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    HUYA
    Earnings call· Jun 2026(Q2 FY26)

    HUYA Q2 FY26 earnings call HUYA

    Aug 11, 2026 Source

    Executive summary

    HUYA Q2 FY26 — Game-Related Services Drive Revenue Growth & Profitability

    HUYA delivered a quarter of sustainable growth, driven by strong performance in its higher-margin game-related services and advertising segments, which now contribute significantly to total revenue. While the core live streaming business faced industry headwinds, the company's strategic shift towards content-driven game publishing and AI innovation is yielding positive results, with key titles like Goose Goose Duck Mobile demonstrating strong engagement and monetization potential. Management is focused on optimizing content investments and expanding its game portfolio for future growth.

    Highlights

    5

    • Total net revenues increased by 11% year-over-year to RMB 1.74 billion.

    • Game-related services, advertising, and other revenues grew by 54% year-over-year to RMB 638 million, contributing approximately 37% of total net revenues.

    • Gross margin expanded to 14.7% from 13.5% in the prior year period.

    • Non-GAAP operating income improved significantly to RMB 16 million from RMB 0.4 million in the same period last year.

    • Goose Goose Duck Mobile returned to the number 1 position on the iOS free game chart in the Chinese mainland at the end of July.

    Concerns

    4

    • Live streaming revenues decreased by a low single-digit percentage year-over-year to RMB 1.1 billion.

    • Interest income decreased to RMB 26 million from RMB 59 million in the prior year, primarily due to lower deposit balances and interest rates.

    • Non-GAAP net income attributable to HUYA Inc. decreased to RMB 36 million from RMB 48 million in the same period last year.

    • The live streaming industry continues to face pressure from softer user spending and intensifying competition.

    Guidance & targets

    2
    CategoryTargetConfidence
    Share repurchase program authorization
    $100 million
    high materiality
    High
    Annual shareholder yield
    14%-15% per year
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Live streaming revenues
    Primarily reflecting the live streaming industry's current environment. Paying user numbers and ARPU have remained within a relatively stable range over the past several quarters.
    		RMB 1.1 billiondown by low single digit percentagebroadly stable sequentially—
    Game-related services, advertising, and other revenues
    The increase was primarily driven by higher revenues from in-game item sales and advertising, as well as the contribution from the commercialization of Goose Goose Duck Mobile.
    Contribution to total net revenues: approximately 37%
    		RMB 638 million54%——

    Operational metrics

    26
    Total net revenues growth
    11%YoY
    Q2 FY26

    Total net revenues increased by 11% year-over-year to RMB 1.74 billion.

    Cost of revenues growth
    10%YoY
    Q2 FY26

    Cost of revenues increased by 10% year-over-year to RMB 1.48 billion for Q2, generally in line with the increase in revenues.

    Revenue sharing fees and content cost growth
    3%YoY
    Q2 FY26

    Revenue sharing fees and the content cost rose by 3% year-over-year to RMB 1.21 billion.

    Gross profit growth
    20%YoY
    Q2 FY26

    Gross profit was RMB 255 million for Q2, up 20% from the same period last year.

    Gross margin
    14.7%improving from 13.5% for the same period last year
    Q2 FY26

    Gross margin was 14.7% for Q2, improving from 13.5% for the same period last year.

    Non-GAAP gross margin
    14.8%
    Q2 FY26

    Excluding share-based compensation expenses, non-GAAP gross profit was RMB 257 million, and the non-GAAP gross margin was 14.8% for Q2.

    Research and development expenses growth
    -1%YoY
    Q2 FY26

    Research and development expenses decreased by 1% year-over-year to RMB 120 million for Q2.

    Sales and marketing expenses growth
    58%YoY
    Q2 FY26

    Sales and marketing expenses increased by 58% year-over-year to RMB 91 million for Q2, primarily due to continued marketing and promotional efforts related to Goose Goose Duck Mobile.

    General and administrative expenses growth
    -8%YoY
    Q2 FY26

    General and administrative expenses decreased by 8% year-over-year to RMB 58 million for Q2, primarily due to decreased professional service fees.

    Other income
    RMB 7.8 millioncompared with RMB 7.6 million for the same period last year
    Q2 FY26

    Other income was RMB 7.8 million for Q2, compared with RMB 7.6 million for the same period last year.

    Operating loss
    RMB 7 millioncompared with a loss of RMB 24 million for the same period last year
    Q2 FY26

    Operating loss narrowed to RMB 7 million for Q2, compared with a loss of RMB 24 million for the same period last year.

    Non-GAAP operating income
    RMB 16 millionincreased from RMB 0.4 million in the same period last year
    Q2 FY26

    Excluding share-based compensation expenses and amortization of intangible assets from business acquisition, non-GAAP operating income increased to RMB 16 million from RMB0.4 million in the same period last year.

    Interest income
    RMB 26 milliondown from RMB 59 million for the same period last year
    Q2 FY26

    Interest income was RMB 26 million for Q2, down from RMB 59 million for the same period last year, primarily due to a decrease in the average deposit balance as a result of special cash dividends and lower interest rates.

    Net income attributable to HUYA Inc.
    RMB 1.6 millioncompared with a net loss attributable to HUYA Inc. of RMB 5.5 million for the same period last year
    Q2 FY26

    Net income attributable to HUYA Inc. was RMB 1.6 million for Q2, compared with a net loss attributable to HUYA Inc. of RMB 5.5 million for the same period last year.

    Non-GAAP net income attributable to HUYA Inc.
    RMB 36 millioncompared with RMB 48 million for the same period last year
    Q2 FY26

    Excluding share-based compensation expenses and amortization of intangible assets from business acquisitions, net of income taxes, non-GAAP net income attributable to HUYA Inc. was RMB 36 million for Q2, compared with RMB 48 million for the same period last year.

    Non-GAAP basic and diluted net income per ADS
    RMB 0.16
    Q2 FY26

    Non-GAAP basic and diluted net income per ADS was each RMB 0.16 for Q2.

    Cash and marketable securities
    RMB 3.21 billioncompared with RMB 3.46 billion as of March 31, 2026
    As of June 30, 2026

    As of June 30, 2026, the company had cash and cash equivalents, short-term deposits, and long-term deposits of RMB 3.21 billion, compared with RMB 3.46 billion as of March 31, 2026.

    Share buyback executed
    3.2 million
    Q2 FY26

    In the second quarter, HUYA repurchased approximately 3.2 million ADS, representing approximately 1.4% of its total outstanding shares.

    Market capitalization
    $554 million
    Current

    Current market cap of around $554 million was used in shareholder yield calculation.

    Annual cash dividends
    at least $30 million
    Annual

    At least $30 million in annual cash dividends is factored into the shareholder yield calculation.

    Goose Goose Duck Mobile iOS free game chart position
    #1
    End of July

    Goose Goose Duck Mobile returned to the number 1 position on the iOS free game chart in the Chinese mainland at the end of July.

    Hearthstone tournament impressions
    >200 million
    During tournament play

    The Da Men Global Invitational for Hearthstone Battlegrounds generated more than 200 million impressions across online platforms.

    In-game item sales growth
    triple-digitYoY
    Q2 FY26

    On the in-game item sales front, revenues maintained triple-digit year-over-year growth.

    Dota 2 Immortal Cup Season 2 impressions
    >2.5 billion
    Q2 FY26

    The Dota 2 Immortal Cup Season 2 generated widespread online buzz and more than 2.5 billion impressions across online platforms.

    AI-powered game tools users
    >1 million
    Within 6 months of launch

    AI-powered game tools like Delta Force map tool and Hextech ARAM assistant have attracted more than 1 million users within 6 months.

    Monthly active days for AI game tool users
    more than doubled
    After adopting tool

    Users of the Hextech ARAM assistant more than doubled their monthly active days on HUYA platform.

    Industry KPIs

    2
    MetricValueDetails
    Share buyback capital returned$100 millionUSD
    Content spend title performanceMultiple titles

    Product announcements

    8
    ProductTypeDetails
    Goose Goose Alliance program (AI-powered voice moderation system and tiered matchmaking system)update
    Goose Goose Duck Mobile collaboration with Journey to the West IPupdate
    The Legend of Swordsman: Reunionlaunch
    Xiao Xiao Qi Yulaunch
    [indiscernible] (self-developed title)milestone
    VAM version 1.0launch
    WeChat mini game version of Goose Goose Duck Mobileroadmap
    Physical multi-modal AI companion productroadmap

    Deals & partnerships

    2
    HearthstonePartnered with leading streamers to deliver a series of tournaments and content collaborations, including the Da Men Global Invitational, the first global third-party platform tournament for Hearthstone Battlegrounds.

    The partnership involved content collaborations and tournaments for Hearthstone, with the Da Men Global Invitational debuting in China.

    CrossFireOfficially partnered with CrossFire to stage an international invitational for the CF Grand Master Cup.

    The tournament featured 8 professional teams and 4 leading overseas teams, and included a crossover with the film Kung Fu Hustle, integrating e-sport and broader entertainment content.

    Risks & headwinds

    3
    Live streaming industry pressureQ2 FY26 (current environment)

    Live streaming revenues decreased by a low single-digit percentage year-over-year to RMB 1.1 billion.

    Mitigation: Proactively reviewing streamer contracts and tournament licensing agreements to improve content investment efficiency; strengthening collaboration between entertainment and game streamers; expanding monetization opportunities through branded advertising, joint game operations, and live stream commerce.

    Softer user spending and intensifying competition in live streamingOngoing

    Not explicitly quantified beyond revenue decline, but noted as ongoing pressure.

    Mitigation: Placing greater focus on returns from content investment; reviewing streamer contracts and tournament agreements; strengthening cross-category user engagement; expanding monetization opportunities.

    Decrease in average deposit balance and lower interest ratesQ2 FY26

    Interest income decreased to RMB 26 million from RMB 59 million in the prior year.

    Mitigation: Not explicitly stated as a mitigation, but the company is expanding its share repurchase program, indicating confidence in capital allocation and shareholder value.

    What to watch in Q3 FY26

    5

    Goose Goose Duck Mobile performance

    Next quarter (Q3 FY26)
    CurrentReturned to #1 on iOS free game chart in Chinese mainland at end of July.
    TargetContinued strong engagement, monetization, and successful launch of WeChat mini-game version.

    Why it matters

    Demonstrates the effectiveness of HUYA's content-driven publishing strategy and its ability to expand user reach and monetization.

    Overall, we remain fully confident in the long-term health and stability of Goose Goose Duck Mobile ecosystem, as well as its user engagement and monetization potential.

    Q&A highlights

    6

    Could management provide an update on the operational performance, monetization strategies, and upcoming summer promotions for Goose Goose Duck Mobile?

    Management confirmed Goose Goose Duck Mobile maintains a healthy and engaged player base with stable long-term retention. They highlighted successful monetization through IP collaborations (Empresses in the Palace, Fox Spirit Matchmaker, Journey to the West, B.Duck, JX3) and upcoming summer content updates. The development of a WeChat mini-game version is also underway to expand user reach.

    “We aim to have a robust pipeline of collaborations with new themed events planned on almost monthly basis. In August, for example, we plan to launch additional collaborations including JX3, further expanding our content offerings and creating new opportunities to drive player engagement and monetization.”

    asked by Ritchie Sun · answered by Junhong Huang (Executives)

    3 min read6 chapters

    Detailed Narrative

    01

    Strategic Shift to Game Publishing

    HUYA is actively transforming from a live streaming platform into a more integrated game service provider, expanding its presence across the game industry value chain. This strategic evolution moves beyond traditional game distribution to encompass in-game item sales, advertising, marketing, and now full game publishing. The company's publishing model is content-driven, leveraging its strengths in content creation, streamer networks, and user communities to foster high-quality user-generated content (UGC) and generate social buzz across various platforms, aiming for more efficient user acquisition.

    02

    Goose Goose Duck Mobile Success and Repeatable Playbook

    The successful performance of Goose Goose Duck Mobile has validated HUYA's content-driven marketing approach and helped develop a repeatable publishing playbook. The game maintained a healthy and engaged player base, with stable long-term retention, and returned to the number 1 position on the iOS free game chart in Chinese mainland at the end of July. Ongoing monetization efforts include monthly IP collaborations (e.g., Journey to the West, JX3) and summer content updates, demonstrating the game's strong commercial potential and enhancing player engagement.

    03

    Expanding Game Publishing Pipeline and Self-Development

    Building on the success of Goose Goose Duck Mobile, HUYA is advancing its game publishing strategy with two upcoming exclusive titles: 'The Legend of Swordsman: Reunion,' a classic martial arts MMORPG, and 'Xiao Xiao Qi Yu,' a 3D match-based casual mobile game. These titles represent a step forward in the company's publishing evolution and a broadening of its genre mix. Additionally, HUYA's first self-developed title, '[indiscernible],' a casual SLG, received regulatory approval in July, marking an important milestone in building in-house game development capabilities.

    04

    AI Integration for Content and User Engagement

    HUYA is applying AI technologies across its game content ecosystem to improve products and overall platform experience. AI-powered game tools for popular titles like Delta Force, League of Legends, and Teamfight Tactics have attracted over 1 million users within six months, significantly increasing user activity and monetization potential. The company also launched VAM 1.0, a self-developed real-time multi-modal digital human model, which is expected to improve the economics of live-streaming content by enabling more efficient and scalable content production.

    05

    Live Streaming Business Optimization and Resilience

    Despite facing industry pressures🌐 from softer user spending and intensifying competition, HUYA's live streaming business demonstrated resilience, with revenues broadly stable sequentially and paying user numbers and ARPU remaining stable. Management is proactively reviewing streamer contracts and tournament licensing agreements to improve the efficiency and return on content investments. Efforts are also underway to strengthen collaboration between entertainment and game streamers and expand monetization opportunities through branded advertising campaigns and live stream commerce.

    06

    Improved Financial Performance and Shareholder Returns

    The company delivered steady top-line growth and improved its revenue mix, with higher-margin game-related services and advertising contributing more significantly. This led to a gross margin expansion to 14.7% and a substantial improvement in non-GAAP operating income to RMB 16 million. In terms of shareholder returns, HUYA repurchased 3.2 million ADSs in Q2 and expanded its 2026 share repurchase program from $50 million to $100 million, signaling confidence in its business outlook and commitment to long-term shareholder value.

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