Weibo's Ad Sales Slide But AI Push Keeps Engagement Steady

Benzinga
2025/11/18

Weibo Corp. (NASDAQ:WB) stock gained after it reported fiscal third-quarter results on Tuesday.

The company reported quarterly revenue of $442.30 million, down 5.0% year-on-year, beating the analyst consensus estimate of $435.75 million. 

The Chinese microblogging social network company’s revenue fell 4% Y/Y on a constant basis.

Also Read: China’s Twitter-Like Platform Weibo Keeps User Engagement High, Credits AI-Recommendation Engine

Adjusted EPS of 42 cents missed the analyst consensus estimate of 43 cents.

Weibo’s advertising and marketing revenues were $375.4 million, down 6% Y/Y due to prior year benefit from the Paris Olympic Games. Advertising and marketing revenues, excluding advertising revenues from Alibaba Group Holding Ltd (NYSE:BABA), were $329.9 million, a decrease of 13% Y/Y.

Value-added service (VAS) revenues increased 2% Y/Y to $66.9 million.

Monthly active users (MAUs) were 578 million in September 2025 (versus 587 million Y/Y), while Average daily active users (DAUs) were 257 million (versus 257 million Y/Y). 

The adjusted operating margin declined from 35% to 30% Y/Y as profits decreased 19.8% Y/Y. 

As of September 30, 2025, Weibo held $2.04 billion in cash and equivalents, generating $200.0 million in operating cash flow during the quarter.

Weibo CEO Gaofei Wang said the company advanced its intelligent search strategy in the quarter by revamping its homepage to prioritize recommendation feeds, boosting content consumption and efficiency.

He added that Weibo strengthened its content marketing edge, improved promoted feed ad conversion, and expanded AI adoption across its advertising technology to enhance monetization efficiency.

Price Action: WB stock was trading higher by 2.51% to $10.20 premarket at last check Tuesday.

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Photo by rafapress via Shutterstock

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