Yalla Group announces financial results for Q1, 2026 with strong user growth

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 unaudited financial results for the first quarter of the fiscal year 2026, ending on March 31
The company reported quarterly revenue of AED 290.1 million (USD 79.0 million), with games service revenues growing to AED 111.3 million (USD 30.3 million), accounting for 38.3% of total revenues. Net income for the quarter posted AED 104.3 million (USD 28.4 million), and non-GAAP net income was AED 122.3 million (USD 33.3 million) with a net margin of 42.1%
Average Monthly Active Users (MAUs) grew to 48.0 million, a 7.7% increase from 44.6 million in the corresponding period last year, underscoring the continued expansion and engagement of Yalla’s user base across the region
Outperformed expectations
Speaking on the occasion, Mr. Yang Tao, Founder, Chairman and Chief Executive Officer of Yalla said: “We delivered resilient first quarter results with revenues meeting our expectations given the shifting geopolitical environment and the impact of Ramadan. Refined operations and focused market strategies drove a 7.7% increase in average MAUs, a notable uptick reflecting continued strong user reach and engagement, underscoring the essential role our platforms play in the daily lives of MENA users. Our core product ecosystem performed steadily, and our gaming business reinforced its position as the Company’s key growth engine.
Tao added: “We continue to monitor the impact of the regional situation on our business, with our March survey indicating a moderate effect on user sentiment. Supported by years of accumulated user loyalty and deep community connections, as well as consistent upgrades, we are confident that our legacy products will continue to serve as a resilient foundation underpinning the Company’s overall stability.”
He further said: “2026 will be a pivotal year for Yalla’s evolution as a leader in MENA’s digital transformation. We will continue to strengthen our products and maximize synergies between our social and gaming ecosystems, boosting cross-product engagement and user lifetime value. By leveraging our strong in-house R&D, years of accumulated local resources and expertise, and expanding collaboration with leading global partners, we will continue unlocking the MENA market’s immense growth potential. Supported by a strong balance sheet, stable profitability, and solid cash flow, we are confident in our resilience and our ability to capture growth opportunities, consistently creating long-term value for global investors
Sustainable growth
Meanwhile, Saifi Ismail, Group President at Yalla Group, said: “Our operations continued to progress smoothly in the first quarter of 2026. Our team members in the areas impacted by the conflict are safe and have shifted to a flexible work-from-home arrangement, with remote working support and dedicated living allowances provided by Yalla
“As the region celebrated Ramadan in the first quarter, we conducted a wide-reaching marketing campaign to better reach local users and support them in observing their traditions, driving a strong increase in average MAUs. This accelerated growth, outpacing all previous quarters, underscored our community’s strong cohesion and highlighted Yalla’s growing role as a hub for regional digital culture, social interaction and emotional connection
“In 2026, we will continue to refine operations and the user experience, rapidly advancing our “gaming plus social” integration while deepening content localization and leveraging AI tech to enhance user engagement. Supported by deep insights into Middle Eastern culture and consistently strong execution, we are confident that Yalla is well-positioned to strengthen its leadership of MENA’s digital entertainment market

