HUYA Inc.

Q2 total net revenues were RMB 1.74 billion, up 11% year over year. Live streaming revenue was RMB 1.1 billion versus RMB 1.15 billion a year ago, while game-related services, advertising, and other revenue rose 54% year over year to RMB 638 million. Gross profit was RMB 255 million, up 20% year over year, and gross margin improved to 14.7% from 13.5%; non-GAAP gross margin was 14.8%. Operating loss narrowed to RMB 7 million from RMB 24 million, while non-GAAP operating income increased to RMB 16 million from RMB 0.4 million. Net income attributable to HUYA was RMB 1.6 million versus a net loss of RMB 5.5 million last year; non-GAAP net income attributable to HUYA was RMB 36 million versus RMB 48 million. As of June 30, 2026, cash and cash equivalents, short-term deposits, and long-term deposits totaled RMB 3.21 billion, down from RMB 3.46 billion at March 31, 2026. Management did not give formal next-quarter or full-year revenue/EPS guidance on the call, but said higher-margin game publishing should keep lifting gross and operating margins, and confirmed continued buybacks plus annual cash dividends.

Vincent Junhong Huang framed the quarter as further proof that HUYA’s content-driven strategy is working across publishing, advertising, in-game items, and AI. He emphasized that Goose Goose Duck Mobile validated the company’s approach to user acquisition and long-term operations, and said HUYA is expanding from co-publishing into exclusive publishing and self-development. His tone was confident and forward-looking, with repeated references to building a repeatable publishing playbook, broader ecosystem partnerships, and sustainable long-term shareholder value.

Raymond Peng Lei focused on the improving mix and profitability profile. He said higher-margin game-related services, advertising, and other businesses lifted gross margin to 14.7%, and that non-GAAP operating income improved to RMB 16 million, with operating loss narrowing to RMB 7 million. He also noted cost of revenues rose 10% to RMB 1.48 billion, revenue-sharing fees and content costs rose 3% to RMB 1.21 billion, and interest income fell to RMB 26 million from RMB 59 million because of a lower average deposit balance after special cash dividends and lower rates. On capital allocation, he said HUYA repurchased about 3.2 million ADS in Q2, and the board expanded the 2026 repurchase authorization to $100 million.

Analysts pressed on Goose Goose Duck’s monetization, user retention, and summer content roadmap; management said the game kept a healthy user base, with 18-to-25 still the core demographic, stable long-term retention, and a steady pipeline of IP collaborations and gameplay updates. On AI, management said it is focused on four areas—live streaming, game tools, IP companionship, and AI-assisted development—and cited more than 1 million users for its AI game tools within six months, plus higher engagement from users of the Hextech ARAM assistant. Analysts also asked about streaming softness and cost savings; management said live streaming revenue was about RMB 1.1 billion, noted industry pressure from weaker spending and competition, and said it is reviewing streamer contracts and tournament licensing to improve content investment efficiency. On shareholder returns, management highlighted buybacks, dividends, and the expanded repurchase authorization, saying the program reflects confidence in the outlook.