Yalla Group Limited (YALA)
NYSE:YALA
Want to see YALA full AI Analyst Report?
Top Page
Yalla Group
(NYSE:YALA)
Select Model
Select Model
Rating:76Outperform
Price Target:
$7.50
▲(6.23% Upside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by strong financial quality (high margins, minimal leverage, solid cash conversion) and an attractive low P/E valuation. Offsetting these are a neutral-to-weak technical trend (below longer-term averages) and an earnings outlook that emphasizes near-term margin pressure and flat 2026 revenue, with growth dependent on successful scaling of new games.
Positive Factors
High Profitability
Yalla's structurally high margins across gross, operating and net lines indicate durable operating leverage and efficient monetization of social and gaming products. Persistently strong margins support cash generation, reinvestment in product pipelines and shareholder returns over multiple quarters.
Negative Factors
Revenue & Paying-User Weakness
A multi-quarter pattern of flat-to-declining revenue and fewer paying users signals structural monetization challenges. If paying-user conversion does not recover, the company risks eroding operating leverage and cash conversion despite high margins, extending the timeframe to growth inflection.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Yalla's structurally high margins across gross, operating and net lines indicate durable operating leverage and efficient monetization of social and gaming products. Persistently strong margins support cash generation, reinvestment in product pipelines and shareholder returns over multiple quarters.
Read all positive factors
Yalla Group (YALA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$928.48M
Dividend YieldN/A
Average Volume (3M)264.80K
Price to Earnings (P/E)8.2
Beta (1Y)1.26
Revenue Growth-2.25%
EPS Growth4.06%
CountryUS
Employees815
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.97
Shares Outstanding127,094,970
10 Day Avg. Volume275,807
30 Day Avg. Volume264,796
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)1.34
Price to Sales (P/S)3.17
P/FCF Ratio8.01
Enterprise Value/Market Cap0.63
Enterprise Value/Revenue1.71
Enterprise Value/Gross Profit2.54
Enterprise Value/Ebitda4.41
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.87
Revenue Forecast (FY)$344.80M
Yalla Group Business Overview & Revenue Model
Company Description
Yalla Group Limited operates a voice-centric social networking and entertainment platform under the Yalla name primarily in the Middle East and North Africa region. Its platform offers group chatting and games services; and sells virtual items, as...
How the Company Makes Money
Yalla Group primarily makes money through in-app monetization across its social networking and gaming products. A key revenue stream is virtual item sales and other paid digital features within its voice chat and social entertainment apps (e.g., u...
Yalla Group Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: strong user engagement (MAUs +7.7%), significant games contribution (38.3% of revenue), solid liquidity (USD 806.7M) and early success for new titles and AI initiatives. Offsetting these positives were a year-over-year revenue decline (~5.8%), notable profit compression (operating income and net income down ~25% and ~22%, respectively), and increased marketing, G&A and R&D spend that will pressure near-term margins. Management expects legacy business to decline modestly in 2026 while new games should begin contributing in H2 and potentially drive stronger growth in 2027 if monetization scales as planned.Positive Updates
Resilient User Growth
Average MAUs increased 7.7% year-over-year to 48 million; Ramadan campaigns drove record participation and all-time highs in DAUs and quarterly revenue for 101 Okey Yalla, demonstrating strong regional engagement.
Negative Updates
Year-over-Year Revenue Decline
Total revenues declined to USD 79.0 million from USD 83.9 million in Q1 last year, a decrease of approximately 5.8% year-over-year, driven by lower paying users amid regional geopolitical impacts and Ramadan seasonality.
Read all updates
Q1-2026 Updates
Positive
Negative
Resilient User Growth
Average MAUs increased 7.7% year-over-year to 48 million; Ramadan campaigns drove record participation and all-time highs in DAUs and quarterly revenue for 101 Okey Yalla, demonstrating strong regional engagement.
Read all positive updates
Company Guidance
Management guided Q2 revenue of $75–$82 million and reiterated that Q1 revenue was $79 million; they expect legacy-business revenue to decline a low- to mid-single-digit percentage in 2026 while total 2026 revenue should be broadly flat vs. 2025 as new games begin to contribute in H2 2026, with a pathway to potential double-digit YoY growth in 2027 if the SLG and Match‑3 titles scale. They signaled a marketing ramp over the next six months, allocating roughly 5% of group revenue as promotion budget for new games, and said marketing/R&D spend will remain elevated (legacy-margin guidance ~35% for the existing business this year). Key Q1 metrics highlighted: average MAUs 48 million (+7.7% YoY), Games revenue $30.3M (38.3% of total), non‑GAAP net income $33.3M (non‑GAAP net margin 42.1%), operating income $23.5M, total costs/expenses $55.5M, and a strong balance sheet with cash, restricted cash, term deposits and short‑term investments of $806.7M as of March 31, 2026; capital return remains a priority with YTD repurchases of 1,460,989 ADSs for $9.7M (bringing 2021 program totals to 17,143,162 ADSs for $115.7M) and a new $150M buyback authorized over 24 months beginning March 9, 2026.Yalla Group Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
80
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 341.94M | 339.68M | 318.88M | 303.60M | 273.13M |
| Gross Profit | 230.01M | 219.21M | 204.35M | 189.80M | 177.99M |
| EBITDA | 122.22M | 123.55M | 98.37M | 82.77M | 85.30M |
| Net Income | 149.83M | 135.68M | 117.34M | 79.76M | 82.60M |
Balance Sheet | |||||
| Total Assets | 896.20M | 801.63M | 638.96M | 506.33M | 380.81M |
| Cash, Cash Equivalents and Short-Term Investments | 754.64M | 654.30M | 535.70M | 453.04M | 354.39M |
| Total Debt | 1.45M | 1.03M | 2.10M | 1.60M | 668.33K |
| Total Liabilities | 94.17M | 103.82M | 76.29M | 66.47M | 44.93M |
| Stockholders Equity | 810.27M | 704.35M | 567.69M | 440.58M | 335.89M |
Cash Flow | |||||
| Free Cash Flow | 135.21M | 171.97M | 137.67M | 103.22M | 142.75M |
| Operating Cash Flow | 137.54M | 172.82M | 139.32M | 119.55M | 144.24M |
| Investing Cash Flow | -45.08M | 18.58M | -226.12M | -62.57M | -5.36M |
| Financing Cash Flow | -55.46M | -12.82M | -7.55M | 371.00K | -24.56M |
Yalla Group Technical Analysis
Negative
7.06
Price Trends
6.57
Negative
6.80
Negative
7.11
Negative
Market Momentum
-0.09
Positive
36.15
Neutral
15.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YALA, the sentiment is Negative. The current price of 7.06 is above the 20-day moving average (MA) of 6.68, above the 50-day MA of 6.57, and below the 200-day MA of 7.11, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 36.15 is Neutral, neither overbought nor oversold. The STOCH value of 15.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YALA.
Yalla Group Risk Analysis
Yalla Group disclosed 66 risk factors in its most recent earnings report. Yalla Group 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 0 New Risks
Yalla Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $928.48M | 8.23 | 17.85% | ― | -2.25% | 4.06% | |
69 Neutral | $615.45M | 42.06 | 9.69% | ― | 8.25% | -99.84% | |
68 Neutral | $408.99M | -13.43 | -19.29% | ― | 12.27% | 37.41% | |
63 Neutral | $548.81M | 21.17 | 77.23% | ― | 5.36% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $861.02M | -9.77 | -35.68% | ― | 16.36% | 10.40% |
* Technology Sector Average
YALA
Yalla Group
6.17
-1.58
-20.39%
PD
PagerDuty
7.05
-8.99
-56.05%
SPT
Sprout Social
6.69
-15.00
-69.16%
VTEX
VTEX
3.73
-2.49
-40.03%
AMPL
Amplitude
6.52
-5.79
-47.03%
Yalla Group Corporate Events
Yalla Group Posts Lower Q1 2026 Profit as Games Gain Share in MENA Portfolio
May 19, 2026
Yalla Group reported unaudited first-quarter 2026 results on May 18, 2026, showing revenues of US$79.0 million, down from US$83.9 million a year earlier, as paying users fell to 10.5 million despite a 7.7% rise in average monthly active users to 4...
Yalla Group Posts Higher 2025 Profit, Boosts Saudi Push and $150 Million Buyback
Mar 10, 2026
Yalla Group Limited reported unaudited results on March 9, 2026 for the fourth quarter and full year ended December 31, 2025, showing it remains a highly profitable MENA-focused social networking and gaming platform despite softer quarterly revenu...
Yalla Group Launches US$150 Million Share Buyback to Bolster Shareholder Value
Mar 10, 2026
On March 9, 2026, Yalla Group Limited announced that its board had authorized a new share repurchase program of up to US$150 million in American depositary shares and Class A ordinary shares over the next 24 months. The buyback, to be funded from ...
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.