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olivLaw · US equity research

Yalla Group Limited YALA

Services-Computer Programming, Data Processing, Etc. · SIC 7370 · Vertical: Services-Computer Programming, Data Processing, Etc. (SIC 7370)

5.64USD+1.81% · 1 dayClose 04 Nov 2026

Yalla Group operates the Yalla and Yalla Ludo apps, voice-centric group chat and casual gaming platforms aimed mainly at users in the MENA region. It earns revenue from group chat and game services, and in fiscal 2025 revenue reached 341.9 million USD, up only 0.7 percent, which makes the trend in paying users worth watching in the next period.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Yalla Group Limited (YALA) stock was 5.64 USD (+1.81% on the day), with market capitalisation 413.9 m USD, P/E 6.8 on diluted EPS of 0.83 USD over the last 12 months, beta 0.69, 52-week range 5.07–7.65 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
413.9 m USD
shares as of 31 Dec 2019
P/E (TTM)
6.8
Diluted EPS TTM 0.83 · TTM to 31 Dec 2025
E/P (TTM)
14.72%
TTM to 31 Dec 2025
Dividend yield
unavailable
Beta (2y)
0.69
Volatility (1y) 30%
52-week range
5.077.65

Price history

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Technical reading

RSI (14)
57.1
strong (55–70)
Bollinger (20, 2)
5.45 – 5.72
in the upper half of the band · %B 0.71 · band width 4.9%
SMA 50 / 200
5.51 / 6.03
mixed trend
MACD (12, 26, 9)
0.02 / 0.03
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+3.9%−1.1%+5.0 pp—
3 months+5.0%−0.5%+5.5 pp—
6 months−17.4%+4.4%−21.8 pp—
Year to date−18.7%+12.3%−31.0 pp—
1 year−23.6%+13.5%−37.1 pp−21.0%
3 years−1.6%+76.4%−78.0 pp+0.8%
5 years−14.8%+63.7%−78.5 pp—
Max drawdown (1y)
−33.7%
10 Nov 2025 → 25 Jun 2026
Max drawdown (5y)
−66.9%
15 Nov 2021 → 24 Oct 2022
Compound annual growth (5y)
−3.2%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 20 percentile of its own 5-quarter history (min 5.5, median 8.4, max 14.6; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue42.4 m63.5 m134.9 m273.1 m303.6 m318.9 m339.7 m341.9 m
Revenue YoYunavailable+49.8%+112.6%+102.4%+11.2%+5.0%+6.5%+0.7%
Net income20.2 m28.9 m3.2 m82.6 m79.0 m113.1 m134.2 m148.1 m
Net income YoYunavailable+42.9%−88.9%+2,470.3%−4.3%+43.0%+18.7%+10.4%
Diluted EPSunavailable0.22-0.020.460.450.650.740.83
Diluted EPS YoYunavailableunavailable−109.1%unavailable−2.2%+44.4%+13.8%+12.2%
net %47.8%45.6%2.4%30.2%26.0%35.5%39.5%43.3%
Free cash flow23.2 m30.9 m63.8 m142.8 m118.0 m138.0 m172.1 m135.6 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
527.0 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
802.0 m USD
Total assets
896.2 m USD
Debt / equity
unavailable
Current ratio
9.02x
ROE
19.8%
ROA
17.5%
FCF margin
39.6%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
318.9 m
2024
339.7 m
2025
341.9 m

SEC (XBRL)· 22 Apr 2026verified

Cost of revenue
2023
114.5 m
2024
120.5 m
2025
111.9 m

SEC (XBRL)· 22 Apr 2026verified

Gross profit
2023
204.4 m ≈
2024
219.2 m ≈
2025
230.0 m ≈

SEC (XBRL)· 22 Apr 2026derived

Research & development
2023
25.8 m
2024
29.0 m
2025
34.3 m

SEC (XBRL)· 22 Apr 2026verified

Operating income
2023
96.4 m
2024
121.4 m
2025
122.2 m

SEC (XBRL)· 22 Apr 2026verified

Pre-tax income
2023
115.7 m
2024
148.1 m
2025
152.1 m

SEC (XBRL)· 22 Apr 2026verified

Income tax
2023
2.7 m
2024
13.9 m
2025
4.0 m

SEC (XBRL)· 22 Apr 2026verified

Net income
2023
113.1 m
2024
134.2 m
2025
148.1 m

SEC (XBRL)· 22 Apr 2026verified

Diluted EPS
2023
0.65
2024
0.74
2025
0.83

SEC (XBRL)· 22 Apr 2026verified

Weighted average diluted shares
2023
181.8 m
2024
183.2 m
2025
180.1 m

SEC (XBRL)· 22 Apr 2026verified

Balance sheet · USD

Cash
2023
311.9 m
2024
488.4 m
2025
527.0 m

SEC (XBRL)· 22 Apr 2026verified

Current assets
2023
569.1 m
2024
691.7 m
2025
796.3 m

SEC (XBRL)· 22 Apr 2026verified

Property, plant & equipment, net
2023
1.6 m
2024
14.0 m
2025
15.0 m

SEC (XBRL)· 22 Apr 2026verified

Total assets
2023
639.0 m
2024
801.6 m
2025
896.2 m

SEC (XBRL)· 22 Apr 2026verified

Accounts payable
2023
928.1 k
2024
957.7 k
2025
1.1 m

SEC (XBRL)· 22 Apr 2026verified

Current liabilities
2023
75.3 m
2024
101.7 m
2025
88.3 m

SEC (XBRL)· 22 Apr 2026verified

Total liabilities
2023
76.3 m
2024
103.8 m
2025
94.2 m

SEC (XBRL)· 22 Apr 2026verified

Equity
2023
562.7 m
2024
697.8 m
2025
802.0 m

SEC (XBRL)· 22 Apr 2026verified

Cash flow · USD

Operating cash flow
2023
139.3 m
2024
172.8 m
2025
137.5 m

SEC (XBRL)· 22 Apr 2026verified

Capex
2023
1.3 m
2024
705.9 k
2025
2.0 m

SEC (XBRL)· 22 Apr 2026verified

Free cash flow
2023
138.0 m ≈
2024
172.1 m ≈
2025
135.6 m ≈

SEC (XBRL)· 22 Apr 2026derived

Investing cash flow
2023
-226.1 m
2024
18.6 m
2025
-45.1 m

SEC (XBRL)· 22 Apr 2026verified

Financing cash flow
2023
-7.6 m
2024
-12.8 m
2025
-55.5 m

SEC (XBRL)· 22 Apr 2026verified

Dividends paid
2023
—
2024
—
2025
—

SEC (XBRL)· 02 Apr 2021verified

Share repurchases
2023
8.5 m
2024
13.9 m
2025
56.6 m

SEC (XBRL)· 22 Apr 2026verified

Computed indicators

Growth

Revenue growth (YoY)
0.7%
computed by olivLawFY 2025
Revenue CAGR 3Y
4.0%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
20.4%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
0.7%
computed by olivLawFY 2025
Net income growth (YoY)
10.4%
computed by olivLawFY 2025
Net income CAGR 3Y
23.3%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
115.2%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
12.2%
computed by olivLawFY 2025
EPS CAGR 3Y
22.6%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
-21.2%
computed by olivLawFY 2025

Profitability

Gross margin
67.3%
computed by olivLawFY 2025
EBITDA margin
unavailable
input data missing
EBIT margin
35.7%
computed by olivLawFY 2025
Net margin
43.3%
computed by olivLawFY 2025
FCF margin
39.6%
computed by olivLawFY 2025

Returns

ROE
19.6%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROA
17.5%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROIC
unavailable
input data missing
ROCE
15.1%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
9.0x
computed by olivLawbalance sheet at 31 Dec 2025
Cash ratio
6.0x
computed by olivLawbalance sheet at 31 Dec 2025

Cash

Operating cash flow
137.5 m USD
computed by olivLawFY 2025
Capital expenditure
2.0 m USD
computed by olivLawFY 2025
Free cash flow
135.6 m USD
computed by olivLawFY 2025
FCF conversion
91.5%
computed by olivLawFY 2025
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days payables outstanding
3 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025

Market and valuation

Market capitalisation
413.9 m USD
computed by olivLawbalance sheet at 31 Dec 2025
Enterprise value
unavailable
input data missing
Market cap / net income TTM
2.8x
computed by olivLawFY 2025
P/E (TTM)
6.8x
computed by olivLawFY 2025
Earnings yield
14.7%
computed by olivLawFY 2025
P/B
0.5x
computed by olivLawbalance sheet at 31 Dec 2025
P/S
1.2x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
3.1x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
FCF yield
32.7%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Dividend yield
unavailable
input data missing
Shareholder yield (distributions)
13.7%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025

4 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

5.64 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 413.9 m USD

Key indicators

Market capitalisation
413.9 m USD
computed by olivLawbalance sheet at 31 Dec 2025
P/E (TTM)
6.8x
computed by olivLawFY 2025
P/B
0.5x
computed by olivLawbalance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
ROE
19.6%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Net margin
43.3%
computed by olivLawFY 2025
Revenue growth (YoY)
0.7%
computed by olivLawFY 2025
Dividend yield
unavailable
input data missing

Coverage and freshness

25/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Dec 2025
Latest balance sheet date: 31 Dec 2025
Source: SEC (XBRL)published 22 Apr 2026
verified 191

Score by group

77% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)

no valuation method could be computed

Multiple comparisons use the SIC vertical: Services-Computer Programming, Data Processing, Etc. (SIC 7370)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
Gross margin · Quality67.3%68 (on a fixed band)14%
EBIT margin · Quality35.7%97 (vs peers)11%
FCF margin · Quality39.6%100 (on a fixed band)11%
Revenue CAGR 3Y · Growth4.0%16 (on a fixed band)22%
Revenue growth (YoY) · Growth0.7%21 (vs peers)11%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Current ratio · Balance sheet9.0x100 (on a fixed band)8%
EV/Sales · Valuationunavailableunavailable—
FCF yield · Valuation32.7%100 (on a fixed band)17%
Shareholder yield (distributions) · Returns13.7%100 (on a fixed band)6%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/2 factors with a value
  • Growth18/100 · 2/2 factors with a value
  • Quality87/100 · 3/3 factors with a value
  • Returns100/100 · 1/1 factors with a value
  • Valuation· partial100/100 · 1/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

YALLA GROUP LIMITED (YALA). Latest full fiscal year: 2025; data up to 2025-12-31.

Figures computed from the financial statements: revenue 341.9 m USD in 2025; YoY growth 0.7%; net margin 43.3%; ROE 19.6%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • EBIT margin: 35.7%
  • FCF margin: 39.6%
  • Current ratio: 9.0x
  • FCF yield: 32.7%
  • Shareholder yield (distributions): 13.7%

What contradicts it

  • Revenue CAGR 3Y: 4.0%
  • Revenue growth (YoY): 0.7%

Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.

Versus the vertical median

Services-Computer Programming, Data Processing, Etc. (SIC 7370) · same industry (4-digit SIC) · compared with 39 companies

Multiples and returns vs the median

P/E
6.8x
vertical median 21.5x
below median (−68.4%)
EV/EBITDA
—
vertical median 14.9x
P/S
1.2x
vertical median 1.8x
below median (−34.0%)
P/B
0.5x
vertical median 1.9x
below median (−72.5%)
ROE
19.6%
vertical median -2.1%
above median
Net margin
43.3%
vertical median -1.8%
above median
EBIT margin
35.7%
vertical median -0.2%
above median
Revenue YoY
0.7%
vertical median 10.3%
below median (−93.6%)
Net debt/EBITDA
—
vertical median 2.0x
Dividend yield
—
vertical median 1.2%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
GOOGLAlphabet Inc.3,552.1 bn15.144.3%50.0%+15.1%−10% / +118%
APPAppLovin Corporation90.0 bn18.3210.1%65.9%+70.0%−55% / +625%
FLUTFlutter Entertainment plc14.2 bn—-14.3%-7.1%+16.6%−61% / −48%
SNAPSnap Inc10.2 bn—-15.6%-4.9%+10.6%−23% / −57%
DOCNDigitalOcean Holdings, Inc.9.9 bn281.35.1%3.1%+15.5%+89% / +184%
MTCHMatch Group, Inc.9.1 bn13.7—20.7%+0.2%+21% / +24%
NIQNIQ Global Intelligence plc6.0 bn—-65.3%-8.0%+5.7%+29% / unavailable
SIFYSify Technologies Ltd5.8 bn—-4.1%-2.0%+9.0%+20% / +53%
WIXWix.com Ltd.4.4 bn91.5—2.5%+13.2%−16% / −21%
DVDoubleVerify Holdings, Inc.2.1 bn34.05.8%8.2%+13.9%+29% / −59%
BZKanzhun Limited1.7 bn41.616.0%33.1%+17.3%−21% / +6%
WBWeibo Corporation1.6 bn3.812.1%25.6%+0.1%−35% / −36%
HSTMHealthstream Inc949.7 m45.46.0%6.6%+4.3%+29% / +30%
NXDRNextdoor Holdings, Inc934.4 m—-7.2%-11.1%+4.2%unavailable / unavailable
CEVACeva, Inc.788.9 m—-3.6%-9.5%+2.5%+30% / +29%
BMBLBumble Inc.718.8 m—-85.9%-61.8%−9.9%+69% / −57%
RXTRackspace Technology, Inc.716.2 m——-5.9%−1.9%+165% / +123%
HUYAHUYA Inc.470.7 m—-1.9%-1.7%+11.6%−27% / −38%
YALAYalla Group Limited413.9 m6.819.6%43.3%+0.7%−24% / −2%
BLNDBlend Labs, Inc.302.7 m——-3.3%+6.8%−59% / +1%
HCATHealth Catalyst, Inc.119.7 m—-118.1%-90.6%+1.5%−47% / −78%
JFJ & Friends Holdings Ltd68.4 m——-82.9%−66.8%−3% / −17%
GOAIEva Live Inc31.8 m—-58.5%-39.3%+82.6%unavailable / unavailable
HOLOMicroCloud Hologram Inc.27.2 m—-2.3%-12.4%+38.6%−66% / −100%
TEADTeads Holding Co.27.0 m—-196.2%-43.3%+46.1%−61% / −93%

1- and 3-year price returns: for YALA from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
8.07
Total return 43% · Per year 43%
14.27
Total return 153% · Per year 153%
21.50
Total return 281% · Per year 281%
3 years
7.76
Total return 38% · Per year 11%
15.45
Total return 174% · Per year 40%
25.56
Total return 353% · Per year 65%
5 years
7.46
Total return 32% · Per year 6%
16.72
Total return 196% · Per year 24%
30.40
Total return 439% · Per year 40%
What moves the 3-year price the most
  • Exit P/E± 3.86
  • Net margin± 2.70
  • Annual revenue growth± 2.23
  • Annual dilution± 0.23

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 22 Apr 2026; since then the company filed 6-K (18 Aug 2026), 6-K (19 May 2026).

In brief

Yalla Group operates the Yalla and Yalla Ludo apps, voice-centric group chat and casual gaming platforms aimed mainly at users in the MENA region. It earns revenue from group chat and game services, and in fiscal 2025 revenue reached 341.9 million USD, up only 0.7 percent, which makes the trend in paying users worth watching in the next period.

SWOT

Strengths

  • The company has a large and loyal user base built on deep cultural localisation, an advantage that external competitors would find hard to replicate 1.
  • The business model has low content acquisition costs and relies on organic user acquisition, which the filing says supports high profitability 1.
  • A leading position in voice chat and social gaming in MENA provides a base for expansion into new products and markets 1.

Weaknesses

  • Revenue grew very little in the last year and the number of paying users fell, showing reliance on promotions run by third-party payment platforms 1.
  • The company has a relatively short operating history with this business model, which makes it hard to evaluate its growth prospects 1.
  • Revenue depends largely on two main apps, and diversification through new products has not yet changed this structure 1.

Opportunities

  • Expansion into markets outside MENA, such as South America with Yalla Parchis, could open additional revenue sources 1.
  • Development of mid-core and hard-core games through the Yalla Game subsidiary could diversify revenue beyond casual games 1.
  • Growth in paying users through new promotions and features could restore the pace of revenue growth 1.

Threats

  • Dependence of several MENA economies on oil and gas could affect users' entertainment spending 1.
  • Changes in policies, laws and regulations in the UAE and China could affect operations 1.
  • Competition from global and local players and other forms of entertainment could reduce market share 1.

Risks

  • User retentionhigh

    If the company fails to keep existing users or grow its base, its network effect and profitability could decline, according to the filing 1.

  • Reliance on third-party payment platformshigh

    The fall in paying users was attributed to fewer promotions by third-party payment platforms, which shows an operational vulnerability 1.

  • Emerging market exposuremedium

    Investments in emerging markets are described as riskier than those in developed markets, and MENA economies are linked to oil and gas 1.

  • Regulation across many jurisdictionsmedium

    The apps are available in more than 160 countries, and changes in laws and regulation in these jurisdictions could raise costs or limit operations 1.

  • Dependence on IT infrastructurelow

    Operations rely on properly functioning information technology systems, and service disruptions or failure to scale could affect operating results 1.

Investment thesis

What would need to be true (bull case)

  • The active user base has grown steadily in recent years, and ARPPU has risen, which could suggest monetisation is improving even as the number of payers falls 1.
  • The low-cost model and leading regional position in social gaming could support good margins if revenue returns to a growth path 1.
  • Expansion into new products and markets could diversify revenue sources and reduce reliance on the two main apps 1.

What would break the thesis

  • Revenue growth slowed sharply in the last year and the number of paying users fell, which could point to a deeper monetisation problem 1.
  • Dependence on economic conditions in MENA and on regulation in the UAE and China could limit long-term forecasts 1.
  • Competition and changing user preferences could reduce active users and the efficiency of marketing spending 1.

What to watch

  • Trend in paying users and ARPPUQ1 2027
  • Pace of revenue growth after the slowdown in 20252027
  • Effect of third-party payment platform promotions on paying usersnext 10-K
  • Results of new products and markets outside MENA2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 22 Apr 2026; since then the company filed 6-K (18 Aug 2026), 6-K (19 May 2026).

The business

Yalla Group Limited is a Cayman Islands holding company that operates mainly through subsidiaries in the UAE and China. Its main product, Yalla, is a voice-based group chat platform, and Yalla Ludo is a casual gaming app featuring board games popular in MENA. The filing states that the company was the largest MENA-based online social networking and gaming company by revenue in 2022, according to Frost and Sullivan 1.

Revenue comes from virtual currencies that users spend on virtual gifts, privileges in rooms or games, and VIP or premium membership. Basic access is free, and the company says it does not incur significant content acquisition costs. The filing notes that virtual gifts and currencies cannot be converted into real money 1.

The company has added products such as Yalla Baloot, 101 Okey Yalla, Yalla Parchis, YallaChat and WeMuslim, but according to the filing Yalla and Yalla Ludo still generate most of revenue 1. Operations are centred in the UAE, which functions as the main hub for sales, marketing and customer service 1.

Segments

Yalla group chat

The Yalla app offers voice chat rooms where users talk freely, an online version of the majlis or café in the region. Virtual gifts and rankings for the users who give and receive the most gifts are central monetisation tools 1.

Yalla Ludo casual games

Yalla Ludo includes online versions of board games popular in MENA, such as Ludo, Domino and Snakes & Ladders, with in-game voice chat. The company has also launched games for specific regions, such as Yalla Baloot for Saudi Arabia and 101 Okey Yalla for Turkey 1.

Messaging and moments

Private messaging and a mini-blog feature called moments are used to strengthen social ties and user retention. The filing describes them as engagement tools rather than major revenue sources 1.

Market context

The platform is available in over 160 countries, but MENA is the key market and the company is headquartered in the UAE 1. Average monthly users rose from 41.4 thousand in December 2024 to 44.8 thousand in December 2025, while paying users fell over the same period 1.

Several MENA economies depend heavily on the oil and gas industry, and political and economic conditions in the region could influence users' entertainment spending 1. The filing describes the social networking and gaming industry as relatively new and evolving, with a high degree of uncertainty 1.

Trends

  • Fewer paying usersheadwind

    The filing attributes the decline in paying users from the fourth quarter of 2024 to the fourth quarter of 2025 mainly to fewer promotional events run by third-party payment platforms. Rising ARPPU shows remaining users spending more, but the number of payers remains a vulnerability 1.

  • Rising ARPPUtailwind

    Average revenue per paying user has risen in recent quarters, which the company links to social and gamification features that encourage spending 1. If this continues, it could partly offset the drop in paying users.

  • Growing user basetailwind

    Average monthly active users rose each year in the period reviewed, driven by user acquisition in existing markets and expansion into other underserved markets 1. Sustained growth could support future revenue.

Competitive position

The filing says the company faces competition from global and local online social networking and gaming players, as well as from other forms of online and mobile entertainment 1. It presents itself as the regional leader but does not list specific direct competitors.

Its claimed advantages are deep local adaptation of products, the Yalla community culture and low user acquisition costs based on word-of-mouth referrals 1. If a global competitor adapted content more effectively for MENA, this edge could erode.

  • Global online social and gaming players

    The filing mentions competition from global players in online social networking and gaming without naming them.

  • Local MENA chat and gaming players

    The filing cites competition from local players in the region without naming specific companies.

  • Other online and mobile entertainment

    The filing includes other forms of online and mobile entertainment that compete for users' time.

  • Instant messaging platforms

    YallaChat competes with instant messaging apps, and the filing does not name specific competitors.

News & filings

Sources

  1. [1] Form 20-F, fiscal year ended 2025-12-31 · SEC / Yalla Group Limited · 22 Apr 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.