-- Services of cloud and AI infrastructure revenue increased 83.1% year over
year and 26.2% quarter over quarter, accounting for 72.8% of Global
Enterprise Services revenue and 22.2% of total revenues and making a
positive contribution to the adjusted operating results of Global
Enterprise Services.
-- Robotics and others revenue increased 72.5% year over year and 6.4%
quarter over quarter, accounting for 20.5% of total revenues.
BEIJING, Sept. 10, 2026 /PRNewswire/ -- Cheetah Mobile Inc. ("Cheetah Mobile" or the "Company") $(CMCM)$, 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
-- Total revenues were RMB266.1 million (US$39.2 million) in the second
quarter of 2026, representing a decrease of 9.9% year over year and an
increase of 2.7% quarter over quarter.
-- Advertising agency services revenue, which is included in the
Global Enterprise Services segment, decreased 70.0% year over year
and 15.0% quarter over quarter to RMB22.0 million, primarily due
to changes in rebate policies implemented by a major global
advertising platform. Its contribution to total revenues declined
to 8.3% from 24.9% in the same period last year. Revenues
excluding advertising agency services were RMB244.1 million,
increasing approximately 10.1% year over year and 4.7% quarter
over quarter. The decline in advertising agency services revenue
was a significant factor in the year-over-year increase in the
Company's operating loss in the second quarter of 2026.
-- In the Global Enterprise Services segment, revenues from services
of cloud and AI infrastructure increased 83.1% year over year and
26.2% quarter over quarter to RMB59.1 million, accounting for
72.8% of Global Enterprise Services revenue and 22.2% of total
revenues, compared with approximately 10.9% of total revenues in
the same period last year. The increase was driven by growing
demand from enterprises expanding overseas for cloud resources,
computing power and AI model services.
-- Robotics and others revenue increased 72.5% year over year and
6.4% quarter over quarter to RMB54.5 million, accounting for 20.5%
of total revenues, driven by an increase in sales volume of our
robotic products. The year-over-year increase benefited from the
contribution of UFACTORY, a provider of lightweight robotic arms
acquired by the Company on July 29, 2025.
-- Internet value-added services revenue, which is included in the
Internet Services segment, increased 6.7% year over year and 2.9%
quarter over quarter to RMB101.2 million, accounting for 77.6% of
segment revenue, and 38.0% of total revenues, due to increase in
user base and distribution channels.
Balance Sheet
-- As of June 30, 2026, the Company had RMB1,271.0 million (US$187.3
million) in cash and cash equivalents.
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).
-- Internet Services revenue decreased 17.3% year over year and 3.4% quarter
over quarter to RMB130.5 million (US$19.2 million).
-- Within the segment, internet value-added services revenue
increased 6.7% year over year and 2.9% quarter over quarter to
RMB101.2 million, accounting for 77.6% of segment revenue.
-- Online advertising revenue decreased 53.5% year over year and
20.2% quarter over quarter to RMB29.3 million, accounting for
22.4% of segment revenue.
-- Global Enterprise Services revenue decreased 23.3% year over year and
increased 11.5% quarter over quarter to RMB81.1 million (US$12.0
million).
-- Services of cloud and AI infrastructure revenue, which is included
in this segment, increased 83.1% year over year and 26.2% quarter
over quarter to RMB59.1 million, accounting for 72.8% of segment
revenue.
-- Advertising agency services revenue decreased 70.0% year over year
and 15.0% quarter over quarter to RMB22.0 million, accounting for
27.2% of segment revenue.
-- Robotics and others revenue increased 72.5% year over year and 6.4%
quarter over quarter to RMB54.5 million (US$8.0 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.
-- Adjusted operating profit from Internet Services was RMB25.4 million,
increasing by 14.2% year over year and 67.2% quarter over quarter.
Adjusted operating margin for the segment expanded to 19.4%, compared
with 14.1% in the same period last year and 11.3% in the first quarter of
2026.
-- Adjusted operating profit from Global Enterprise Services was RMB9.3
million, decreasing by 80.7% year over year and 32.0% quarter over
quarter, primarily reflecting lower advertising agency services revenue.
The continued strong growth of services of cloud and AI infrastructure
provided a positive contribution to the segment's adjusted operating
results.
-- Adjusted operating loss from Robotics and others was RMB34.0 million,
narrowing by 35.5% from RMB52.7 million in the same period last year, but
widening from RMB26.9 million in the first quarter of 2026, as the
Company continued to invest in the development and commercialization of
its robotics businesses.
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:
-- 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;
-- 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;
-- Non-GAAP net income/loss attributable to Cheetah Mobile shareholders
excludes share-based compensation expenses, amortization of 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.
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: ir@cmcm.com
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 RMB USD
ASSETS
Current assets:
Cash and cash equivalents 1,506,625 1,270,969 187,318
Short-term investments 9,527 445 66
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 460,034 460,034 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 38
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, 2026 June 30, 2025 June 30, 2026 June 30, 2026
------------- ------------- ------------- ------------- ------------- -------------
RMB RMB USD RMB 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 97
------------- ------------- ------------- ------------- ------------- -------------
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 1,553,878,937 1,517,084,516 1,552,927,613 1,552,927,613
Diluted 1,518,381,903 1,553,878,937 1,553,878,937 1,517,084,516 1,552,927,613 1,552,927,613
Weighted average
number of ADSs
outstanding
Basic 30,367,638 31,077,579 31,077,579 30,341,690 31,058,552 31,058,552
Diluted 30,367,638 31,077,579 31,077,579 30,341,690 31,058,552 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 June June June June June
30, 30, 30, 30, 30, 30,
2025 2026 2026 2025 2026 2026
------ ------ ------ ------ ------- -------
(a) Share-based
compensation
expenses RMB RMB USD RMB RMB USD
Cost of revenues 5 - - 10 - -
Research and
development 62 1,197 176 358 2,129 314
Selling and
marketing 229 521 77 300 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
---------------------------------------------------------- ----------------------------------------------------------
Amortization Amortization
GAAP Share-based of Non-GAAP GAAP Share-based of Non-GAAP
intangible intangible
Result Compensation assets* Result Result Compensation assets* Result
--------- ------------ ------------ ------------------- --------- ------------ ------------ -------------------
RMB RMB RMB RMB USD RMB RMB RMB RMB USD
Revenues 266,115 - - 266,115 39,220 525,108 - - 525,108 77,391
Cost of revenues (97,490) - - (97,490) (14,368) (189,921) - - (189,921) (27,991)
--------- ------------ ------------ --------- -------- --------- ------------ ------------ --------- --------
Gross profit 168,625 - - 168,625 24,852 335,187 - - 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