net						(3,277)
Other (expense)/income, net						(7,595)
Loss before income taxes						(76,128)

(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
		March 31, 2024		December 31, 2024		March 31, 2025		March 31, 2025
		RMB		RMB		RMB		USD
Net loss attributable to Cheetah Mobile shareholders		(80,035)		(366,784)		(33,357)		(4,597)
Add:
Income tax expenses		198		51,064		4,820		664
Interest income, net		(15,316)		(9,862)		(5,605)		(772)
Depreciation and other amortization		12,312		14,619		9,782		1,348
Net income attributable to noncontrolling interests		3,709		3,913		5,248		723
Other expense		10,872		114,536		2,359		325
Share-based compensation		7,585		5,144		5,584		770
Impairment of goodwill		-		152,890		-		-
Adjusted EBITDA		(60,675)		(34,480)		(11,169)		(1,539)

SOURCE Cheetah Mobile