Cheetah Mobile Announces Second Quarter 2026 Unaudited Consolidated Financial Results

BEIJING, Sept. 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 June 30, 2026.

Financial Highlights

Balance Sheet

Management Commentary

Fu Sheng, Chief Executive Officer of Cheetah Mobile, commented: "During the second quarter, we continued to evolve our business mix, with revenue from services of cloud and AI infrastructure within Global Enterprise Services growing 83.1% year over year, driven by demand from enterprises expanding overseas for cloud and AI infrastructure services, accounting for 22.2% total revenues in the quarter. Gross billings [1] from services of cloud and AI infrastructure exceeded RMB500 million during the quarter, compared with about RMB200 million in the same period last year and about RMB300 million in the previous quarter, reflecting the rapid expansion of customer demand and business scale. Robotics and others revenue increased 72.5% year over year and accounted for 20.5% of total revenues in the quarter, with new initiatives such as smart mobility beginning to contribute revenue. The growth of these AI-related businesses underscores the progress of our AI-driven transformation.

Internet Services remained a stable foundation for our business. Internet value-added services revenue increased both year over year and sequentially and represented 77.6% of segment revenue. While advertising agency services revenue within Global Enterprise Services remained under pressure, growth in services of cloud and AI infrastructure and Robotics and others supported the Company's return to sequential revenue growth while strengthening our foundation for future growth."

[1] Gross billings from services of cloud and AI infrastructure is an operating metric representing the aggregate monetary value of customers' consumption of public cloud resources and AI model tokens provided or arranged by the Company during the relevant period.

Thomas Ren, Chief Financial Officer of Cheetah Mobile, commented: "Second-quarter revenue increased 2.7% sequentially. Operating loss was RMB33.6 million, compared with RMB28.3 million in the previous quarter, while non-GAAP operating loss remained relatively stable at RMB25.6 million, compared with RMB22.5 million in the previous quarter.

The sequential movement in non-GAAP operating loss reflected higher adjusted operating profit in Internet Services, offset by lower adjusted operating profit in Global Enterprise Services resulting from lower advertising agency services revenue, as well as a wider adjusted operating loss in Robotics and others. Adjusted operating profit from Internet Services increased 14.2% year over year and 67.2% sequentially, with adjusted operating margin improving to 19.4%. Services of cloud and AI infrastructure continued to scale rapidly. However, the growth of cloud and AI infrastructure services partially offset the negative impact of lower advertising agency services revenue on the segment's adjusted operating profit. We ended the quarter with US$187.3 million in cash and cash equivalents, providing us with the flexibility to invest prudently in our AI and robotics businesses."

Second Quarter 2026 Financial Results

Total revenues decreased 9.9% year over year and increased 2.7% quarter over quarter to RMB266.1 million (US$39.2 million).

Operating loss was RMB33.6 million (US$5.0 million), compared with RMB11.1 million in the same period last year and RMB28.3 million in the first quarter of 2026.

Non-GAAP operating loss was RMB25.6 million (US$3.8 million), compared with RMB2.1 million in the same period last year and RMB22.5 million in the first quarter of 2026. The year-over-year increase primarily reflected lower advertising agency services revenue within the Global Enterprise Services segment.

Conference Call Information

Cheetah Mobile's management will hold an earnings conference call at 11:30 AM on Friday, September 11, 2026, Beijing Time (11:30 PM on Thursday, September 10, 2026, U.S. Eastern Time).

Main Conference:

Tencent Meeting ID: 175-882-665

Meeting Link: https://cmcm.meeting.tencent.com/dm/3QuXIZPgSezq

Dial-in Numbers:

United States: +1 4153389272

Mainland China: +86 (0)755 36550000

Hong Kong: +852 30088359

English Interpretation:

Tencent Meeting ID: 845-329-676

Meeting Link: https://cmcm.meeting.tencent.com/dm/t07drnN5B7fM

Dial-in Numbers:

United States: +1 4153389272

Mainland China: +86 (0)755 36550000

Hong Kong Toll Free: +852 30088359

Exchange Rate

Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at a rate of RMB6.7851 to US$1.00, the exchange rate in effect as of June 30, 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.

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 the Company's growth strategies, ability to retain and increase its user base, expand its offerings, monetize its platform, and future business development, financial condition and results of operations; competition; expected changes in revenues and expenses; and general economic and business conditions globally and in China. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement, except as required by law.

Use of Non-GAAP Financial Measures

This release contains non-GAAP financial measures, including but not limited to:

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: +86 13811591550

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

June 30, 2026

RMB

USD

ASSETS

Current assets:

Cash and cash equivalents

1,506,625

1,270,969

187,318

Short-term investments

9,527

445

Accounts receivable, net

468,058

689,708

101,650

Prepayments and other current assets, net

1,154,774

1,170,431

172,498

Due from related parties, net

94,821

134,754

19,860

Total current assets

3,233,805

3,266,307

481,392

Non-current assets:

Property and equipment, net

40,238

40,730

6,003

Operating lease right-of-use assets

16,833

17,828

2,628

Intangible assets, net

54,069

48,191

7,102

Goodwill

460,034

67,801

Long-term investments

688,459

600,054

88,437

Deferred tax assets

112,913

117,674

17,343

Other non-current assets

77,521

89,403

13,176

Total non-current assets

1,450,067

1,373,914

202,490

Total assets

4,683,872

4,640,221

683,882

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY

Current liabilities:

Bank Loans

2,900

427

Accounts payable

211,689

413,198

60,898

Accrued expenses and other current liabilities

2,264,659

2,163,995

318,933

Due to related parties

18,613

25,199

3,714

Income tax payable

54,430

56,356

8,306

Total current liabilities

2,549,391

2,661,648

392,278

Non-current liabilities:

Deferred tax liabilities

21,711

20,555

3,029

Other non-current liabilities

154,422

155,175

22,870

Total non-current liabilities

176,133

175,730

25,899

Total liabilities

2,725,524

2,837,378

418,177

Mezzanine equity:

Redeemable noncontrolling interests

197,560

200,903

29,609

Shareholders' equity:

Ordinary shares

254

257

Additional paid-in capital

2,736,117

2,739,942

403,817

Accumulated deficit

(1,490,947)

(1,603,338)

(236,303)

Accumulated other comprehensive income

362,245

297,692

43,874

Total Cheetah Mobile Inc. shareholders' equity

1,607,669

1,434,553

211,426

Noncontrolling interests

153,119

167,387

24,670

Total shareholders' equity

1,760,788

1,601,940

236,096

Total liabilities, mezzanine equity and shareholders' equity

4,683,872

4,640,221

683,882

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

For The Six Months Ended

June 30, 2025

June 30, 2026

June 30, 2025

June 30, 2026

RMB

USD

RMB

USD

Revenues

295,218

266,115

39,220

554,224

525,108

77,391

Internet Services

157,837

130,474

19,229

316,978

265,479

39,127

Global Enterprise Services

105,788

81,134

11,958

187,085

153,884

22,680

Robotics and others

31,593

54,507

8,033

50,161

105,745

15,584

Cost of revenues (a)

(70,426)

(97,490)

(14,368)

(139,931)

(189,921)

(27,991)

Gross profit

224,792

168,625

24,852

414,293

335,187

49,400

Operating income and expenses:

Research and development (a)

(67,083)

(58,764)

(8,661)

(128,327)

(116,486)

(17,168)

Selling and marketing (a)

(102,434)

(74,654)

(11,003)

(207,272)

(146,368)

(21,572)

General and administrative (a)

(66,627)

(68,735)

(10,130)

(119,251)

(134,871)

(19,878)

Other operating income/(expense)

289

(67)

(10)

2,959

655

Total operating income and expenses

(235,855)

(202,220)

(29,804)

(451,891)

(397,070)

(58,521)

Operating loss

(11,063)

(33,595)

(4,952)

(37,598)

(61,883)

(9,121)

Other income/(expenses):

Interest income, net

9,980

3,201

472

15,585

6,623

976

Foreign exchange gains

6,349

20,764

3,060

7,999

40,016

5,898

Other expense, net

(17,844)

(68,707)

(10,126)

(21,853)

(67,386)

(9,931)

Loss before income taxes

(12,578)

(78,337)

(11,546)

(35,867)

(82,630)

(12,178)

Income tax expenses

(3,865)

(8,199)

(1,208)

(8,685)

(15,822)

(2,332)

Net loss

(16,443)

(86,536)

(12,754)

(44,552)

(98,452)

(14,510)

Less: net income attributable to noncontrolling

interests

6,200

8,375

1,234

11,448

13,939

2,054

Net loss attributable to Cheetah Mobile

shareholders

(22,643)

(94,911)

(13,988)

(56,000)

(112,391)

(16,564)

Net loss per share

Basic

(0.0162)

(0.0619)

(0.0091)

(0.0397)

(0.0745)

(0.0110)

Diluted

(0.0163)

(0.0620)

(0.0091)

(0.0398)

(0.0747)

(0.0110)

Net loss per ADS

Basic

(0.8116)

(3.0927)

(0.4550)

(1.9861)

(3.7245)

(0.5500)

Diluted

(0.8152)

(3.1003)

(0.4550)

(1.9923)

(3.7337)

(0.5500)

Weighted average number of shares

outstanding

Basic

1,518,381,903

1,553,878,937

1,517,084,516

1,552,927,613

Diluted

1,518,381,903

1,553,878,937

1,517,084,516

1,552,927,613

Weighted average number of ADSs

outstanding

Basic

30,367,638

31,077,579

30,341,690

31,058,552

Diluted

30,367,638

31,077,579

30,341,690

31,058,552

Other comprehensive loss , net of tax of nil

Foreign currency translation adjustments

(7,643)

(31,282)

(4,610)

(7,915)

(62,442)

(9,203)

Unrealized gains/(loss) on available-for-sale

securities, net

188

(4,348)

(641)

2,848

(3,763)

(555)

Other comprehensive loss

(7,455)

(35,630)

(5,251)

(5,067)

(66,205)

(9,758)

Total comprehensive loss

(23,898)

(122,166)

(18,005)

(49,619)

(164,657)

(24,268)

Less: Total comprehensive income

attributable to

noncontrolling interests

7,113

7,556

1,114

13,775

12,287

1,811

Total comprehensive loss attributable

to Cheetah Mobile shareholders

(31,011)

(129,722)

(19,119)

(63,394)

(176,944)

(26,079)

For The Three Months Ended

For The Six Months Ended

June 30, 2025

June 30, 2026

June 30, 2025

June 30, 2026

(a) Share-based compensation expenses

RMB

USD

RMB

USD

Cost of revenues

Research and development

1,197

176

358

2,129

314

Selling and marketing

229

521

300

1,026

151

General and administrative

2,065

3,953

583

7,277

5,997

884

Total

2,361

5,671

836

7,945

9,152

1,349

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 June 30, 2026

For The Six Months Ended June 30, 2026

GAAP

Share-based

Amortization of

Non-GAAP

GAAP

Share-based

Amortization of

Non-GAAP

Result

Compensation

intangible assets*

Result

Compensation

intangible assets*

Result

RMB

USD

RMB

USD

Revenues

266,115

39,220

525,108

77,391

Cost of revenues

(97,490)

(14,368)

(189,921)

(27,991)

Gross profit

168,625

24,852

335,187

49,400

Research and development

(58,764)

1,197

232

(57,335)

(8,451)

(116,486)

2,129

463

(113,894)

(16,786)

Selling and marketing

(74,654)

521

2,071

(72,062)

(10,621)

(146,368)

1,026

4,141

(141,201)

(20,811)

General and administrative

(68,735)

3,953

(64,782)

(9,547)

(134,871)

5,997

(128,874)

(18,994)

Other operating (expense)/income, net

(67)

(10)

655

Total operating income and expenses

(202,220)

5,671

2,303

(194,246)

(28,629)

(397,070)

9,152

4,604

(383,314)

(56,494)

Operating loss

(33,595)

5,671

2,303

(25,621)

(3,777)

(61,883)

9,152

4,604

(48,127)

(7,094)

Net loss attributable to Cheetah Mobile

shareholders

(94,911)

5,671

2,303

(86,937)

(12,813)

(112,391)

9,152

4,604

(98,635)

(14,537)

Diluted losses per ordinary share (RMB)

(0.0620)

0.0036

0.0015

(0.0569)

(0.0747)

0.0059

0.0030

(0.0658)

Diluted losses per ADS (RMB)

(3.1003)

0.1800

0.0753

(2.8450)

(3.7337)

0.2950

0.1487

(3.2900)

Diluted losses per ADS (USD)

(0.4550)

0.0265

0.0111

(0.4193)

(0.5500)

0.0435

0.0219

(0.4849)

For The Three Months Ended June 30, 2025

For The Six Months Ended June 30, 2025

GAAP

Share-based

Amortization of

Non-GAAP

GAAP

Share-based

Amortization of

Non-GAAP

Result

Compensation

intangible assets*

Result

Compensation

intangible assets*

Result

RMB

Revenues

295,218

554,224

Cost of revenues

(70,426)

(70,421)

(139,931)

(139,921)

Gross profit

224,792

224,797

414,293

414,303

Research and development

(67,083)

6,156

(60,865)

(128,327)

358

12,312

(115,657)

Selling and marketing

(102,434)

229

469

(101,736)

(207,272)

300

938

(206,034)

General and administrative

(66,627)

2,065

(64,562)

(119,251)

7,277

(111,974)

Other operating income, net

289

2,959

Total operating income and expenses

(235,855)

2,356

6,625

(226,874)

(451,891)

7,935

13,250

(430,706)

Operating loss

(11,063)

2,361

6,625

(2,077)

(37,598)

7,945

13,250

(16,403)

Net loss attributable to Cheetah Mobile

shareholders

(22,643)

2,361

6,625

(13,657)

(56,000)

7,945

13,250

(34,805)

Diluted losses per ordinary share (RMB)

(0.0163)

0.0016

0.0043

(0.0104)

(0.0398)

0.0052

0.0086

(0.0260)

Diluted losses per ADS (RMB)

(0.8152)

0.0800

0.2152

(0.5200)

(1.9923)

0.2600

0.4323

(1.3000)

* 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 June 30, 2026

For The Six Months Ended June 30, 2026

Internet Services

Global Enterprise Services

Robotics and others

Consolidated

Internet Services

Global Enterprise Services

Robotics and others

Consolidated

RMB

USD

RMB

USD

Revenues from external customers

130,474

81,134

54,507

266,115

39,220

265,479

153,884

105,745

525,108

77,391

Inter-segment revenues

347

13,324

13,671

2,015

347

24,454

24,801

3,655

Segment revenue

130,821

94,458

54,507

279,786

41,235

265,826

178,338

105,745

549,909

81,046

Elimination of inter-segment revenue

(13,671)

(2,015)

(24,801)

(3,655)

Consolidated Revenues

266,115

39,220

525,108

77,391

Operating Costs and expenses

Cost of revenues (i)

31,081

40,373

36,616

60,238

84,313

63,074

Selling and marketing (i)

33,373

17,727

19,038

73,022

26,907

38,785

Research and development (i)

29,325

1,050

28,640

58,317

1,428

55,782

Other segment items (i)

11,641

25,959

4,174

33,652

42,588

8,935

Adjusted operating income/(losses)

25,401

9,349

(33,961)

789

116

40,597

23,102

(60,831)

2,868

423

Unallocated amounts-share based compensations

5,671

836

9,152

1,349

Unallocated amounts-corporate expense

28,713

4,232

55,599

8,195

Operating loss

(33,595)

(4,952)

(61,883)

(9,121)

Reconciliation of segment profit/(loss)

Interest income, net

3,201

472

6,623

976

Foreign exchange gains, net

20,764

3,060

40,016

5,898

Other expense, net

(68,707)

(10,126)

(67,386)

(9,931)

Loss before income taxes

(78,337)

(11,546)

(82,630)

(12,178)

For The Three Months Ended June 30, 2025

For The Six Months Ended June 30, 2025

Internet Services

Global Enterprise Services

Robotics and others

Consolidated

Internet Services

Global Enterprise Services

Robotics and others

Consolidated

RMB

Revenues from external

customers

157,837

105,788

31,593

295,218

316,978

187,085

50,161

554,224

Inter-segment revenues

8,982

17,503

Segment revenue

157,837

114,770

31,593

304,200

316,978

204,588

50,161

571,727

Elimination of inter-segment

revenue

(8,982)

(17,503)

Consolidated Revenues

295,218

554,224

Operating Costs and

expenses

Cost of revenues(i)

26,315

29,119

22,046

49,307

57,436

46,532

Selling and marketing(i)

62,119

19,501

17,843

129,615

34,283

37,874

Research and development(i)

33,409

1,911

31,752

66,252

3,170

58,131

Other segment items(i)

13,744

15,841

12,626

24,947

19,238

22,971

Adjusted operating income/(losses)

22,250

48,398

(52,674)

17,974

46,857

90,461

(115,347)

21,971

Unallocated amounts-share

based compensations

2,361

7,945

Unallocated amounts-

corporate expense

26,676

51,624

Operating loss

(11,063)

(37,598)

Reconciliation of segment

profit/(loss)

Interest income, net

9,980

15,585

Foreign exchange gains, net

6,349

7,999

Other expense, net

(17,844)

(21,853)

Loss before income taxes

(12,578)

(35,867)

(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

For The Six Months Ended

June 30, 2025

June 30, 2026

June 30, 2025

June 30, 2026

RMB

USD

RMB

USD

Net loss attributable to Cheetah Mobile

shareholders

(22,643)

(94,911)

(13,988)

(56,000)

(112,391)

(16,564)

Add:

Income tax expenses

3,865

8,199

1,208

8,685

15,822

2,332

Interest income, net

(9,980)

(3,201)

(472)

(15,585)

(6,623)

(976)

Depreciation and other amortization

10,757

6,969

1,027

20,539

13,433

1,980

Net income attributable to noncontrolling

interests

6,200

8,375

1,234

11,448

13,939

2,054

Other expense, net

11,495

47,943

7,066

13,854

27,370

4,033

Share-based compensation

2,361

5,671

836

7,945

9,152

1,349

Adjusted EBITDA

2,055

(20,955)

(3,089)

(9,114)

(39,298)

(5,792)

SOURCE Cheetah Mobile