HUYA Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- The company reported total net revenues of RMB 1.74 billion for Q2 2026, an 11% year-over-year increase.
- Gaming related services, advertising, and other revenues grew 54% year over year to RMB 638 million, accounting for approximately 37% of total net revenues.
- Live streaming revenues were RMB 1.1 billion for Q2 2026, slightly down from RMB 1.15 billion in the same period last year.
- Gross margin improved to 14.7% from 13.5% year over year, with gross profit rising 20% to RMB 255 million.
- Operating loss narrowed to RMB 7 million from RMB 24 million a year ago, while non-GAAP operating income increased to RMB 16 million from RMB 0.4 million.
- Net income attributable to the company was RMB 1.6 million, compared to a net loss of RMB 5.5 million in Q2 2025.
- Non-GAAP net income attributable to the company was RMB 36 million, down from RMB 48 million year over year.
- The company had RMB 3.21 billion in cash, cash equivalents, and deposits as of June 30, 2026, down from RMB 3.46 billion at the end of Q1 2026.
- Goose Goose Duck Mobile maintained a healthy and engaged player base, with ongoing AI-powered voice moderation and new content collaborations helping it return to the number one spot on the iOS free game chart in Chinese mainland.
- The company is publishing two exclusive titles: Legend of Suomen Reunion, a classic martial arts MMO RPG, and Xiao Xiao Qiu, a 3D match-based casual mobile game.
- The company's first self-developed title, Zhang, received regulatory approval in July and is preparing for upcoming testing.
- Advertising partnerships expanded, notably with Hearthstone, generating over 200 million impressions during a global invitational tournament.
- The company hosted over 100 licensed and 20 self-produced tournaments, including the CF Grand Master Cup and Dota 2 Immortal Cup Season Two, generating significant online engagement.
- AI initiatives include the launch of VAN version 1.0, a real-time multimodal digital human model, and AI-powered game tools for titles like Delta Force and Teamfight Tactics, which have attracted over 1 million users.
- The company repurchased approximately 3.2 million ADSs in Q2 2026, representing about 1.4% of shares outstanding, and the board approved expanding the 2026 share repurchase program from $50 million to $100 million.
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Transcript
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2026 earnings webinar. I'm Zichen Liu from the HUYA Investor Relations. At this time, all participants are in listen-only mode. Please be advised that today's webinar is being recorded. The company's financial and operational results were issued earlier today and are posted online. You can also view the earnings press release by visiting the IR website at ir.huya.com. A replay of the call will be available on the IR website soon. Participants of management on today's call will be Mr. Vincent Junhong Huang, our Acting CEO, Mr. Raymond Teng Lei, our CFO, and Ms. Margaret Shi, Head of Capital Markets. Management will begin with prepared remarks, and the call will conclude with a Q&A session. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties.
As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's latest annual report on Form 20-F, and other public filings as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that HUYA's earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures. HUYA's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. With that, I'm pleased to turn the call over to Mr. Huang.
Please go ahead. Okay. Hello, everyone.
I'm Vincent, and thank you for joining our earnings call today. Let me begin with a brief overview of our second quarter performance. We deliver another quarter of sustainable growth, with total net revenues increasing by 11% year-over-year to CNY 1.74 billion. Game-related services, advertising, and other revenues maintain strong momentum, growing by 54% year-over-year to CNY 638 million and contributing approximately 37% of total net revenues. Behind this growth is our long-term positioning along the game industry value chain, which is steadily translating into sustainable growth momentum. Over the past three years, we have steadily expanded our presence across the game industry value chain, evolving from game distribution to in-game item sales, advertising and marketing, and now game publishing.
Throughout this journey, we have built differentiated user acquisition capabilities that have been increasingly recognized and validated by both our partners and the market. This give us the confidence to extend beyond our capacity as a publishing partner and take on the full game publisher role, which allow us to participate more deeply across the entire game life cycle. Our publishing model is built around content rather than paid traffic acquisition, leveraging our strengths in content creation, streamer network, and user communities. We foster high-quality UGC, expand our reach, and generate social buzz across platforms such as Douyin, Xiaohongshu, and WeChat Channels. This differentiated approach to publishing let us acquire users more efficiently while reducing our reliance on traditional paid traffic channels. Goose Goose Duck Mobile is our first success story published under this framework, maintaining an active user base and a vibrant content ecosystem.
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