Weibo Corp. (NASDAQ:WB) stock slid after it reported mixed fiscal fourth-quarter results on Wednesday.

Revenue Growth Beats Estimates, EPS Misses

The company reported quarterly revenue of $473.26 million, up 4.0% year-on-year (Y/Y), beating the analyst consensus estimate of $435.75 million. 

The Chinese microblogging social network company’s revenue rose 1% Y/Y on a constant basis.

Adjusted EPS of 25 cents missed the analyst consensus estimate of 43 cents.

Weibo’s advertising and marketing revenues were $403.8 million, up by 5% Y/Y, primarily driven by robust growth of advertising revenues from the ecommerce and local service sectors.

Advertising and marketing revenues, excluding advertising revenues from Alibaba Group Holding Ltd (NYSE:BABA), were $353.8 million, an increase of 2% Y/Y.

Value-added service (VAS) revenues decreased 2% Y/Y to $69.5 million.

User Metrics Show Decline

Monthly active users (MAUs) were 567 million in December 2025 (versus 590 million Y/Y), while Average daily active users (DAUs) were 252 million (versus 260 million Y/Y). 

The adjusted operating margin declined from 30% to 21% Y/Y as profits decreased 26.3% Y/Y. 

As of December 31, 2025, Weibo’s cash, cash equivalents and short-term investments totaled $2.4 billion.

For the fourth quarter of 2025, cash provided by operating activities was $181.4 million, capital expenditures totaled $10.4 million, and depreciation and amortization expenses amounted to $15.3 million.

CEO Commentary

CEO Gaofei Wang said the company saw strong growth in its AI-powered search, which increased user engagement and made content discovery more efficient.

He added that Weibo’s advertising business stabilized during the year, driven by strength in key industries, while the company continued investing in content marketing and AI capabilities to improve ad performance.

Wang also said the board approved a $150 million annual dividend for fiscal 2025 as part of its focus on shareholder returns.

WB Price Action: Weibo shares were down 3.41% at $9.34 during premarket trading on Wednesday, according to Benzinga Pro data.

Photo via Shutterstock