Hello Group Inc. (MOMO): History, Ownership, Mission, How It Works & Makes Money

As a seasoned financial analyst, when you look at a company like Hello Group Inc. (MOMO), the question isn't just about its domestic dominance with apps like Momo and Tantan, but how it's navigating a shifting global landscape-did you know its overseas revenue surged by an astounding 72.7% year-over-year in the second quarter of 2025? While total net revenues for Q2 2025 were US$365.8 million, a slight dip, that massive international growth is the real story, signaling a critical pivot in their business model.

You're looking at a social and entertainment powerhouse that still captures millions of users, with the Tantan app alone reporting 10.2 million Monthly Active Users (MAU) in June 2025, but the domestic decline in paying users-Momo's paying users dropped to 3.5 million-shows the core business is under pressure. So, how does a company with a first-half 2025 net income of US$30.4 million manage to stabilize its domestic cash cow while fueling a nearly 73% growth engine abroad, and what does that mean for its long-term valuation?

Hello Group Inc. (MOMO) History

Given Company's Founding Timeline

You want to understand the foundation of a company that started as a location-based social app and evolved into a multi-platform social and entertainment giant. It's a classic China tech story of rapid growth and strategic pivots, and it all started with a small team in Beijing.

Year established

2011

Original location

Beijing, China

Founding team members

The core team that launched the initial product included Tang Yan, Lei Xiaoliang, Li Yong, Zhang Ying, and Wang Li. Tang Yan, in particular, served as the company's chairman and CEO.

Initial capital/funding

While the initial seed capital isn't always public, the company quickly attracted significant venture capital. A key early milestone was a Series B funding round in 2013, which secured $40 million. This round was notably led by major players like Alibaba Group and Matrix Partners China, signaling early confidence in its social networking model.

Given Company's Evolution Milestones

The company's history is a roadmap of adapting to China's dynamic digital landscape, moving from simple social discovery to a massive monetization engine powered by live video and dating. Here's the quick math on how they got here.

Given Company's Transformative Moments

The biggest shifts weren't just in new features, but in fundamental business model changes. You see three clear moments where the company defintely changed its trajectory.

The move to live video streaming around 2015 was the most significant financial transformation. It shifted the company from a user-growth-focused social app to a high-monetization entertainment platform. This pivot is why their Q1 2025 value-added service revenues were still substantial at RMB2,489.9 million (US$343.1 million), even with user declines.

The 2018 acquisition of Tantan for $760 million was a major strategic play. It secured a dominant position in the Chinese dating market, but also introduced a separate set of operational challenges. To be fair, managing two large, distinct brands is hard, and the Q2 2025 results show the pressure, with Tantan's Monthly Active Users (MAU) at 10.7 million in March 2025, down from the prior year.

The 2020 rebranding and the 2025 operational integration are the latest shifts. Changing the name to Hello Group Inc. set the stage for a broader strategy, which now includes a pronounced focus on overseas growth. Look at the guidance: for the full year 2025, domestic revenue is expected to decline in the low teens, but overseas revenue is anticipated to grow 'around 70%.' This tells you where the future investment is going. You can learn more about this strategic direction by reviewing the Mission Statement, Vision, & Core Values of Hello Group Inc. (MOMO).

• Pivot monetization: Swapped ad-centric model for virtual gifting/live video.
• Consolidate market share: Acquired Tantan to dominate the dating space.
• Unify operations: Integrated core apps in Q1 2025 to streamline costs and strategy.

What this estimate hides is the impact of a large one-time tax accrual, which resulted in a Q2 2025 net loss of RMB 96.0 million, despite total revenue reaching RMB 2.62 billion (US$366 million). This shows that even a seasoned company faces near-term risks from macro and regulatory headwinds. Finance: track Q3 2025 earnings release on December 10, 2025, for updated tax impact.

Hello Group Inc. (MOMO) Ownership Structure

Hello Group Inc. (MOMO) is a publicly traded company, and its ownership structure is heavily influenced by its founder and a large block of institutional investors, creating a dual-control dynamic that steers the company's strategy.

This structure means that while founder Yan Tang holds a significant single stake, the collective power of major funds ensures corporate governance is defintely a key consideration for the board.

Hello Group Inc.'s Current Status

Hello Group Inc. operates as a publicly traded entity, listed on the Nasdaq Global Select Market (NasdaqGS) under the ticker symbol MOMO. This status, established with its Initial Public Offering (IPO) in 2014, distributes ownership among a diverse group of shareholders, from the founding team to global asset managers like BlackRock, Inc. and Vanguard Group Inc..

The company's governance reflects this public status, with decisions influenced by its board and the alignment of major shareholder interests, especially given the founder's substantial holding.

To understand the financial implications of this structure, you should read Breaking Down Hello Group Inc. (MOMO) Financial Health: Key Insights for Investors.

Hello Group Inc.'s Ownership Breakdown

As of the 2025 fiscal year, the ownership is segmented into three primary groups, with the founder holding a significant minority stake that grants him considerable influence, despite the majority of shares being held by institutional and retail investors. Here's the quick math on who holds the power:

Institutional investors collectively hold the largest block, with over 50% of the company's shares, meaning they can strongly influence board decisions, but the founder's 25% stake is crucial for any major resolution.

Hello Group Inc.'s Leadership

The strategic direction and day-to-day operations of Hello Group Inc. are guided by an experienced executive team, with an average management tenure of around 3.1 years as of November 2025.. This stability is important for navigating the competitive Chinese social media landscape.

• Yan Tang: Co-founder, Executive Chairman, and Chief Executive Officer (CEO). He has been with the company since its inception in 2011 and is the largest individual shareholder.
• Li Wang: President and Executive Director. He is a core member of the founding team and has served as President since April 2018.
• Hui Peng: Chief Financial Officer (CFO). She manages the company's financial strategy and reporting.
• Sichuan Zhang: Chief Operating Officer (COO) and Director. She oversees key operational aspects of the business.
• Jianhua Wen: Chief Technology Officer (CTO). Appointed in April 2024, he leads the technology and AI departments.

The board of directors is also seasoned, with an average tenure of 10.9 years, providing long-term oversight to the company's strategy.

Hello Group Inc. (MOMO) Mission and Values

Hello Group Inc.'s core philosophy goes beyond just generating its RMB 2.62 billion in Q2 2025 revenue; it's about pioneering social connections in the digital age. The company's operational mission is to enable users to discover new relationships, expand their social connections, and build meaningful interactions across its diverse product portfolio, a principle that guides its entire cultural DNA. [cite: 4, 7, 2, 5 (from first search)]

Hello Group's Core Purpose

As a seasoned analyst, I can tell you that while Hello Group doesn't trumpet a single, formal mission statement in the same way a consumer goods company might, its actions and investor communications clearly define its mandate. The entire organization is dedicated to fostering meaningful interactions, a critical focus when you consider the decline in Momo's paying users to 3.5 million in Q2 2025-engagement is defintely their lifeblood. [cite: 3 (from first search), 3, 4]

Official Mission Statement (Operational Focus)

The company's mission is operational, focusing on product execution and user experience. It's about building the platform, not just the profit. Here's the quick math: with Tantan's Monthly Active Users (MAU) at 10.2 million in June 2025, the mission is to convert that scale into sustainable, high-quality social interactions. [cite: 2 (from first search)]

• Enable users to discover new relationships and expand social connections.
• Provide diverse mobile social and entertainment platforms for meaningful interactions.
• Continuously innovate features and content to boost user engagement.

Vision Statement (Strategic Aspiration)

The vision is ambitious, looking to redefine digital connections globally, especially as overseas revenue grew a staggering 73% year-over-year in Q2 2025. This international growth, driven by apps like Soulchill, shows their vision is already in motion. [cite: 5 (from first search)]

• Revolutionize digital connections by blending technology with human experiences.
• Create impactful platforms that foster meaningful connections across diverse communities.
• Expand the portfolio beyond the core apps to target niche markets and demographics.

If you want to dive deeper into the forces driving this expansion, you should check out Exploring Hello Group Inc. (MOMO) Investor Profile: Who's Buying and Why?

Hello Group Slogan/Tagline

Since the company operates a portfolio of brands, the most recognized public-facing taglines are tied to its flagship products. The original Momo app's slogan cuts straight to its value proposition-it's simple, direct, and tells the user exactly what they'll get.

• Momo App Tagline: Discover People Nearby.

The core value here is innovation, and that's what keeps them relevant in a fast-changing social landscape. They must keep innovating, or their user base will churn. That's the reality.

Hello Group Inc. (MOMO) How It Works

Hello Group Inc. operates as a portfolio of social and dating applications, primarily generating revenue by facilitating virtual interactions and transactions for users looking to expand their social circle or find romantic partners. The company's core business model is built on monetizing a large, engaged user base through Value-Added Services (VAS), which accounted for nearly all of its revenue in the first half of 2025.

Hello Group Inc.'s Product/Service Portfolio

The company maintains a dual-app strategy domestically with Momo and Tantan, while aggressively expanding its international footprint with a collection of niche social apps, driving significant overseas revenue growth, which was up 72.7% year-over-year in Q2 2025.

Hello Group Inc.'s Operational Framework

The operational framework focuses on content moderation, user engagement, and a clear segmentation of its domestic and international businesses to manage risk and capture growth. The goal is simple: maximize the lifetime value of each user across the portfolio.

• Revenue Concentration: Net revenues for the first half of 2025 totaled US$717.7 million, with the vast majority coming from Value-Added Services, combining live video and membership fees.
• Domestic Stabilization: The strategy for the Momo app is to maintain its status as a cash cow, which means continuous content and feature updates, like the AI chat assistant being tested, to stabilize a mature user base.
• International Expansion: Overseas business is a critical growth driver, with a full-year 2025 revenue growth target of around 70%. This is achieved through aggressive localization and the rapid monetization of new apps like Soulchill.
• Cost Management: The company is balancing rapid overseas growth with effective cost control, evidenced by a reduction in marketing expenses for Tantan, showing a disciplined approach to profitability.

Here's the quick math: in Q2 2025, overseas revenue hit US$61.8 million, up from US$35.5 million in the same period a year prior, showing the pivot is defintely working internationally.

Hello Group Inc.'s Strategic Advantages

Hello Group's market success hinges on its ability to leverage a strong balance sheet and its core competency in social monetization while navigating a challenging domestic regulatory and competitive landscape. You can read more about their corporate direction in Mission Statement, Vision, & Core Values of Hello Group Inc. (MOMO).

• Financial Strength: The company holds a significant cash position, with cash, cash equivalents, and deposits totaling RMB 12,785.9 million (US$1,761.9 million) as of March 31, 2025, providing a buffer for share repurchases and strategic investments.
• Monetization Expertise: A proven, high-margin revenue model centered on virtual gifting and subscriptions (VAS), which consistently drives strong cash flow despite a declining domestic user base.
• Diversified Product Portfolio: Owning multiple apps (Momo, Tantan, Soulchill, etc.) allows the company to target distinct user needs and demographics, reducing reliance on any single product or market.
• AI-Driven Engagement: Early adoption of in-house AI tools, such as the AI greeting feature, is a strategic move to boost user engagement and retention on the core Momo platform, addressing the risk of user base decline.

What this estimate hides is the persistent domestic headwind, as net revenues from the Chinese mainland decreased to US$290.2 million in Q1 2025, a trend the overseas growth must continue to offset.

Hello Group Inc. (MOMO) How It Makes Money

Hello Group Inc. primarily generates revenue by monetizing social interactions on its platforms, mainly the Momo and Tantan apps, through a high-margin business model centered on virtual goods and premium subscriptions. The company's financial engine is overwhelmingly driven by its Value-Added Service (VAS) segment, which includes live video and virtual gifting, a classic digital economy play.

Hello Group's Revenue Breakdown

Based on the unaudited financial results for the second quarter of 2025, Hello Group's revenue structure is highly concentrated. Total net revenues for Q2 2025 were RMB 2,620.4 million (approximately US$365.8 million). This breakdown shows a clear dependence on its core monetization strategy, Value-Added Services, which now bundles live video and membership fees.

The core VAS revenue stream, at RMB 2,579.3 million (US$360.1 million) in Q2 2025, saw a year-over-year decrease of 2.6%, reflecting a soft consumer environment in the Chinese mainland. Still, this segment is the company's lifeblood. Overseas net revenues, however, are a bright spot, surging by 72.7% year-over-year in Q2 2025 to RMB 442.4 million (US$61.8 million), driven by brands like Soulchill.

Business Economics

The economics of Hello Group's business model are defined by the high-margin nature of virtual gifting and memberships, which have a near-zero marginal cost once the platform is built. The Momo app remains the 'cash cow' business, while the company is focused on enhancing Tantan's profitability. The challenge is maintaining the high-spending user base on Momo while growing the user base and monetization on Tantan and new overseas apps.

• Virtual Gifting Margin: The primary revenue source is virtual gifts on the Momo app's live video and audio features, which essentially represent a direct transfer of cash from high-value users to the platform, generating an intrinsically high gross margin.
• Membership Subscription: Tantan and Momo also offer premium membership tiers (Value-Added Services) for features like seeing who likes you or advanced search filters. This provides a stable, recurring revenue base, though it's a smaller contributor than virtual gifts.
• Cost of Revenue: The non-GAAP cost of revenue for Q2 2025 was RMB 1.60 billion. This largely consists of revenue-sharing with broadcasters and their agencies, plus payment processing fees, which are the main variable costs.
• Overseas Growth: The spectacular 72.7% year-over-year growth in overseas revenue in Q2 2025 is a key strategic pivot, aiming to offset the domestic slowdown by leveraging new social and dating brands. You can read more about the company's long-term strategy in Mission Statement, Vision, & Core Values of Hello Group Inc. (MOMO).

The immediate risk here is the decline in paying users. For Q2 2025, the Momo app had 3.5 million total paying users, down from 7.2 million a year prior, and Tantan dropped to 0.7 million paying users from 1.0 million. This is defintely a headwind, even with the high-margin revenue model.

Hello Group's Financial Performance

The company's financial health as of mid-2025 shows a business under pressure domestically but with strong cash reserves and impressive overseas expansion. The Q2 2025 results revealed a significant shift in profitability due to a one-time tax accrual.

• Profitability Shift: Hello Group reported a Non-GAAP net loss of RMB 96.0 million (US$13.4 million) in Q2 2025. This was largely due to a one-off accrual of RMB 547.9 million for withholding income tax on prior period profits.
• Underlying Profitability: Excluding that one-off tax accrual, the Non-GAAP net income would have been approximately RMB 451.9 million, which gives a clearer picture of the underlying operating performance.
• Gross Margin: The Non-GAAP gross margin for Q2 2025 was 38.8%. This is still a healthy margin for a platform business, but it was down 2 percentage points year-over-year, indicating rising costs or a shift in revenue mix.
• Cash Position: The balance sheet remains solid. As of June 30, 2025, the company held a substantial cash position, with cash, cash equivalents, and various deposits totaling RMB 12,390.6 million (approximately US$1,729.7 million). That's a war chest.
• Operating Income: Adjusted operating income for Q2 2025 was RMB 448 million, with an operating margin of 17%. Here's the quick math: a 17% margin on over $365 million in revenue shows the core business is still highly profitable at the operating level.

The full-year 2025 revenue is estimated to be around RMB 10.682 billion, but the market is clearly focused on the domestic user and revenue decline versus the accelerating overseas growth. Your next step should be to monitor the Q3 2025 earnings release in December to see if the overseas momentum can truly offset the mainland China softness.

Hello Group Inc. (MOMO) Market Position & Future Outlook

Hello Group Inc. holds a leading, albeit challenged, position in China's dedicated social and dating sector, but its future growth is defintely tied to its aggressive overseas expansion and successful monetization of its core user base despite domestic declines.

The company is pivoting hard, aiming to make its international business a primary revenue engine, targeting overseas revenue growth between 60% and 70% for 2025, with an estimated overseas revenue of RMB 1.7 billion to RMB 2 billion for the year.

Competitive Landscape

The company operates in a bifurcated market: it dominates the dedicated social discovery niche but faces existential threats from the massive, multi-purpose social platforms. Your investment thesis must account for this two-front war.

Opportunities & Challenges

The path forward is clear: stabilize the cash cow (Momo) and aggressively scale the high-growth international segment. Here's the quick math: domestic revenue is shrinking in the mid-to-low teens, so overseas growth must be exponential to offset it.

Industry Position

Hello Group is transitioning from a mature domestic live-streaming giant to a global social discovery portfolio. The core Momo app remains a cash-flow generator, but its total revenue for Q2 2025 was RMB 2.62 billion, a 3% year-over-year decline. This is a business under pressure.

• Profitability Focus: Despite revenue headwinds, the company maintains a stable non-GAAP operating margin of 17% as of Q2 2025, showing strong cost discipline.
• Valuation Disconnect: The stock's low valuation reflects justified market skepticism about domestic growth, positioning it as a potential value play if the overseas strategy delivers.
• Strategic Pivot: Value-Added Services (VAS), which include membership fees, have overtaken live-streaming as the largest single revenue source, a positive diversification trend.
• Next Step: You should read Exploring Hello Group Inc. (MOMO) Investor Profile: Who's Buying and Why? to understand the institutional holders betting on this international pivot.

The company is expected to report a Full-Year 2025 revenue of around RMB 10.60 billion, which, while substantial, is a testament to its monetization efficiency rather than user growth. The question is, can they sustain that efficiency while the user base shrinks?