Weibo Corp. reported second-quarter 2026 earnings that exceeded analyst expectations, though advertising revenue continued to weigh on overall growth. The Beijing-based social media company posted earnings per share of $0.38, beating the $0.36 consensus estimate by 5.56%. Total revenue reached $453.8 million, up 2% from the prior year but down 4% on a constant currency basis, still surpassing the $442.44 million forecast by 2.57%.
Advertising and marketing revenue, Weibo’s primary income source, declined 1% year-over-year to $381 million, or 6% in constant currency terms. The softness reflected broader consumption headwinds and tighter advertiser budgets in key segments, including handsets, e-commerce, food delivery, cosmetics, and gaming. Management noted that sectors such as automobiles—supported by new energy vehicle launches—internet services, food and beverage, and celebrity marketing maintained solid year-over-year growth.
Value-added services revenue rose 19% to $72.9 million, driven by increased user engagement and monetization efforts. Alibaba’s advertising contribution grew 10% to $39.2 million. Non-GAAP operating income totaled $125.4 million, with the operating margin contracting to 28% from 36% in the same period last year. Net income attributable to Weibo was $102.7 million, while operating cash flow fell to $15.5 million due to timing effects around tax settlements, collections, and rebates.
Weibo’s user base remained stable, with average monthly active users at 561 million and daily active users at 254 million, largely unchanged from the prior year despite adjustments in channel spending and low-frequency user optimization. Video consumption continued to expand, with total time spent on video views growing double digits year-over-year and average time per user rising more meaningfully, according to CEO Gaofei Wang.
Management highlighted AI-driven tools as a strategic focus, citing a more than 30% reduction in negative feedback rates for e-commerce campaigns through AI-optimized ad materials. The company also emphasized a shift from broad user acquisition spending toward improving conversion rates, refining homepage feed architecture, and expanding its video creator ecosystem.
Weibo’s cash position strengthened to $2.64 billion as of June 30, up from $2.41 billion at year-end 2025. The stock traded at $7.67 on August 17, up 0.39% for the session, within a 52-week range of $7.09 to $12.96.
