<div id="readability-page-1"><div><p>Cheetah Mobile (CMCM) just reported its Q3 2025 financial results, posting revenue of 287.4 million CNY and an EPS of -0.35 CNY. Looking back, the company has seen revenue climb from 192.1 million CNY in Q3 2024 to 287.4 million CNY in the latest quarter; however, EPS has remained negative throughout. While margins are still compressed, this performance sets the table for what investors expect in the coming quarters.</p> <p>See our full analysis for Cheetah Mobile.</p><p>Now let's compare these numbers against the community narratives. Some expectations might get confirmed, while others could be turned on their head.</p> <p>Curious how numbers become stories that shape markets? Explore Community Narratives</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/a7d21aed-3c00-4289-9761-146b4b6ac318/chart/revenue-and-expenses-breakdown?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/a7d21aed-3c00-4289-9761-146b4b6ac318/chart/revenue-and-expenses-breakdown"/><figcaption>NYSE:CMCM Revenue &amp; Expenses Breakdown as at Nov 2025</figcaption></figure> <h2>Losses Narrow, but Remain Large</h2> <ul> <li> Net income excluding extraordinary items improved from -22.6 million CNY last quarter to -11.0 million CNY this quarter, continuing a trend of shrinking losses from -33.4 million CNY in Q1 2025 and -46.9 million CNY in Q3 2024. The figure remains negative, but the losses have become less severe each period.   </li> <li> The prevailing market view highlights that Cheetah Mobile’s strategic pivot toward AI and robotics is underway. This costly transformation, however, keeps the company in a loss-making mode, and critics emphasize losses are accumulating even as topline momentum emerges.     <ul> <li> Income statements show consistent net losses every quarter over the past year, underscoring the expense of transitioning into new business lines.       </li> <li> Notably, operating costs are being managed more effectively with each quarter. Margins remain negative, but the reduction in net loss size suggests that financial discipline is starting to show.       </li> </ul> </li> </ul> <h2>Revenue Growth Outpaces Industry</h2> <ul> <li> Trailing twelve-month revenue rose to 1.08 billion CNY, growing at a 21.4% forecasted annual pace. This is double the broader US market’s average rate of 10.5% per year, despite CMCM’s ongoing lack of profitability.   </li> <li> Supporters argue that Cheetah Mobile’s ability to drive revenue growth well above the industry average could position it as a standout in the software sector, especially since analysts cite new AI and robotics initiatives as the main growth drivers.     <ul> <li> The consensus narrative notes that if Cheetah Mobile successfully scales its AI-powered offerings, its outsized revenue growth could support a rerating of its valuation, even if earnings are not yet positive.       </li> <li> The current price-to-sales ratio of 1.5x, which is well below the US software peer average of 4.8x, strengthens the bullish argument for potential upside if growth continues.       </li> </ul> </li> </ul> <h2>Price-to-Sales Signals Discounted Valuation</h2> <ul> <li> CMCM’s price-to-sales ratio sits at 1.5x, which is markedly lower than the industry average of 4.8x and its peer group’s 3.8x. This reflects discounted market expectations, even with significant share price volatility over the last year.   </li> <li> While the prevailing opinion sees this valuation as a margin of safety, it also highlights an ongoing tension: investors remain cautious as the company works to address persistent net losses, and the lower multiple could remain until meaningful earnings progress is demonstrated.     <ul> <li> Share price volatility stands out as a notable risk factor, with no other major risks flagged in the past year. This keeps valuation sentiment balanced between growth potential and execution risk.       </li> <li> The discounted multiple does not guarantee a rerating. The market is waiting for further evidence that revenue growth will eventually contribute to the bottom line.       </li> </ul> </li> </ul> <p>Analysts say these figures underscore how Cheetah Mobile’s turnaround story is still developing. Dig deep into the full consensus narrative to gauge where conviction runs highest in the current debate. <strong>📊 Read the full Cheetah Mobile Consensus Narrative.</strong></p> <h2> Next Steps</h2> <p>Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Cheetah Mobile's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.</p> <h2>See What Else Is Out There</h2> <p>Despite robust top-line growth, Cheetah Mobile is still delivering sizable net losses and has not yet translated revenue momentum into consistent profitability.</p> <p>If you want to avoid ongoing losses and seek companies that consistently grow sales and earnings through every cycle, discover stable growth stocks screener (2074 results) for steadier investment options built for resilience.</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

CMCM

<p>Cheetah Mobile (NYSE:CMCM) reported Q3 2025 financial results with revenue of 287.4 million CNY and an EPS of -0.35 CNY. Net loss narrowed to -11.0 million CNY from -22.6 million CNY last quarter. Despite ongoing losses, revenue growth outpaced the industry at 21.4% annually. The company's strategic pivot to AI and robotics is costly but shows potential. The price-to-sales ratio of 1.5x is below the industry average, indicating a discounted valuation. Analysts highlight the need for further evidence of profitability for a rerating.</p>

Cheetah Mobile (NYSE:CMCM) Q3 Net Loss Narrows, Challenging Pessimistic Community Narratives