Cheetah Mobile Inc. (NYSE:CMCM) returned to operating profitability for the first time since 2019, reporting a strong third quarter powered by rapid expansion in its artificial intelligence business. Revenue surged 49.6% year-over-year to RMB287.4 million ($40.4 million), marking one of the company’s strongest quarterly performances in years.
Shares of the company rose 1.06% in premarket trading following the announcement.
The standout driver of the quarter was the AI and “others” segment, which expanded 150.8% from a year earlier and now represents 50.4% of total revenue—up sharply from 30.1% a year ago. The explosive growth in AI solutions propelled Cheetah Mobile to an operating profit of RMB3.9 million ($0.6 million), a dramatic turnaround from the RMB72.0 million operating loss recorded in the same period last year. On a non-GAAP basis, operating profit reached RMB15.1 million ($2.1 million).
“We are pleased to see continued momentum in our turnaround journey. In the third quarter of 2025, we delivered our first quarterly operating profit in six years—reaching this milestone ahead of expectations,” said Mr. Sheng Fu, Cheetah Mobile’s Chairman and Chief Executive Officer. “Our AI robot business continued to perform well, supported by solid demand for our voice-enabled wheel robots and robotic arms.”
Despite the operational improvement, the company still recorded a net loss attributable to shareholders of RMB11.0 million ($1.5 million). Even so, this represented a significant improvement versus the RMB46.9 million net loss posted in the prior-year quarter. Gross margin strengthened to 74.6% from 67.9% a year earlier, reflecting better cost efficiency and higher-margin product mix.
Cheetah Mobile also highlighted its strong financial position. As of September 30, 2025, the company held RMB1,597.3 million ($224.4 million) in cash and cash equivalents, along with RMB761.4 million ($107.0 million) in long-term investments.
“Our consistent improvement on bottom-line reflects our disciplined execution and operational improvements,” said Mr. Thomas Ren, Chief Financial Officer. “Our Internet business segment generated RMB68.2 million in adjusted operating profit in the first nine months of 2025, exceeding full-year 2024 levels and growing 86.2% YoY.”