US ▾
BILI
Earnings call · Jun 2026 (Q2 FY26)

Bilibili Q2 FY26 earnings call BILI

Aug 27, 2026 Source

Executive summary

Bilibili Q2 FY26 — Strong Growth in Users, Ad Revenue, and Profitability

Bilibili delivered solid Q2 FY26 results, driven by healthy user and top-line growth, alongside expanding profitability. The company leveraged its high-quality content and authentic community to attract users and drive engagement, with AI playing a crucial role in content creation and distribution efficiency. Management remains confident in future profitability improvement and shareholder returns, balancing AI investments with commercial monetization.

Highlights

5

  • DAUs increased by 7% year-over-year to 117 million.

  • Advertising revenue grew 28% year-over-year to RMB 3.1 billion, marking 14th straight quarter of over 20% YoY growth.

  • Adjusted net profit reached RMB 704 million, up 25% year-over-year, with margin expanding to 8.9%.

  • Gross margin expanded to 37.2%, marking 16th consecutive quarter of improvement.

  • Total time spent on platform expanded by 14% year-over-year.

Concerns

2

  • Game revenues were RMB 1.4 billion, down 14% year-over-year, mainly due to a high base set last year.

  • Total operating expenses were up 7% year-over-year to RMB 2.6 billion, with R&D up 16% due to continued AI investments.

Guidance & targets

CategoryTargetConfidence
Gross profit margin
40% to 45%
high materiality
High
Operating margin
15% to 20%
high materiality
High
Gaming revenue growth
Resume year-over-year growth trend
medium materiality
High
AI-related R&D expenses
RMB 500 million
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Advertising
Marked 14th straight quarter of over 20% year-over-year growth, reflecting strong user base and ad product enhancements. Growth was broad-based across industries, with AI advertisers more than doubling YoY.
RMB 3.1 billion28%——
VAS
Live broadcasting maintained steady performance. Operations are being refined for stable, sustainable growth with better margins.
Premium members: 25.7 millionPremium members YoY growth: 9%Premium members on annual/auto renewal: ~80%Fan charging revenue YoY growth: 50%
RMB 3.0 billion5%——
Mobile Games
Revenue decline mainly due to a high base set last year. The game 'Three Kingdoms' continues stable performance and ranked #2 on China's iOS top grossing chart for its latest season.
RMB 1.4 billion-14%——
IP derivatives and other businesses
Represents approximately 6% of total revenues.
RMB 0.474 billion———

BILI operating KPIs by quarter

BILI operating KPIs stated on its earnings calls, by fiscal quarter
KPI Dec 2025 Q4 FY25 Mar 2026 Q1 FY26This call Jun 2026 Q2 FY26Change vs prior quarter
Daily active users (DAU)
113M DAU growth accelerated every single quarter year-over-year, up 4% in Q1, 7% in Q2, 9% in Q3 and 10% in Q4, hitting 113 million users. Source transcript
115M In Q1, DAUs grew 8% year-over-year to 115 million and MAUs increased to 376 million. Source transcript
117M In Q2, DAUs increased by 7% year-over-year to 117 million, while MAUs grew to 371 million. Source transcript
+1.7%
Monthly active users (MAU)
366M Q4 MAUs also grew by 8% year-over-year to 366 million. Source transcript
376M In Q1, DAUs grew 8% year-over-year to 115 million and MAUs increased to 376 million. Source transcript
371M In Q2, DAUs increased by 7% year-over-year to 117 million, while MAUs grew to 371 million. Source transcript
-1.3%
Average daily time spent per user
107 In Q4, average daily time spend continued to rise, up 8% to 107 minutes. Source transcript
—
113 Average daily time spend rose to 113 minutes from 105 minutes a year ago, which drove total time spent of over 14%. Source transcript
—
Monthly paying users
36M This is reflected in our MPUs, which surged 21% year-over-year to a record 36 million. Source transcript
34.4M Meanwhile, MPUs increased by 7% year-over-year to 34.4 million as more users directly pay for content and services they truly care about on our platform. Source transcript
33.4M Meanwhile, MPUs increased 7% year-over-year to 33.4 million, reflecting users increasing willingness to pay for the content and community experiences they truly value. Source transcript
-2.9%
Official members
284M+ By the end of 2025, we had over 284 million official members and their 12-month retention rate remained stable at around 80%. Source transcript
291M In the first quarter, total user time spent rose 19% year-over-year and 291 million official members maintained an 80% 12-month retention rate. Source transcript
299M By the end of Q2, our official members reached 299 million with 12-month retention remaining solid at around 80%. Source transcript
+2.7%
Official member 12-month retention rate
~80% By the end of 2025, we had over 284 million official members and their 12-month retention rate remained stable at around 80%. Source transcript
80% In the first quarter, total user time spent rose 19% year-over-year and 291 million official members maintained an 80% 12-month retention rate. Source transcript
~80% By the end of Q2, our official members reached 299 million with 12-month retention remaining solid at around 80%. Source transcript
—
Paid subscribers
25.3M Premium memberships reached 25.3 million by year-end, up 12% year-over-year supported by a strong performance from our Chinese anime slate led by our hit production, Mortal's Journey to Immortality, [Foreign Language], annual subscriptions and auto renewals remained around 80%, highlighting the loyalty and long-term commitment of our core community. Source transcript
24.8M Premium members reached 24.8 million by the end of the first quarter, up 5% year-over-year. Source transcript
25.7M At the end of Q2, premium members reached 25.7 million up 9% year-over-year with around 80% on annual or auto renewal plans. Source transcript
+3.6%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
Lumi Masterlaunch
San Guolaunch
Three Kingdoms: The Ravages of Timelaunch
RO3launch
Misfound card gamelaunch

Risks & headwinds

Macroeconomic pressure on consumer spending Q2 FY26 and ongoing

Despite macroeconomic pressure

Mitigation:Strong recognition of user base and community value; focus on high-value users with genuine purchasing power; multi-scenario ad strategy.

High base for game revenues Q2 FY26

-14% YoY for game revenues

Mitigation:Robust pipeline of 5 new titles for Q4 FY26 and FY27; focus on long-term game lifecycle and vertical segment leadership.

What to watch in Q3 FY26

Lumi Master global launch performance

Next quarter (Q3 FY26)
Current Well received in recent tests
Target Successful global adoption and positive player reception

Why it matters

This is Bilibili's self-developed light casual game with a global launch, indicating potential for new audience segments and revenue streams.

Building on this encouraging reception, we plan to launch the game on September 17 globally.

Q&A highlights

How has Bilibili maintained healthy growth despite the surge in short-form content, and how will user preferences evolve with AI?

Management attributes resilience to focusing on high-quality, mid- to long-form content that fosters emotional connection. AI tools are seen as enhancing creator output (28% increase in daily video submissions) and improving content distribution efficiency, leading to better user engagement (7% DAU growth, 14% total time spent). They believe high-quality content will be the only answer to the exponential supply of AI-generated video.

“[Interpreted] We believe that repetitive low-quality content will have no room for survival. But those talented content creators will be extremely beneficial from this evolution of creation tools.”

asked by Lincoln Kong · answered by Rui Chen

2 min read 6 chapters

Detailed narrative

AI Strategy and Impact

Bilibili views AI as a consistent force for the next era, focusing investments on video understanding, distribution, and creation. AI tools are enhancing content creation, leading to a 28% increase in daily video submissions in Q2, and improving recommendation efficiency, which contributed to a 7% YoY DAU growth and 14% YoY total time spent growth. The company is leveraging AI to deliver more relevant ads, improving CTCVR by 19% YoY, and enabling new types of content like AIGC-driven music and animation.

Community Engagement and Content Quality

The platform emphasizes high-quality, in-depth content and authentic human connection, which attracts users seeking substance over noise. Total time spent grew 14% YoY, with watch time for videos over 5 minutes up 18% YoY. Monthly interactions reached 17.4 billion, up 9% YoY, and long comments jumped 67% YoY, indicating deep user engagement. The average active user followed 96 creators, up 11% YoY, and 12-month retention for official members remained solid at around 80%.

Advertising Business Strength

Advertising revenue grew 28% YoY to RMB 3.1 billion, marking the 14th consecutive quarter of over 20% YoY growth, despite macroeconomic pressures. This growth was broad-based across industries, with AI advertisers more than doubling YoY. AI is also empowering ad efficiency, improving CTCVR by 19% YoY and enabling new ad inventories across multi-scenario placements (PC, smart TV, watch page), which grew 50% YoY in H1.

Gaming Pipeline and Strategy

While Q2 game revenue was down 14% YoY due to a high base, Bilibili has a robust pipeline of 5 new titles for Q4 2026 and 2027. Key upcoming launches include 'Lumi Master' (global launch Sept 17) and 'San Guo' (Q4). The company's strategy focuses on developing long-lasting titles within vertical segments, aiming for leadership in each. Existing titles like 'Three Kingdoms' continue to perform well, ranking among the top 5 on iOS top-grossing charts during anniversary seasons.

Profitability and Margin Expansion

Bilibili continued its trend of margin expansion, with gross margin reaching 37.2%, marking the 16th consecutive quarter of improvement. Adjusted net profit grew 25% YoY to RMB 704 million, with the adjusted net profit margin expanding to 8.9%. The company maintains mid- to long-term targets of 40-45% gross profit margin and 15-20% operating margin, driven by high-margin advertising and efficient operations.

Shareholder Returns and Capital Allocation

Delivering shareholder returns is a priority. The Board approved a new USD 300 million share repurchase program in June. As of June 30, 2026, USD 31 million had been repurchased under this new program, accounting for 1.9 million shares. Year-to-date through the call date, a total of USD 118 million has been used to repurchase 5.8 million shares, demonstrating commitment to enhancing long-term shareholder value.

AI-generated summary of the company's earnings call. Not investment advice.