Cheetah Mobile Announces Second Quarter 2026 Unaudited Consolidated Financial Results

Cheetah Mobile Announces Second Quarter 2026 Unaudited Consolidated Financial Results PR Newswire

BEIJING, Sept. 10, 2026

• 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") (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

• 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 (mailto: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, 2025June 30, 2026 RMBRMBUSD ASSETS Current assets: Cash and cash equivalents1,506,6251,270,969187,318 Short-term investments9,52744566 Accounts receivable, net468,058689,708101,650 Prepayments and other current assets, net1,154,7741,170,431172,498 Due from related parties, net94,821134,75419,860 Total current assets3,233,8053,266,307481,392 Non-current assets: Property and equipment, net40,23840,7306,003 Operating lease right-of-use assets16,83317,8282,628 Intangible assets, net54,06948,1917,102 Goodwill460,034460,03467,801 Long-term investments688,459600,05488,437 Deferred tax assets112,913117,67417,343 Other non-current assets77,52189,40313,176 Total non-current assets1,450,0671,373,914202,490 Total assets4,683,8724,640,221683,882

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY Current liabilities:

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)

Net loss per share

Weighted average number of shares outstanding

For The Three Months EndedFor The Six Months Ended June 30, 2025June 30, 2026June 30, 2026June 30, 2025June 30, 2026June 30, 2026 (a) Share-based compensation expensesRMBRMBUSDRMBRMBUSD Cost of revenues5--10-- Research and development621,1971763582,129314 Selling and marketing229521773001,026151 General and administrative2,0653,9535837,2775,997884 Total2,3615,6718367,9459,1521,349

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 )

* 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, 2025For The Six Months Ended June 30, 2025 Internet ServicesGlobal Enterprise ServicesRobotics and othersConsolidatedInternet ServicesGlobal Enterprise ServicesRobotics and othersConsolidated RMBRMBRMBRMBRMBRMBRMBRMB Revenues from external157,837105,78831,593295,218316,978187,08550,161554,224 customers Inter-segment revenues-8,982-8,982-17,503-17,503 Segment revenue157,837114,77031,593304,200316,978204,58850,161571,727 Elimination of inter-segment(8,982)(17,503) revenue Consolidated Revenues295,218554,224 Operating Costs and expenses Cost of revenues(i)26,31529,11922,04649,30757,43646,532 Selling and marketing(i)62,11919,50117,843129,61534,28337,874 Research and development(i)33,4091,91131,75266,2523,17058,131 Other segment items(i)13,74415,84112,62624,94719,23822,971 Adjusted operating income/(losses)22,25048,398(52,674)17,97446,85790,461(115,347)21,971 Unallocated amounts-share2,3617,945 based compensations Unallocated amounts-26,67651,624 corporate expense Operating loss(11,063)(37,598) Reconciliation of segment profit/(loss) Interest income, net9,98015,585 Foreign exchange gains, net6,3497,999 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$"))

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