Key Takeaways:
Meitu’s focus on artificial intelligence is paying off, with annual recurring revenue (ARR) from its AI-powered productivity apps surging 56.2% year-over-year to RMB580 million in the first quarter of 2026, signaling successful monetization of its technology-driven strategy.
"Following the integration of AI Agent capabilities, total AI computing credit consumption increased significantly, reflecting deepening user engagement with AI features," the company stated in its announcement. This growth in engagement is "driving overall demand and usage growth, and supporting increases in both subscription revenue and usage-based revenue."
The strong performance in AI was the key driver behind a broader expansion for the Hong Kong-based technology firm. Total paying subscribers increased 30.2% to more than 17.9 million. Revenue from the core Imaging and Design Products business climbed 34.3% to RMB852 million. The growth came even as Meitu exited its lower-margin stock image licensing business, a move designed to sharpen its focus on high-growth productivity tools.
This strategic pivot appears to be succeeding, as the results highlight a significant shift in user activity and monetization. The company's total consumption of AI computing credits jumped 59% in March compared to December 2025. This surge was led by sharp usage increases in key products like Kaipai, which saw a 360% rise, and RoboNeo, which grew 316%, demonstrating that users are not just subscribing but actively using the new AI features.
The subscriber growth was not uniform across Meitu's portfolio. Paying users for its productivity applications, the core of its AI push, jumped 52.9% to 2.34 million. In contrast, its broader lifestyle apps saw a more moderate, yet still healthy, 27.4% increase in subscribers to 15.56 million. This disparity underscores the market's growing appetite for AI-powered tools that offer tangible productivity benefits.
The most recent analyst rating on Meitu's stock (1357.HK) is a Buy with a HK$7.00 price target, as noted by TipRanks. The company's focus on AI and its successful globalization strategy are key pillars of the investment thesis. While the reported Q1 figures are unaudited, they provide a strong indication that Meitu's pivot to a subscription and usage-based model centered on AI is gaining significant traction with both users and investors.
This article is for informational purposes only and does not constitute investment advice.
