Aurora Mobile Ltd Sponsored ADR Class A Stock price
Is Aurora Mobile Ltd Sponsored ADR Class A a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $41.27m | Revenue (TTM) = $58.17m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $17.85m | Revenue (TTM) = $58.17m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Aurora Mobile Ltd Sponsored ADR Class A Stock Analysis
Analyst Opinions
9 Analysts have issued a Aurora Mobile Ltd Sponsored ADR Class A forecast:
Analyst Opinions
9 Analysts have issued a Aurora Mobile Ltd Sponsored ADR Class A forecast:
Aurora Mobile Ltd Sponsored ADR Class A Events
Past Events
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AUG
20
Q2 2026 Earnings Call
about one month ago
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MAY
26
Q1 2026 Earnings Call
4 months ago
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MAR
12
Q4 2025 Earnings Call
7 months ago
|
|
NOV
13
Q3 2025 Earnings Call
11 months ago
|
|
AUG
28
Q2 2025 Earnings Call
about one year ago
|
StocksGuide Free
Aurora Mobile Ltd Sponsored ADR Class A — Q2 2026 Earnings Call
1. Management Discussion
Thank you. Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on its IR website at ir.aurora-mobile.com. On the call today are Mr. WeiDong Luo, Chairman and Chief Executive Officer; Mr. Shan-Nen Bong, Chief Financial Officer; and Mr. Guangyan Chen, General Manager. Following their prepared remarks, they will be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties and factors are included in the company's filings with the U.S. SEC. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. With that, I'd now like to turn the conference call over to Mr. Luo. Please go ahead.
Thanks, Christian.
Hi, everyone. Welcome to Aurora Mobile's 2026 Second Quarter Earnings Call. Before I comment on our Q2 results, I would like to remind everyone that we have uploaded the quarterly earnings deck on our IR website. You may refer to the deck as we proceed with the call today. As we've done in the past, the suitable description that I will give to the second quarter of 2026 is our RMB 100 million revenue quarter. The reason for this narrative is obvious. Our achievements in the second quarter of 2026 are as follows. Firstly, for the third time in our history, we recorded SaaS business revenue in excess of RMB 100 million in a single quarter. This was fueled by the highest developer service revenue in history of RMB 79.9 million in this quarter.
Secondly, our global flagship product, EngageLabs, has its best quarter yet. The EngageLabs ARR for June 2026 has scaled to a record high of $14.6 million, representing 170% year-over-year growth. Thirdly, gross profit grew by 16% year-over-year. Gross margin improved by 197 basis points between the years. Having top line growth alone is not enough. In this quarter, we delivered the fifth consecutive quarters of U.S. GAAP net profit. Last but not least, operationally, we brought a net cash inflow of RMB 23.3 million this quarter. This marks a strong second quarter performance hitting on our Q1 results in May. Taken together, the first 2 quarters of 2026 validate our robust growth momentum, and we remain on track to deliver against our targets for highly promising full year 2026.
Let me now share more on the business aspects. RMB 100 million revenue a quarter. Yes, we made it again. This milestone came 1 quarter earlier than what we previously anticipated. We are very pleased with this early pleasant surprise. Our total Q2 group revenue reached RMB 101.2 million, representing a strong 13% year-over-year growth. This RMB 100 million of quarter revenue is a very important milestone for us. It signifies a few key messages that I think are important that I share with you all today. Firstly, the RMB 100 million quarterly revenue milestone marks a landmark validation of Aurora Mobile's pure SaaS strategic transformation forming a durable larger revenue foundation. Secondly, top line expansion is anchored by high-margin recurring developer subscription revenue supported by solid customer retention and rising enterprise demand.
Thirdly, dual growth engines, domestic developer ecosystem and fast-growing global EngageLab business jointly drive scalable cross-market revenue expansion. Fourthly, greater revenue scale improves operating leverage, underpinning our consistent profitability trend and long-term path of sustainable shareholder returns. In this quarter, Developer Services recorded a great 24% revenue growth year-over-year, but Vertical Applications revenue decreased 16% year-over-year. Developer services revenues, which consists of subscription service and value-added services, delivered excellent performance in this quarter. Our core business, developer subscription services delivered another historic high quarterly revenue number of RMB 70.7 million, representing growth of 32% year-over-year and 9% quarter-over-quarter.
The year-over-year and quarter-over-quarter revenue growth was mainly driven by increases in both customer number and ARPU. In short, the momentum of this business is very strong, and I do have high hope of the continued growth in many more quarters to come. Now let's move on to the update on our global flagship product, EngageLabs. EngageLabs being the jewel of Aurora Mobile's growth engine has again brought in excellent numbers every quarter since its launch. In this quarter, the highlights include Firstly, EngageLab recorded another quarter of tremendous growth where the ARR reached a new milestone of $14.6 million as of June 2026.
This represents a 170% year-over-year growth. Secondly, EngageLab broke another record where the cumulative signed contract value has exceeded RMB 200 million by the end of Q2 of 2026. This speaks volume in terms of the market acceptance and total addressable market for these products. For sure, we are very pleased with this achievement. Nevertheless, we will continue to work hard and smart to conquer more markets and winning more contracts. In Q2 alone, we [indiscernible] more than RMB 27.4 million worth of new contracts. Thirdly, more and more new global customers are being converted and switched to EngageLab. The EngageLab customer number has exceeded 2,100 as of the 30th of June 2026.
The expansion of EngageLab across the globe has been very successful. Fourthly, the recognized revenue for EngageLab in Q2 of 2026 reached RMB 27.5 million, representing an outstanding 186% growth year-over-year. Also, in this quarter, there was a new addition to the EngageLab family, where we officially launched Silent Auth, an advanced password-less authentication solution designed to complement existing SMS OTP services and elevate identity verification for the global market. Silent Auth provides a more dependable approach to phone-based authentication across 3 key use cases, namely: firstly, faster registration and login; secondly, secure verification for high-risk operations; and thirdly, marketing fraud prevention.
We view the launch of Silent Auth not only enriches EngageLab's omnichannel customer engagement portfolio, but also reinforces Aurora Mobile's commitment to providing global enterprises with stable, efficient and intelligent solutions. Going forward, it is my goal that EngageLab will continue to leverage advanced technology to help businesses build stronger, trust-based customer relationships and accelerate global growth. Within subscription revenue, some of the notable wins in this quarter include but are not limited to, Bank of China, Hong Kong, CXMT, Mingshun Zhenzhen [indiscernible]. Value-added services revenues were RMB 9.2 million, up 36% quarter-over-quarter but down 15% year-over-year.
The quarter-over-quarter spike was mainly attributable to the traditional quarterly online shopping of [indiscernible] in Q2. I think it is also time for me to provide an update on the progress and updates we have on our enterprise AI agent platform, GPTbots.ai. Recently, we released a major production grade upgrade to GPTbots.ai, tackling the key industry limitations, whereby conventional AI agents only support conversations and demos like business system integration and end-to-end task execution. The upgrade centers on 3 pillars: a graph enhanced knowledge base for context-aware business analysis, autonomous workflow automation across 14 communication channels via agent collaboration. and robust enterprise governance with audit trails, onetime safeguard and mandatory human validation for live deployment.
This product advancement supports GPT global expansion through the following: Firstly, transform the platform into a production-ready solution to improve overseas sales conversion. Secondly, native compatibility with global channels, including WhatsApp, Flex and Teams expand market reach across North America, Europe and Southeast Asia. Thirdly, strengthen governance satisfies international data compliance requirements, enabling deals with multinationals and regulated sectors. Fourthly, optimized knowledge processing reduces customization and onboarding costs for global clients and improves project gross margin. We believe the upgrade puts Aurora Mobile in a strong position to capture market share as enterprises worldwide transition from AI testing to large-scale deployment of agent AI.
As you can see, besides growing the business globally, we have been busy on the R&D front. Our team has not taken our eyes off the need to continue to upgrade and create new products and services to supplement our entire suite of service to our customers. This is important because we will not rest on our laurels amidst our achievements to date. We must remain attuned to the latest developments across global markets and implement necessary product upgrades, adjustments and innovations as circumstances demand. Only by doing so can we stay relevant and meet the evolving needs of our global customer base. Collectively, these efforts form critical building blocks to sustain ongoing revenue growth and advance our path towards improved profitability. Now let me pass the call over to Shan-Nen, who will take you through the metrics on vertical applications and financial performance for this quarter.
Vertical application that includes Financial Risk Management and Market Intelligence. Overall, Vertical Application revenue decreased year-over-year and quarter-over-quarter. Within Vertical Application, Financial Risk Management revenue decreased 17% year-over-year and pretty much remained flat quarter-over-quarter. We are still operating in a tough business environment, and we are making the necessary adjustment on go-to-market and various strategies. The customers that we signed up or renewed in Q2 include, but not limited to, Pufahang, Ping An Xxin, Yitonghang and many more licensed credit for financial institutions throughout China.
Market Intelligence revenue decreased 11% quarter-over-quarter and 12% year-over-year due to the continued weak market demand for Chinese APP data. And this result is in line with our expectation. Coming to the other P&L items. Our gross profit recorded another strong Q2 quarter with 16% year-over-year growth to RMB 69.2 million. Our gross margin has also recorded significant improvement by 197 basis points year-over-year. This improvement reflects better product mix and tighter operating control discipline. Higher gross profit gives us greater flexibility to invest in growth while absorbing external cost pressure. Most importantly, it proves that we can convert business scale into sustainable profit generation, which is critical to driving shareholders' return over time.
On net profit, following the great momentum we had in Q1 of 2026, we recorded yet another GAAP net profit quarter, making it fifth consecutive quarter of GAAP net profit. We are very pleased with how this quarter has played out financially from top line growth to bottom line profitability. On to operating expenses. Q2 OpEx was at RMB 67.6 million, up 2% quarter-over-quarter and up 11% year-over-year. The OpEx is within our forecast, and we are happy at the level where they are. I'll now dive deeper into the individual OpEx category. R&D expenses increased by 13% year-over-year to RMB 29.3 million, mainly due to the higher staff costs and associated expenses. Technical service fees also contributed to the year-over-year increase. Selling and marketing expenses increased by 25% year-over-year to RMB 28.3 million, mainly due to the higher staff costs driven by overseas business expansion.
G&A expenses decreased by 18% year-over-year to RMB 10 million, mainly due to the decrease in bad debt provision resulting from improved collection efficiency. Besides, there was no loss on disposal on property and equipment in Q2 of 2026, while such loss was incurred in the same quarter last year. Next, I'll share 4 other very important KPIs that we closely monitor. Our net dollar retention rate, a commonly used KPI for SaaS company stood at 106% for our core developer subscription business for the trailing 12-month period ended June 2026. This is the highest NDR number that we have recorded to date. This is an important signal of existing customer health. This record NDR speaks to strong product stickiness, expanded usage from our installed base and the success upsell and cross-selling activity within our customer -- within our current clients.
While NDR can fluctuate quarter-over-quarter, given customer-specific renewal dynamics, but we are very encouraged by this peak result, and we are focused on sustaining healthy retention trends ahead. Secondly, another financial KPI for tracking the performance of SaaS company is total deferred revenue. This represents cash collected in advance from customers for future contract performance and it stood at RMB 181.9 million as of June 30, 2026. This is also a historic high balance. This balance acts as a high-quality leading indicator. It gives us good visibility into the near-term revenue stream and strengthen our operating cash flow profile by bringing cash collection forward relative to the income statement recognition.
Thirdly, we continue to maintain a healthy level of AR turnover days of 37. These low AR turnover days ensure we have great cash liquidity while mitigating the risk of bad and doubtful debt. And on to cash flow, another important financial KPI for us to manage the business. For the quarter ended June 30, 2026, we recorded net operating cash inflow of RMB 23.3 million. Having operating net cash inflow is very important as it validates our earnings quality and gives investors and shareholders greater confidence in the sustainability of the reported profit.
And let's now recap on Chris' comment on our RMB 100 million quarter revenue quarter. In the second quarter of 2026, we achieved another quarter of GAAP net profit in 2026. This marks our fifth consecutive quarters of net profit, a great trend for healthy, profitable and sustainable business. Two, our core developer subscription business has outgone itself again by recording another historical high of RMB 70.7 million revenue in this quarter. The jewel of Aurora Mobile, EngageLab continues to scale rapidly across the globe. Our EngageLab business exceeded its past record in this quarter.
The ARR in June 2026 reached USD 14.6 million. This represents a stunning 170% year-over-year growth. Fourth, our gross margin grew by 197 basis points year-over-year and gross profit grew by 16% year-over-year. Five, our net dollar retention for core developer service stood strongly at 106%, another historic high. Number six, equally important was the net cash inflow that I mentioned of RMB 23.3 million we brought in from operating activities.
As I have alluded in the last quarter's earnings call, Q1 numbers we have recorded paved the way for a great financial year of 2026. And this momentum we built in Q2 of 2026 was truly phenomenal. The quarterly operating and financial results that Chris and I shared during the call today reflect the considerable strength across our business. We will continue to executing against our established strategic priorities. As we deliver on our execution road map, we are confident these operational wins will translate into sustained improvement in our financial statement. Lastly, before I conclude, I'll give a quick update on the share repurchase plan.
In the quarter ended June 30, 2026, we repurchased 44,000 ADS. Cumulatively, we have repurchased a total of 485,000 ADS since the start of our repurchase program. And this concludes our prepared remarks. We are happy to take your questions now. Operator, please proceed.[ id="-1" name="Operator" />
[Operator Instructions]
And the first question comes from Calvin Wong with Ser Capital.
2. Question Answer
Based on the numbers released today, we note that you have a very, very strong Q2 quarter. So can I get the management to shed some light on the Q2 quarter and perhaps maybe some hints on how Q3 and Q4 will be for 2026?
Calvin, thanks for your question. Let me take your question today. Yes, you're right. The Q2 numbers that we just had was a good quarter for us. If I may take a few minutes or just probably just 1 minute to summarize here, the 3 key highlights for Q2 of 2026 would be: number one, our quarterly revenue exceeded RMB 100 million mark.
Number two, we recorded the fifth consecutive quarters of U.S. GAAP profit. And number three, operating activities brought in net cash inflow of RMB 23.3 million. And hitting all these 3 milestones in 1 quarter is significant. It reflects a thriving business where revenue is at a high level. We are delivering GAAP profitability while we also generate net cash inflow, which is very important. And Chris and I are very pleased with how this quarter has unfolded. As we look into the rest of 2026, our stance remains cautiously optimistic. We are encouraged by the business growth trajectory with the global EngageLab business delivering standout momentum. Meanwhile, we will continue to exercise strict cost discipline. Even so, we will still allocate resources selectively to high-priority initiatives that we believe are critical to driving durable and long-term sustainable growth. I hope this answers your question, Calvin.
[ id="-1" name="Operator" />
And our next question is going to come from Jack Sun with Gelonghui Research.
I'm Jack from Gelonghui Research. I noticed from the press release by the company and the commentary made by Chris during the call, we are launching various new services such as Silent Auth and Modellix together with some upgrades to GPTBots. My question is, are they necessary? And how do they benefit the company as a whole?
Jack, good to hear from you. Let me take this question. Those services and upgrades that you mentioned are purpose built upgrades built upon our existing customers' engagement and AI platforms. They are not disconnected new ventures.
And this is an important differentiator when compared to others in the space. We are not building all these new tools or services just to follow the flavor of demand trend. Instead, every single new capability ties back to our core business. I think, for example, Silent Auth they expand EngageLab value proposition beyond traditional messaging. It reduces user lock-in drop-off. It strengthens the fraud defense and give us high-value authentication revenue from our existing global enterprise clients.
And for Modellix that you mentioned also, it addresses the fragmentation enterprise space juggling different AI model vendors. It acts as our unified AI model gateway, cutting integration overheads for customers and it simplifies billing and operation and feeding model by multimodel capability directly into the GPTBots to make our AI agent more powerful for end user. And just to share, even our own internal IR team, we use Modellix to prepare the Q2 ER deck that we uploaded to the IR website today. It's simply because Modellix has so many different large language models that we can pick and choose from within one single platform. There's no need to switch between different large language model accounts for different companies. It is also very easy to use. So I will sincerely encourage everyone on this call to try out Modellix too. As for our GPTBot platform upgrades, it advances our enterprise AI agent offering. It expands multi-agent orchestration, multimodel workflow and no-code tooling. And this drives upsell among our large existing customer base and attract new clients seeking production-ready AI automation and not just AI prototypes.
So if I may summarize, collectively, I believe these upgrades or new products that you mentioned, they reinforce our integrated platform strategy where deeper stickiness within our current account. It helps higher our average contract value and also this represent a new venture, new revenue stream while leveraging our existing global sales, compliance and infrastructure footprint. I hope this answers your question.
Jack?
Yes, that's very clear.
Operator, I have no more questions.
[ id="-1" name="Operator" />
[Operator instructions]
I am showing no further questions at this time. I will now turn the call back over to Christian for closing remarks.
Thank you, everyone, for joining the call tonight. If you have any further questions or comments, please don't hesitate to reach out to the IR team. This concludes the call. Have a good evening. Thank you very much.
[ id="-1" name="Operator" />
Thank you. This does conclude today's conference call. Thank you for participating, and you may now disconnect.
Aurora Mobile Ltd Sponsored ADR Class A — Q2 2026 Earnings Call
Aurora Mobile Ltd Sponsored ADR Class A — Q1 2026 Earnings Call
1. Management Discussion
Ladies and gentlemen, thank you for standing by, and welcome to the Aurora Mobile First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your host today, Christian Arnell. Thank you. Please go ahead, sir.
Thank you. Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the IR website at ir.jiguang.cn. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer; Mr. Shan-Nen Bong, Chief Financial Officer; and Mr. Guangyan Chen, General Manager.
Following their prepared remarks, they will be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements.
Further information regarding these and other risks, uncertainties and/or factors are included in the company's filings with the U.S. SEC. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law.
With that, I'd now like to turn the conference over to Mr. Luo. Please go ahead.
Thanks, Christian. Hi, everyone. Welcome to Aurora Mobile's 2026 First Quarter Earnings Call. Before I comment on our Q1 results, I would like to remind everyone that we have uploaded the quarterly earnings deck on our IR website. You may refer to the deck as we proceed with the call today. As we've done in the past, the simple description that I would give to the first quarter of 2026 is a good spring brings a good year.
Within this first quarter of 2026, our achievements are as follows: Firstly, in this quarter, the group recorded revenue of RMB 93.3 million, representing a solid 5% year-over-year growth. Secondly, our global flagship product, EngageLab, continues to shine. The EngageLab ARR for March 2026 surged to a record high of $11.7 million, representing 172% year-over-year growth. Thirdly, gross profit grew by 13% year-over-year. Gross margin improved by 490 basis points between the year. Along the way, we delivered the fourth consecutive quarter of U.S. GAAP net profit.
Trust you would agree with me, the Q1 that we have delivered was indeed a fairly good set of financials, and this is a great way to kick off a brand-new 2026 financial year. Let me now share more on the business aspects. Q1 of each year is always the tough quarter for majority, if not all of businesses. Just to share, within the first quarter of the year, we have the shorter month of February, coupled with the long Chinese New Year holidays, business activities tend to be slower at this time of the year.
Despite the slower quarter of the year, we worked harder and smarter and managed to pull through with relative excellent results. Our total Q1 group revenue reached RMB 93.3 million, representing a solid 5% year-over-year growth. In this quarter, Developer Service recorded great 15% revenue growth year-over-year, but vertical applications revenue dipped 19% year-over-year. Developer Service revenues, which consists of subscription service and value-added services delivered strong performance with 15% growth year-over-year but decreased 6% quarter-over-quarter.
Our core business, Developer Subscription Service delivered another quarter of excellent revenue number of RMB 64.9 million, representing growth of 21% year-over-year and 5% quarter-over-quarter. The year-over-year revenue growth was mainly driven by increases in both customer number and ARPU. In this quarter, subscription revenue recorded its highest level in history yet at RMB 64.9 million, surpassing the RMB 61.9 million high level in Q4 of 2025.
Now let's move on to the update on our global flagship product, EngageLab. As we have seen in the past 12 to 18 months, EngageLab is now the indisputable primary driver of revenue growth for Aurora Mobile and it is on great acceleration path. First, EngageLab ARR has refreshed its own record and achieved a new milestone of $11.7 million as of March 2026. For the second consecutive quarter, we recorded very remarkable year-over-year ARR growth. In this quarter, the growth was 172%.
Secondly, EngageLab continues to record another strong quarter. Cumulative signed contract value amounted to RMB 185 million by the end of Q1 of 2026. In Q1 alone, we won and signed up about RMB 28 million worth of new contracts. It has again shown the great growth momentum for this business.
Thirdly, we continue to witness the influx of new global customers signing up to purchase EngageLab. In this quarter alone, we have converted and won over 223 new customers all over the world. The customer number has grown by 120% year-over-year to 1,864. We are very pleased with the new wins.
Fourthly, the recognized revenue for EngageLab in Q1 of 2026 reached RMB 24 million, representing an outstanding 210% growth year-over-year. We continue to see great strength in EngageLab business expansion. The revenue growth, new wins and great ARR numbers were all result of the great work done by the team to meet and exceed overseas customers' needs and expectations quarter-over-quarter. We saw more customers converted to using EngageLab platform due to the superior suite of products we have to address their needs. Equally important is our service-oriented mindset to attend to and resolve customers' issues on a timely basis.
Let me take a few minutes to share with you on our Aurora Mobile competitive advantages based on what I have witnessed for the past 18 to 24 months and why we can grow the EngageLab revenue with strength quarter-over-quarter. Firstly, over the years, we have built mature, highly concurrent and elastically scalable underlying infrastructure polished through years of commercial operation. This infrastructure supports massive data processing, real-time delivery and global traffic scheduling for our customers. Secondly, we have completed global market layout at an early stage and have established solid brand recognition in overseas digital service sectors.
Thirdly, we possess exclusive capabilities, helping our customers to unify their full lifecycle user data, covering acquisition, activation, engagement, retention and conversion. Fourthly, our products are equipped with self-developed native AI technology, deeply embedded in full product scenarios together with standardized automated workflow engines. Our solutions help customers boost operational efficiency, realize intelligent management and cut labor costs significantly.
Fifthly, we have spent considerable effort ensuring we fully comply with global stringent data regulations, including privacy protection, cross-border data transmission and regional data residency rules, meeting market access requirements across Europe, America, Southeast Asia and other key regions. Fifth equally important is our lightweight architecture features easy access and low development barriers, friendly to developers and enterprise technical teams for fast integration and launch.
At the same time, it lowers potential customers' reaching depletion barriers and greatly improve market replication efficiency. I believe these competitive advantages will no doubt solidify our position in the global user engagement space and market. These advantages are pivotal to long-term revenue acceleration in the years to come.
On to our global expansion road map, we made great progress in Q1 of 2026. Within the first 3 months of 2026, we managed to sign up and finalize 9 other new overseas partners. These overseas partners will help us to sell into the local customers in their respective countries.
As of now, we have 26 independent partners globally working together to help us further expand our reach and footprint to more overseas customers. Within subscription revenue, some of the notable wins in this quarter include, but are not limited to, the largest TV company in the world for their China operations, SF Express, Guotai Junan Securities, Somu Security, and Cheg International.
Value-added services revenues were RMB 6.7 million, down 53% quarter-over-quarter. The decrease was mainly attributable to the absence of the traditional quarterly online shopping festivals, mainly the Double 11 or Double 12 in Q1.
Now let me pass the call over to Shan-Nen, who will take you through the metrics on vertical applications and financial performance for this quarter.
Okay. Thanks, Chris. Next, I'll go over the revenue for vertical applications that includes Financial Risk Management and Market Intelligence. Overall, vertical application revenue decreased year-over-year and quarter-over-quarter. Within vertical application, Financial Risk Management revenue decreased 18% year-over-year and 29% quarter-over-quarter. The recent regulatory updates within the financial industry have resulted more headwinds for this segment of the business, but we are making necessary adjustment in terms of products and go-to-market approach to move forward.
Despite the tough operating environment, we still managed to win new contracts as the demand for our products and services is still there. The customers that signed up or renewed in Q1 include, but not limited to, Fenqile, Xiaoying Puhui, Ping An Puhui, Zhonglian Xiaojin, and many more licensed credit for financial institutions throughout China.
Market Intelligence revenue increased by 3% quarter-over-quarter, but decreased by 25% year-over-year due to the weak market condition and demand for Chinese app data, and this result is in line with our expectation.
Coming to the other P&L items. Our gross profit recorded another good quarter with 13% year-over-year growth. The RMB 66.3 million gross profit that we had in Q1 paved a great foundation for the rest of the year in 2026. Our gross margin also recorded significant improvement by 490 basis points year-over-year. This again signifies the healthy business model that we are operating in. With this healthy level of margin, we are poised to record good bottom line numbers going forward.
On net profit, following the great momentum that we have in 2025, we started the year 2026 with another GAAP net profit quarter. This is a great achievement as Q1 is a cyclically slow quarter for each year.
On to operating expenses. Q1 OpEx was at RMB 66.1 million, down 3% quarter-over-quarter, but up 9% year-over-year. The OpEx is within our forecast, and we are happy with the level where they are.
I will now dive deeper into the individual OpEx category. For R&D expenses, it increased by 17% year-over-year to RMB 28.7 million, mainly due to the higher staff costs and associated expenses. Technical service fee also contributed to the year-over-year increase. Selling and marketing expenses increased by 11% year-over-year to RMB 25.9 million, mainly due to the higher staff costs driven by overseas business expansion.
G&A expenses decreased by 9% year-over-year to RMB 11.5 million, mainly due to the decrease in bad debt provision resulting from improved collection efficiency.
And next, I'll share three very important KPIs that we closely monitor. Our Net Dollar Retention Rate, a commonly used KPI for SaaS company stood at 103% for the -- for our core Developer Subscription business for the trailing 12-month period ended March 31, 2026. And this is the third consecutive quarter where the NDR number has exceeded the 100% threshold. And this is the best testimony on the great products and services we are selling. In summary, customers continue to increase their spending with us over time.
Secondly, another financial KPI for tracking the performance of SaaS company is the total deferred revenue. This represents cash collected in advance from customers for future contract performance and it stood at RMB 173.9 million as of March 31, 2026. And this high deferred revenue balance is the best proof that SaaS business model that we are in is working well. In short, we have secured RMB 173.9 million worth of future revenue as of March 31, 2026.
Thirdly, we continue to maintain a healthy level of AR Turnover Days at 42 days. And these low turnover days ensure we have great cash liquidity while mitigating the risk of bad and doubtful debts. Cash collection is one of the key KPIs that we have for our sales team.
Let us now recap on Chris' comment on a good spring brings a good year at the beginning of this call. In view of the slower quarter in Q1 of each year, we have achieved and delivered a terrific set of Q1 numbers. Firstly, we achieved GAAP net profit in the very first quarter of 2026, and this marks our fourth consecutive quarter of net profit. Secondly, our core developer subscription business achieved a historical record high of RMB 64.9 million revenue this quarter. Third, our flagship product, EngageLab, continued to scale rapidly across the globe. Our EngageLab business exceeded its own past record in this quarter. The ARR in March reached USD 11.7 million. This represents a stunning 172% year-over-year growth.
Fourth, gross margin grew by 490 basis points year-over-year, the highest it has been for the past 8 quarters, and the gross profit grew by 13% year-over-year. Last but not least, our Net Dollar Retention for core Developer Service stood strongly at 103%. Although Q1 has been a tough quarter, but we have been resilient and managed to navigate through these rough quarters.
In Q1 '26 results that we have presented today's big volume, we delivered revenue growth and our EngageLab business continued to scale new highs. And this lays solid foundation for the rest of 2026. And we are very committed to expanding the business on a global level and continue to be highly disciplined in our spending. We believe this combination is the appropriate strategy to bring the business forward.
Lastly, before I conclude, I'll give a quick update on the share repurchase plan. In this quarter ended March 31, 2026, we repurchased 42,000 ADS. Cumulatively, we have repurchased a total of 441,000 ADS since the start of our repurchase program.
And this concludes our prepared remarks. We are happy to take the questions now. Operator, please proceed.
[Operator Instructions] And the first question comes from the line of William Chan from [ Spiga Capital ].
2. Question Answer
Based on the Q1 numbers you have released earlier today, it is a really good set of financial statements. We have revised and reanalyzed the company ER for the past 5 quarters, and it appears that things are moving to the right direction operationally and financially. The revenue, I mean, especially the EngageLab has been showing great growth momentum. Gross profit and margins are pretty solid. Most importantly, the company has turned full year profit in 2025 and again in this quarter. So my question for the management is how we should look at the Aurora Mobile for the financial year 2026?
William, let me take this call -- take this question. Yes, you are right, we are very pleased with the Q1 results for the beginning of 2026. And you are right to point out too, for the entire financial year of 2025 and Q1 of 2026, we have been consistently delivering solid financial numbers quarter-over-quarter without fail.
And this has proven that the business model and the execution capability of the management are standing up to the test quarter-over-quarter and year-over-year.
And in the call earlier, you have heard Chris share on Aurora Mobile's competitive advantages in the market that propel the growth that we have seen today. And these competitive advantages are real and continue to fuel our growth acceleration in the future. And customers are switching to us and buy our services because of these advantages that we have in the marketplace.
At this point, I would like to add that maybe it is time now to relook at Aurora Mobile and why it is time to invest right now. And there's no doubt that the current valuation is at the low side, but let me share with you on our long-term valuation logic. I believe our valuation logic includes the following aspect: one, our solid and foundational domestic core business delivers stable cash flow and strong cyclical resilience. Secondly, through our global flagship product, EngageLab, our scalable global SaaS expansion brings clear predictable long-term growth curves. And through GPTBots.ai, the in-depth native AI integration empower us and our business to gain high premium and valuation rerating upside.
Our exclusive full scenario contextual platform builds you replicable competitive moat and operational defensibility. And equally important is the alignment of outcome-based enterprise software trend. And this significantly enhance our long-term monetization capability and profit elasticity. And what all this means is I think Aurora Mobile should not be valued purely as a traditional infrastructure company nor as a purely as a single point AI tool. Our corporate framework should reflect platform synergy, global SaaS growth and AI upside altogether.
I believe the above is a better way to view and value Aurora Mobile as a whole for now. And I hope this answers your question, William.
Our next question comes from the line of Jack Sun from [ Gelonghui Research ].
I'm Jack from Gelonghui Research. I look at the Q1 earnings with one particular focus on EngageLab. We have been seeing on EngageLab growing every quarter with good numbers from customer numbers. Contract value signed to impressive ARR growth. My question for management is how much fuel is left in the tank for EngageLab? In other words, how long can this EngageLab growth can be sustained?
Jack, let me take this question, too. This is a good question, but it's a very tough one that you have for us today. And my short answer to your question is, yes, we still have a long way to go in terms of the growth of EngageLab. You're right. And a lot of people have been saying our EngageLab business has been growing from day 1 of its launch about 3 years ago. And as of now, after 3 years, we're still growing, but we are only gaining a fraction of the market globally. And let me share a view on your question on -- let me answer your question in two aspects.
Firstly, let's look at the geography. If we zoom further into Southeast Asia market, where we generate about 40% of EngageLab business, we are nowhere near market dominant position. What that means is the room for growth even in just Southeast Asia itself is huge. Overall, the global user engagement market is vast. Besides Southeast Asia, the other markets are sizable, too. For example, Asia Pacific includes Australia and New Zealand, Middle East and European market. Right now, we are just at the tip of the iceberg. The market is so huge that we believe it can provide many years of growth to come.
The second aspect is the industry that we are selling into. Again, as of now, we have not dominated any particular industry vertical at all. As a matter of fact, majority, if not all businesses in all industry verticals have needs to engage with their users. Let me share with you on the actual examples.
One, all apps, will need to send notification to its user, be it promotional or simply inform its user to update the latest version of app. A second example is online merchants would like to send notification to its user on the timing of the merchant delivery and coffee apps such as Starbucks and Cotti Coffee both our clients, informing customers that the lattes or Americanos are ready to pick up.
And fourthly, airline companies needing to inform their passengers on upcoming flight, the check-in date or the boarding date. So these are just some of the real-life examples that notification are being deployed in a daily life. And I'm sure you can appreciate this application. The notification or user engagement are simply omnipresent for most, if not all enterprise in all industry. Therefore, the market is there for us to capture with both hands.
So back to your question, there's still a lot of fuel left in the tank for our EngageLab business. The EngageLab market landscape remains vast, which equips us with a substantial multiyear growth headroom for further penetrate for more markets and drive steady revenue growth. And I hope this answers your question.
[Operator Instructions] We are now going to take our next question. And this question comes from the line of [ Mike Tang ] from [indiscernible] Research.
Congratulations on a great quarter. Just a quick question from me. I've noticed that from a year-over-year perspective, both revenue and gross profit seems to have -- in terms of the growth rate seems to have fallen a bit compared to fourth quarter. Can you just maybe talk about some of the reasons behind that?
Sure, Michael. Thanks for your interest on Aurora Mobile and your question. Let me take this call. And probably you appreciate Q1 is a traditionally slow quarter amongst the 4 quarters within a year. We still managed to see good results from our core Developer Subscription business, where year-over-year revenue achieved a solid 21% growth that I talk about, Chris talked about too and reaching an all-time high of RMB 64.9 million. And also in this quarter, gross profit rose by 13% year-over-year.
The overall slow growth that you mentioned was mainly attributable to the revenue from other sector, which is the Value-Added Service and Vertical Application. And let me share with you the reason. And one is the fact that advertising business was pressured by the seasonality and Q1 is traditionally a slow season in the industry. And without the traffic catalysts such as e-commerce shopping festival and coupled with the long Chinese New Year holidays, marketing spending by brand clients remain slow and leading to the current market condition that you have seen in Q1.
And secondly, the slower demand for Vertical Application. The macroeconomic headwinds have softened our overall client demand, in particular, the Financial Risk Management business were also impacted by the recent regulatory adjustment that I shared earlier on. But for the remaining 3 quarters of 2026, our core Developer Subscription business is poised for substantial growth with meaningful revenue expansion. And meanwhile, our overseas business, EngageLab is expected to accelerate and benefit from our global footprint will further be unlocked and realized. I hope we answered your question, Michael.
There are no further questions for today. I will now hand the call back to Christian Arnell for closing remarks.
Thank you, everyone, for joining our call tonight. If you have any further questions and comments, please don't hesitate to reach out to the IR team. This concludes the call. Have a good evening, and thank you.
Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Aurora Mobile Ltd Sponsored ADR Class A — Q1 2026 Earnings Call
Aurora Mobile Ltd Sponsored ADR Class A — Q4 2025 Earnings Call
1. Management Discussion
Ladies and gentlemen, thank you for standing by. Welcome to the Aurora Mobile Fourth Quarter and Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Christian Arnell. Please go ahead, sir.
Thank you. Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the IR website at ir.jiguang.cn. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer; Mr. Shan-Nen Bong, Chief Financial Officer; and Mr. Guangyan Chen, General Manager.
Following their prepared remarks, they will be available to take your questions and give you answers during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements made within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements.
Further information regarding these and other risks, uncertainties and/or factors are included in the company's filings with the U.S. SEC. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
With that, I'd now like to turn the conference over to Mr. Luo. Please go ahead.
Thanks, Christian. Hi, everyone. Welcome to Aurora Mobile's 2025 Fourth Quarter Earnings Call. Before I comment on our Q4 results, I would like to remind everyone that we have uploaded the quarterly earnings day on our IR website. You may reference the deck as we proceed with the call today. I'm truly excited about the various things that are going here at Aurora Mobile. Revenue is surging and our financials are as strong as ever.
By the end of this call, I trust you will agree with me, our 2025 and Q4 numbers are truly exceptional. As we have done in the past, when looking at the fourth quarter and the year as a whole, a single phase comes to mind a year of pure brilliance. Why? Because we recorded first ever full year net GAAP profit in our history. Not only that, but we achieved 3 consecutive quarters of non-GAAP profit leading to this quarter, which just as importantly achieved quarterly revenue exceeding RMB 100 million mark. It's been a truly historic year.
Let me now dive deeper into the outstanding work and numbers that make this success possible. Firstly, the group's revenue this quarter surged to RMB 105.2 million, representing a remarkable double-digit 13% year-over-year and 16% sequential growth. This performance brought through the guidance we shared in our Q3 earnings call. Secondly, our global flagship product, EngageLab continued to fire on all cylinders, winning new customers across the globe. This momentum drove EngageLab's ARR for December 2025 to a record high of USD 10 million, representing 186% year-over-year growth.
Further, gross profit grew by 23% year-over-year and by 9% quarter-over-quarter. This is the highest gross profit we have seen over the past 16 quarters. Last but not least, we delivered another standout quarter on cash management. Net operating cash inflow hit RMB 35.1 million, the highest we have seen since Q4 of 2020. With so many record highs this quarter, I am incredibly proud of what our team has managed to accomplish. It's truly gratifying to share these results with you today, and it was driven by our strategy, hard work and passion, not by luck.
Everyone in Aurora Mobile for the effort and energy toward our collective growth day in and day out, 2025 stands as one of our most successful year-to-date, the result of true commitment and strong execution. With that said, the work is not done. The solid foundation we have built over the past few years position us to achieve even great things. I sincerely believe we are ready to seize the next wave of global opportunities and our track record proves we can.
As we move into 2026, we will continue on our expansion path with the same discipline and focus we show in the past years, enhancing our products and services, accelerating growth and maintaining strong financial management. I am optimistic of what 2026 will bring. The path ahead is rich with opportunities and our brightest moments are still to come. After a year of pure brilliance, I think for 2026 is clear growth acceleration.
Now let me share more on the individual business performance. Our total Q4 group revenue has exceeded RMB 100 million mark for the first time in history since the transition to pure SaaS business model. It has grown both year-over-year and quarter-over-quarter. In particular, the lion's share of year-over-year revenue was contributed by strong numbers from developer subscription services. Our solid execution in 2025 across different markets provided an excellent platform to drive our top line performance.
In this quarter, both developer subscription services and vertical application record solid acceleration with double-digit year-over-year revenue growth. Developer Services revenue, which consists of subscription services and Value-Added Services delivered strong performance with 7% growth year-over-year and 18% growth quarter-over-quarter. Subscription revenue performed well, increasing by 13% year-over-year and 7% quarter-over-quarter. Value-Added Services revenue grew by an impressive 101% quarter-over-quarter, but decreased 13% year-over-year. Our core business developer subscription services gave a revenue of RMB 61.9 million, representing growth of 13% year-over-year and 8% quarter-over-quarter.
The year-over-year revenue growth was mainly driven by increase in both customer number and ARPU. In this quarter, subscription revenue both for the RMB 60 million 1 quarter revenue mark and reached its highest level in history. Now it's time for what many of you have been waiting for, an update on our global flash product, EngageLab, which continued its remarkable growth trajectory quarter after quarter since it was launched.
First, EngageLab's ARR has achieved a new and important milestone, USD 10 million as of December 2025. Following triple-digit growth in Q3, we record 186% year-over-year ARR growth this quarter. Secondly, we delivered another very strong quarter of EngageLab. Cumulative signed contract value amount to RMB 157 million by the end of Q4 of 2025. In Q4 alone, we signed up more than RMB 29 million worth of new contracts. This, in our view, is simply outstanding. We expect this revenue growth momentum to continue for the next 24 months.
Thirdly, we secured new wins from global customers across all corners of the world. Our number of customers increased by 142% year-over-year to reaching 1,641. Our global go-to-market initiatives are proving highly effective in driving this growth. Fourthly, our EngageLab products and services are now sold to customers in more than 70 different countries and regions globally. We expanded our footprint into 18 new countries in Q4 alone. Ultimately, the rollout of EngageLab into global market has been a resounding success.
Looking back to 2025, we are immensely pleased with the expansion of our global flash product. We have come a long way since we launched EngageLab in Q4 of 2022. In a nutshell, EngageLab provides a suite of products and services for omnichannel infrastructure, helping our customers to strengthen engagement with their users in an efficient and effective manner. The customers of EngageLab are from various industry verticals with no specific industry concentration risk. The very strong numbers we have recorded in 2025 have given us great confidence in the acceleration profit of this business.
Historical 2025 numbers aside, in the beginning from 2026, we have seen healthy signs from the overseas markets in terms of potential needs and customers. Let me also touch on the excellent partners we have globally. As of December 2025, within our EngageLab ecosystem, we have 17 partners in different countries and regions. These partners are selected to strengthen, rigorous and often multistage process. We think that our representative in different markets, which means we have high expectation of the contribution from this partner in overseas market in the future.
They are another important driver of our sustainable long-term growth. We will continue to work and engage with more local partners to better utilize their resource and local networks. Within subscription revenue, some of the notable wins in this quarter include but are not limited to Kimi large language model, J&T Express, Citibank and China Unicom. Value-Added Services revenue were RMB 14.2 million, up 101% quarter-over-quarter. The solid revenue quarter-over-quarter growth was mainly due to the significant increase in spend by advertisers. The traditional quarterly online shopping festival in Q4 also contributed to significant revenue growth sequentially.
Now let me pass the call over to Shan-Nen, who will take you through the metrics of vertical applications and financial performance for this quarter. Take it away.
Thanks, Chris. And next, I'll go over the revenue for vertical application that includes financial risk management and market intelligence. Overall, Vertical Applications had a good quarter where revenue grew both year-over-year and quarter-over-quarter. And within vertical application, financial risk management recorded a strong 43% growth in revenue year-over-year and 12% quarter-over-quarter. Financial Risk Management delivered another excellent performance. We recorded robust revenue growth of 43% year-over-year and 11% quarter-over-quarter.
Notably, this segment achieved revenue of more than RMB 22 million in each of the 4 quarters in 2025. In particular, the strong year-over-year performance was driven by impressive 20% in customer number growth and a 20% increase in ARPU. The customers that we signed up or renewed in Q4 include, but not limited to ChongXiing, Xiao, Chengduinhang and many more licensed credit or financial institutions throughout China. Market Intelligence revenue, on the other hand, decreased by 24% year-over-year and 3% quarter-over-quarter due to the continued weak market demand for Chinese APP data. This result is in line with our expectation.
Next, I'll go over some of the profit and loss items. Our gross profit delivered another exceptional quarter, growing 23% year-over-year and 9% quarter-over-quarter. The RMB 69.7 million gross profit we had also was the highest gross profit recorded among any of the past 16 quarters. In this quarter, our revenue grew 13% year-over-year, yet our gross profit grew by 23% year-over-year. Notably, we saw this trend in Q3 as well.
This tells a clear story. We are strengthening our ability to generate high-quality revenue with higher margins. Our strong gross profit number has proven instrumental in bringing us to a full year profitability in 2025. On net profit, after 3 consecutive profitable quarters, we have landed ourselves in a new territory, our first ever full year GAAP net profit for 2025. This is a great way for us to conclude our brilliant Q4 and full year 2025 story on a high note.
On to operating expenses. Q4 operating expenses was at RMB 68.2 million, up 13% year-over-year and 6% quarter-over-quarter. Overall, we are pleased with the trending of OpEx to support revenue and profitability growth. I'll now dive deeper into the individual OpEx category. R&D expenses increased 16% year-over-year to RMB 28.3 million, mainly due to the higher staff costs and associated expenses. Technical service fee also contributed to the year-over-year increase in R&D expenses.
Selling and marketing expenses increased by 16% as well year-over-year and to RMB 28.4 million, mainly due to the higher sales commission in line with the revenue growth and cash collection recorded in this quarter. Marketing expenses for investment in global business expansion also contributed to the year-over-year increase in SMS -- in selling and marketing expenses. G&A expenses remained flat at RMB 11.4 million, representing no change from the same quarter of last year.
Next, I will share 3 very important KPIs that we closely monitor. Our net dollar retention rate, NDR, a commonly used KPI for SaaS companies stood at 103% for our core developer subscription business for the trailing 12-month period ended December 31, 2025. This is the second consecutive quarter where the NDR number has exceeded the 100% threshold. We are proud of this number as this demonstrates how our SaaS business model is widely accepted by the market. Customers have increased their spending on our platform over time.
Secondly, another financial KPI for tracking the performance of SaaS company is the total deferred revenue. This represents cash collected in advance from customers for future contract performance, which exceeded the historical high we had last quarter and stood at RMB 178.7 million in Q4 of 2025. This historical high deferred revenue balance is a hallmark of high-quality, scalable business. It signifies strong customer loyalty, predictable future revenues, healthy cash flow and an effective sales strategies.
Thirdly, we continue to maintain a healthy level of AR turnover days at 37 days. This number is simply fantastic. It shows we are collecting cash quickly and effectively. And this has really improved our financial liquidity while mitigating the risk of bad and doubtful debts. And there was no shortcut to achieving this. It was simply due to the result of our team's diligence, hard work and timely effort to engage with customers.
On to the cash flow. We recorded yet another great number this quarter. For the quarter ended December 31, we recorded net operating activity cash inflow of RMB 35.1 million. This exceeds the last quarter and is now our best quarterly cash flow result since Q4 of 2020. Another metric to share with you, between the years, our cash and cash equivalent balance has increased by RMB 53.8 million. It represents a whopping 45% increase to RMB 173 million as of December 31, 2025. This reflects not only the significant step-up in our financial results, but also a meaningful improvement in the overall quality of our operations.
Now let me take a few minutes here to recap. As you have heard Chris mention a year of pure brilliance at the beginning of this call. And throughout the entire 12 months of 2025, we have been operating under a high level of focus and rigor together with financial discipline. Our financial profile has fundamentally improved and moving in the right direction. And we closed a very strong and exceptional fiscal 2025. The numbers we have presented today speak for themselves. And this quarter, we achieved many historical milestones.
Each one, a strong statement about the exceptional 2025 we have had and each one building momentum as we look forward to the next 12 months ahead of 2026. First, we achieved our very first full year GAAP net profit in history. Number two, the group quarterly revenue exceeded RMB 100 million mark, a historical first since we transitioned to the pure SaaS business model. Third, our core developer subscription business achieved a record of RMB 61.9 million in revenue this quarter, breaking through the RMB 60 million threshold for the first time.
Our flagship product, EngageLab, continues to shine. Our EngageLab business reached another very important key milestone, ARR of USD 10 million in December 2025. This represents a stunning 186% of year-over-year growth. Number five, gross profit grew significantly at 23% year-over-year and the highest it has been for the past 16 quarters. Number six, operating activities brought in a net cash flow of RMB 35.1 million.
Our net dollar retention, NDR, for core developer service surpassed 100%, reaching 103%. The 2025 numbers demonstrate our excellent execution. We have exceeded most, if not all, of our targets. With this in mind, Chris and I believe we are exceptionally well positioned to continue this momentum into 2026. Now let's turn to the business outlook. Based on the current available information, the company sees the 2026 full year revenue guidance to be in the range of RMB 450 million to RMB 480 million, representing a very solid and strong growth of 20% to 28% year-over-year compared to 2025.
And the above outlook is based on current market conditions and reflects the company's current and preliminary estimate of the market and operating conditions and the customer demand, which are all subject to change.
Lastly, before I conclude, I'll give a quick update on the share repurchase plan. In this quarter ended December 31, 2025, we repurchased 73,000 ADSs. Cumulatively, we have repurchased a total of 400,000 ADS since the start of our repurchase program.
And this concludes our prepared remarks. We're happy to take your questions now. Operator, please proceed.
[Operator Instructions] And our first question is going to come from Calvin Wong with Spica Capital.
2. Question Answer
First of all, congrats to you guys for delivering a year of pure brilliant financials today. Both the Q4 and the full year 2025 numbers have been very, very impressive. One question for me, if I may. Can the management shed some light on the top 3 things that you have done well to deliver this set of such good financials.
Calvin, good to hear from you, and thanks for the kind words. Let me take this question. Yes, we are very proud of ourselves to be able to share such a wonderful set of financials earlier on during the call. And to get to where we are, it is by no means easy, and we work very hard and smart to navigate the volatile business environment globally. As on the 3 things that we have done well, let me have a go. First, it has to be the courage to venture outside our comfort zone. And looking back in 2022, when the idea of going overseas was first brought up by Chris as the next important strategic initiative for Aurora Mobile.
At that time, I think we didn't have any single overseas employees nor did we have any partners outside of China. But then forward-looking vision was a brief one. So making -- I think making the right decision to go overseas would be my #1 thing that we have done right. If we did not make such brave or bold decision, we will not have this conversation today. And secondly, making the monumental shift of the product service offering outside of China is another game changer. We will not be as successful as we are today if we're simply making slip service of going overseas.
Over the course of the past, I think, 2 to 3 or 3 to 4 years, we have made considerable amount of investment and resources to actually having a brand-new EngageLab product, specifically for our overseas market with its own distinct spec and features for global customers, along with the overseas data centers catering for the needs of our global customers. If you were lazy or took a shortcut of simply using what we had before in China for overseas market, it will not work.
The third factor would be the commitment to excel throughout the organization to support this going overseas initiative that Chris brought up. When we started, there was no how to go overseas guide book to show us the way. We took the hard way by figuring out all ourselves and doing it all ourselves. I still remember at the early stage when we started EngageLab, Chris and I were standing at our booth in Singapore Tech Expo to introduce EngageLab and to answer questions from potential customers, and we have since come a long way.
Just to recap, looking back, one, we made the right decision to venture overseas. Two, we make serious commitment in terms of investment in the right product offering. Third, the entire organization was in sync and aligned to this strategic initiative. And this took us back a little bit to the memory lane. I hope I answered your question, Calvin.
And our next question will come from Jack Sun with Gelonghui Research.
I'm Jack Sun from Gelonghui Research. Congratulations to the management team on another quarter with good numbers. in particular, a full year GAAP net profit is a really great turning point. My question for the management is, how should we look at Aurora's financials for the first quarter of 2026 and beyond?
Jack, thanks for the question. And you're right, we have a great 2025 when we achieved our very first GAAP profit for the year. And equally important was the spectacular Q4 numbers that we have presented earlier today. And in Q4, our total revenue exceeded RMB 100 million and go through the revenue guidance we have provided in Q3 and marking the best quarter revenue in our history. And of course, you heard about the fact that our global flagship product, EngageLab continues its great acceleration path. All the KPIs we have achieved has done through meaningful and significant growth year-over-year and quarter-over-quarter, be it ARR, customer numbers, total contract value signed or revenue recognized, they just exceeded all our internal targets.
And of course, all these were the fruit of a hard labor that we started 3 years back. Results like this will not happen overnight or over 1 quarter. And we sowed the seeds of EngageLab growth when we committed to venture overseas in late 2022. We invested the appropriate resources in terms of capital and infrastructure with a balance of ensuring expansion without blinding spending for sake of spending. And now that we have laid a solid foundation for EngageLab, the growth prospect is very certain.
We have presented and delivered such sequential growth without fear in the past. If I may summarize on how one should view Aurora Mobile, you can think of our business as, one, we have proven to be able to achieve full year net profit with positive cash inflow. Two, domestic business continued its solid and relatively stable growth. Three, our global flagship product, EngageLab will provide the lion's share of the growth momentum for the next 3 years. Four, our AI strategy will provide the next phase of growth momentum. And thus, we -- management as a whole are very confident on the business prospects in 2026 and beyond. And I hope this answers your question, Jack.
And I'm showing no further questions at this time. I would now like to turn the call back over to Christian for closing remarks.
Thank you, everyone, for joining the call tonight. If you have any further questions or comments, please don't hesitate to reach out to the Jiguang IR team. This concludes the call. Have a great evening or morning. Thank you.
This does conclude the conference call. Thank you for participating, and you may now disconnect.
Aurora Mobile Ltd Sponsored ADR Class A — Q4 2025 Earnings Call
Aurora Mobile Ltd Sponsored ADR Class A — Q3 2025 Earnings Call
1. Management Discussion
Ladies and gentlemen, thank you for standing by, and welcome to the Aurora Mobile Third Quarter 2025 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to your host today, Rene Vanguestaine. Please go ahead, sir.
Thank you, Michelle. Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the IR website at ir.jiguang.cn. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer; Mr. Shan-Nen Bong, Chief Financial Officer; and Mr. Guangyan Chen, General Manager.
Following their prepared remarks, they will be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements.
Further information regarding these and other risks, uncertainties and/or factors are included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. With that, I would now like to turn the conference over to Mr. Luo. Please go ahead.
Thanks, Rene. Greetings to all. Welcome to Aurora Mobile's 2025 First Quarter Earnings Call. Before I comment on our Q3 results, I would like to remind everyone that the quarterly earnings deck is available on our IR website. You may refer to the deck as we proceed with the call today. Without further ado, let's get started.
As we did in the past, based on the Q3 earnings numbers, the suitable description I will give the -- to the first quarter result is good things, time tells.because we record the first ever back-to-back quarterly non-GAAP profit in our history, following the main net GAAP profit last quarter, our strong business performance carried us across the line again in Q3.
Let me elaborate more on the strong business we have had in this quarter. Firstly, the group's revenue this quarter of RMB 19.9 million, achieving a remarkable 15% year-over-year and 1% sequential growth. This RMB 19.9 million was at the very high end of the guidance we have provided.
Secondly, our global flash product, EngageLab continued its great momentum with another quarter of great numbers. EngageLab recorded very strong quarterly growth in customer number and contract value growth. In particular, EngageLab's ARR for September 2025 stood strongly and reached a new milestone at RMB 53.7 million. It has grown by 160% year-over-year. Thirdly, our financial risk management business had its best quarter yet, recording highest quarterly revenue of RMB 22.6 million with growth of 33% year-over-year.
Fourthly, gross profit exceeded our expectations and grew strongly by 20% year-over-year while achieving the highest gross profit for the past 15 quarters. Gross margin has also improved year-over-year and quarter-over-quarter. Last but not least, having all the great number about it great, it's equally important that we are generating positive cash flow and in great cash position. Indeed, we are. The net operating cash inflow of RMB 23.3 million recorded the highest level since Q4 of 2020.
It is very humbling for me to share with you on yet another stellar quarterly financial results. As I mentioned in the pre-earnings call, achieving historical GAAP net profit was not easy. For us to have back-to-back GAAP net profit is simply a great achievement for Aurora Mobile. To achieve that all the process in the organization worked really well for the entire fourth quarter of 2025.
Our hard work and commitment to throughout Aurora Mobile will not stop here. There are more we need to achieve together, and we will. Short of giving our promise on this call, I'm truly hopeful for the team's dedication on execution on our group strategy and going forward. Now let me share more on the individual business performance.
Our total Q3 group revenue has grown both year-over-year and quarter-over-quarter. In particular, revenue grew 15% year-over-year, driven by strong numbers from Developer Services and Financial risk management business. Again, in this quarter, all business segments, mainly developer subscription services, value-added services and vertical applications recorded solid acceleration with double-digit year-over-year revenue growth.
This is the second consecutive quarter we have such a strong revenue growth momentum. Developer Services revenue, which consists of subscription services and value-added services increased by a strong 12% growth year-over-year and flat quarter-over-quarter. Subscription revenue had solid revenue numbers where it increased by 11% year-over-year and increased 7% quarter-over-quarter. Value-added services revenue grew by an impressive 22% year-over-year, but decreased 24% quarter-over-quarter.
Our core business developed subscription services with revenue of RMB 57.3 million, recorded growth of 11% year-over-year and 7% quarter-over-quarter. The year-over-year revenue growth was mainly driven by increase in both customer numbers and ARPU.
Subscription revenue recorded the fifth consecutive quarter of RMB 50 million plus revenue and reached its highest level in history in this quarter. Next, let me share more on our global flagship product, EngageLab, which continued its excellent growth acceleration path quarter after quarter since its introduction.
Firstly, EngageLab's ARR has reached a new and important milestone of RMB 53.7 million marked in September 2025. This 160% year-over-year ARR growth was just impressive. Secondly, we had another very strong quarter for EngageLab where the cumulative contract value we have signed amount to RMB 128 million by the end of Q3 of 2025.
In Q3 alone, we signed up more than RMB 15 million worth of new contracts. This is just outstanding. We do expect this revenue growth momentum to continue for the next 12 -- 24 months. Further, global customers from all corners of the world continue to purchase our products and services. The customer number has increased by 156% year-over-year, reaching 1,312. This was driven by the continued progress we are making through our global go-to-market effort.
Firstly, our EngageLab products and services are now sold to customers in more than 52 different countries and regions globally. This is a great testament that our global flagship product, EngageLab is indeed a globally accepted product from customers originated from all 4 corners of the world.
Our global flasgship product, EngageLab has a very unique and different position in the market. We have been taking market share from competitors in all of the overseas markets we operate in. This is evident from the growth rate of EngageLab we have seen today. From the market intelligence we have gathering, it shows that the demand for our EngageLab products and services remains strong.
With this great result delivered by EngageLab, it once again reinforced my strong belief that this global flash product is the torch bell as far as revenue growth is concerned for us in the next 12 months -- or 24 months.
Within subscription revenue, some of the notable wins in the quarter include but not limited to [ DepSi ], Shanghai Disneyland, BYD and China Eastern Airlines, just to name a few. Value-added services revenue were RMB 7.1 million increased by 22% year-over-year, but decreased by 24% quarter-over-quarter. The solid revenue year-over-year growth was mainly due to the increase in new advertisers acquired between the years.
The absence of traditional quarter online shopping festival will result in a negative revenue growth sequentially. Now let me pass the call over to Shan-Nen, who will share more about the vertical application and other aspects of our financial performance for this quarter.
Thanks, Chris. Next, I'll go over the revenue for vertical application that includes Financial Risk Management and Market Intelligence. Overall, Vertical Application had a good quarter where revenue grew both year-over-year and quarter-over-quarter. Within Vertical Application, Financial Risk Management recorded a significant 33% growth in revenue year-over-year and 3% quarter-over-quarter. Following the strong Q2, Financial Risk Management had a sequential excellent quarter. It has now the third consecutive quarters of revenue in excess of RMB 21 million under its belt.
Another significant milestone for this business is that it recorded the highest quarterly revenue in history of RMB 22.6 million in this quarter. This 33% year-over-year revenue growth was mainly due to a strong 44% in customer number growth. The customers that we signed up or renewed in Q3 include, but not limited to, Lexing, Xinoti, Ningohang and many more licensed credit and financial institutions throughout China.
Market Intelligence revenue, on the other hand, decreased by 23% year-over-year and 2% quarter-over-quarter due to the weak -- the continued weak demand for the Chinese APP data, and this result is in line with our expectation. Next, I'll go over some of the P&L and balance sheet items. Our gross profit had a spectacular results too in this quarter where it grew 20% year-over-year and 7% quarter-over-quarter.
The RMB 63.8 million gross profit we had was also the highest gross profit for the past 15 quarters. Within -- with the group revenues grew 15% year-over-year, yet our gross profit grew by 20% year-over-year. It shows that we had recorded very high-margin revenue in this quarter. This is certainly a key target that we would like to maintain and extend beyond this quarter.
On to operating expenses. The Q3 operating expenses was at RMB 64.4 million, representing a 12.8% increase year-over-year and increase of 5.8% quarter-over-quarter. Operationally, our Q3 revenue grew by 15% year-over-year, while OpEx only grew by 12.8%. Overall, we are pleased to see how we have been controlling OpEx to support the double-digit revenue growth across all business lines.
I'll now dive deeper into the individual OpEx category. For R&D, expenses increased by 7% year-over-year to RMB 25.9 million, mainly due to the increase in staff costs and associated expenses. Technical service fee and cloud costs also contributed to the year-over-year increase in R&D expenses. Selling and marketing expenses increased by 19% year-over-year to RMB 26.6 million, mainly due to the increase in sales commission in line with revenue growth and the cash collection in this quarter.
Marketing expenses for investment in global business expansion also contributed to the year-over-year increase in selling and marketing expenses. G&A expenses increased by 13% year-over-year to RMB 11.9 million, mainly due to increase in staff costs, professional fees and better provision.
Next, I'll share 3 very important KPIs that we closely monitor. For NDR, which means net dollar retention rate, a commonly used KPI for SaaS companies, it stood at 104% for our core developer service business for the trailing 12 months ended September 30, 2025. And this is the very first time where NDR numbers have exceeded 100% milestone. The number says it all.
It means customer retention rate, coupled with the fact that our customer has increased their spending with us through upsell, upgrades and expansion. And this is the best testament of our sustainable SaaS business. Secondly, another important financial KPI for tracking the performance of SaaS company is total deferred revenue, which represents cash collected in advance from customers for future contract performance, which was at historical high of RMB 166.3 million.
And this high deferred revenue balance is a hallmark of a high-quality scalable business. It signifies a strong customer loyalty, predictable future revenue, healthy cash flow and effective sales strategy. Thirdly, we continue to maintain healthy AR turnover days level at 49 days, and this remains at an industry-leading level.
We will continue to work hard to ensure we're actively and timely collecting cash from customers and at the same time, mitigating the risk of bad and doubtful debts. On the cash flow, we recorded another great numbers.
For the quarter ended September 30, 2025, we recorded net operating activities cash inflow of CNY 23.3 million. This is the best quarterly cash flow numbers we have since Q4 of 2020. On to balance sheet. Total assets were RMB 388.2 million as of September 30, 2025. This includes cash and cash equivalent of RMB 141.2 million, accounts receivable of CNY 43.9 million, prepayments and other assets of RMB 15.7 million, operating lease right-of-use assets of RMB 15.9 million, fixed assets of CNY 2.9 million, long-term investment of RMB 113 million, goodwill of RMB 37.8 million and intangible assets of RMB 11.5 million resulting from SendCloud acquisition in March 2022.
Total current liabilities were at $274.6 million as of September 30, 2025, and this includes accounts payable of $31.9 million, other operating lease liability of $4.1 million, deferred revenue of $166.3 million, accrued liabilities of $72.3 million.
And now let me take a few minutes here to recap the description, good things come and pass that Chris mentioned at the beginning of this call. In this quarter, we have many great achievements that I would like to take a few minutes to reiterate.
First, we achieved our very first back-to-back GAAP net profit in history. Number two, our core developer subscription business had its best revenue in history of RMB 57.3 million as did the financial risk management business. Our flagship product, EngageLab, continued its expansion beyond the shores.
Apart from great growth in customer number and contract value, EngageLab business reached another very important key milestone where the ARR was at RMB 53.7 million in September 2025, representing a stunning 160% year-over-year growth. Gross profit grew 20% year-over-year and recorded its highest levels for the past 15 quarters. Number five, operating activities brought in net cash inflow of RMB 33.3 million.
Our NDR net dollar retention for core developer service recorded the best number in history of 104%. And now let's turn to business outlook. Based on the current available information, the company sees the Q4 2025 revenue guidance to be in the range of CNY 94 million to RMB 96 million, representing a solid growth of 1% to 3% year-over-year compared to the same quarter 2024.
The above outlook is based on the current market conditions and reflects the company's current and preliminary estimate of the market and operating conditions and customer demands, which are all subject to change. And before I conclude, I'll give a quick update on the share repurchase plan. In this quarter ended September 30, 2025, we repurchased 4,000 ADS. Cumulatively, we have repurchased a total of 327,000 ADS since the start of our repurchase program.
And today, our Board of Directors of the company approved a share repurchase program, whereby the company is authorized to repurchase up to USD 10 million worth of its ordinary share, including in the form of ADS during the 12-month period starting today, and this is a 100% increase from the USD 5 million program we had previously.
The company proposed repurchase may be made from time to time in the open market at a prevailing market price in private negotiated transaction, in block trades and/or through -- other legally permissible means, depending on the market conditions and in accordance with the applicable rules and regulation.
The company's Board of Directors will review the share repurchase program periodically and may authorize adjustment in terms of size and terms. The company expects to fund the repurchase of its existing cash. And this concludes our prepared remarks. We'll be happy to take your questions now. Operator, please proceed.
[Operator Instructions]
And our first question will come from Calvin Wong with Spicer Capital.
2. Question Answer
First of all, congrats for delivering another set of outstanding results this quarter. I have only one question. Based on my reading of the earnings release, I noticed the strength of EngageLab business and how it strengthened the group's financial results. So I would appreciate if management could tell us more about EngageLab and why the growth trajectory has been so strong since day 1?
Let me take this call. Kevin, good to hear from you again, and thanks for your interest. And I'll take your earlier statement about EngageLab growth trajectory has been strong since day 1, and this is factual, and we are very proud of the achievement since day 1. And for those listeners who have access to our ER deck that we have uploaded to the IR web page, you can refer to, I think, Slide #3, where we have the pictorial display or diagram of engagement of EngageLab business to date.
And one new particular data point that we have included in this quarter's earnings deck is the ARR, is the annual recurring revenue for EngageLab business. And for the month of September 2025, the ARR was at RMB 53.7 million, and this is a 160% jump from a year ago. And we are very encouraged by this number because it shows that the business has a very significant growth trajectory, and we have made great revenue expansion in just 12 months.
And I would say the success of EngageLab is not by chance or that we are lucky. It was a result of endless improvement upgrades that we made to the product and service offering that help us to acquire more new customers and retain existing customers globally.
If you look back when Chris decided to launch EngageLab back in Q4 of 2022, the mission was pure and direct, just to address our customers' main needs of reaching out and engaging with their users in a cost-efficient and effective manner. And through EngageLab, our customers are able to reach and engage with their users through any one or all of the following messaging channels such as app push, web push, e-mail, SMS, WhatsApp and OTP.
And also from a technical standpoint, we have done all the heavy lifting for our customers, too. To deliver the global solution for our customers, we have invested heavily in data facility in 8 cities globally. And just this week, we have launched a new data center in Turkey, further expanding our global infrastructure.
That aside, we have also incorporated our notification channel for all different operating systems from iOS to Android, from Harmony, OS to others. And it makes it easy and efficient for our customers to ensure that their notification are delivered no matter where the users are and what phone they are using. And maybe you can think of EngageLab is reaching your users without borders.
And for service-wise, we have received countless compliments from our customers that our customer service team are very responsive and deliver a much better service than our peers. And this stays a lot from a customer standpoint. And when they encounter issues, they need solution. And this is something that we can deliver, and we are proud of it.
And therefore, with such a great value proposition where customers can get one-stop engagement platform and great services, all wrapped in one, and it is not hard to see why EngageLab has been able to deliver such great numbers quarter-over-quarters. And historical result aside and both Chris and myself have great hopes and confidence in the EngageLab business going forward.
As Chris rightly called out during the call earlier, EngageLab is the torch barrier for our revenue growth in the next 24 months. And Kevin, hope this answer your question adequately.
And our next question will come from Jack Sun with Gelonghui Research.
I'm Jack Sun from Gelonghui Research. Congratulations on another good quarter with solid earnings, in particular, 2 consecutive quarters with GAAP net profit, well done. I have a question for the management. Help me to recap what went well in Q3 that delivered another quarter with GAAP net profit?
Jack, thanks for the question. Yes, it was a great quarter indeed. I think Chris mentioned, we executed very well operationally and everything just went well, and this flow on to our financials number that we have released earlier today.
There are a couple of things I can share more. Firstly, revenue in Q3 has been very strong. All business lines recorded great year-over-year double-digit growth. What that means is we are now head and shoulder above where we were a year ago. And both the subscription business and the financial risk management recorded their own best revenue quarter in history.
Equally important is the revenue by EngageLab, where it contributed RMB 13 million in this quarter alone, also a historical high. We grew our revenue not at the expense of sacrificing margins. This is evident that while we grew our revenue significantly, our gross profit reached the highest level for the past 15 quarters. At the same time, our gross margin increased year-over-year and quarter-over-quarter too. And this is a really hard act to follow.
And since revenue, gross profit grew at a faster pace than our OpEx, the U.S. GAAP net profit is a certainty and which is why we had the second consecutive quarters of U.S. GAAP net profit. And 2 other important and great KPIs that I would like to reiterate here. One is the NDR, where we reached 104% for our core developer subscription business. And this is the very first time NDR exceeded 100%.
And what that means is simple and straightforward. Our customer has been buying more of our services between the periods through upgrades, upsell and other services, and this is a great number to have. And secondly, is the deferred revenue balance of $166.3 million, another historical high balance. In short, we have $166.3 million worth of secured revenue that we can recognize in the future.
And the best part is we have already received the cash. So for this $166.3 million, we don't even have to worry about cash collection effort or the risk of bad debt in the future. And managing cash flow has also yielded great results. In this quarter, we have net operating cash inflow of $23.3 million, the highest level for the past 20 quarters, which is actually the 5 years, the past 5 years, the best results. And with that positive inflow of cash, our 9/30 quarter end cash balance has also climbed to $141.2 million, the highest balance in the past 14 quarters as it improved by 40% year-over-year.
As you can see, it's not hard for you or anyone to conclude that this quarter has been great. And however, rest assured that we are not contented by the present. We need to move faster and expand more. Therefore, we will continue to invest as part of our global growth plan.
And lastly, if time permits, I would like to cordially invite you and other investors to drop by our San Shenzhen head office. We are more than happy to host you and chat with greater detail for any questions you might have. That is my answer to your question, Jack.
Thank you I show no further questions in the queue at this time. I would like to turn the call back over to Rene for closing remarks.
Thank you, everyone, for joining our call tonight. If you have any further questions and comments, please don't hesitate to reach out to the IR team. This concludes the call. Have a good night. Thank you all.
This does conclude the conference call. Thank you for participating, and you may now disconnect.
Aurora Mobile Ltd Sponsored ADR Class A — Q3 2025 Earnings Call
Aurora Mobile Ltd Sponsored ADR Class A — Q2 2025 Earnings Call
1. Management Discussion
Ladies and gentlemen, thank you for standing by, and welcome to Aurora Mobile Second Quarter 2025 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your host today, Christian Arnell. Thank you. Please go ahead, sir.
Thank you. Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the IR website at ir.jiguang.cn. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer; Mr. Shan-Nen Bong, Chief Financial Officer; and Mr. Guangyan Chen, General Manager.
Following their prepared remarks, they will all be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors are included in the company's filings with the U.S. SEC. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
With now -- with that, I'd now like to turn the conference over to Mr. Luo. Please go ahead.
Thanks. Christian. Greeting to all, welcome to Aurora Mobile's 2025 second quarter earnings call. Before I comment on our Q2 results. I would like to remind everyone that the quarterly earnings deck is available on our IR website. You may refer the deck as we proceed with the call today. I'm so excited about this call today and sharing this Q2 earnings release with you because this was just the best quarter we have ever had.
At the end of this call, I believe all of you will be equally excited as I am now. Let's get started. As we did in the past, based on the Q2 numbers, I have a suitable description for the second quarter results, which is our new chapter in Aurora Mobile. For one very significant milestone we have achieved, we recorded the first ever quarterly net profit. This is GAAP profit by the way, in our history. This great milestone aside, we have recorded many other great operating results in this quarter 2.
Let me elaborate more later in the call. Firstly, our global flagship product EngageLab, continues to expand and scale globally with great year-over-year and quarter-over-quarter customer number and contract value growth. Secondly, the group's revenue this quarter of RMB 89.9 million, achieving a remarkable year-over-year and sequential growth. This RMB 89.9 million was the higher end of the guidance we have provided. EngageLab recognized revenue also grew strongly by 67% year-over-year and 24% quarter-over-quarter.
Thirdly, our financial risk management business has another great quarter, recording solid revenue growth of 27% year-over-year. Fourthly, gross profit grew strongly by 13% year-over-year while achieving the highest gross profit for the past 10 quarters. Gross margin has also improved quarter-over-quarter.
In summary, I'm truly pleased with the great achievement we have had in this quarter. Achieving historical GAAP net profit is not easy. We can spend considerable time, effort and energy over the past 2 to 3 years to strategize the growth path. Looking back, it was a tough but truly enjoyable and fulfilling journey. During that period, we explored new markets, consolidates our services, creating our global flagship product, EngageLab for global market. Our AI agent platform, GPTBots.ai, [indiscernible] providing our enterprise customers an easy-to-use AI agent platform for them to easily embrace the advancement and the great power of artificial intelligence.
Over these periods, we saw significant increase in both customer numbers and business volume. This puts the business firmly on solid ground and on sustainable expansion path. Apart from ensuring top line growth, we also serious look at the OpEx. We challenged and improved operational efficiency of the entire organization, hard decisions were made to streamline our services offering and certain departments. Certain services with less than ideal gross margins were abandoned or ditched. The group head count was also reduced from the higher of more than 820 to around 400 now.
As we work hard scaling up revenue, maintaining high gross margins and with tight and lean cost structure, achieving the quarterly GAAP net profit is just a matter of when. Since everything fell into the right place in Q2, that's the very first Aurora Mobile GAAP net profit came in this quarter. Now let me share more on the individual business performance. Our total Q2 revenue has grown 13% year-over-year, driven by the great performance from Developer Services. Within the group revenue, all business segment, mainly Developer Subscription Services, value-added services and Vertical Applications, record solid acceleration and double-digit year-over-year revenue growth.
Development Services revenue, which consists of subscription services and value-added services increased by a strong 14% growth year-over-year, 3% growth quarter-over-quarter. Subscription revenue get solid revenue numbers, well, increased by 12% year-over-year and increased slightly quarter-over-quarter. Value-added services revenue grew by an impressive 30% year-over-year and increased 21% quarter-over-quarter. Our core business developer subscription services revenue of RMB 53.7 million, record growth of 12% year-over-year and increased slightly quarter-over-quarter. The year-over-year revenue growth was mainly driven by increase in both customer number and ARPU, I believe this segment has stood firmly on its solid foundation where the subscription revenue record fourth consecutive quarter of RMB 40 million plus revenue.
For subscription services, we have record year-over-year revenue growth in both the domestic and overseas markets. Next, I shall elaborate more on our EngageLab business this quarter. Our flagship product EngageLab continue to be the star performer for the group, as far as revenue growth trajectory goes. Firstly, we had another strong quarter of -- for EngageLab where the total contract value we have signed amount to RMB 11.2 million in Q2. The growth acceleration has been great for this business since day 1.
Secondly, global customers from all corners of the world continue to purchase our product and services. The customer number has increased by 25% sequentially, reaching to 1,058. This was driven by the continued progress we are making across our go-to-market growth. Further, the revenue recognized for the EngageLab, again, recorded very strong growth of 67% year-over-year, 24% quarter-on-quarter.
Firstly, our EngageLab products and services are now sold to customers in more than 45 different countries and regions globally, customers from 4 new countries has been converted and signed up with us in Q2. As I mentioned this before, but we would like to reiterate that. I truly believe that EngageLab is the engine of growth for Aurora Mobile in the next 12 -- 24 months. The number it has delivered over the past 8 quarters is the greatest testament of my belief.
Next, within subscription revenues, some of the notable wins this quarter include but not limited to [indiscernible] China Citibank International, just to name a few. Value-added services revenue were RMB 10.7 million increased by 30% year-over-year and increased by 21% quarter-over-quarter. The significant revenue year-over-year growth we have seen was mainly due to the increased advertiser spending allocation to us and new customers acquired in Q2. In addition, the traditional Q2 online shopping festival also contribute to the revenue growth.
Now let me pass the call over to Shan-Nen, who will share more about the Vertical Application and other aspects of our financial performance for this quarter.
Thanks Chris. Next, I'll go over the revenue for Vertical Application that includes financial risk management and market intelligence. Overall, Vertical Application had a strong quarter where revenue increased by 10% year-over-year but decreased 4% quarter-over-quarter. Within Vertical Application, financial risk management recorded a 27% growth in revenue year-over-year, but decreased 1% quarter-over-quarter. Financial risk management has another excellent quarter recorded 2 consecutive quarters of revenue in excess of RMB 21 million. The 27% year-over-year revenue growth was mainly due to a strong 48% in customer number growth.
As I have shared in the previous quarter, the upgraded product and services found their place in the financial industry vertical. We continue to see deeper cooperation and usage of our financial risk management product by many leading platforms in China. This will further solidify the continued demand for this service in the many quarters to come. We see new and existing licensed financial institutions continue to buy and use our products and services in their risk model. The customer that we signed up all renew in Q2 include, but not limited to, [indiscernible] and many more licensed credit and financial institutions throughout China.
Market Intelligence revenue, on the other hand, decreased by 38% year-over-year and 23% quarter-over-quarter due to the continued weak demand for Chinese APP data. This result is within our expectation. For market intelligence we started making major and meaningful upgrades for the product to better meet the dynamic market needs. We believe upon completion, we will attract more usage and customers. Based on the current feedback we have received, it has been very encouraging. I shall provide more timely update on this upgraded market intelligence product in the future earnings call.
Next, I'll go over some of the profit and loss and balance sheet items. Our gross profit continued to scale new heights. It grew both year-over-year and quarter-over-quarter to RMB 59.6 million. This was the record high level that we have achieved for the immediate past 10 quarters. This shows that at Aurora Mobile, we can have revenue growth and gross profit acceleration at the same time. This is a very hard act to juggle but we did it. It demonstrated the high quality revenue that we have been able to generate. And we do not blindly go after revenue growth at an expense of margin, and this is a fundamental of how we go about managing the business as a whole.
On to operating expenses. The Q2 operating expenses was at RMB 60.8 million, representing an 11% increase year-over-year and slightly increased quarter-over-quarter. Operationally, our Q2 revenue grew by 13% year-over-year, while OpEx only grew by 11%. And we are pleased to see how we have been controlling OpEx to support the double-digit revenue growth across all business lines. I'll now dive deeper into the individual OpEx categories. For R&D expenses, it increased 10% year-over-year to RMB 26 million, mainly due to an increase in staff costs and associated expenses.
Technical service fee and cloud costs also contributed to the year-over-year increase. Selling and marketing expenses increased by 11% year-over-year to RMB 22.7 million mainly due to the increase in sales commission and traveling expenses in line with revenue growth and cash collection recorded in this quarter. And marketing expenses for investment in global business expansion also contributed to the year-over-year increase in selling and marketing expenses. G&A expenses increased by 14% year-over-year to RMB 12.2 million mainly due to the increase in staff costs and the loss on disposal of property and equipment.
And next, I shall share 3 very important KPI that we closely monitor. For net dollar retention, a commonly used KPI for SaaS company, it stood at 99% for our core developer service business for the trailing 12-month period ended June 30, 2025. This high NDR number reflecting that we have high customer retention rate, coupled with the ability to increase revenue to upsell, upgrades and expansion. And this is another quarter with impressive NDR number.
Secondly, another financial KPI for tracking the performance of SaaS companies is the total deferred revenue, which represents cash collected in advance from customers for future contract performance. which was at high of RMB 156.1 million. This is the second consecutive quarter where we have deferred revenue balance in excess of RMB 150 million. Thirdly, we continue to maintain a healthy AR turnover days at 54 days. This remains an industry-leading low level. We continue to work hard to ensure we actively and timely collecting cash from customers and at the same time, mitigating the risk of bad and doubtful debt. On the cash flow, we are also very pleased with the overall cash collection and usage in operating activities this quarter. For the quarter ended June 30, we recorded net operating cash inflow of RMB 7.9 million.
On to balance sheet. Total assets were RMB 381 million as of June 30, includes cash and cash equivalent of RMB 119.8 million, accounts receivable of RMB 54.1 million, prepayments and other current assets of RMB 16.5 million. Operating lease right-of-use asset of RMB 17.4 million, fixed assets of RMB 3.2 million; long-term investment RMB 113.3 million, goodwill of RMB 37.8 million and intangible assets of RMB 12.1 million, resulting from the SendCloud acquisition in March 2022. The total current liabilities were RMB 267.7 million, this includes accounts payable of RMB 38.4 million. Current operating lease -- current operating lease liability of RMB 84.8 million, deferred revenue of RMB 156.1 million, accrued liabilities of RMB 68.4 million.
And let me now take a few minutes here to recap the description, a new chapter in Aurora Mobile that Chris mentioned in the beginning of this call. In this quarter, we achieved our very first quarterly GAAP profit in the history. Equally important, all business lines achieved double-digit year-over-year revenue growth, our core developer subscription business had the fourth consecutive quarter of RMB 50 million plus, plus revenue quarter. Our flagship product, EngageLab continues its great growth trajectory, we won and signed more than RMB 11 million worth of new contracts in Q2 alone, fueled by the new global customer acquisition.
Gross profit grew 13% year-over-year, achieving the highest level for the past 10 quarters. Operating activities brought in net cash inflow of RMB 7.9 million, and our net dollar retention for core Developer Service stood strongly at 99%. And this was indeed a spectacular quarter where all our business lines and related KPIs have done very well. And we are encouraged by the excellent Q2 numbers we have delivered. As we look ahead for the rest of 2025, we are very optimistic and confident about our ability to execute against the things that we can control.
And Chris and I are very thankful for the dedication and commitment by the teams. In this quarter's stellar performance is a true testament to the effort that they put in day in and day out. And we are truly honored to come to work side by side with such an exceptional group every day. And now let's turn to business outlook. And based on the current available information, the company sees the Q3 revenue guidance to be in the range of RMB 88 million to RMB 91 million, representing a solid growth of 11% to 15% year-over-year compared to the same quarter in 2024.
And the above outlook is based on the current market condition and reflects the company's current and preliminary estimates of the market and operating condition and customer demand, we are all subject to change. Lastly, before I conclude, I shall give a quick update on the share repurchase plan. In this quarter, for the quarter ended June 30, 2025, we repurchased 27,000 ADS. Cumulatively, we have repurchased a total of 323,000 ADS since the start of our repurchase program.
And this concludes our prepared remarks, and we are happy to take your questions now. Operator, please proceed.
Thank you. We will now begin the question-and-answer session. [Operator Instructions] We will now take out first question from the line of [ Kelvin Wong from Speaker Capital ].
2. Question Answer
First of all, congrats on the great first GAAP net profit in the history. I would like to have 2 questions, if I may. The first question, I will be appreciated if you could share with us what was the factors behind the great results in Q2. And secondly, more on outlook, are you expecting quarterly GAAP net profit to be along going forward?
Kelvin, good to hear from you again. Let me take this call -- take this question. This quarter's breakthrough performance reflects a collaborative effort of multiple forces. It is primarily driven by the diligent contribution of our employees in Aurora Mobile, whose ongoing commitment to overcoming challenges across technology, development, customer service and operational execution has collectively strengthened the foundation for the performance growth.
And more importantly, our forward-looking strategy have anchored a clear direction for the business development with the precise execution. From a business perspective, the growth momentum stem from the strong push of internal and external dual engine. On one hand, our overseas flagship product, EngageLab continues to accelerate its expansion, constantly breaking boundaries to globalized reach and localized service capability. On the other hand, our AI agent platform, GPTBot.ai leveraging AI-driven technological empowerment to drive innovative across business scenario, becoming the next growth engine.
It is worth emphasizing that domestic market also performing well in this quarter, achieving solid year-over-year growth and creating synergistic pattern of internal and external linkage of growth alongside with overseas markets, together contributing to this quarter's outstanding over performance. And also from a deeper perspective on business drivers and financial support, these driving forces are not short-term variables but rooted in the long-term accumulation of capability building, strategic implementation and market trends and with the ongoing release of synergies between internal and external businesses, the continuous deepening of technologic empowerment and the steady advancement of strategic execution will bring us across the line.
And Kelvin, I hope this answers your question.
We will now take our next question from [ Marco Zhang from Gelonghui Research ].
This is Marco from Gelonghui Research. Congrats to the management for delivering a set outstanding results in this quarter. It has been proven that the business model does work and it works well to deliver net profit, in particular we know that your EngageLab has been delivering strong numbers and is driving the growth for the group. So appreciate management to share more on this business, including the current and future states.
Marco, thanks for your question. Also let me take this question, too. As you rightly pointed out, our EngageLab product, our flagship product is highly promising business segment of the group, and it has already demonstrated strong business viability and becoming the group's next engine group. Currently, EngageLab is serving customers in more than 45 countries and region worldwide with a total signed contract amount -- affects existing RMB 113 million in a year-on-year revenue growth of 67%.
And looking ahead to the upcoming quarters, we are confident and have high hopes of EngageLab growth momentum. And from the perspective of market expansion, its global market footprint has clearly outlined its path. We have established localized presence in Hong Kong Singapore and Malaysia and is solidifying the services foundation by forming local teams in Thailand and Japan. And leveraging this regional depth and localized service capability, combined with the existing technological advantage and service experience, EngageLab will continue to penetrate market demand across different industries and regions, attracting more customers to collaborate.
And both Chris and myself are very confident on the continuous growth trajectory of this business. I hope this answers your question, Marco?
I am showing no further questions. I'd now like to turn the conference back to Christian for closing comments.
Thank you, everyone, for joining our call tonight. If you have any further questions and comments, please don't hesitate to reach out to the IR team. This concludes the call. Have a good evening or morning. Thank you.
This concludes today's conference call. Thank you for participating. You may now disconnect your lines.
Aurora Mobile Ltd Sponsored ADR Class A — Q2 2025 Earnings Call
Financial data from Aurora Mobile Ltd Sponsored ADR Class A
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
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%
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| Revenue | 58 58 |
11%
11%
100%
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| - Direct Costs | 18 18 |
1%
1%
31%
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| Gross Profit | 40 40 |
127%
127%
69%
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| - Selling and Administrative Expenses | 23 23 |
10%
10%
39%
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| - Research and Development Expense | 17 17 |
122%
122%
29%
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| EBITDA | - - |
-
-
|
|
| - Depreciation and Amortization | - - |
-
-
|
|
| EBIT (Operating Income) EBIT | 0.79 0.79 |
183%
183%
1%
|
|
| Net Profit | 0.88 0.88 |
195%
195%
2%
|
|
In millions USD.
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Company Profile
Aurora Mobile Ltd. is a holding company, which engages in the provision of mobile big data solutions platform. It also offers mobile apps and provide core in-app functionalities needed by developers, including push notification, instant messaging, analytics, and sharing and short message service. The company was founded by Wei Dong Lou and Chen Fei on April 9, 2014 and is headquartered in Shenzhen, China.
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| Head office | Cayman Islands |
| CEO | Mr. Luo |
| Employees | 421 |
| Founded | 2011 |
| Website | www.jiguang.cn |
