Cheetah Mobile Inc. (NYSE: CMCM) reported a turnaround in its third‑quarter 2025 results, posting an operating profit of RMB 3.9 million after a loss of RMB 72.0 million in the same quarter a year earlier and a loss of RMB 11.1 million in the prior quarter. The company’s total revenue rose 49.6% year‑over‑year to RMB 295 million, driven largely by a 150.8% jump in its AI and other segment, which now accounts for roughly half of total revenue.
Revenue growth was supported by a robust performance in the Internet business, which generated RMB 68.2 million in adjusted operating profit, an 86.2% increase YoY. Gross margin expanded to 74.6% from 67.9% in the prior year, reflecting a higher mix of high‑margin AI products and improved operational leverage. The company’s cash and cash equivalents stood at RMB 1,597.3 million, with no debt on the balance sheet.
Comparing to earlier periods, Q3 2024 revenue was RMB 192.1 million, while Q2 2025 revenue matched the current quarter’s RMB 295 million. The operating loss of RMB 11.1 million in Q2 2025 and the loss of RMB 72.0 million in Q3 2024 underscore the magnitude of the recent turnaround.
Chairman and CEO Sheng Fu highlighted the milestone, saying the company’s “first quarterly operating profit in six years” demonstrates disciplined execution and a successful shift toward AI‑driven growth. Chief Financial Officer Thomas Ren noted that the Internet business’s profit surge and the company’s substantial cash reserves position Cheetah Mobile to sustain its AI expansion while maintaining financial flexibility.
Investors reacted positively to the results, citing the return to profitability and the strong momentum in the AI segment. Management remains optimistic about approaching breakeven for the full year 2025, and the recent acquisition of UFACTORY is expected to strengthen the company’s robotics capabilities. Headwinds include a softer advertising market, but the continued demand for voice‑enabled wheel robots and robotic arms provides a tailwind that supports the company’s growth trajectory.
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