Yalla Group (YALA) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: N/A
• Average Volume (3M): 391.15K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 1.19
• Revenue Growth: 5.80%
• EPS Growth: 12.20%
• Country: US
• Employees: 815
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.23
• Shares Outstanding: 132,801,830
• 10 Day Avg. Volume: 585,350
• 30 Day Avg. Volume: 391,149
• PEG Ratio: 0.32
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 3.79
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 2.63
• Enterprise Value/Ebitda: 4.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $9.00 ▲(26.76% Upside)

Yalla Group's strong financial performance and undervaluation are the primary drivers of its high score. The company's strategic initiatives and market potential in the MENA region further bolster its prospects, despite challenges in revenue growth and increased expenses.

Yalla Group Business Overview & Revenue Model

Company Description

Yalla Group (YALA) is a leading voice-centric social networking and entertainment platform based in the Middle East and North Africa (MENA) region. The company operates primarily in the digital communication and entertainment sectors, offering services such as voice chat rooms, gaming, and social networking features that cater to the preferences of Arabic-speaking users. Yalla Group’s core products include its Yalla app, which facilitates real-time voice interaction, and Yalla Ludo, a popular gaming platform that engages users through competitive play and social features.

How the Company Makes Money

Yalla Group generates revenue through several key streams. Primarily, the company monetizes its user base by offering in-app purchases and virtual goods, particularly within its gaming platform, Yalla Ludo. Additionally, the company earns revenue through advertising, leveraging its growing user engagement to provide targeted ad placements. Yalla Group also benefits from partnerships with various game developers and advertisers, enhancing its service offerings and expanding its revenue opportunities. The combination of these revenue streams, along with the increasing popularity of its platforms in the MENA region, contributes significantly to its earnings.

Yalla Group Financial Statement Overview

Summary

Yalla Group shows strong financial health with high profit margins and minimal leverage. However, the lack of current cash flow data in 2024 poses a risk to liquidity, necessitating careful cash management.

Income Statement

Yalla Group has demonstrated strong revenue growth over the years, with a notable increase of 6.52% from 2023 to 2024. The company maintains a high gross profit margin of 64.55% and a robust net profit margin of 39.94% in 2024. The EBIT margin of 35.74% and EBITDA margin of 36.34% also reflect operational efficiency and profitability. These metrics indicate a solid financial performance and growth trajectory in the competitive software industry.

Balance Sheet

The balance sheet of Yalla Group shows a very strong position with a low debt-to-equity ratio of 0.0015, indicating minimal leverage. The company has a high return on equity (ROE) of 19.26%, reflecting effective use of shareholder funds to generate profits. The equity ratio stands at 87.85%, showcasing Yalla's strong capitalization and low reliance on debt. This stability provides a solid foundation for future growth and resilience against market fluctuations.

Cash Flow

Yalla Group's cash flow statement reveals a lack of positive operating and free cash flow in 2024, posing potential risks to liquidity. The company has historically shown strong free cash flow growth, but the lack of current data prevents a complete analysis. While past performance shows effective cash generation, the absence of current cash flow metrics suggests a need for careful monitoring of cash reserves and operational cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	348.19M	339.68M	318.88M	303.60M	273.13M	134.93M
Gross Profit	228.17M	219.21M	204.35M	189.80M	177.99M	73.66M
EBITDA	126.74M	123.55M	98.37M	82.77M	85.30M	4.34M
Net Income	146.31M	135.68M	117.34M	79.76M	82.60M	3.21M
Balance Sheet
Total Assets	832.92M	801.63M	638.95M	506.34M	380.81M	254.62M
Cash, Cash Equivalents and Short-Term Investments	702.52M	654.30M	535.27M	453.05M	354.39M	237.65M
Total Debt	1.06M	1.03M	2.10M	1.60M	668.33K	0.00
Total Liabilities	96.82M	103.82M	76.29M	66.47M	44.93M	21.08M
Stockholders Equity	743.63M	704.35M	567.69M	440.59M	335.89M	233.53M
Cash Flow
Free Cash Flow	0.00	171.97M	137.67M	103.22M	142.75M	63.76M
Operating Cash Flow	0.00	172.82M	139.32M	119.55M	144.24M	64.79M
Investing Cash Flow	0.00	18.58M	-226.12M	-62.57M	-5.36M	2.48M
Financing Cash Flow	0.00	-12.82M	-7.55M	371.00K	-24.56M	123.77M

Yalla Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 7.1 is below the 20-day moving average (MA) of 7.25, below the 50-day MA of 7.36, and above the 200-day MA of 6.68, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 40.54 is Neutral, neither overbought nor oversold. The STOCH value of 13.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YALA.

Yalla Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YALA	81 Outperform	$1.09B	8.48	20.19%	―	5.80%	12.20%
VTEX	66 Neutral	$729.07M	107.88	6.53%	―	3.62%	-20.45%
SPT	64 Neutral	$595.05M	―	-26.69%	―	13.09%	32.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VMEO	61 Neutral	$1.31B	1,044.00	0.35%	―	-0.67%	-95.68%
PD	60 Neutral	$1.44B	-98.78	-8.04%	―	8.20%	82.75%
AMPL	53 Neutral	$1.42B	―	-37.47%	―	12.78%	-20.47%

Yalla Group Corporate Events

Yalla Group Reports Q3 2025 Financial Results with Revenue Growth

Yalla Group Limited announced its unaudited financial results for the third quarter of 2025, showing a revenue increase of 0.8% to $89.6 million compared to the same period in 2024. The company reported a net income of $40.7 million, a 3.9% increase year-over-year, driven by enhanced operational efficiency and a broadened user base. Despite a decrease in the number of paying users, average monthly active users grew by 8.1%. Yalla Group continues to invest in its gaming pipeline, with new game launches aimed at penetrating the MENA’s mid- and hard-core game market. The company also celebrated the fifth anniversary of its IPO and remains committed to shareholder returns through a share repurchase program.