Meitu, Inc.

For 2025, Meitu reported revenue of RMB 3.86 billion, up 28.8% YoY; core photo, video and design products revenue was RMB 2.95 billion, up 41.6% YoY. Gross profit was RMB 2.84 billion, up 24.6% YoY, with gross margin of 73.6% versus a restated 76% in 2024. Adjusted net profit attributable to owners was about RMB 970 million, up 64.7% YoY; IFRS net profit attributable to owners was about RMB 700 million versus about RMB 800 million in 2024, affected by a RMB 640 million crypto disposal gain in 2024 and a one-time noncash expense of about RMB 510 million in 2025 from the Alibaba convertible bond issuance. Looking ahead, management said 2026 top-line growth is expected to be roughly in line with 2025, with a larger mix from productivity tools globally, and gross margin is expected to remain above 70% this year.

The CEO framed Meitu as an AI application company focused on photo and video, with a strategy centered on industry-specific AI agent teams that turn user know-how into end-to-end content creation workflows. He emphasized that the company is moving from generic tools toward vertical, task-oriented AI agents, and that this is already improving product output, conversion, and monetization. His tone was confident and strategic, stressing that model capabilities and AI agents are a positive force for the business rather than a threat.

The CFO highlighted stronger operating metrics, including MAU of 276 million, paying subscribers of 16.91 million, productivity-tool subscriber growth of 67.4%, and a productivity-tool subscription rate of 9%. He detailed 2025 revenue of RMB 3.86 billion, gross profit of RMB 2.84 billion, gross margin of 73.6%, selling and marketing expenses of about RMB 600 million, R&D of RMB 950 million, and administrative expenses of RMB 450 million. He also said cost of revenue was RMB 1.02 billion, with payment-channel revenue-sharing fees around RMB 620 million, computing and cloud costs of RMB 230 million, and third-party API costs remaining in the mid-single digits of total cost of sales. On capital allocation, he noted a new share buyback plan of up to HKD 300 million for one year and said the company’s overall cash return is around 60%.

Analysts focused on whether AI fragmentation and slower MAU/subscriber trends reflected weaker growth, and management answered that AI agents are actually accelerating product development and long-tail use cases. Management said the softer MAU pattern mainly reflected the timing of blockbuster feature launches and product maturation, not a negative AI impact, and argued that productivity products still have a long growth runway. On monetization, management said agents raise ARPU by shifting users toward higher-priced, token-based packages, and that future pricing may include more tiers and product-specific consumption-based pricing. They also said gross margin should stay above 70% this year, with the mix shift away from ads offset partly by lower Apple fees in China and limited impact from third-party API use because it remains a mid-single-digit share of cost of sales.