Bilibili Inc.

Q2 total revenue was RMB 7.9 billion, up 8% year over year. Gross profit increased about 10% year over year to RMB 3.0 billion, and gross margin expanded to 37.2% from 36.5% last year, marking the 16th consecutive quarter of margin improvement. Net profit rose 55% year over year to RMB 339 million, adjusted net profit increased 25% to RMB 704 million, and adjusted net profit margin was 8.9%. Advertising revenue was RMB 3.1 billion, up 28% year over year; game revenue was RMB 1.4 billion, down 14%; and VAS revenue grew 5% year over year to RMB 3.0 billion. Looking ahead, management said gaming revenue should resume year-over-year growth starting in Q4, and it reiterated a mid- to long-term target of 40% to 45% gross margin and 15% to 20% operating margin.

Rui Chen framed the quarter as another period of strong momentum, saying user engagement, monetization, and profitability all continued to improve. He stressed that Bilibili’s advantage comes from high-quality content and an authentic community, and said AI will be used to improve creation, understanding, and distribution without losing that community identity. His tone was confident and strategic, with repeated emphasis on long-term compounding value from the community-monetization flywheel.

Sam Fan highlighted revenue of RMB 7.9 billion, gross profit of RMB 3.0 billion, gross margin of 37.2%, operating profit of RMB 373 million, adjusted operating profit of RMB 696 million, and adjusted net profit of RMB 704 million. He said cost of revenues rose 7% year over year to RMB 5.0 billion, operating expenses increased 7% to RMB 2.6 billion, and R&D rose 16% mainly because of AI investment. He also noted cash and cash equivalents, time deposits and short-term investments of RMB 24.3 billion, plus a new 2-year USD 300 million share repurchase program; under that program, 1.9 million shares had been bought for USD 31 million as of June 30, and year to date the company had repurchased 5.8 million shares for USD 118 million.

Analysts focused on content trends, ad growth in a weaker macro backdrop, the game launch pipeline, AI’s effect on the business, and margin upside. Management said Bilibili’s resilience comes from prioritizing good, high-quality content rather than content length, and argued AI will expand content supply while improving distribution efficiency. On ads, management said AI spend was up more than 100% year over year, that multi-scenario ad inventory was growing, and that the company remained confident despite the macro environment. On games, it laid out launches including Lumi Master on September 17, a new Three Kingdoms title toward year-end, and three more titles next year, while saying San Mou remains a durable franchise.