Cheetah Mobile Announces First Quarter 2026 Unaudited Consolidated Financial Results

Robotics and others revenue grew 175.9% year over year and accounted for 19.8% of total revenue in the first quarter of 2026

BEIJING, June 10, 2026 /PRNewswire/ -- Cheetah Mobile Inc. ("Cheetah Mobile" or the "Company") (NYSE: CMCM), a China-based IT company with a commitment to AI innovation, today announced its unaudited consolidated financial results for the quarter ended March 31, 2026.

Financial Highlights

Revenue

• Total revenues were RMB259.0 million (US$37.5 million) in the first quarter of 2026.
• Revenues from ro botics and others increased 175.9% year over year to RMB51.2 million, accounting for 19.8% of total revenues in the first quarter of 2026.
• Revenue from services of cloud and AI infrastructure increased 68.3% year over year in the first quarter of 2026 to RMB46.8 million, contributing to 64.3% of global enterprise services segment revenue and 18.1% of this quarter's total revenues.
• Revenue from internet value-added services increased 8.2% year over year in the first quarter of 2026 to RMB98.3 million, accounting for 72.8% of internet services segment revenue and 38.0% of this quarter's total revenues.

Profitability

• Net loss attributable to Cheetah Mobile shareholders was RMB17.5 million (US$2.5 million), compared with RMB33.4 million in the same period last year.
• Non-GAAP net loss attributable to Cheetah Mobile shareholders was RMB11.7 million (US$1.7 million), compared with non-GAAP net loss attributable to Cheetah Mobile shareholders of RMB21.1 million in the same period last year.

Cash Position

• As of March 31, 2026, the Company had RMB1,280.6 million (US$185.6 million) in cash and cash equivalents.

Management Commentary

Fu Sheng, Chief Executive Officer of Cheetah Mobile, commented: "During the first quarter of 2026, we continued executing our AI and robotics strategy with a disciplined approach. Our rob otics and others segment delivered strong year-over-year growth while adjusted operating loss further narrowed, reflecting improving commercial traction and operating efficiency. We also continued advancing EasyClaw, our AI agent platform focused on enterprise productivity scenarios, and introduced other AI Agent products. We believe long-term opportunities in AI will come from practical applications, workflow integration, and real customer value creation. Across the industry, we are seeing growing adoption of AI agents, which is driving demand for AI infrastructure and cloud services. This trend also benefited our services of cloud and AI infrastructure business, which delivered strong year-over-year revenue growth during the quarter. Supported by stable cash flow from our internet services business, we remain focused on disciplined investment, product execution, and building sustainable long-term growth engines."

Thomas Ren, Chief Financial Officer of Cheetah Mobile, commented: "Starting from the first quarter of 2026, we began reporting our robotics business as a separate segment to present the operating progress of this business. Historical results previously reported under the AI and others segment are now presented as ro botics and others, which primarily includes robotics-related products and services, and global enterprise services, which includes advertising agency and services of cloud and AI infrastructure through partnering with global leading cloud service providers. We also maintained a solid balance sheet, ending the quarter with US$ 185.6 million in cash and cash equivalents, supporting our disciplined investment in AI and robotics initiatives over the long term."

First Quarter 2026 Financial Results

Total revenues remained relatively flat year over year, generating RMB259.0 million (US$37.5 million) in the first quarter of 2026.

• Revenues from Robotics and Oth ers increased 175.9% year over year to RMB51.2 million, accounting for 19.8% of total revenues in the first quarter of 2026.
• Internet Services revenue decreased 15.2% year over year to RMB135.0 million. This year-over-year decrease was resulting from a 46.3% decline in the Company's online advertising business. However, revenue from internet value added services increased by 8.2% year over year in the first quarter of 2026, contributing to 72.8% of this quarter's Internet Services segment revenue, and 38.0% of this quarter's total revenues.
• Global Enterprise Services revenue decreased 10.5% year over year to RMB 72.8 million. This year-over-year decrease resulted from a 51.5% decline in the Company's advertising agency services business due to policy shifts from a major global advertising platform. However, revenue from services of cloud and AI infrastructure increased 68.3% year over year in the first quarter of 2026, contributing to 64.3% of this quarter's Global Enterprise Services segment revenue and 18.1% of this quarter's total revenues. This increase was a result of an increasing number of enterprises in the overseas markets adopting AI agent products to improve productivity, which drove demands for both tokens and cloud computing resources through our platform.

Operating loss was RMB28.3 (US$4.1 million) million in the first quarter of 2026, compared to RMB26.5 million in the same period last year. Non-GAAP operating loss was RMB22.5 million (US$3.3 million) in the first quarter of 2026, compared to RMB14.3 million in the same period last year.

• Adjusted operating loss from Robotics and Oth ers decreased by 57.1% year over year to RMB26.9 million in the first quarter of 2026.
• Adjusted operating profit from Internet Services business decreased by 38.2% year over year in the first quarter of 2026, mainly due to the decline in online advertising revenue in this segment, along with our investments in AI agent related products. However, we still earned RMB15.2 million from the Internet Services business in this quarter, which laid a solid foundation for our investments in robotics and AI applications.
• Adjusted operating profit from Global Enterprise Services decreased by 67.3% year over year to RMB13.8 million in the first quarter of 2026. This decline was resulting from the revenue decrease in the Company's advertising agency services business.

Net loss attributable to Cheetah Mobile shareholders was RMB17.5 million (US$2.5 million), compared with RMB33.4 million in the same period last year. Non-GAAP net loss attributable to Cheetah Mobile shareholders was RMB11.7 million (US$1.7 million), compared with non-GAAP net loss attributable to Cheetah Mobile shareholders of RMB21.1 million in the same period last year.

As of March 31, 2026, the Company had RMB1,280.6 million (US$185.6 million) of cash and cash equivalents, and RMB692.2 million (US$100.3 million) of long-term investments.

Conference Call Information

The Company will hold a conference call on June 10, 2026, 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: [phone]
Hong Kong Toll Free: 800-963976
Conference ID: 7570048

English Translation:
International: 1-412-317-6061
United States Toll Free: 1-888-317-6003
Mainland China Toll Free: [phone]
Hong Kong Toll Free: 800-963976
Conference ID: 0340478

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 RMB6.8980 to US$1.00, the exchange rate in effect as of March 31, 2026, 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 developed and launched a diversified suite of software products for PCs and mobile devices, designed to address users' needs in document processing, system optimization, image editing and web browsing, AI agent products, among others. Cheetah Mobile provides advertising services to advertisers worldwide, value-added services including the sale of premium membership to its users, services of cloud and AI infrastructure to companies globally, as well as robotic products to international clients. At the same time, it actively engages in research and development of advanced technologies to empower its products and services. Cheetah Mobile 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 resulting from business acquisitions, impairment of goodwill and intangible assets 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, 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 resulting from business acquisitions and impairment of goodwill and intangible assets resulting from business acquisitions;
• Non-GAAP net income/loss attributable to Cheetah Mobile shareholders excludes share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, impairment of goodwill and intangible assets resulting from business acquisitions;
• Non-GAAP diluted earnings/losses per ADS excludes share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, impairment of goodwill and intangible assets resulting from business acquisitions.

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 resulting from business acquisitions, which have been and will continue to be significant recurring expenses in its business, as well as impairment of goodwill and intangible assets resulting from business acquisitions. 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, 2025		March 31, 2026
	RMB		RMB		USD
ASSETS
Current assets:
Cash and cash equivalents	1,506,625		1,280,591		185,647
Short-term investments	9,527		9,499		1,377
Accounts receivable, net	468,058		471,332		68,329
Prepayments and other current assets, net	1,154,774		1,086,601		157,524
Due from related parties, net	94,821		119,067		17,261
Total current assets	3,233,805		2,967,090		430,138
Non-current assets:
Property and equipment, net	40,238		40,967		5,939
Operating lease right-of-use assets	16,833		14,316		2,075
Intangible assets, net	54,069		51,322		7,440
Goodwill	460,034		460,034		66,691
Long-term investments	688,459		692,209		100,349
Deferred tax assets	112,913		111,313		16,137
Other non-current assets	77,521		79,947		11,590
Total non-current assets	1,450,067		1,450,108		210,221
Total assets	4,683,872		4,417,198		640,359
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	211,689		288,243		41,786
Accrued expenses and other current liabilities	2,264,659		1,967,039		285,161
Due to related parties	18,613		24,298		3,522
Income tax payable	54,430		43,360		6,286
Total current liabilities	2,549,391		2,322,940		336,755
Non-current liabilities:
Deferred tax liabilities	21,711		21,132		3,063
Other non-current liabilities	154,422		153,789		22,295
Total non-current liabilities	176,133		174,921		25,358
Total liabilities	2,725,524		2,497,861		362,113
Mezzanine equity:
Redeemable noncontrolling interests	197,560		199,656		28,944
Shareholders' equity:
Ordinary shares	254		254		37
Additional paid-in capital	2,736,117		2,737,443		396,846
Accumulated deficit	(1,490,947)		(1,508,427)		(218,676)
Accumulated other comprehensive income	362,245		332,503		48,203
Total Cheetah Mobile Inc. shareholders' equity	1,607,669		1,561,773		226,410
Noncontrolling interests	153,119		157,908		22,892
Total shareholders' equity	1,760,788		1,719,681		249,302
Total liabilities, mezzanine equity and shareholders' equity	4,683,872		4,417,198		640,359

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, 2025		March 31, 2026		March 31, 2026
		RMB		RMB		USD
Revenues		259,006		258,993		37,546
Internet Services		159,141		135,005		19,572
Global Enterprise Services		81,297		72,750		10,547
Robotics and others		18,568		51,238		7,427
Cost of revenues (a)		(69,505)		(92,431)		(13,400)
Gross profit		189,501		166,562		24,146
Operating income and expenses:
Research and development (a)		(61,244)		(57,722)		(8,368)
Selling and marketing (a)		(104,838)		(71,714)		(10,396)
General and administrative (a)		(52,624)		(66,136)		(9,588)
Other operating income		2,670		722		105
Total operating income and expenses		(216,036)		(194,850)		(28,247)
Operating loss		(26,535)		(28,288)		(4,101)
Other income/(expenses):
Interest income, net		5,605		3,422		496
Foreign exchange gains		1,650		19,252		2,791
Others (expense)/income, net		(4,009)		1,321		192
Loss before income taxes		(23,289)		(4,293)		(622)
Income tax expenses		(4,820)		(7,623)		(1,105)
Net loss		(28,109)		(11,916)		(1,727)
Less: net income attributable to noncontrolling interests		5,248		5,564		807
Net loss attributable to Cheetah Mobile shareholders		(33,357)		(17,480)		(2,534)
Net loss per share
Basic		(0.0235)		(0.0126)		(0.0018)
Diluted		(0.0236)		(0.0127)		(0.0018)
Net loss per ADS
Basic		(1.1749)		(0.6306)		(0.0900)
Diluted		(1.1814)		(0.6334)		(0.0900)
Weighted average number of shares outstanding
Basic		1,515,787,128		1,551,965,718		1,551,965,718
Diluted		1,515,787,128		1,551,965,718		1,551,965,718
Weighted average number of ADSs outstanding
Basic		30,315,743		31,039,314		31,039,314
Diluted		30,315,743		31,039,314		31,039,314
Other comprehensive loss, net of tax of nil
Foreign currency translation adjustments		(272)		(31,160)		(4,517)
Unrealized gains on available-for-sale securities, net		2,660		585		85
Other comprehensive income/(loss)		2,388		(30,575)		(4,432)
Total comprehensive loss		(25,721)		(42,491)		(6,159)
Less: Total comprehensive income attributable to noncontrolling interests		6,662		4,731		686
Total comprehensive loss attributable to Cheetah Mobile shareholders		(32,383)		(47,222)		(6,845)
		For The Three Months Ended
		March 31, 2025		March 31, 2026		March 31, 2026
(a) Share-based compensation expenses		RMB		RMB		USD
Cost of revenues		5		-		-
Research and development		296		932		135
Selling and marketing		71		505		73
General and administrative		5,212		2,044		296
Total		5,584		3,481		504

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, 2026
	GAAP	Share-based	Amortization of	Non-GAAP
	Result	Compensation	intangible assets*	Result
	RMB	RMB	RMB	RMB	USD
Revenues	258,993	-	-	258,993	37,546
Cost of revenues	(92,431)	-	-	(92,431)	(13,400)
Gross profit	166,562	-	-	166,562	24,146
Research and development	(57,722)	932	231	(56,559)	(8,200)
Selling and marketing	(71,714)	505	2,070	(69,139)	(10,023)
General and administrative	(66,136)	2,044	-	(64,092)	(9,292)
Other operating income, net	722	-	-	722	105
Total operating income and expenses	(194,850)	3,481	2,301	(189,068)	(27,410)
Operating loss	(28,288)	3,481	2,301	(22,506)	(3,264)
Net loss attributable to Cheetah Mobile shareholders	(17,480)	3,481	2,301	(11,698)	(1,697)
Diluted losses per ordinary share (RMB)	(0.0127)	0.0022	0.0016	(0.0089)
Diluted losses per ADS (RMB)	(0.6334)	0.1100	0.0784	(0.4450)
Diluted losses per ADS (USD)	(0.0900)	0.0159	0.0114	(0.0645)
	For The Three Months Ended March 31, 2025
	GAAP	Share-based	Amortization of	Non-GAAP
	Result	Compensation	intangible assets*	Result
	RMB	RMB	RMB	RMB
Revenues	259,006	-	-	259,006
Cost of revenues	(69,505)	5	-	(69,500)
Gross profit	189,501	5	-	189,506
Research and development	(61,244)	296	6,156	(54,792)
Selling and marketing	(104,838)	71	469	(104,298)
General and administrative	(52,624)	5,212	-	(47,412)
Other operating income, net	2,670	-	-	2,670
Total operating income and expenses	(216,036)	5,579	6,625	(203,832)
Operating loss	(26,535)	5,584	6,625	(14,326)
Net loss attributable to Cheetah Mobile shareholders	(33,357)	5,584	6,625	(21,148)
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)
* 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, 2026
		Internet Services		Global Enterprise Services		Robotics and others		Consolidated
		RMB		RMB				RMB		USD
Revenues from external customers		135,005		72,750		51,238		258,993		37,546
Inter-segment revenues		-		11,130		-		11,130		1,614
Segment revenue		135,005		83,880		51,238		270,123		39,160
Elimination of inter-segment revenue								(11,130)		(1,614)
Consolidated Revenues								258,993		37,546
Operating Costs and expenses
Cost of revenues(i)		29,157		43,940		26,458
Selling and marketing(i)		39,649		9,180		19,747
Research and development(i)		28,992		378		27,142
Other segment items(i)		22,011		16,629		4,761
Adjusted operating income/(losses)		15,196		13,753		(26,870)		2,079		301
Unallocated amounts-share based compensations								3,481		504
Unallocated amounts-corporate expense								26,886		3,898
Operating loss								(28,288)		(4,101)
Reconciliation of segment profit/(loss)
Interest income, net								3,422		496
Foreign exchange gains, net								19,252		2,791
Other income, net								1,321		192
Loss before income taxes								(4,293)		(622)
		For The Three Months Ended March 31, 2025
		Internet Services		Global Enterprise Services		Robotics and others		Consolidated
		RMB		RMB				RMB
Revenues from external customers		159,141		81,297		18,568		259,006
Inter-segment revenues		-		8,521		-		8,521
Segment revenue		159,141		89,818		18,568		267,527
Elimination of inter-segment revenue								(8,521)
Consolidated Revenues								259,006
Operating Costs and expenses
Cost of revenues(i)		22,992		28,317		24,486
Selling and marketing(i)		67,496		14,782		20,031
Research and development(i)		32,843		1,259		26,379
Other segment items(i)		11,203		3,397		10,345
Adjusted operating income/(losses)		24,607		42,063		(62,673)		3,997
Unallocated amounts-share based compensations								5,584
Unallocated amounts-corporate expense								24,948
Operating loss								(26,535)
Reconciliation of segment profit/(loss)
Interest income, net								5,605
Foreign exchange gains, net								1,650
Other income, net								(4,009)
Loss before income taxes								(23,289)
(i) Share-based compensations and certain corporate expenses 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, 2025		March 31, 2026		March 31, 2026
		RMB				USD
Net loss attributable to Cheetah Mobile shareholders		(33,357)		(17,480)		(2,534)
Add:
Income tax expenses		4,820		7,623		1,105
Interest income, net		(5,605)		(3,422)		(496)
Depreciation and other amortization		9,782		6,464		937
Net income attributable to noncontrolling interests		5,248		5,564		807
Other expense/(income), net		2,359		(20,573)		(2,983)
Share-based compensation		5,584		3,481		504
Adjusted EBITDA		(11,169)		(18,343)		(2,660)

SOURCE Cheetah Mobile