MiniMax Revenue Surges 283%: Can It Turn Around Its Weak Stock Performance?

Talia_z
08-27 14:02

Yesterday, MiniMax Group released its earnings results, posting a strong performance in the first half of the year. Revenue reached $116.6 million, compared with just $30.4 million in the same period last year, representing a year-over-year increase of approximately 283%.

In terms of revenue structure, revenue from AI-native products grew 100.9% year over year to $42.6 million. Revenue from the open platform and other AI-based enterprise services surged 703.1%, rising from $9.2 million to $73.9 million. This segment accounted for 63.4% of total revenue, up significantly from 30.3% in the same period of 2025, making it the company's largest revenue source.

Investment banks have offered mixed views on the company. Citi said demand for the M3 model among enterprise users remains strong and that revenue exceeded expectations. Citi raised its price target from HK$533 to HK$576. Jefferies said MiniMax's annual recurring revenue exceeded $800 million in the first half, with strong growth in text-model usage in July driving further revenue growth. It described MiniMax as “one of the most attractive buys” in the sector.

Bernstein, however, said both revenue and gross margin came in below expectations, with the decline in overseas market share particularly notable. In addition, the company has stopped disclosing gross-margin details by segment, making it more difficult to assess the profitability of its individual businesses.

Analysts believe that as agentic AI costs continue to rise, while major internet companies such as Tencent, ByteDance, and Alibaba continue to ramp up investment in AI, MiniMax could face increasing competitive and cost pressures, potentially leading to further operating losses.

In terms of its competitive strategy, MiniMax has adopted a relatively affordable pricing approach, differentiating itself from competitors such as $Z.AI(02513)$ However, whether this strategy can expand its user base while also improving profitability remains to be seen. $MINIMAX-W(00100)$

# Hong Kong AI Model Stocks Surge with MINIMAX and Z.AI Leading Gains

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  • happyli
    ·08-27 14:12
    283% revenue growth is nice, but weak price action usually means the market wants the missing overseas share numbers and margin detail first
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  • Investing Leon
    ·08-27 16:20
    The core issue is that its current competitive strategy still relies on low pricing, which is unfavorable for long-term profit growth.
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