Q2 FY2026
Filed Aug 20, 2026Aurora Mobile reported RMB101.2 million in second-quarter revenue, up 13% year-over-year, with GAAP net income of RMB2.1 million and adjusted EBITDA of RMB3.8 million.
Revenue, gross profit, GAAP net income, adjusted net income and adjusted EBITDA all increased year-over-year. Developer Services reached a quarterly record, while Vertical Applications declined and cash, restricted cash and short-term investments were lower than at December 31, 2025.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | RMB101.2 million (US$14.9 million) | – | 13% |
| Cost of revenuesGAAP | RMB32.0 million (US$4.7 million) | – | 6% |
| Gross profitGAAP | RMB69.2 million (US$10.2 million) | – | 16% |
| Gross marginGAAP | 68.3% | – | improved by 197 basis points year-over-year |
| Research and development expensesGAAP | RMB29.3 million (US$4.3 million) | – | 13% |
| Sales and marketing expensesGAAP | RMB28.3 million (US$4.2 million) | – | 25% |
| General and administrative expensesGAAP | RMB10.0 million (US$1.5 million) | – | decrease of 18% |
| Total operating expensesGAAP | RMB67.6 million (US$10.0 million) | – | 11% |
| Income from operationsGAAP | RMB1.6 million (US$0.2 million) | – | – |
| Net incomeGAAP | RMB2.1 million (US$0.3 million) | – | – |
| Net income attributable to Aurora Mobile Limited’s shareholdersGAAP | RMB1.9 million (US$0.3 million) | – | – |
| Net income per share, Class A and Class B common shares, basicGAAP | RMB0.02 | – | – |
| Net income per share, Class A and Class B common shares, dilutedGAAP | RMB0.02 | – | – |
| Adjusted net incomenon-GAAP | RMB2.4 million (US$0.4 million) | – | – |
| Adjusted EBITDAnon-GAAP | RMB3.8 million (US$0.6 million) | – | – |
| Net Dollar Retention Rate for Core Developer Subscription Servicesother | 106% | – | – |
| EngageLab Annual Recurring Revenue as of June 2026other | $14.6M | – | 170% year-over-year growth |
| Operational net cash inflowother | RMB 23.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Developer ServicesRecorded its highest quarterly revenue in history. | RMB 79.9M | – | 24% increase |
| SubscriptionNot separately disclosed. | RMB70.7 million (US$10.4 million) | – | – |
| Value-Added ServicesNot separately disclosed. | RMB9.2 million (US$1.4 million) | – | – |
| Vertical ApplicationsPartially offset the increase in revenue from Developer Services. | RMB21.3 million (US$3.1 million) | – | 16% decrease |
Capital returns
- As of June 30, 2026, the Company had repurchased a total of 485,173 ADSs.
- 43,808 ADSs, or around US$252.2 thousand, were repurchased during the second quarter in 2026.
What drove it
- Revenue growth was attributable to a 24% increase in Developer Services revenue, partially offset by a 16% decrease in Vertical Applications revenue.
- The increase in cost of revenues was mainly due to a RMB5.9 million increase in direct costs related to overseas business including One-Time Password, WhatsApp push and GPTBots.ai.
- The cost increase was partially offset by a RMB1.4 million decrease in media cost and a RMB2.5 million decrease in message channel costs.
- Research and development expense increased mainly due to a RMB1.4 million increase in personnel costs and a RMB1.3 million increase in technical service expense.
- Sales and marketing expense increased mainly due to a RMB5.7 million increase in personnel costs.
- General and administrative expense declined mainly due to a RMB1.5 million decrease in bad debt provision and a RMB0.7 million decrease in loss on disposal of property and equipment.
Concerns
- Vertical Applications revenue decreased 16% year-over-year.
- Sales and marketing expenses increased 25% year-over-year, faster than total revenue growth of 13%.
- Cash and cash equivalents, restricted cash and short-term investment declined to RMB166.8 million from RMB173.4 million as of December 31, 2025.
- Gross margin was 68.3%, compared with 71.0% in the prior quarter.
What to watch
- Whether Developer Services can sustain its record quarterly revenue of RMB79.9 million.
- EngageLab ARR, which reached US$14.6 million as of June 2026 and grew 170% year-over-year.
- Net Dollar Retention Rate for Core Developer Subscription Services, which stood at 106%.
- The trajectory of Vertical Applications revenue following its 16% year-over-year decrease.
- The effect of overseas direct costs, including OTP, WhatsApp push and GPTBots.ai, on cost of revenues and gross margin.
Balance sheet and cash flow
- Cash and cash equivalents were RMB152.1 million (US$22.4 million) as of June 30, 2026, compared with RMB168.0 million as of December 31, 2025.
- Restricted cash was RMB4.6 million (US$0.7 million) as of June 30, 2026, compared with RMB0.4 million as of December 31, 2025.
- Short-term investments were RMB10.1 million (US$1.5 million) as of June 30, 2026, compared with RMB5.1 million as of December 31, 2025.
- Cash and cash equivalents, restricted cash and short-term investment were RMB166.8 million (US$24.6 million) as of June 30, 2026, compared with RMB173.4 million as of December 31, 2025.
- Short-term loan was RMB5.0 million (US$0.7 million) as of June 30, 2026; no short-term loan was reported as of December 31, 2025.
- Accounts receivable were RMB39.0 million (US$5.8 million) as of June 30, 2026, compared with RMB43.2 million as of December 31, 2025.
- Deferred revenue and customer deposits were RMB181.9 million (US$26.8 million) as of June 30, 2026, compared with RMB178.7 million as of December 31, 2025.
- Total assets were RMB403.5 million (US$59.5 million) as of June 30, 2026, compared with RMB416.2 million as of December 31, 2025.
- Total liabilities were RMB316.4 million (US$46.6 million) as of June 30, 2026, compared with RMB316.7 million as of December 31, 2025.
Analysis
Aurora Mobile delivered year-over-year growth across its principal reported income-statement measures in Q2 2026. Revenue rose 13% to RMB101.2 million, gross profit increased 16% to RMB69.2 million, and gross margin was 68.3%, with management citing a 197-basis-point year-over-year improvement. The company reported GAAP net income of RMB2.1 million, compared with RMB0.5 million in the same quarter last year, and net income attributable to Aurora Mobile Limited’s shareholders was RMB1.9 million after a RMB21 thousand loss in the prior-year period.
Developer Services was the central revenue contributor. Its revenue increased 24% year-over-year to a record approximately RMB79.9 million, while Vertical Applications revenue decreased 16% to RMB21.3 million. EngageLab ARR reached US$14.6 million as of June 2026, representing 170% year-over-year growth, and Core Developer Subscription Services posted a 106% Net Dollar Retention Rate. These operating indicators accompany management's statement that SAAS business revenue exceeded RMB100 million in a quarter for the third time in company history.
Costs and operating expenses rose more slowly than gross profit but continued to increase. Cost of revenues rose 6%, driven primarily by RMB5.9 million of higher overseas-business direct costs, including OTP, WhatsApp push and GPTBots.ai. Total operating expenses increased 11%, as a 25% increase in sales and marketing expense and a 13% increase in research and development expense were partly moderated by an 18% decline in general and administrative expense. The resulting RMB1.6 million of income from operations compared with a RMB0.9 million operating loss a year earlier.
Adjusted net income was RMB2.4 million and adjusted EBITDA was RMB3.8 million, compared with RMB0.8 million and RMB1.2 million, respectively, in the same quarter last year. The company also reported RMB23.3 million of operational net cash inflow. Cash and cash equivalents, restricted cash and short-term investment totaled RMB166.8 million as of June 30, 2026, versus RMB173.4 million at December 31, 2025, while the balance sheet reported a RMB5.0 million short-term loan.
Capital allocation included repurchases of 43,808 ADSs, or around US$252.2 thousand, during the quarter, bringing cumulative repurchases to 485,173 ADSs as of June 30, 2026. The release did not provide financial outlook or forward guidance. The key reported tension is between record Developer Services performance and the decline in Vertical Applications, alongside a 68.3% gross margin that was below the prior-quarter 71.0% level.
Management, verbatim
For the third time in our history, we recorded SAAS business revenue in excess of RMB100 million in a single quarter.
Weidong Luo, Chairman and Chief Executive Officer
EngageLab’s Annual Recurring Revenue (“ARR”) as of June 2026 reached a record high of US$14.6 million, representing 170% year-over-year growth.
Weidong Luo, Chairman and Chief Executive Officer
The quarterly operational and financial results we are releasing today reflect considerable strength across our business.
Shan-Nen Bong, Chief Financial Officer
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-release outlook was not provided.
- Comparison with prior guidance is unavailable.
- Free cash flow was not provided.
- A GAAP cash flow statement was not provided.
- Dividend information was not provided.
- Long-term debt was not provided.
- Non-GAAP earnings per share were not provided.
- Segment-level operating income or margin was not provided.
- Year-over-year and quarter-over-quarter percentage changes for Subscription and Value-Added Services revenue were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.