Weibo Corporation (NASDAQ:WB) shares advanced 3.29% in pre-market trading on Wednesday after the Chinese social media company reported second-quarter earnings and revenue above analysts’ expectations.
Adjusted earnings per share came in at $0.38, ahead of the consensus forecast of $0.36. Revenue increased 2% year-on-year to $453.8 million, exceeding the $442.44 million expected by analysts.
Value-Added Services Deliver Strong Growth
Advertising and marketing revenue declined 1% from the previous year to $381.0 million, while value-added services revenue climbed 19% to $72.9 million.
The increase in value-added services was supported by one-time ticket revenue from offline events alongside solid growth in membership services.
“We delivered a solid quarter,” said Gaofei Wang, CEO of Weibo. “On the user front, with our continued efforts to improve user quality and drive user retention through information feed revamp, we saw solid engagement among our core users and increased consumption in the information feeds.”
Weibo reported 561 million monthly active users in June 2026, alongside an average of 254 million daily active users.
Higher Costs Put Pressure on Weibo’s Margins
Despite the revenue beat, profitability weakened compared with the same period last year. Weibo’s non-GAAP operating margin declined to 28% from 36%, reflecting a 12% year-on-year increase in costs and expenses to $335.0 million.
The company attributed much of the increase to higher advertising production costs and marketing expenditure.
Non-GAAP net income attributable to shareholders fell to $102.7 million from $143.2 million in the second quarter of the previous year.
Alibaba Advertising Revenue Moves Higher
Advertising revenue from customers excluding Alibaba decreased 2% year-on-year to $341.8 million. Weaker demand from the handset and online gaming industries weighed on performance, although stronger spending from internet services and automotive customers provided a partial offset.
Revenue generated from Alibaba advertising moved in the opposite direction, increasing 10% from a year earlier to $39.2 million.
Weibo finished the quarter with a substantial liquidity position. As of June 30, 2026, the company held $2.64 billion in cash, cash equivalents and short-term investments.
The stronger-than-expected headline results helped lift Weibo shares before the opening bell, although the contraction in operating margins and decline in adjusted net income remain important considerations for investors assessing the company’s underlying earnings trajectory.
Weibo Corporation stock price
