Weibo Corporation (NASDAQ:WB) shares dropped about 3% after the company released fourth-quarter results showing earnings below expectations, even as revenue came in ahead of forecasts.
The Chinese social media platform reported adjusted earnings per share of $0.25 for the quarter, missing analyst estimates of $0.33. Revenue totaled $473.3 million, surpassing the consensus forecast of $444.84 million and marking a 4% year-over-year increase.
Advertising and marketing revenue rose 5% from a year earlier to $403.8 million, supported by strong demand from the ecommerce and local services sectors. Meanwhile, revenue from value-added services declined 2% year-over-year to $69.5 million.
“We ended the year 2025 with solid performance in the fourth quarter,” said Gaofei Wang, CEO of Weibo. “On the user front, we focused on enhancing user value through reinforcing our social features and optimizing recommendation content ecosystem to improve content consumption.”
Operating costs and expenses climbed 13% year-over-year to $381.7 million, largely driven by higher advertising production costs and increased marketing spending. As a result, adjusted operating income fell to $100.4 million from $136.2 million a year earlier, while adjusted operating margin narrowed to 21% from 30%.
For the full fiscal year 2025, Weibo posted revenue of $1.76 billion, unchanged from the previous year. Adjusted earnings per share came in at $1.65, down from $1.82 in 2024. The company’s board approved an annual dividend of $0.61 per American depositary share, representing a total payout of roughly $150 million. The dividend is expected to be paid on or around May 22, 2026 to ADS holders.
Weibo reported 567 million monthly active users in December 2025, with average daily active users reaching 252 million.