Cheetah Mobile Announces First Quarter 2026 Unaudited Consolidated Financial Results

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 March 31, 2026.Financial HighlightsRevenueTotal revenues were RMB259.0 million (US$37.5 million) in the first quarter of 2026. Revenues from robotics and others increased 175.9% year over year to RMB51.2 million, accounting for 19.8% of total revenues in the first quarter of 2026. Revenue from services of cloud and AI infrastructure increased 68.3% year over year in the first quarter of 2026 to RMB46.8 million, contributing to 64.3% of global enterprise services segment revenue and 18.1% of this quarter's total revenues. Revenue from internet value-added services increased 8.2% year over year in the first quarter of 2026 to RMB98.3 million, accounting for 72.8% of internet services segment revenue and 38.0% of this quarter's total revenues.ProfitabilityNet loss attributable to Cheetah Mobile shareholders was RMB17.5 million (US$2.5 million), compared with RMB33.4 million in the same period last year. Non-GAAP net loss attributable to Cheetah Mobile shareholders was RMB11.7 million (US$1.7 million), compared with non-GAAP net loss attributable to Cheetah Mobile shareholders of RMB21.1 million in the same period last year.Cash PositionAs of March 31, 2026, the Company had RMB1,280.6 million (US$185.6 million) in cash and cash equivalents.Management CommentaryFu Sheng, Chief Executive Officer of Cheetah Mobile, commented: "During the first quarter of 2026, we continued executing our AI and robotics strategy with a disciplined approach. Our robotics and others segment delivered strong year-over-year growth while adjusted operating loss further narrowed, reflecting improving commercial traction and operating efficiency. We also continued advancing EasyClaw, our AI agent platform focused on enterprise productivity scenarios, and introduced other AI Agent products. We believe long-term opportunities in AI will come from practical applications, workflow integration, and real customer value creation. Across the industry, we are seeing growing adoption of AI agents, which is driving demand for AI infrastructure and cloud services. This trend also benefited our services of cloud and AI infrastructure business, which delivered strong year-over-year revenue growth during the quarter. Supported by stable cash flow from our internet services business, we remain focused on disciplined investment, product execution, and building sustainable long-term growth engines."Thomas Ren, Chief Financial Officer of Cheetah Mobile, commented: "Starting from the first quarter of 2026, we began reporting our robotics business as a separate segment to present the operating progress of this business. Historical results previously reported under the AI and others segment are now presented as robotics and others, which primarily includes robotics-related products and services, and global enterprise services, which includes advertising agency and services of cloud and AI infrastructure through partnering with global leading cloud service providers. We also maintained a solid balance sheet, ending the quarter with US$ 185.6 million in cash and cash equivalents, supporting our disciplined investment in AI and robotics initiatives over the long term."First Quarter 2026 Financial ResultsTotal revenues remained relatively flat year over year, generating RMB259.0 million (US$37.5 million) in the first quarter of 2026.Revenues from Robotics and Others increased 175.9% year over year to RMB51.2 million, accounting for 19.8% of total revenues in the first quarter of 2026. Internet Services revenue decreased 15.2% year over year to RMB135.0 million. This year-over-year decrease was resulting from a 46.3% decline in the Company's online advertising business. However, revenue from internet value added services increased by 8.2% year over year in the first quarter of 2026, contributing to 72.8% of this quarter's Internet Services segment revenue, and 38.0% of this quarter's total revenues. Global Enterprise Services revenue decreased 10.5% year over year to RMB 72.8 million. This year-over-year decrease resulted from a 51.5% decline in the Company's advertising agency services business due to policy shifts from a major global advertising platform. However, revenue from services of cloud and AI infrastructure increased 68.3% year over year in the first quarter of 2026, contributing to 64.3% of this quarter's Global Enterprise Services segment revenue and 18.1% of this quarter's total revenues. This increase was a result of an increasing number of enterprises in the overseas markets adopting AI agent products to improve productivity, which drove demands for both tokens and cloud computing resources through our platform.Operating loss was RMB28.3 (US$4.1 million) million in the first quarter of 2026, compared to RMB26.5 million in the same period last year. Non-GAAP operating loss was RMB22.5 million (US$3.3 million) in the first quarter of 2026, compared to RMB14.3 million in the same period last year.Adjusted operating loss from Robotics and Others decreased by 57.1% year over year to RMB26.9 million in the first quarter of 2026. Adjusted operating profit from Internet Services business decreased by 38.2% year over year in the first quarter of 2026, mainly due to the decline in online advertising revenue in this segment, along with our investments in AI agent related products. However, we still earned RMB15.2 million from the Internet Services business in this quarter, which laid a solid foundation for our investments in robotics and AI applications. Adjusted operating profit from Global Enterprise Services decreased by 67.3% year over year to RMB13.8 million in the first quarter of 2026. This decline was resulting from the revenue decrease in the Company's advertising agency services business.Net loss attributable to Cheetah Mobile shareholders was RMB17.5 million (US$2.5 million), compared with RMB33.4 million in the same period last year. Non-GAAP net loss attributable to Cheetah Mobile shareholders was RMB11.7 million (US$1.7 million), compared with non-GAAP net loss attributable to Cheetah Mobile shareholders of RMB21.1 million in the same period last year.As of March 31, 2026, the Company had RMB1,280.6 million (US$185.6 million) of cash and cash equivalents, and RMB692.2 million (US$100.3 million) of long-term investments.Conference Call InformationThe Company will hold a conference call on June 10, 2026, at 7:00 a.m. Eastern Time (or 7:00 p.m. Beijing Time) to discuss its financial results. Listeners may access the call by dialing the following numbers:Main Line:International: 1-412-317-6061United States Toll Free: 1-888-317-6003Mainland China Toll Free: +86-4001-206115Hong Kong Toll Free: 800-963976Conference ID: 7570048English Translation:International: 1-412-317-6061United States Toll Free: 1-888-317-6003Mainland China Toll Free: +86-4001-206115Hong Kong Toll Free: 800-963976Conference ID: 0340478A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.cmcm.com.Exchange RateThis press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars in this press release were made at a rate of RMB6.8980 to US$1.00, the exchange rate in effect as of March 31, 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, or to be the amounts that would have been reported under accounting principles generally accepted in the United States of America ("U.S. GAAP").

Cheetah Mobile Announces First Quarter 2026 Unaudited Consolidated Financial Results

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