Hello Group Inc. (MOMO): Business Model Canvas [Dec-2025 Updated]

You're digging into how Hello Group Inc. is funding its global push while keeping the core business humming. Honestly, the Q2 2025 numbers tell a clear story: they're sitting on RMB 12.39 billion in cash and are seeing their overseas Value-Added Services revenue jump 73% year-over-year, signaling a serious commitment to international social discovery apps like Soulchill. As a former analyst, I can tell you mapping out the nine building blocks of their Business Model Canvas-from key activities like refining AI to the cost structure that includes big marketing spends-shows exactly where the capital is flowing and what the near-term risks are. Dive in below to see the precise breakdown of their current engine.

Hello Group Inc. (MOMO) - Canvas Business Model: Key Partnerships

You're looking at the structure that supports Hello Group Inc. (MOMO)'s revenue generation as of late 2025. Here are the hard numbers related to the key external relationships that make the business run.

Content creators and live video broadcasters for core apps

The economics of the live entertainment segment directly reflect the terms with broadcasters. The Non-GAAP gross margin for the second quarter of 2025 stood at 38.8%. This margin was impacted by higher payout ratios, including revenue sharing with virtual gift recipients for overseas apps, which was partially offset by a decrease in revenue sharing with broadcasters on Momo apps.

Overseas channel partners for user acquisition and promotion

The push for international scale is evident in the revenue figures. Net revenues from overseas for the second quarter of 2025 reached RMB 442.4 million (US$61.8 million). This represented a year-over-year increase of 72.7%. Management projected overseas revenue to grow in the mid-60s year-over-year for the third quarter of 2025. The full-year 2025 projection for overseas revenue was between RMB 1.7 billion and RMB 2 billion. Sales and marketing expenses for the second quarter of 2025 were RMB 339.7 million.

Mobile carriers for service distribution in China

Distribution relies on the existing mobile infrastructure within the Chinese mainland. Total net revenues from Chinese mainland for the second quarter of 2025 were RMB 2,177.9 million (US$304.0 million). Total group net revenues for the same period were RMB 2,620.4 million (US$365.8 million).

Cloud service providers (e.g., Alibaba Cloud) for infrastructure

The scale of operations necessitates significant infrastructure support. Non-GAAP cost and expenses for the second quarter of 2025 totaled RMB 2,183.6 million (US$304.8 million). The company's cash reserves as of June 30, 2025, totaled RMB 12.39 billion.

Here's a look at the revenue breakdown that these partnerships support for Q2 2025:

Hello Group Inc. (MOMO) - Canvas Business Model: Key Activities

You're looking at the core engine room of Hello Group Inc. (MOMO) operations as of late 2025. These are the things the company must execute daily to keep the lights on and drive growth.

Developing and refining AI-driven social features is central to maintaining engagement, especially on the flagship Momo app. The company is actively using in-house technology to improve user interaction. For instance, in the second quarter of 2025, the in-house developed AI greeting feature was fully rolled out, which drove the required response rates up by a high single-digit percentage. They are also testing an AI chat assistant feature to offer content suggestions during ongoing conversations, aiming to increase multiround chat and improve retention. Resource allocation reflects this focus, with Research and Development (R&D) personnel making up 58% of the total employee count as of the second quarter of 2025.

The day-to-day operating and moderating live video and social platforms involves managing the user base across Momo and Tantan, though domestic user metrics show contraction. The Momo app remains the primary revenue driver, referred to internally as the cash cow. Still, paying user counts on the core domestic apps have fallen year-over-year as of the first quarter of 2025.

Here's a quick look at the paying user base for the domestic apps in Q1 2025:

Expanding and localizing overseas product portfolio (e.g., Soulchill) is the major growth lever. The overseas business saw significant acceleration, with net revenues reaching RMB 442.4 million (US$61.8 million) in the second quarter of 2025, a 72.7% increase year-over-year. Soulchill remains the established leader, contributing 60%-70% of overseas revenue in the first quarter of 2025. This international push meant overseas revenue accounted for 16% of total group revenue in Q1 2025, up from less than 10% in Q1 2024. For the third quarter of 2025, management projects the overseas revenue to grow while the PRC Mainland business decreases mid- to low teens percentage.

Managing platform monetization and virtual gifting systems is directly tied to Value-Added Service (VAS) revenues, which primarily come from virtual gifts and subscriptions. The shift in focus to overseas markets, which have a higher payout ratio during expansion phases, is impacting gross margin.

The VAS performance for the first half of 2025 shows this dynamic:

• Total VAS revenues for Q2 2025 were RMB 2,579.3 million (US$360.1 million), down 2.6% year-over-year.
• Total VAS revenues for Q1 2025 were RMB 2,489.9 million (US$343.1 million), down 1.7% year-over-year.
• VAS overseas revenue in Q2 2025 was RMB 440.7 million, marking a 73% year-over-year increase.

The decline in domestic VAS revenue was primarily due to soft consumer sentiment among top users and a decrease in Tantan's paying users. Finance: draft 13-week cash view by Friday.

Hello Group Inc. (MOMO) - Canvas Business Model: Key Resources

You're looking at the foundation of Hello Group Inc. (MOMO)'s current operations as of late 2025. These are the tangible and intangible assets that power their social and entertainment platforms. Honestly, the balance sheet strength right now is a major buffer against the domestic headwinds they are facing.

Core intellectual property and proprietary algorithms represent the technology underpinning user engagement and monetization. The company actively deploys these assets to maintain its core platforms.

• - The core Momo app leverages its established social interest graph engine and analysis of user behavior data to provide customized experiences.
• - In Q2 2025, the Momo app rolled out an in-house developed AI greeting feature and continued testing an AI chat assistant to suggest content and drive multi-round conversations.
• - These AI tools are specifically aimed at improving retention and playing a positive role in stabilizing Momo's user base.
• - Algorithm adjustments were made to enhance penetration rates and user scale for audio and video-based experiences on Momo, stimulating consumption among mid-cohort users.

Large, engaged user base and social graph data remain central, even as the domestic user base faces pressure. The social graph data is the fuel for the proprietary algorithms mentioned above. The focus in 2025 is clearly on maintaining the productivity of the core cash cow while the overseas business scales.

Here's a look at the paying user metrics for the core domestic apps as of Q2 2025, which directly feed the Value-Added Service revenues:

The company is actively managing the user base, for example, by proactively abandoning ultra-low paying users on the Momo app to improve profitability, even though this caused a sequential decrease in paying users from the prior quarter.

Financial Strength is a critical resource, providing the necessary capital for operations, strategic investments, and shareholder returns.

• - Cash and equivalents, short-term deposits, long-term deposits, and restricted cash totaled RMB 12.39 billion as of June 30, 2025.
• - This cash position followed a repayment of RMB 1.76 billion in bank loans, including accrued interest, in the first half of 2025.
• - In Q2 2025, the company paid an equivalent of RMB 346 million in cash dividends to shareholders.

Portfolio of apps: Momo (core cash cow) and Tantan form the structure of the domestic business, supplemented by an aggressively growing overseas portfolio.

• - Momo is explicitly managed with the goal to maintain the productivity of this cash cow business with a healthy social ecosystem.
• - Tantan, acquired in 2018, is focused on enhancing its dating experience and profitability, though its user base saw declines in 2025.
• - The overseas business, driven by apps like Soulchill, is a key growth resource, with overseas revenue increasing 72.7% year-over-year in Q2 2025.

Finance: draft 13-week cash view by Friday.

Hello Group Inc. (MOMO) - Canvas Business Model: Value Propositions

You're looking at the core offerings that Hello Group Inc. (MOMO) brings to its users as of the second quarter of 2025. These propositions are what drive the revenue, even as the company navigates shifts in user behavior and macro conditions.

Interactive live video and audio entertainment on Momo

The Momo app continues to serve as a primary platform for interactive social entertainment, heavily reliant on value-added services like virtual gifting. For the second quarter of 2025, total value-added service revenues for the entire group were RMB 2,579.3 million (US$360.1 million). The domestic Value-Added Service (VAS) revenue, which is heavily influenced by Momo, stood at RMB 2.14 billion in Q2 2025. This proposition is supported by ongoing product enhancements, such as the rollout of an in-house developed AI greeting feature, which management noted drives an increase in multiround conversations and offers in-depth chat, helping to stabilize the Momo user base.

Here is a look at the paying user base supporting this value proposition:

It's clear that while the top-line revenue from this segment is stabilizing, the number of paying users has seen a significant contraction from the prior year levels. If onboarding takes 14+ days, churn risk rises.

Location-based social discovery and dating (Momo)

Momo's foundational value proposition remains connecting people based on location and shared interests for social interactions. The overall net revenues from the Chinese mainland business in Q2 2025 were RMB 2,177.9 million (US$304.0 million), a decrease from the RMB 2,435.1 million in the same period of 2024. This decline is primarily attributed to the decrease in net revenues from both the Momo app and the Tantan app. The company is using technology to enhance this experience; for instance, AI algorithm adjustments are being made to drive growth in chat rooms.

Swipe-based dating and social connection (Tantan)

Tantan offers a distinct swipe-based experience focused on dating and meeting new people. This segment has also faced user base and monetization headwinds. For Q2 2025, Tantan reported only 0.7 million paying users, down from 1.0 million in Q2 2024. The Monthly Active Users (MAU) for Tantan were 10.2 million as of June 2025, compared to 12.9 million in June 2024. Management has focused on maintaining profitability by reducing marketing spend, which has caused some decline in user scale, though organic traffic is offsetting some losses.

Here's the quick math on Tantan user metrics:

• Tantan MAU (June 2025): 10.2 million
• Tantan MAU (March 2025): 10.7 million
• Tantan Paying Users (Q2 2025): 700,000
• Tantan Paying Users (Q1 2025): 0.8 million

What this estimate hides is the impact of ongoing product upgrades and a strategic reduction in user acquisition channels aimed at improving Return on Investment (ROI).

Rapidly growing portfolio of niche overseas social apps

The growth engine for Hello Group Inc. (MOMO) is increasingly coming from its overseas portfolio, which includes brands like Souchill and others being incubated by a new Singapore-based team. This segment is delivering substantial top-line acceleration.

The financial contribution from overseas operations is significant:

In the first quarter of 2025, overseas revenue already accounted for 16% of the total group revenue, up from less than 10% in Q1 2024. The company is actively controlling costs in this segment while maintaining rapid expansion. As of June 30, 2025, the company maintained substantial liquidity with cash, cash equivalents, and deposits totaling RMB 12,390.6 million (US$1,729.7 million).

Finance: draft 13-week cash view by Friday.

Hello Group Inc. (MOMO) - Canvas Business Model: Customer Relationships

You're looking at how Hello Group Inc. maintains and monetizes its user base across the Momo and Tantan platforms as of late 2025. The relationship strategy leans heavily on technology for scale, while recognizing the critical value of top spenders.

Automated in-app customer service and moderation is a baseline necessity given the scale. The company is actively integrating technology to enhance the user experience, which directly impacts relationship quality and retention. For instance, the Momo app rolled out an in-house developed AI greeting feature and continued testing an AI chat assistant, which management noted drives an increase in the number of multiround conversations and offers in-depth chat, thereby improving retention and playing a positive growth role in stabilizing Momo's user base.

The structure of monetization clearly defines tiers of customer relationships, especially through VIP and subscription tiers offering enhanced features. Value-added service revenues, which include virtual gift revenues and membership subscription revenues, totaled RMB 2,579.3 million (US$360.1 million) in the second quarter of 2025. This revenue stream is directly tied to the depth of the user relationship. Management noted a decrease in this revenue was primarily due to a soft consumer sentiment among top users in the current macro environment of the Momo app.

Here's a quick look at the paying user base that drives this segment as of Q2 2025, compared to Q1 2025 and the prior year:

The focus on top users implies dedicated support for high-value paying users and broadcasters. While specific support team metrics aren't public, the financial commentary highlights that soft consumer sentiment among top users pressured the Momo business in Q2 2025. This suggests that maintaining the loyalty and spending of this cohort is a primary relationship management focus. Overseas revenue, which is a growing part of the ecosystem, reached RMB 442.4 million (US$61.8 million) in Q2 2025, up 72.7% year-over-year, indicating a successful relationship-building effort in new markets.

Community-driven interaction models to boost engagement are inherent to the social nature of the platforms. The overall user retention remained stable in Q2 2025 despite increased channel investments, thanks to improved user experience driven by product enhancements and algorithm optimization, as well as the ability to accommodate channel users more effectively. Tantan's Monthly Active Users (MAUs) stood at 10.2 million in June 2025. The company's strategy is to maintain the Momo app as a cash cow with a healthy social ecosystem and to enhance Tantan's core dating experience.

Finance: draft 13-week cash view by Friday.

Hello Group Inc. (MOMO) - Canvas Business Model: Channels

You're looking at how Hello Group Inc. (MOMO) gets its products-Momo, Tantan, and others-into the hands of users, and honestly, it's a story of two markets: the established domestic one and the rapidly growing international one. The channels are primarily digital distribution, which is typical for a social app player, but the performance across these channels is telling a different story for 2025.

The primary channel remains the Momo mobile application, which still drives the bulk of the revenue, though its contribution is shrinking relative to the overseas push. You see this in the paying user base, which is under pressure domestically. For instance, in the second quarter of 2025, Momo's paying users were down to 3.5 million, a stark drop from 7.2 million in the same period last year. Still, the value-added services (VAS) revenue from the Mainland for Q2 2025 was RMB 2.14 billion, showing the depth of monetization even with fewer paying users. The Momo segment itself encompasses live video services, VAS, mobile marketing, and mobile games.

Next up is the Tantan mobile application, your secondary dating platform. Tantan is seeing a more pronounced user base contraction, which management is addressing with product upgrades. In Q2 2025, Tantan's paying users fell to just 700,000, representing a 30% year-over-year decrease. This platform is definitely being managed for profitability over scale right now, given the domestic environment.

The real story for 2025, though, is the portfolio of international social apps, including Soulchill. This channel is exploding. Overseas revenue for Q2 2025 hit RMB 440.7 million, marking a 73% year-over-year increase. This growth is significant; overseas revenue accounted for about 17% of total group revenue in Q2 2025. Management is guiding for overseas revenue growth in the mid-60s % for Q3 2025, even as domestic business is expected to decline in the mid- to low teens percentage range year-over-year. Soulchill, in particular, continued strong growth.

Here's a quick look at the revenue channel split based on the latest reported figures:

Finally, the distribution mechanism for all these products is the Global mobile app stores (iOS and Android). This is the gatekeeper for user acquisition and updates. While there are no specific revenue figures tied directly to app store fees in the latest reports, the entire overseas growth trajectory relies on successful placement and discoverability here. The company's cash position as of June 30, 2025, was RMB 12.39 billion, which gives them the runway to invest in optimizing these store presences globally.

You should track the international revenue percentage closely, as it was only 16% of total revenue in Q1 2025 but is expected to be a much larger driver going forward. The company's cash and equivalents stood at RMB 12.79 billion as of March 31, 2025.

• Momo Paying Users (Q2 2025): 3.5 million
• Tantan Paying Users (Q2 2025): 700,000
• Q2 2025 Total Revenue: RMB 2.62 billion
• Q2 2025 Overseas Revenue: RMB 440.7 million
• Cash Reserves (June 30, 2025): RMB 12.39 billion

Finance: draft the Q3 2025 cash flow projection incorporating the RMB 2.59 billion to RMB 2.69 billion revenue guidance by next Tuesday.

Hello Group Inc. (MOMO) - Canvas Business Model: Customer Segments

You're looking at the core user base for Hello Group Inc. (MOMO) as of late 2025. It's a tale of two markets: a stabilizing but shrinking domestic base and a rapidly expanding international one. We need to segment these users clearly to understand where the value is being generated now.

Chinese mainland users seeking social and entertainment form the traditional core, primarily served by the Momo app. While the overall domestic revenue is under pressure, these users are still the primary source of cash flow. For the first quarter of 2025, net revenues from the Chinese mainland were reported at RMB 2,106.2 million (US$290.2 million). By the second quarter of 2025, this figure slightly recovered to RMB 2,177.9 million (US$304.0 million). Management has guided that the full-year 2025 domestic revenue is expected to decline in the low teens year-over-year.

The global users, especially in emerging markets, for social discovery are the growth engine. This segment is largely served by newer apps like Soulchill and localized versions, driving significant top-line acceleration. Overseas revenue in Q1 2025 hit RMB 414.6 million (US$57.1 million), marking a 71.9% year-over-year increase. This momentum continued into Q2 2025, with overseas revenue reaching RMB 442.4 million (US$61.8 million), a 72.7% surge from the prior year. This international segment now accounts for about 16% to 17% of the Group's total revenue.

Next, we look at the high-spending users who purchase virtual gifts and premium services. These are the power users across both Momo and Tantan whose spending on Value-Added Services (VAS) drives profitability. Total VAS revenue for Q2 2025 was RMB 2.58 billion. However, management noted a soft consumer sentiment among top users in Q1 2025, which contributed to a year-over-year decrease in VAS revenue for that period. Specifically, the Momo app's VAS revenue in Q1 2025 totaled RMB 1.78 billion.

Finally, the segment focused on users seeking dedicated dating services (Tantan users) represents a specific, challenged part of the domestic base. The Tantan app's Monthly Active Users (MAU) stood at 10.2 million in June 2025, down from 12.9 million in June 2024. Monetization here is also softening; Tantan reported only 0.7 million paying users in Q2 2025, a 30.0% drop from 1.0 million in the year-ago period. The company is focused on maintaining Tantan's profitability through cost efficiency, even as its revenue is projected to decline by 20-30% in 2025.

Here's a quick look at the paying user dynamics for the core domestic platforms as of mid-2025:

The company is clearly segmenting its strategy: keeping Momo stable as a cash cow, driving Tantan toward profitability via cost control, and aggressively growing the overseas social discovery user base, which saw 73% revenue growth in Q2 2025.

You'll want to track the Q3 2025 guidance for the domestic segment, which anticipates a revenue decrease of mid- to low teens year-on-year, balanced against the expectation that overseas revenue will grow by around 70% for the full year. Finance: draft 13-week cash view by Friday.

Hello Group Inc. (MOMO) - Canvas Business Model: Cost Structure

You're looking at the major drains on Hello Group Inc.'s cash flow for late 2025. Honestly, the cost structure is heavily influenced by content sharing and, increasingly, international expansion costs.

The biggest single component of cost of revenue relates to sharing proceeds with the talent driving the platform. For the second quarter of 2025, the Non-GAAP cost of revenue stood at RMB 1.60 billion, up slightly from RMB 1.59 billion in the same period last year. This figure directly reflects the payouts to broadcasters and content creators across the ecosystem. This resulted in a Non-GAAP gross margin of 38.8% for the quarter, a slight dip of 2 percentage points year-over-year.

Sales and marketing expenses show a clear strategic shift. For Q2 2025, Non-GAAP sales and marketing expenses were RMB 339.7 million, which represented 13% of total revenue. That's down from RMB 360.6 million in Q2 2024, showing ongoing cost control in the PRC Mainland businesses, especially for Momo and Tantan. Still, this spend is being strategically redirected; the decrease was partially offset by an increase in channel investment for the overseas apps as Hello Group Inc. pushes its international growth.

Infrastructure and payment channel costs are becoming more prominent as the geographic mix shifts. While we don't have a standalone figure for just infrastructure, the overall Non-GAAP cost and expenses for Q2 2025 were RMB 2,183.6 million. Management noted that payment channel costs and infrastructure expenses account for a larger proportion of revenue because the fee structures are systematically higher for the rapidly growing international business compared to the domestic operations.

Income tax expenses saw a significant, one-time impact in Q2 2025. Total income tax expenses for the quarter hit RMB 638.4 million. A major driver here was a special, nonrecurring item: the company accrued an additional withholding income tax of RMB 547.9 million related to profits generated by the WFOE in China for prior periods. Furthermore, going forward from Q2 2025, Hello Group Inc. will accrue the withholding tax at the standard rate of 10%, up from the previously applied preferential rate of 5% for Momo Beijing.

Here's a quick look at the key cost line items from Q2 2025:

You should definitely keep an eye on how the international scaling affects the variable costs. The key cost drivers for the period include:

• Revenue sharing with broadcasters and content creators (Non-GAAP cost of revenue was RMB 1.60 billion in Q2 2025).
• Sales and marketing expenses, heavily focused on overseas growth (RMB 339.7 million Non-GAAP in Q2 2025).
• Infrastructure and payment channel costs (higher for international business, contributing to overall cost structure).
• Income tax expenses, including a one-time Q2 2025 withholding tax accrual of RMB 547.9 million.

Finance: draft 13-week cash view by Friday.

Hello Group Inc. (MOMO) - Canvas Business Model: Revenue Streams

You're looking at how Hello Group Inc. (MOMO) actually brings in the cash flow as of late 2025. It's all about the services users pay for inside the apps, primarily from gifting and premium access.

The core of the revenue engine is Value-Added Services (VAS). For the second quarter of 2025, the total VAS revenue hit RMB 2.58 billion. Honestly, this number reflects a slight contraction year-over-year, coming in at RMB 2,579.3 million for Q2 2025, which was a 2.6% decrease from the same period in 2024.

Here's a breakdown of where that VAS money comes from, focusing on the main components:

• - Total Value-Added Services (VAS) for Q2 2025: RMB 2.58 billion.
• - Domestic VAS revenue for Q2 2025: RMB 2.14 billion.
• - Momo app VAS revenue specifically: RMB 1.85 billion, down 11% year-over-year.
• - Overseas VAS revenue for Q2 2025: RMB 440.7 million.

The revenue streams are clearly segmented by geography, and the international part is definitely where the growth is right now. The overseas VAS revenue saw a massive jump, growing 73% year-over-year in Q2 2025, reaching RMB 440.7 million. That overseas segment now makes up 17% of the group's total revenue, up from just 10% in Q2 2024.

The specific mechanisms driving this revenue include the classic in-app purchases you'd expect from social platforms. You've got the virtual gifting, which is key for live streaming and those audio/video chats. Also, membership subscription fees provide a more stable base for premium app features. For instance, Tantan refined its monetization by restructuring its membership package.

To give you a clearer picture of the Q2 2025 revenue mix, look at this table:

The live streaming gifting component within Momo felt the pinch, with its revenue decline being attributed to soft spending sentiment among top users in that specific live streaming experience. Still, the growth in overseas revenue, which is heavily driven by audio and video-based social products, is offsetting the domestic softness.

So, you're seeing a clear pivot in revenue focus:

• - Virtual gifting revenue from live streaming and audio/video chats remains a primary driver within VAS.
• - Membership subscription fees help stabilize revenue, as seen with package restructuring on Tantan.
• - Overseas VAS revenue growth was 73% year-over-year in Q2 2025, showing strong international traction.

The overseas business growth, up 73% year-over-year in Q2 2025, is definitely the bright spot in the revenue streams, driven by brands in the MENA region. Finance: draft the Q3 2025 revenue projection based on the mid-60s overseas growth guidance by Friday.