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Cheetah Mobile
(NYSE:CMCM)
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Rating:48Neutral
Price Target:
$3.00
▼(-52.46% Downside)
Action:Reiterated
Date:06/26/26
Overall score reflects weak financial quality and trend: ongoing losses and recent cash burn weigh heavily, and the technical setup remains bearish with price below key moving averages. The latest earnings call provides a meaningful offset via accelerating growth in robotics and cloud/AI and a solid cash cushion, but profitability headwinds and execution risk keep the score below average.
Positive Factors
Improving Gross Margins & Revenue Re-acceleration
Sustained revenue re-acceleration alongside materially higher gross margins (≈65% in 2023 to ~72% in 2025) indicates better unit economics and a more favorable product mix. High gross margins create durable room for reinvestment into AI and robotics R&D and help absorb SG&A, supporting medium-term margin sustainability even while operating profitability recovers.
Negative Factors
Persistent Net Losses and Negative Operating Cash Flow
Despite episodic positive free cash flow in earlier years, the swing to negative operating and free cash flow in 2024–2025 and sustained net losses erode shareholder equity and increase reliance on the cash cushion. Continued cash burn undermines the firm's ability to self-fund expansion indefinitely and raises execution risk if new high-growth businesses fail to ramp as planned.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Gross Margins & Revenue Re-acceleration
Sustained revenue re-acceleration alongside materially higher gross margins (≈65% in 2023 to ~72% in 2025) indicates better unit economics and a more favorable product mix. High gross margins create durable room for reinvestment into AI and robotics R&D and help absorb SG&A, supporting medium-term margin sustainability even while operating profitability recovers.
Read all positive factors
Cheetah Mobile Key Performance Indicators (KPIs)
Any
Revenue By Segment
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and where the company might need to adjust strategy.
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and where the company might need to adjust strategy.
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The Fly
The FlyCheetah Mobile (CMCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$96.37M
Dividend YieldN/A
Average Volume (3M)83.28K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth33.55%
EPS Growth58.06%
CountryUS
Employees934
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-420.50
Shares Outstanding10,224,887
10 Day Avg. Volume58,327
30 Day Avg. Volume83,277
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.02
Price to Sales (P/S)0.02
P/FCF Ratio-0.14
Enterprise Value/Market Cap-13.13
Enterprise Value/Revenue-1.10
Enterprise Value/Gross Profit-1.52
Enterprise Value/Ebitda-135.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.09
Revenue Forecast (FY)$1.42B
Cheetah Mobile Business Overview & Revenue Model
Company Description
Cheetah Mobile Inc., a global internet firm with operations spanning China, the U.S., Japan, and other international regions, was incorporated in 2009 and is headquartered in Beijing, People's Republic of China. The company rebranded to its curren...
How the Company Makes Money
CMCM has primarily generated revenue from internet advertising and related marketing services delivered through its mobile applications and associated traffic. In practice, this model monetizes user engagement by selling ad impressions/clicks (e.g...
Cheetah Mobile Earnings Call Summary
Earnings Call Date:Jun 10, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 11, 2026
Earnings Call Sentiment Positive
The call highlighted strong, high‑growth momentum in strategic areas (Robotics & Others and Cloud/AI Infrastructure) with material YoY percentage increases, early commercial product shipments, narrowing losses in the robotics segment, and a healthy cash position. These positives are partially offset by short‑term headwinds from overseas advertising policy changes and continued weakness in online advertising that widened the overall operating loss. Management emphasized a transition to AI/robotics commercialization and expects the fast‑growing businesses to drive an increasing share of revenue through 2026.Positive Updates
Robotics & Others: Rapid Revenue Growth and Improving Losses
Revenue from the newly reported Robotics and Others segment increased ~176% year‑over‑year to RMB 51.2 million (≈19.8% of total revenue). Adjusted operating loss for the segment narrowed by ~57% year‑over‑year, reflecting improved operating efficiency and early commercial traction.
Negative Updates
Ad Agency & Online Advertising Revenue Headwinds
Revenue from the advertising agency business within Global Enterprise Services declined due to policy changes from certain overseas advertising platforms and continued weakness in online advertising, negatively affecting segment performance and near‑term results.
Read all updates
Q1-2026 Updates
Positive
Negative
Robotics & Others: Rapid Revenue Growth and Improving Losses
Revenue from the newly reported Robotics and Others segment increased ~176% year‑over‑year to RMB 51.2 million (≈19.8% of total revenue). Adjusted operating loss for the segment narrowed by ~57% year‑over‑year, reflecting improved operating efficiency and early commercial traction.
Read all positive updates
Company Guidance
Management guided that Q1 2026 revenue was RMB 259 million (roughly stable YoY) and that robotics & others revenue surged 175.9% YoY to RMB 51.2 million (≈19.8% of total) with its adjusted operating loss narrowing 57.1% YoY; cloud and AI infrastructure revenue rose ~68.3% YoY (contributing ~18% of total) and daily token usage has increased >20x since January, exceeding RMB 400 million in May. They said these two businesses already made up ~38% of Q1 revenue and are expected to continue growing — robotics revenue to increase both YoY and QoQ in Q2 and the pair to exceed >50% of total revenue in H2 2026 — while internet value‑added services grew 8.2% YoY (72.8% of the Internet segment). Profitability metrics: Internet services generated ~RMB 15.2 million adjusted operating profit, Global Enterprise Services ~RMB 13.8 million, consolidated operating loss was RMB 28.3 million (vs RMB 26.5 million a year ago), and the company ended March 31, 2026 with ~US$186 million in cash and cash equivalents plus over US$100 million in long‑term investments.Cheetah Mobile Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.15B | 806.88M | 669.50M | 884.07M | 784.62M |
| Gross Profit | 834.03M | 545.20M | 437.56M | 631.50M | 526.96M |
| EBITDA | 9.36M | -232.91M | -174.57M | -172.57M | -178.75M |
| Net Income | -257.71M | -617.56M | -602.90M | -513.48M | -351.13M |
Balance Sheet | |||||
| Total Assets | 4.68B | 5.50B | 5.63B | 5.14B | 4.98B |
| Cash, Cash Equivalents and Short-Term Investments | 1.52B | 1.83B | 2.02B | 1.67B | 1.85B |
| Total Debt | 15.24M | 74.80M | 35.99M | 41.47M | 48.13M |
| Total Liabilities | 2.73B | 3.30B | 2.97B | 2.03B | 1.62B |
| Stockholders Equity | 1.61B | 1.90B | 2.46B | 3.03B | 3.28B |
Cash Flow | |||||
| Free Cash Flow | -185.10M | -261.15M | 540.78M | -431.03M | 55.99M |
| Operating Cash Flow | -172.26M | -238.32M | 550.46M | -424.25M | 102.81M |
| Investing Cash Flow | -65.57M | -34.09M | -49.06M | 189.05M | 220.84M |
| Financing Cash Flow | -64.22M | 69.11M | -6.78M | -4.87M | -9.64M |
Cheetah Mobile Technical Analysis
Negative
6.31
Price Trends
4.46
Negative
5.34
Negative
6.26
Negative
Market Momentum
-0.40
Negative
32.86
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCM, the sentiment is Negative. The current price of 6.31 is above the 20-day moving average (MA) of 3.54, above the 50-day MA of 4.46, and above the 200-day MA of 6.26, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 32.86 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMCM.
Cheetah Mobile Risk Analysis
Cheetah Mobile disclosed 86 risk factors in its most recent earnings report. Cheetah Mobile reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
If our expansion into new businesses is not successful, our results of operations and growth prospects may be materially and adversely affected Q4, 2023
2.
We have limited experience commercializing our service robots at a large scale and may not be able to do so efficiently or effectively. Q4, 2023
3.
If our products and services, including our service robots, our AI-powered business solutions, our advertising agency services and multi-cloud management services, fail to offer a good experience and meet customer expectations, our business, results of operations and reputation would be materially and adversely affected. Q4, 2023
Cheetah Mobile Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $879.38M | 8.18 | 53.39% | ― | 24.49% | 181.60% | |
84 Outperform | $1.78B | 15.55 | 11.76% | 5.47% | 24.83% | 73.88% | |
64 Neutral | $873.38M | -20.27 | -10.32% | ― | 6.78% | 52.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
49 Neutral | $205.50M | -2.67 | -4.86% | ― | -19.42% | -2894.74% | |
48 Neutral | $96.37M | -0.05 | -14.44% | ― | 33.55% | 58.06% | |
44 Neutral | $378.70M | -3.46 | -18.42% | ― | 4.54% | -39.79% |
* Communication Services Sector Average
CMCM
Cheetah Mobile
3.14
-1.52
-32.62%
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0.14
0.57%
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4.41%
GETY
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0.90
-0.80
-46.88%
NXDR
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2.29
0.66
40.49%
ZH
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3.15
-1.52
-32.55%
Cheetah Mobile Corporate Events
Cheetah Mobile First-Quarter 2026 Results Highlight Surging Robotics and AI Infrastructure Revenue
Jun 10, 2026
Cheetah Mobile reported unaudited first-quarter 2026 results on June 10, 2026, showing total revenue of RMB259.0 million (US$37.5 million), essentially flat year on year, but with a sharp 175.9% jump in Robotics and others revenue to RMB51.2 milli...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.