Yalla Group Limited (NYSE: YALA), a leading Middle East and North Africa (MENA)-based online social networking and gaming company, announced its financial results for the second quarter of fiscal year 2026, ended June 30.
The company reported AED 303.4 million (US$82.6 million) in revenue for Q2 2026, compared with AED 310 million during the same period in 2025. Net income reached AED 107.6 million (US$29.3 million), compared with AED 134 million in the second quarter of last year.
For the first half of 2026, Yalla Group generated AED 593.5 million in revenue and AED 211.9 million in net income, maintaining strong financial performance amid evolving regional market conditions.
Yalla Group Monthly Active Users Reach 47.6 Million
Yalla Group continued to expand its user base during the second quarter, with average monthly active users (MAUs) increasing 12.3% year-on-year to 47.6 million, compared with 42.4 million in Q2 2025.
The company also maintained a strong net margin of 35.5%, highlighting continued operating efficiency and the resilience of its business model.
Gaming Revenue Grows 11.6% Year-on-Year
Yalla Founder, Chairman and Chief Executive Officer Yang Tao said the company delivered a solid performance during Q2 2026, supported by the resilience of its flagship products and continued momentum across its gaming business.
Gaming services revenue increased 11.6% year-on-year, reflecting the strength of Yalla’s strategy and the resilience of its operations amid an evolving regional environment.
Tao noted that the company’s gaming portfolio made significant progress during the quarter, with Turbo Match expanding its user base across MENA, the United States and Europe.
Yalla is also advancing a broader pipeline of internally developed products spanning casual and hyper-casual games, social products and artificial intelligence applications.
Yalla Accelerates Artificial Intelligence Adoption
Yalla Group is accelerating the use of artificial intelligence (AI) across its research and development activities, including AI-assisted programming and an AI model-based system designed to generate game levels and evaluate their difficulty.
According to Yang Tao, these technologies are helping the company improve development efficiency, accelerate product development and deliver more engaging experiences for users.
The company also plans to deepen the integration between its social networking and gaming ecosystems while making AI a core component of its technology infrastructure to strengthen its long-term competitiveness.
Yalla Targets New Growth Opportunities in MENA and Global Markets
Building on its extensive experience in the Middle East and North Africa, Yalla Group plans to explore new growth opportunities across the region while pursuing strategic partnerships and expansion into international markets.
The company said it remains confident in its ability to deliver sustainable growth and create long-term value for shareholders through continued product development and market expansion.
Yalla Ludo Shows Recovery in Q2
Yalla Group President Saifi Ismail said the company’s user community continued to expand during the second quarter, while engagement across its core products remained strong.
Yalla Ludo recorded a clear recovery compared with the first quarter, supported by stronger user engagement and a rebound in paying-user growth.
The sixth season of Yalla Ludo Carnival, along with the launch of the company’s new long-term “Yalla Season” campaign, also contributed to strengthening the social entertainment experience for users.
Yalla Celebrates 10th Anniversary
Yalla’s flagship platform celebrated its 10th anniversary during the second quarter of 2026, marking a significant milestone in the company’s relationship with users across MENA.
The anniversary campaigns, which incorporated locally relevant cultural themes, generated strong engagement among Yalla’s user community.
Yalla Strengthens Regional Presence Through Saudi eLeague Partnership
Yalla Group also strengthened its regional presence through its partnership with Saudi eLeague 2026, enabling the company to engage directly with younger audiences and deepen its connection with the region’s growing digital entertainment and esports community.
Saifi Ismail said Yalla will continue leveraging its understanding of MENA markets and local user needs to develop relevant products and expand its portfolio.
The company plans to launch a series of campaigns during the second half of 2026, focusing on increasing user engagement, supporting sustainable growth and strengthening Yalla’s position in the region’s digital entertainment market.
About Yalla Group Limited
Yalla Group Limited is a MENA-based online social networking and gaming company. Its ecosystem includes flagship mobile applications such as Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of popular board games in the MENA region, along with in-game voice chat and localized Majlis functionality.
Building on the success of Yalla and Yalla Ludo, the company continues to develop new content and expand an integrated ecosystem designed to meet the evolving social networking and gaming needs of MENA users.
Through its holding subsidiary, Yalla Game Limited, the company has expanded into mid-core and hardcore gaming in the region, leveraging its local expertise to develop innovative gaming content.
The Yalla ecosystem also includes YallaChat, an instant messaging application tailored for Arabic users, as well as casual games such as Yalla Baloot and 101 Okey Yalla.
Outside MENA, Yalla is exploring international opportunities through Yalla Parchis, a Ludo game designed for South American markets.
