Cheetah Mobile narrows Q1 loss as sales rise 5.19%
Cheetah Mobile narrowed its Q1 net loss with adjusted EPS improving to $(0.07) from $(0.11) YoY. Sales rose 5.19% to $37.546 million, while RMB revenue remained flat at RMB259.0 million driven by a 175.9% surge in robotics revenue.
*this image is generated using AI for illustrative purposes only.
Cheetah Mobile reported a narrowed net loss for the first quarter of 2026, with adjusted losses per share improving to $(0.07) from $(0.11) in the same period last year. The company recorded sales of $37.546 million for the quarter, representing a 5.19% increase compared to $35.692 million in the prior year. Total revenue remained relatively flat year over year at RMB259.0 million, driven primarily by a 175.9% surge in revenue from its robotics and others segment to RMB51.2 million. The company maintained a strong balance sheet, holding RMB1,280.6 million in cash and cash equivalents as of March 31, 2026.
Revenue from services of cloud and AI infrastructure increased 68.3% year over year to RMB46.8 million, contributing to 64.3% of the Global Enterprise Services segment revenue. Conversely, revenue from internet value-added services rose 8.2% to RMB98.3 million, while overall Internet Services revenue decreased 15.2% due to a 46.3% decline in the online advertising business. Global Enterprise Services revenue fell 10.5% year over year to RMB72.8 million, impacted by a 51.5% decline in advertising agency services.
Financial Performance
The company reported an operating loss of RMB28.3 million for the quarter, compared to RMB26.5 million in the prior year. Non-GAAP net loss attributable to Cheetah Mobile shareholders was RMB11.7 million, compared to RMB21.1 million in the first quarter of 2025. Adjusted operating loss from the Robotics and others segment decreased by 57.1% year over year to RMB26.9 million.
| Financial Metric | Q1 2026 (RMB) | Q1 2025 (RMB) | Change |
|---|---|---|---|
| Total Revenues | 259,006 | 259,006 | - |
| Net Loss | (17,480) | (33,357) | Narrowed |
| Non-GAAP Net Loss | (11,698) | (21,148) | Narrowed |
| Cash and Cash Equivalents | 1,280,591 | 1,506,625 | Decreased |
Segment Results
Cheetah Mobile began reporting its robotics business as a separate segment in the first quarter of 2026. The Robotics and others segment, which includes robotics-related products and services, generated RMB51.2 million in revenue. The Internet Services segment, which includes online advertising and value-added services, reported revenue of RMB135.0 million. The Global Enterprise Services segment, comprising advertising agency and cloud and AI infrastructure services, recorded revenue of RMB72.8 million.
Adjusted operating profit from the Internet Services business decreased by 38.2% year over year to RMB15.2 million, while adjusted operating profit from Global Enterprise Services decreased by 67.3% to RMB13.8 million. The decline in Global Enterprise Services profitability was attributed to the revenue decrease in the advertising agency services business.
Will the 175.9% surge in robotics revenue be sufficient to offset the ongoing declines in the online advertising and advertising agency segments?
How does the company plan to utilize its RMB1.28 billion cash reserve to further accelerate growth in cloud and AI infrastructure services?
What is the expected timeline for the Robotics and others segment to achieve profitability given the current adjusted operating loss of RMB26.9 million?
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