Dubai: TECHz – News Desk
Yalla Group Limited (“Yalla” or the “Company”) (NYSE: YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced its financial results for the second quarter (Q2) of the fiscal year 2026, ending on June 30.
In the second quarter, Yalla Group reported revenues of AED 303.4 million (US82.6 million), compared with AED 310 million in the same period last year. Net income stood at AED 107.6 million (US29.3 million), down from AED 134 million in the second quarter of 2025. For the first half of the year, the company reported revenues of AED 593.5 million and net income of AED 211.9 million. Additionally, Yalla Group maintained a net margin of 35.5% in the second quarter of 2026, underscoring the company’s continued operating efficiency. Average monthly active users (MAUs) also increased by 12.3% year-on-year to 47.6 million in the second quarter, compared with 42.4 million in the same period of 2025.
Mr Yang Tao, Founder, Chairman and Chief Executive Officer of Yalla, said: “Yalla delivered a solid performance in the second quarter, supported by the resilience of our flagship products and growing momentum across our gaming business. Games services continued to perform strongly, with revenues increasing 11.6% year-on-year, while our results demonstrate the strength of our strategy and the resilience of our business in an evolving regional environment.”
“Our gaming portfolio continued to make meaningful progress during the quarter. Turbo Match expanded its user base across MENA, the United States and Europe, while our broader pipeline of self-developed products continues to advance across casual and hyper-casual games, social products and AI applications. We are also accelerating the adoption of AI across our R&D processes, including AI-assisted programming and our proprietary AI model-based system for game-level generation and difficulty evaluation, helping us improve development efficiency and deliver more engaging user experiences,” Tao added.
“Looking ahead, we will continue to deepen the synergies between our social and gaming ecosystems, while placing AI at the core of our technology infrastructure to strengthen our long-term competitiveness. Building on our deep expertise in MENA, we remain focused on unlocking new growth opportunities across the region while pursuing strategic partnerships and opportunities to expand into global markets. We remain confident in Yalla’s ability to deliver sustainable growth and create lasting value for our shareholders,” the Chief Executive Officer of Yalla stated.
Meanwhile, Saifi Ismail, President of Yalla Group, said: “Our user community continued to expand in the second quarter, with average monthly active users increasing 12.3% year-on-year to 47.6 million. Engagement across our core products remained solid, supported by continued product enhancements and operational campaigns. Yalla Ludo delivered a clear recovery from the first quarter, with stronger engagement and a rebound in paying-user growth, while the sixth season of Yalla Ludo Carnival and the launch of our new long-term ‘Yalla Season’ campaign further strengthened the social entertainment experience for our users.”
“Our flagship Yalla platform also marked its 10th anniversary during the quarter, an important milestone that reflects the strong relationship we have built with users across MENA over the past decade. Locally relevant anniversary campaigns generated significant engagement among our loyal users. We also strengthened our regional presence through our partnership with Saudi eLeague 2026, enabling us to engage directly with younger audiences and further deepen our connection with the region’s growing digital entertainment and esports community,” Ismail noted.
“Looking ahead, we will continue to draw on our deep understanding of MENA and the needs of its diverse communities to enhance our products, develop locally relevant experiences and expand our portfolio. With a strong pipeline of campaigns planned for the second half of the year, we remain focused on strengthening user engagement, supporting sustainable growth and reinforcing Yalla’s position in the region’s digital entertainment market,” he added.
