HUYA

Image source: The Motley Fool. Tuesday, Aug. 11, 2026, at 6 a.m. ET Acting Chief Executive Officer - Junhong Huang Chief Financial Officer - Raymond Peng Lei Head of Capital Markets - Margaret Shi Investor Relations - Zicheng Liu Zicheng Liu: Good day and good evening, [indiscernible]. Welcome to HUYA 2nd quarter 2026 earnings webinar. I'm Zicheng 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 Peng 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. Junhong Huang: 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 RMB 1.74 billion. Game-related services, advertising, and other revenues maintain strong momentum, growing by 54% year-over-year to RMB 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, [indiscernible], and WeChat Channels. This differentiated approach to publishing let us acquire users more efficiently while reducing our reliance on traditional paid traffic channels. Goose Duck Mobile is our first success story published under this framework, maintaining an active user base and a vibrant content ecosystem. Since July, we have stepped up our efforts to improve the in-game voice environment, launching an AI-powered voice moderation system and a tiered matchmaking system under the Goose Alliance program. These measures have laid a solid foundation for a healthy in-game environment and sustained user engagement. On July 20, we launched a collaboration with the classic IP Journey to the West, together with a new party game play mode that expands player interaction across multiple sim spaces. The update expanded the experience beyond the game's core social deduction game play into a broader range of immersive social experiences, resulting in enthusiastic reception by players. Supported by our ongoing efforts to improve the in-game environment and introduce compelling content updates, Goose Duck Mobile returned to the number 1 position on the iOS free game chart in the Chinese mainland at the end of July. The performance of Goose Duck Mobile has demonstrated the effectiveness of HUYA's content-driven marketing approach, while also helping us develop a repeatable publishing playbook and build valuable operational expertise for future titles. Next up in our pipeline are two titles we are publishing exclusively: The Legend of Swordsman: Reunion, the classic martial arts MMORPG, and Xiao Qi Yu, a 3D match-based casual mobile game. Our transition from co-publishing to exclusive publishing marks another step forward in the evolution of our publishing strategy. Officially licensed from Xishanju, The Legend of Swordsman: Reunion is the latest entry in the renowned Legend of Swordsman franchise, building on more than 2 decades of rich heritage. It was developed by the original core team behind the PC game [indiscernible], and offers a seamless cross-platform experience featuring synchronized account data and gameplay across mobile app, PC, and mini-program platforms. The game has completed its first round of testing and received encouraging user feedback. By combining our content marketing capabilities with the reach of our streamer network, we aim to bring this classic franchise to a broader audience while preserving the authentic gameplay that has made it a fan favorite for generations. Xiao Qi Yu is a 3D match-based casual mobile game featuring the official licensed [indiscernible] and represents an expansion into the match category for HUYA. The title is well-aligned with our content-driven publishing model, with strong potential to generate user-created content, social engagement, and organic traffic across live-streaming and short-form video platforms. On the self-developed game front, we were pleased to see our first self-developed title, [indiscernible], receive regulatory approval for publication in July. As a casual SLG centered on [indiscernible] collection, the game represents another important step in building an in-house game development capabilities. We are now actively preparing for its upcoming testing and look forward to sharing more updates as development progresses. On the advertising side, we continue to strengthen our content-driven integrated marketing solution for game developers during the quarter while broadening our advertiser base. Hearthstone has emerged as an important new customer this quarter. We partnered with leading streamers to deliver a series of tournaments and content collaborations for Hearthstone, highlighted by Da Men Global Invitational, the first global third-party platform tournament for Hearthstone Battlegrounds. It debuted in China and generated more than 200 million impressions across online platforms during tournament play, and received strong recognition from the client. On the in-game item sales front, revenues maintained triple-digit year-over-year growth with Peacekeeper Elite, PUBG Mobile, Genshin Impact, and Arena Breakout as key contributors. For Peacekeeper Elite, we continue to invest in the broader game ecosystem. In particular, our coverage and commentary around PEL tournaments generated strong audience interest and engagement, enhanced the appeal of our in-game item offerings, and contributed to continued growth in related sales. In our live-streaming business, the outdoor entertainment content category continued to perform well during the quarter, while our overall streamer ecosystem remains stable. We are also exploring ways to drive greater synergies between game streaming and our entertainment verticals to boost the revenue contribution from top streamers. Since the beginning of the second half of the year, we have also been proactively reviewing the economics of our live streamer partnership, aiming to improve the efficiency of our content investment and support a healthier, more sustainable live-streaming ecosystem. In terms of tournament content, we offer more than 100 licensed tournaments and approximately 20 self-produced tournaments on the HUYA platform during the quarter. Our self-produced events continued to grow in scale and build stronger proprietary event brands. For the CF Grand Master Cup, we officially partnered with CrossFire to stage an international invitational featuring 8 professional teams and 4 leading overseas teams. The tournament also featured a crossover with the film Kung Fu Hustle, further integrating e-sport and broader entertainment content. The Dota 2 Immortal Cup Season 2 generated widespread online buzz and more than 2.5 billion impressions across online platforms. In July, we launched [indiscernible] Streamer Championship and the Peacekeeper Elite Mengnan [Superstar] Cup. Together, these events expanded our presence across leading shooter titles, strengthened our portfolio of self-produced tournaments, and enhanced HUYA's appeal among core gamers. We also helped host the Valorant National Tournament, earning further recognition from game developers for our tournament hosting and product capabilities. On product and AI, we continue to apply AI technologies across our game content ecosystem to improve both our products and overall platform experience. For popular titles such as Delta Force, League of Legends, and Teamfight Tactics, we have launched a range of AI-powered game tools, including map navigation and combat assistance features. These tools have driven solid user engagement and retention. Users of this tool have also shown higher activity levels, longer viewing time, and greater monetization potential on the HUYA platform, reinforcing our view that AI-powered game tools will play an increasingly important role in reaching our live-streaming ecosystem and creating long-term value. In July, we released VAM version 1.0, our self-developed real-time multi-modal digital human model. VAM can rapidly generate AI-powered virtual hosts with natural speech, thinking capabilities, and expressive body movements, enabling highly realistic real-time interaction. We believe VAM has the potential to meaningfully improve the economics of live-streaming content. Unlike traditional live streaming, where content supply is inherently constrained by the number and availability of human streamers, VAM enables us to scale content production more efficiently. As development expands, deployment expands, we expect operating leverage to increase with our marginal content creation cost declining while content supply become more scalable. Looking back at the quarter, we continue to make steady progress in executing our long-term strategy across publishing, self-development, AI innovation, and game-related services. We have further strengthened our capabilities and expanded our role across the game industry value chain. Looking ahead, we remain focused on executing our content-driven strategy, deepening our partnership across the gaming ecosystem, and investing in the capabilities that will support our next phase of growth. We believe these efforts will further strengthen HUYA's competitive position and create sustainable long-term value for our shareholders. Thank you. With that, I will now turn the call over to our CFO, Raymond Lei. He will share more details on our results. Raymond, please go ahead. Lei Peng: Thank you, Vincent, and hello, everyone. I will start with an overview of our financial performance. In the second quarter, we delivered steady top-line growth while continuing to improve our revenue mix and operating performance. With a larger revenue contribution from our higher-margin game-related services, advertising, and other businesses, our gross margin expanded to 14.7%. Operating loss narrowed to RMB 7 million and the non-GAAP operating income improved both year-over-year and sequentially to RMB 16 million. Let's move on to more details of our Q2 financial results. Total net revenues were RMB 1.74 billion for Q2, up 11% from the same period last year. Live streaming revenues were RMB 1.1 billion for Q2, compared with RMB 1.15 billion for the same period last year, primarily reflecting the live streaming industry's current environment. Game-related services, advertising, and other revenues were RMB 638 million for Q2, up 54% from the same period last year. 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 Duck Mobile. Cost of revenues increased by 10% year-over-year to RMB 1.48 billion for Q2, generally in line with the increase in revenues, primarily due to increased revenue sharing fees and the cost of in-game virtual items. Within this, revenue sharing fees and the content cost rose by 3% year-over-year to RMB 1.21 billion. Gross profit was RMB 255 million for Q2, up 20% from the same period last year. Gross margin was 14.7% for Q2, improving from 13.5% for the same period last year. 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 decreased by 1% year-over-year to RMB 120 million for Q2. 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 Duck Mobile. 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 was RMB 7.8 million for Q2, compared with RMB 7.6 million for the same period last year. Operating loss narrowed to RMB 7 million for Q2, compared with a loss of RMB 24 million for the same period last year. 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 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. 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. 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. [indiscernible] and diluted net income per ADS were each RMB 0.01 for Q2. Non-GAAP basic and diluted net income per ADS was each RMB 0.16 for Q2. 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. With that, I'd like to open the call to your questions. Zicheng Liu: Thanks, Raymond, and hello everyone. [Operator Instructions] [Operator Instructions] For the benefits of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. Today's first question comes from Ritchie Sun from HSBC. Your line is open. Please go ahead. Ritchie Sun: Vincent, Raymond, Margaret [Foreign Language] Good evening management, thank you for the opportunity to ask a question. I would like to ask about the progress of Goose Duck. Could you please share the operation update, monetization performance, and summer promotion progress for Goose Duck? Thank you. Junhong Huang: [Foreign Language] Unknown Executive: In the second quarter, Goose Duck Mobile continued to maintain a healthy and engaged player base with users aged between 18 to 25 remaining our core demographic. Long-term retention remained stable with limited user churn, reflecting continued engagement among our core users. We also continue to invest in building a healthy and a positive game environment. Last month, we launched an AI-powered voice moderation system to improve the quality of in-game voice chat and foster a more positive community environment. This has helped enhance both the gameplay and social experience for our players and further supports the long-term health of the game. Junhong Huang: [Foreign Language] Unknown Executive: [indiscernible] continues to demonstrate its strong commercial potential. Since our very first IP collaboration with Empresses in the Palace in April, we have continued to unlock new monetization opportunities. Subsequently, we had collaborations with Fox Spirit Matchmaker in June, Journey to the West and B.Duck in July, further boosted player engagement and helped the game return to the number 1 spot on iOS free game charts at end of July. 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. Junhong Huang: [Foreign Language] Unknown Executive: On the content front, it's encouraging to see UGC modes such as Goose Hunt, [Pool] and Mahjong continue to account for an increasing share of total player time. We also have a robust summer content lineup. In July, we launched a personal island home decorating system, giving players greater freedom to design and customize their own islands. From August through September, we plan to roll out a series of updates spanning core gameplay, social features, AI-powered matches, and tournament features, further enhancing the overall play experience. Junhong Huang: [Foreign Language] Unknown Executive: We're also working closely with R&D team to develop the WeChat mini game version. At this stage, we are focused on ensuring product stability and testing key operating metrics while taking advantage of WeChat's built-in social and sharing features to make it easier for players to invite friends and organize game sessions. With a solid user base established in the first half of the year, the WeChat mini game version gives us an opportunity to reach new audience across the WeChat ecosystem and drive the next phase of our user growth. Overall, we remain fully confident in the long-term health and stability of Goose Duck Mobile ecosystem, as well as its user engagement and monetization potential. Zicheng Liu: Our next question comes from Maggie from CLSA. Please go ahead. Maggie, please unmute yourself. Yifan Ye: [Foreign Language] Unknown Executive: I will translate your question. Could management elaborate a bit more on HUYA's overall AI initiative? For example, the creator tools, content recommendation as well as any interactive features. How are these capabilities expected to drive user growth as well as monetization over the next few months and then over the midterm as well? Thank you. Junhong Huang: [Foreign Language] Unknown Executive: As mentioned last quarter, our AI initiatives remain focused on four areas: live streaming, game tools, IP-based companionship, and AI-assisted game development. In AI-powered live streaming, we launched VAM 1.0, our proprietary real-time multi-modal digital human model during this quarter. VAM is among the leading solutions in a real-time full duplex digital human space, and we believe it is helping digital humans to move beyond visual and display purposes towards more practical and real-time interactions. By reducing the time and cost constraints associated with human live streamers, VAM could help accelerate the industry's shift towards a hybrid content ecosystem powered by both humans and AI. Our proprietary model enables us to scale AI-powered content across a broader range of user cases with greater efficiency and a lower marginal cost, creating new opportunities to expand our content supply on our platform. Junhong Huang: [Foreign Language] Unknown Executive: We will continue to enhance our VAM model, focusing on improving the [avatar] consistency, facial expressions, and body movements, as well as the naturalness of real-time dialogue and speech, while further reducing latency and computing costs. Junhong Huang: [Foreign Language] Unknown Executive: AI game tools, the Delta Force map tool and Hextech ARAM assistant have delivered steady performance since their launches. Within 6 months, they have attracted more than 1 million users and maintained healthy retention. In the second quarter, we launched Teamfight Tactics assistant, marking our first expansion of AI assistant into auto chess genre. Given its strategic complexity and strong need for real-time decision making, Teamfight Tactics is a natural fit for real-time in-game AI assistance. This further demonstrate that our AI assistant capabilities can be applied across game genres. Based on user demand, we will gradually explore tools for additional strategy games. Junhong Huang: [Foreign Language] Unknown Executive: The value of our AI-powered game tools to the HUYA platform is becoming increasingly more evident. Take our Hextech ARAM assistant as an example. After adopting the tool, users more than doubled their monthly active days on HUYA platform, while also watching more frequently and for longer periods, resulting in higher overall user engagement and value. Junhong Huang: [Foreign Language] Unknown Executive: We also continuing to explore AI-enabled IP companionship and AI-assisted game development through multi-agent workflows. Later this year, we plan to begin pre-launch promotion for a physical multi-modal AI companion product. Our AI system game development efforts is also at a quite early testing stage with current applications focused on generating and testing casual and lightweight interactive content. Zicheng Liu: Our next questions comes from Nelson from Citi. Please go ahead. Fuk Lung Cheung: [Foreign language] Unknown Executive: So let me translate into English. Thanks management for taking my question. Following the success of Goose Duck, how would HUYA position its game publishing business in future? Can management share the latest update on your product pipeline and publishing schedule going forward? Thank you. Junhong Huang: [Foreign Language] Unknown Executive: The game publishing is a key part of our transformation from a live streaming platform into a more integrated game service provider. Our core strength goes beyond traffic acquisition. What sets us apart is strength of our content ecosystem, which enables us to build awareness, engage users, and support games throughout their lifecycle. The successful launch of Goose Duck Mobile validated our content-driven publishing approach and the role of a social engagement in enhancing the game experience. It also helped us to begin building integrated end-to-end capabilities spanning product launch, user acquisition and long-term operations. Junhong Huang: [Foreign Language] Unknown Executive: In selecting products, we will continue to focus on high quality games and premium IP, prioritizing titles with strong content appeal, social interactivity and long-term operational potential, while gradually broadening our genre mix and user reach. As mentioned in our prepared remarks, we are actively advancing three key titles: Legend of Swordsman: Reunion, Xiao Qi Yu, both of which will be exclusively published by HUYA, and our self-developed title, Zhe Dao You Huan Shou. Several other additional titles are also under preparation. Junhong Huang: [Foreign Language] Unknown Executive: We'd like to emphasize that the success of publishing strategy is not dependent on Goose Duck Mobile game alone. It was just the beginning. We are building a diversified portfolio across multiple genres, including social [indiscernible], classic martial art, and casual match three games. We remain committed to a quality-first approach and disciplined investments marketing following a phased strategy that includes pre-launch content marketing, product testing and data validation, gradual scaling and long-term operations. This approach will enable us to build broader and more sustainable growth drivers for our game-related services. Zicheng Liu: Our next question comes from [Raphael] from [BOCI]. Please go ahead. Please go ahead, Raphael. Unknown Analyst: [Foreign language] Thanks management for letting me ask question. I am just wondering how does management assess current streaming performance and future streaming operational strategies? Following content optimization executions, what is the potential upside for cost savings in the second half of this year? Thank you. Junhong Huang: [Foreign Language] Unknown Executive: In the second quarter, live streaming revenue approximately RMB 1.1 billion, down by low single digit percentage year-over-year and broadly stable sequentially. Relative to the broader industry, our performance remained resilient. Paying user numbers and ARPU have also remained within a relatively stable range over the past several quarters. Junhong Huang: [Foreign Language] Unknown Executive: The industry continues to face pressure from softer user spending and intensifying competition among platforms. In this environment, we will place greater focus on the returns from our content investment. We are actively reviewing our streamer contracts and tournament licensing agreements to make sure we are getting the right returns from our content investments. Junhong Huang: [Foreign Language] Unknown Executive: We are also strengthening collaboration between entertainment and game streamers to drive cross-category user engagement. At the same time, we are expanding monetization opportunities through branded advertising campaigns, joint game operations, and live stream commerce, helping our game streamers to generate more value from their content and audience. Zicheng Liu: Our next question comes from Wei Meng from CICC. Please go ahead. Meng Wei: [Foreign Language] Zicheng Liu: Hello, Wei Meng, we cannot hear from you. Unknown Executive: [Foreign Language] Meng Wei: [Foreign Language] So, let me translate myself, I would like to ask about the margins, especially the operating performance outlook. As the game publishing revenue scales up, when do you expect the profit contribution to start showing up? Thank you. Lei Peng: [Foreign Language] Unknown Executive: Our gross margin improved by 1.2 percentage points year-over-year in the second quarter. Non-GAAP operating profit reached RMB 16 million, a very significant year-over-year improvement and a quarter with a meaningful level of operating profit. Looking ahead, as higher margin businesses such as game publishing make up a larger share of our revenue, we continue to improve spending efficiency and we see further opportunities to improve both gross margin and operating margin. Zicheng Liu: Now we will take our last question today from Rebecca from Morgan Stanley. Please go ahead. Rebecca Xu: [Foreign language] Thanks management for taking my questions. Could you please share the latest progress of the company's share buyback and [indiscernible] plan for the shareholder return going forward? Thank you. Lei Peng: [Foreign Language] Unknown Executive: On shareholder returns, we continue to return capital to the shareholders through cash dividends and share repurchases. In the second quarter, we repurchased approximately 3.2 million ADS, representing approximately 1.4% of our total outstanding shares. A portion of these ADSs have already been canceled and the remainder will be canceled as planned. We continue to repurchase shares pursuant to our existing Rule 10b5-1 trading plan. Lei Peng: [Foreign Language] Unknown Executive: We are also very pleased to announce that the board has approved the expansion of our 2026 share repurchase program from $50 million to $100 million. The expanded authorization reflects our confidence in HUYA's business outlook and our continued commitment to enhancing long-term shareholder value. Rebecca, maybe I can add a bit more here. If we calculate at our current market cap of around $554 million, plus our $100 million buyback program, that would mean roughly $50 million share repurchases each year if spread over two years. Combined with at least $30 million in annual cash dividends, that would translate into a shareholder yield of around 14%-15% per year. Thank you. Zicheng Liu: Thank you once again for joining us today. If you have further questions, please feel free to contact HUYA's Investor Relations through the contact information provided on our website or Piacente Financial Communications. This concludes today's call and we look forward to speaking to you again next quarter. Thank you. Unknown Executive: Thank you. Lei Peng: Thank you. Before you buy stock in HUYA, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and HUYA wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. HUYA (HUYA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in HUYA Inc. Sponsored ADR? Here are five stocks we like better. Revenue and margins improved: Q2 revenue rose 11% year over year to RMB1.74 billion, while higher-margin game-related services, advertising and other businesses grew 54% and lifted gross margin to 14.7%. HUYA’s operating loss narrowed to RMB7 million, and the company returned to a small GAAP net profit. Game publishing is becoming a key growth driver: Goose Goose Duck Mobile maintained user engagement and regained the No. 1 spot on China’s iOS free-game chart after new collaborations and gameplay updates. HUYA is also advancing two exclusive publishing titles and preparing its first self-developed game for testing. Capital returns and efficiency remain priorities: HUYA expanded its 2026 share-repurchase authorization to $100 million after repurchasing about 3.2 million ADSs in Q2. Management is also using AI tools to improve content creation and live-streaming efficiency while reviewing content costs amid weaker industry conditions. HUYA (NYSE:HUYA) reported second-quarter 2026 revenue growth and a narrower operating loss, supported by expanding game-related services, advertising, in-game item sales and the commercialization of its mobile game, Goose Goose Duck Mobile. Total net revenue rose 11% year over year to RMB1.74 billion. Game-related services, advertising and other revenue increased 54% to RMB638 million, accounting for about 37% of total revenue. Live-streaming revenue declined to RMB1.1 billion from RMB1.15 billion a year earlier, which management attributed to the current live-streaming industry environment. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat “We delivered another quarter of sustainable growth,” Acting CEO Vincent Junhong Huang said, describing the company’s strategy of expanding from game distribution and in-game item sales into advertising, marketing and game publishing. Chief Financial Officer Raymond Peng Lei said the increased contribution from higher-margin game-related services, advertising and other businesses helped lift gross margin to 14.7% from 13.5% a year earlier. Gross profit increased 20% to RMB255 million. → 3 Dividend Champion Utilities for a Market That Can't Sit Still HUYA’s operating loss narrowed to RMB7 million from RMB24 million in the prior-year quarter. Non-GAAP operating income, excluding share-based compensation and amortization of acquisition-related intangible assets, increased to RMB16 million from RMB0.4 million. Cost of revenue rose 10% to RMB1.48 billion, primarily due to higher revenue-sharing fees and costs of in-game virtual items. Sales and marketing expense increased 58% to RMB91 million, mainly reflecting promotion for Goose Goose Duck Mobile. Research and development expense declined 1% to RMB120 million. General and administrative expense fell 8% to RMB58 million, primarily due to lower professional service fees. Net income attributable to HUYA was RMB1.6 million, compared with a RMB5.5 million net loss a year earlier. Non-GAAP net income attributable to the company was RMB36 million, down from RMB48 million in the prior-year period. Basic and diluted net income per ADS was RMB0.01, while non-GAAP net income per ADS was RMB0.16. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Cash and cash equivalents, short-term deposits and long-term deposits totaled RMB3.21 billion as of June 30, down from RMB3.46 billion at the end of the first quarter. Lei said interest income declined to RMB26 million from RMB59 million, reflecting a lower average deposit balance following special cash dividends and lower interest rates. Huang said Goose Goose Duck Mobile continued to maintain a healthy and engaged player base in the second quarter, with users aged 18 to 25 forming its core demographic. Management said long-term retention remained stable and user churn was limited. The company introduced an AI-powered voice moderation system in July and a tiered matchmaking system under its Goose Goose Alliance program, aimed at improving the game’s voice-chat and community environment. A July collaboration with the Journey to the West intellectual property and a new party gameplay mode helped the title return to the No. 1 position on the iOS free-game chart in mainland China at the end of July, Huang said. HUYA also cited collaborations with Empresses in the Palace, Fox Spirit Matchmaker and B.Duck as new monetization opportunities. Management said it plans additional themed events, including a planned JX3 collaboration in August, and is developing a WeChat mini-game version of Goose Goose Duck Mobile. The company said it is advancing two titles for exclusive publication: The Legend of Swordsman: Reunion, a martial arts MMORPG licensed from Xishanju, and Xiao Xiao Qi Yu, a 3D match-based casual mobile game. Its first self-developed title, Zhe Dao You Huan Shou, received regulatory approval for publication in July and is being prepared for testing. Huang said HUYA’s AI priorities include live streaming, game tools, IP-based companionship and AI-assisted game development. In July, the company launched VAM 1.0, its self-developed real-time multimodal digital-human model. Management said the technology could allow it to expand AI-powered content supply more efficiently and reduce marginal content-creation costs over time. The company said its Delta Force map tool and Hextech ARAM assistant had attracted more than 1 million users within six months and maintained healthy retention. Huang said users of the Hextech ARAM assistant more than doubled their monthly active days on the HUYA platform after adopting the tool. For live streaming, management said paying users and average revenue per paying user remained relatively stable over the past several quarters, despite softer spending and intensifying platform competition. HUYA is reviewing streamer contracts and tournament licensing agreements to improve returns on content investments, while pursuing advertising, joint game operations and live-stream commerce opportunities. HUYA repurchased about 3.2 million ADSs during the second quarter, representing about 1.4% of outstanding shares, Lei said. The board also approved an expansion of the company’s 2026 share-repurchase program to $100 million from $50 million. Lei said the company intends to continue returning capital through cash dividends and repurchases. Based on the company’s current market capitalization cited on the call, a potential two-year repurchase pace and at least $30 million in annual cash dividends, he estimated a shareholder yield of roughly 14% to 15% annually. HUYA Inc is a leading interactive live streaming platform based in Guangzhou, China, primarily focused on video game and esports content. The company operates a proprietary technology platform that enables users to broadcast and view live gameplay, participate in real-time chat, and engage with hosts through virtual gifting. Its services are accessible via web browsers, desktop applications and mobile apps for both iOS and Android. At the core of HUYA's business are user-generated live streams hosted by professional gamers, influencers and esports organizations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "HUYA Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

GUANGZHOU, China, Aug. 11, 2026 /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game-related entertainment and services provider, today announced its unaudited financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Highlights Total net revenues increased by 11.0% to RMB1,739.3 million (US$256.3 million) for the second quarter of 2026, from RMB1,567.1 million for the same period of 2025. Game-related services, advertising and other revenues increased by 54.1% to RMB637.9 million (US$94.0 million) for the second quarter of 2026, from RMB413.9 million for the same period of 2025. Operating loss narrowed to RMB7.0 million (US$1.0 million) for the second quarter of 2026, compared with RMB23.7 million for the same period of 2025. Non-GAAP1 operating income was RMB16.2 million (US$2.4 million) for the second quarter of 2026, compared with RMB0.4 million for the same period of 2025. Net income attributable to HUYA Inc. was RMB1.6 million (US$0.2 million) for the second quarter of 2026, compared with a net loss attributable to HUYA Inc. of RMB5.5 million for the same period of 2025. Non-GAAP net income attributable to HUYA Inc. was RMB36.4 million (US$5.4 million) for the second quarter of 2026, compared with RMB47.5 million for the same period of 2025. Mr. Junhong Huang, Acting Chief Executive Officer of Huya, commented, "Huya's strategic transformation gained further traction in the second quarter of 2026. Total net revenues reached RMB1.74 billion, up 11.0% year-over-year, while game-related services, advertising, and other revenues increased 54.1% year-over-year to RMB637.9 million and represented 36.7% of total net revenues." "Goose Goose Duck mobile re-entered the Top 5 on the Apple App Store free games chart in the Chinese mainland at the end of July, further validating Huya's content-led game publishing model. Game publishing remains a strategic priority for Huya and our pipeline is robust, with The Legend of Swordman: Reunion and Xiao Xiao Qi Yu both progressing toward launch. Goose Goose Duck mobile's strong performance demonstrates how Huya's content ecosystem and integrated marketing capabilities can drive user acquisition, engagement and monetization, reinforcing our confidence in the long-term potential of this business," Mr. Huang concluded. Mr. Raymond Peng Lei, Chief Financial Officer of Huya, added, "We continue to see financial improvement at the operating level, supported by ongoing growth in game-related services, advertising and other revenues. We are pleased to announce that our board of directors has approved an increase in the total authorized amount of our 2026 Share Repurchase Program from US$50 million to US$100 million, reflecting our confidence in Huya's business outlook and our commitment to enhancing long-term shareholder value." Second Quarter 2026 Financial Results Total net revenues increased by 11.0% to RMB1,739.3 million (US$256.3 million) for the second quarter of 2026, from RMB1,567.1 million for the same period of 2025. Live streaming revenues were RMB1,101.5 million (US$162.3 million) for the second quarter of 2026, compared with RMB1,153.2 million for the same period of 2025, primarily reflecting the live streaming industry's current environment. Game-related services, advertising and other revenues increased by 54.1% to RMB637.9 million (US$94.0 million) for the second quarter of 2026, from RMB413.9 million for the same period of 2025. 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. Cost of revenues increased by 9.6% to RMB1,484.3 million (US$218.8 million) for the second quarter of 2026, from RMB1,354.8 million for the same period of 2025, generally in line with the increase in revenues, primarily due to increased revenue sharing fees and costs of in-game virtual items. Revenue sharing fees and content costs, a key component of cost of revenues, increased by 3.2% year-over-year to RMB1,214.7 million (US$179.0 million) for the second quarter of 2026. Gross profit increased by 20.1% to RMB255.0 million (US$37.6 million) for the second quarter of 2026, from RMB212.3 million for the same period of 2025. Gross margin was 14.7% for the second quarter of 2026, compared with 13.5% for the same period of 2025. Research and development expenses decreased by 1.4% to RMB120.4 million (US$17.8 million) for the second quarter of 2026, from RMB122.2 million for the same period of 2025. Sales and marketing expenses increased by 57.7% to RMB91.0 million (US$13.4 million) for the second quarter of 2026, from RMB57.7 million for the same period of 2025, primarily due to continued marketing and promotional efforts related to Goose Goose Duck mobile. General and administrative expenses decreased by 8.4% to RMB58.4 million (US$8.6 million) for the second quarter of 2026, from RMB63.7 million for the same period of 2025, primarily due to decreased professional service fees. Other income was RMB7.8 million (US$1.2 million) for the second quarter of 2026, compared with RMB7.6 million for the same period of 2025. Operating loss narrowed to RMB7.0 million (US$1.0 million) for the second quarter of 2026, compared with RMB23.7 million for the same period of 2025. Non-GAAP operating income was RMB16.2 million (US$2.4 million) for the second quarter of 2026, compared with RMB0.4 million for the same period of 2025. Interest income decreased by 56.6% to RMB25.7 million (US$3.8 million) for the second quarter of 2026, from RMB59.1 million for the same period of 2025, 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. was RMB1.6 million (US$0.2 million) for the second quarter of 2026, compared with a net loss attributable to HUYA Inc. of RMB5.5 million for the same period of 2025. Non-GAAP net income attributable to HUYA Inc. was RMB36.4 million (US$5.4 million) for the second quarter of 2026, compared with RMB47.5 million for the same period of 2025. Basic and diluted net income per American depositary share ("ADS") were each RMB0.01 (US$0.00) for the second quarter of 2026. Basic and diluted net loss per ADS were each RMB0.02 for the second quarter of 2025. Each ADS represents one Class A ordinary share of the Company. Non-GAAP basic and diluted net income per ADS were each RMB0.16 (US$0.02) for the second quarter of 2026. Non-GAAP basic and diluted net income per ADS were each RMB0.21 for the second quarter of 2025. As of June 30, 2026, the Company had cash and cash equivalents, short-term deposits and long-term deposits of RMB3,213.1 million (US$473.5 million), compared with RMB3,455.1 million as of March 31, 2026. Share Repurchase Program On August 7, 2026, the Company's board of directors authorized an increase of US$50 million to the authorized repurchase amount under the Company's existing share repurchase program originally adopted on March 18, 2026 (the "2026 Share Repurchase Program"). Following such increase, the total authorized repurchase amount under the 2026 Share Repurchase Program is US$100 million. As of June 30, 2026, the Company had repurchased 3.2 million ADSs under the 2026 Share Repurchase Program for an aggregate consideration of US$7.6 million. Earnings Webinar The Company's management will host a Tencent Meeting Webinar at 6:00 a.m. U.S. Eastern Time on August 11, 2026 (6:00 p.m. Beijing/Hong Kong time on August 11, 2026), to review and discuss the Company's business and financial performance. For participants who wish to join the webinar, please complete the online registration in advance using the links provided below. Upon registration, participants will receive an email with webinar access information, including meeting ID, meeting link, dial-in numbers, and a unique attendee ID to join the webinar. Participant Online Registration: A live webcast of the webinar will be accessible at https://ir.huya.com, and a replay of the webcast will be available following the session. About HUYA Inc. HUYA Inc. is a leading game-related entertainment and services provider. Huya delivers dynamic live streaming and video content and a rich array of services spanning games, e-sports, and other interactive entertainment genres to a large, highly engaged community of game enthusiasts. Huya has cultivated a robust entertainment ecosystem powered by AI and other advanced technologies, serving users and partners across the gaming universe, including game companies, e-sports tournament organizers, broadcasters and talent agencies. Leveraging this strong foundation, Huya has also expanded into innovative game-related services, such as game distribution, in-game item sales, advertising and more. Huya continues to extend its footprint in China and abroad, meeting the evolving needs of gamers, content creators, and industry partners worldwide. For more information, please visit: https://ir.huya.com. Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of changes in shareholders' equity, consolidated statements of cash flows, and the detailed notes have not been presented. Huya uses non-GAAP gross profit, non-GAAP operating loss, non-GAAP net income (loss) attributable to HUYA Inc., non-GAAP net income (loss) attributable to ordinary shareholders, non-GAAP basic and diluted net income (loss) per ordinary share, and non-GAAP basic and diluted net income (loss) per ADS, which are non-GAAP financial measures. Non-GAAP gross profit is gross profit excluding share-based compensation expenses allocated in cost of revenues. Non-GAAP operating loss is operating loss excluding share-based compensation expenses and amortization of intangible assets from business acquisitions. Non-GAAP net income (loss) attributable to HUYA Inc. is net income (loss) attributable to HUYA Inc. excluding share-based compensation expenses, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. Non-GAAP net income (loss) attributable to ordinary shareholders is net income (loss) attributable to ordinary shareholders excluding share-based compensation expenses, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. Non-GAAP basic and diluted net income (loss) per ordinary share and per ADS is non-GAAP net income (loss) attributable to ordinary shareholders divided by the weighted average number of ordinary shares and ADS used in the calculation of non-GAAP basic and diluted net income (loss) per ordinary share and per ADS. The Company believes that separate analysis and exclusion of the impact of (i) share-based compensation expenses, (ii) impairment loss of investments, and (iii) amortization of intangible assets from business acquisitions (net of income taxes), add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures represent useful supplemental information for investors and analysts to assess its operating performance without the effect of (i) share-based compensation expenses, and (ii) amortization of intangible assets from business acquisitions, which have been and will continue to be significant recurring expenses in its business, and (iii) impairment loss of investments. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income (loss) for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider a non-GAAP financial measure in isolation from or as an alternative to the financial measures prepared in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this announcement. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollar amounts referred to in this announcement could have been or could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this announcement, as well as Huya's strategic and operational plans, contain forward-looking statements. Huya may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Huya's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huya's goals and strategies; Huya's future business development, results of operations and financial condition; the expected growth of the live streaming industry and the game industry in Chinese mainland and internationally; Huya's expectation regarding demand for and market acceptance of its products and services; Huya's ability to retain and grow its user reach, broadcasters, talent agencies, business partners for game-related services and advertisers; Huya's ability to expand its product and service offerings; competition in the live streaming industry and game industry; Huya's efforts in complying with applicable data privacy and security regulations; fluctuations in general economic and business conditions in China; the economy in China and elsewhere generally; any regulatory developments in laws, regulations, rules, policies or guidelines applicable to Huya; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Huya's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Huya does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: In China: HUYA Inc.Investor RelationsTel: +86-20-2290-7829E-mail: [email protected] Piacente Financial CommunicationsJenny CaiTel: +86-10-6508-0677E-mail: [email protected] In the United States: Piacente Financial Communications Brandi PiacenteTel: +1-212-481-2050E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/huya-inc-reports-second-quarter-2026-unaudited-financial-results-302848089.html

-Earnings Webinar Scheduled for 6:00 a.m. ET on August 11, 2026- GUANGZHOU, China, July 21, 2026 /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game-related entertainment and services provider, today announced that it will report its second quarter 2026 unaudited financial results on Tuesday, August 11, 2026, before the open of U.S. markets. The Company's management will host a Tencent Meeting Webinar at 6:00 a.m. U.S. Eastern Time on August 11, 2026 (6:00 p.m. Beijing/Hong Kong time on August 11, 2026), to review and discuss the Company's business and financial performance. For participants who wish to join the webinar, please complete the online registration in advance using the links provided below. Upon registration, participants will receive an email with webinar access information, including meeting ID, meeting link, dial-in numbers, and a unique attendee ID to join the webinar. Participant Online Registration A live webcast of the webinar will be accessible at https://ir.huya.com, and a replay of the webcast will be available following the session. About HUYA Inc. HUYA Inc. is a leading game-related entertainment and services provider. Huya delivers dynamic live streaming and video content and a rich array of services spanning games, e-sports, and other interactive entertainment genres to a large, highly engaged community of game enthusiasts. Huya has cultivated a robust entertainment ecosystem powered by AI and other advanced technologies, serving users and partners across the gaming universe, including game companies, e-sports tournament organizers, broadcasters and talent agencies. Leveraging this strong foundation, Huya has also expanded into innovative game-related services, such as game distribution, in-game item sales, advertising and more. Huya continues to extend its footprint in China and abroad, meeting the evolving needs of gamers, content creators, and industry partners worldwide. For more information, please visit: https://ir.huya.com. For investor and media inquiries, please contact: In China: HUYA Inc.Investor RelationsTel: +86-20-2290-7829E-mail: [email protected] Piacente Financial CommunicationsJenny CaiTel: +86-10-6508-0677E-mail: [email protected] In the United States: Piacente Financial CommunicationsBrandi PiacenteTel: +1-212-481-2050E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/huya-inc-to-report-second-quarter-2026-financial-results-on-tuesday-august-11-2026-302830290.html

Image source: The Motley Fool. Tuesday, May 12, 2026 at 6 a.m. ET Chief Executive Officer — Junhong Huang Chief Financial Officer — Lei Peng Need a quote from a Motley Fool analyst? Email [email protected] Junhong Huang: Okay. Hello, everyone, and thank you for joining our earnings call today. First, I would like to share our overall performance for the quarter. In the first quarter, total net revenues grew by 15% year-over-year to RMB 1.73 billion, primarily driven by continued strong growth from game-related services, advertising and other businesses. Game-related services, advertising and other revenues reached RMB 627 million, up 69% year-over-year and further increased to record 36% of total net revenues. Live streaming revenues were RMB 1.1 billion for the quarter, underpinned by our vibrant, diversified and high-quality live streaming content ecosystem. With the integration of AI, we are able to offer an enriched more creative experiences to our users. Our ecosystem of game content live streamer is becoming increasingly influential across the broader social platforms, while our own channels, including the HUYA Live app, continue to enjoy a stable user base. Our estimated reach across external platforms doubled from last year, exceeding 200 million users, including those on Douyin and WeChat platforms. According to our internal data, HUYA is the largest gaming MCN on WeChat channels and remain among the top 3 on Douyin. Across multiple leading game titles, nearly half of the core streamers are connected to HUYA. This broad content network enables us to provide games with strong content-driven marketing and user reach, which is what's driving our growth in our collaboration with game developers in game item sales and advertising as well as game publishing. On the game publishing front, Goose Duck mobile continued to deliver impressive results. Since its launch on January 7, the game ranked #1 on the iOS free games chart for most of the first quarter. We have been accelerating the pace of content updates since March. And on April 1, we launched Season 2, introducing a new map, Ancient [ Desert ] as well as new roles, including Dueling Dodo and Raven. At the same time, we continue to work on our UGC mechanism, which we believe will be an important driver of player engagement, social interaction and long-term content vitality for the game. Building on this foundation, we launched our first PGC gameplay mode, Goose Hunt on April 29, which received positive feedback from players and further expanded the game's content ecosystem. As we continue to focus on building a healthy user ecosystem with robust and fun game content, we are also ramping up its monetization gradually. In April, Goose Duck mobile reached the top 5 on the iOS top grossing game chart with new skin offered validating its monetization potential. Looking ahead, we will further enrich the game's content and social environment with new features such as party mode and a home decoration system, and introduce more IP collaborations to meet players' growing demand for low playing experiences. Meanwhile, we are working on the WeChat mini-game version, which is currently scheduled for launch this summer. By integrating Goose Duck mobile more deeply with the WeChat user ecosystem, we hope to leverage WeChat social graph to further reactivate existing users and attract new ones. With the successful debut of Goose Duck mobile, we are gaining more recognition from game developers of our publishing capabilities through our content ecosystem. We now have a handful of new titles in the pipeline to launch this year across various genres, including casual, SLG and AMO. For in-game item sales, revenues continue to grow solidly year-over-year. On the domestic front, item 4 titles, including Peacekeeper Elite, Honor of Kings and Crossfire continue to contribute incremental growth. For example, our large-scale outdoor live streaming event for Peacekeeper Elite journey season 2, not only effectively drop in-game item sales, but also generated strong social buzz for the game IP. On the overseas front, in-game item sales for PUBG Mobile, Genshin Impact and Arena Breakout also delivered impressive performance. On the advertising side, leveraging our influence across streamer networks, tournament production capabilities and UGC creation know-how, we provide fully integrated content marketing solution for game developers. Some of our earlier advertising campaigns have proven very effective, gaining further recognition from leading advertisers, including Tencent, NetEase and Hypergryph. For example, for Hypergryph's Arknights:Endfield opened better campaigns in the first quarter, we connected multiple top streamers to generate in-depth live streaming content, generating more than 70 million views across the Internet. This not only drove strong live streaming traction on HUYA Live app, but also sparked extensive UGC content across all social platforms, broadening the game's user reach. In terms of our content offerings on our own platform, we continue to enhance our live streaming tournament ecosystem, introducing 55 licensed tournaments as well as more than 20 self-produced tournaments and variety shows. In late March, we created Uzi Cup named after e-sports legend Uzi, attracting more than 200 League of Legends teams across China. The event generated more than 100 million views across the Internet and appear on Weibo's trending list 22 times. Building on this momentum, we hosted additional self-produced events, including the Delta Force [ Shija ] Cup and Dota 2 Immortal Cup Season 2. We have also become the official production partner for multiple top-tier game tournaments such as Valorant 2026 National tournament and 2026 Jiangsu E-Sports Super League. Hosting and producing these events creates organic synergies with our live streaming content in-game item sales and other businesses. On the product side, we remain committed to upgrading our platform ecosystem through game services and enriching users' entertainment experience with a suite of game tools. In March, we officially launched the real-time navigation feature for our Delta Force Map Tool as well as the League of Legends Hextech ARAM assistant tool, helping players make better in-game decisions. Beyond this, we are actively developing assistant tools for more titles, including Golden Special and Goose Duck mobile, further establishing game tools as a differentiated product gateway. We are also developing a physical AI companion around the appeal of Goose Duck, creating richer and differentiated game play and companionship value. Overall, we delivered solid progress across multiple business lines in the first quarter. Game publishing, in-game item sales, advertising marketing and tournament operations all achieved meaningful breakthroughs. HUYA is accelerating its strategic evolution from a game live streaming platform into a full-service game services platform with game-related revenues reaching a record high percentage of total revenues and our revenue mix continue to improve. We will continue to deepen our game content ecosystem and focus on high-value opportunities across the game industry value chain. While scaling the business, we will continue to enhance earnings quality and strive to deliver resilient and sustainable growth for our shareholders. With that, I will now turn the call over to our CFO, Raymond Lei. He will share more details on our results. Raymond, please go ahead. Lei Peng: Thank you, Vincent, and hello, everyone. I'll start with an overview of our financial performance. In the first quarter, we delivered a steady top line growth with continued improvement in both our revenue mix and operating performance. Notably, the increased revenue contribution from business with higher gross margins led to both year-over-year and sequential gross margin expansion to 14.6% this quarter. Furthermore, we achieved a non-GAAP net income of RMB 21 million for the quarter despite lower interest income. Let's move on to more details of our Q1 financial results. Total net revenues were RMB 1.73 billion for Q1, up 15% from the same period last year. Live streaming revenues were RMB 1.1 billion for Q1 compared with RMB 1.14 billion from the same period last year, primarily reflecting the live streaming industry's current environment. Game-related services, advertising and other revenues were RMB 627 million for Q1, up 69% from the same period last year. The increase was primarily driven by higher revenues from in-game item sales and advertising, mainly attributable to the company's deepened and broadened collaboration with game companies. Cost of revenues increased by 12% year-over-year to RMB 1.48 billion for Q1, primarily due to increased cost of in-game virtual items as well as increased revenue sharing fees and content costs. Within this, revenue sharing fees and the content costs rose by 7% year-over-year to RMB 1.23 billion, mainly reflecting growth in our top line. Gross profit was RMB 253 million for Q1, up 34% from the same period last year. Gross margin was 14.6% for Q1, improving from 12.5% from the same period last year. Excluding share-based compensation expenses, non-GAAP gross profit was RMB 256 million and non-GAAP gross margin was 14.8% for Q1. Research and development expenses increased by 2% year-over-year to RMB 132 million for Q1. Sales and the marketing expenses increased by 45% year-over-year to RMB 88 million for Q1, primarily due to marketing and the promotion efforts related to the launch of Goose Duck mobile. General and administrative expenses increased by 6% year-over-year to RMB 65 million for Q1, primarily due to increased share-based compensation expenses. Other income was RMB 3 million for Q1 compared with RMB 4 million for the same period last year, primarily due to lower government subsidies. Operating loss narrowed to RMB 29 million for Q1 compared with a loss of RMB 60 million for the same period last year. Excluding share-based compensation expenses and amortization of intangible assets from business acquisition, non-GAAP operating loss narrowed to RMB 3 million for Q1 compared with a loss of RMB 36 million in the same period last year. Interest income was RMB 30 million for Q1, down from RMB 65 million for the same period last year, primarily due to a lower time deposit balance following the payment of special cash dividends. Net loss attributable to HUYA Inc. was RMB 4 million for Q1 compared with net income attributable to HUYA Inc. of RMB 1 million for the same period last year. Excluding share-based compensation expenses and the amortization of intangible assets from business acquisitions net of income tax, non-GAAP net income attributable to HUYA Inc. was RMB 21 million for Q1 compared with RMB 24 million for the same period last year. Diluted net loss per ADS was approximately RMB 0.02 for Q1. Non-GAAP diluted net income per ADS was RMB 0.09 for Q1. As of March 31, 2026, the company had cash and cash equivalents, short-term deposits and long-term deposits of RMB 3.46 billion compared with RMB 3.82 billion as of December 31, 2025. With that, I'd like to open the call to your questions. Hanyu Liu: [Operator Instructions] Today's first question comes from Ritchie Sun from HSBS. Ritchie Sun: Congrats on a solid start from Goose Duck. I want to ask about the latest operating and strategy and also commercialization progress for this game. And what is the -- this year's operating strategy going to be? Junhong Huang: [Interpreted] Since its launch on January 7, Goose Duck mobile has continued to deliver impressive results, ranking #1 on the iOS free game chart for most of the quarter. This validates both the appeal of the game social gameplay and HUYA's content-driven game publishing model. In the first quarter, we have been mainly focused on marketing and promoting the game as well as perfecting our gameplay and in-game operations to keep up with the better-than-expected user numbers. As of now, we are still at an early stage in terms of monetization, but we're ramping up gradually. For 2026, especially the first half, our priority for this game remains to be growing the user base and user engagement. In particular, there are 3 things we'll be focusing our efforts on. Number one, we'll continue to build and strengthen our UGC mechanism, and Goose Hunt is an early example of this framework with its gameplay and content currently led by a PGC team. As we continue to enhance our UGC mechanism and related know-how, we will add more UGC gameplay and casual game modes to the game. We believe this is crucial for game sustainable user engagement and the longevity. Second, we will add more social and community features, including interplayer connections, the home decoration system and team-up interactions so the game can evolve into a deeper social environment. Third, we are working on the WeChat mini-game version, which is currently scheduled for launch this summer. Given the game's strong party game nature, we believe the WeChat ecosystem and social graph can help us further reactivate existing users and attract new ones. Hanyu Liu: And we will take our next question from Nelson Cheung from Citi. Fuk Lung Cheung: And my question is related to your AI progress. Wondering if management can share your latest strategic planning on AI for the company. And how should we integrate your AI applications into the company core business? Junhong Huang: [Interpreted] Yes. So our AI initiatives are focused on 4 areas centered around our business. Number one, that's live streaming; number two, game tools; number three, IP-based companionship; and number four, game production. So for AI-powered live streaming, we are exploring 2 main parts. Firstly, that's AI-powered content creation and secondly, it's AI-native live streaming. So these products are still in early stages of product iteration and user testing. We do not expect AI to replace real live streamers anytime soon, especially top ones with emotional connection with users and real-time interactivity remain difficult to replicate. Instead, we think the real value of AI in live streaming is to help us explore more opportunities in mid-tier and long-tail live streaming content, 24-hour companionship and certain interactive formats. For AI-powered game tools, we are also progressing really well. In March, we launched the real-time navigation feature for our Delta Force Map tool as well as the Hextech ARAM assistant tool for League of Legends. These tools are not just static guide for players, instead they combine AI capabilities with HUYA's deep understanding of games to provide more real-time and context-aware decision support. For example, our Delta Force Map Tool helps players quickly identify resource points, routes and high-risk areas, lowering their learning curve. The Hextech ARAM tool can provide champion recommendations, item build suggestions and gameplay ideas for each match. Since every match requires players to make new decisions, this kind of match-based assistant tool has very strong repeat use value. Going forward, we'll expand game tools to more titles and categories, including Golden Spatula, Goose Duck mobile, card and board games, strategy games and auto chat games. AI-enabled companionship were exploring IP-based smart hardware, including physical AI companion products embedded with the multimodal AI capabilities. Based on our user feedback from Goose Duck, we believe this product can go beyond emotional companionship and create deeper integration with the game itself, including in-game interactions and post-game reviews. This can further extend the connection between IP and the players. For AI-assisted game production, we are also exploring how AI can help us generate and test casual game content more efficiently. We do not expect to replace large-scale AAA type of games in the near future, but we do see a lot of opportunities improving R&D efficiencies in casual games, web-based games or more interactive games. Hanyu Liu: And our next questions come from Wei Meng from CICC. Meng Wei: Just want to ask about the game publishing pipeline. Could management maybe share some colors on those pipelines and what's the rough timeline for those releases and what kind of revenue contribution should we expect from them? Junhong Huang: [Interpreted] Currently, we have a robust publishing pipeline, and we expect to launch multiple new games this year. These include collaborations with leading game companies such as Tencent and Kingsoft. The pipeline covers multiple genres, including casual, strategy, SLG, MMO and others. We will pace the launches based on product testing, license approval progress and the right market windows. The next in our pipeline is the casual 3D puzzle matching game that we licensed, which is scheduled for launch for the summer holidays. We have exclusive publishing rights for Mainland China, Hong Kong, and Macau. The game is already proven in overseas markets in terms of user appeal and monetization. Based on third-party estimates, its cumulative downloads exceed 10 million and the title has remained among the top grossing titles in overseas 3D puzzle matching category. In terms of publishing strategy, we're leveraging our influence in streamer networks, cross-platform distribution and player communities. As mentioned in our prepared remarks, our estimated reach across external platforms now exceed 200 million users, including those on Douyin and WeChat platforms. This extensive user reach allows us to target core players more efficiently, create more appealing content and enhance game longevity. Hanyu Liu: We will take next question from Maggie Ye from CLSA. Yifan Ye: Could management share your perspective on the recent trends and future outlook for the live streaming business? In addition to that, what are the core strategic levers and key drivers for the company to maintain a stability in this segment moving forward? Junhong Huang: [Interpreted] So live streaming remains a core part of HUYA's business. In the first quarter, the live streaming revenue was RMB 1.1 billion, but we do feel this business may still be under some pressure due to the overall market environment. Therefore, we'll be more focused on improving ROI across content cost, which includes streamer costs and licensing costs. We believe one of HUYA's key differentiator versus any other live streaming platform is our ability to consistently create influential gaming content and leverage that content to better support game publishing and distribution. This capability is backed by our close relationships with top streamers, our know-how in tournament production and our cross-platform game distribution capability. In the third quarter of 2026, we offered around 55 licensed tournaments and more than 20 self-produced tournaments and variety shows. Among them, our self-produced Uzi Cup generated over 100 million views across the Internet, demonstrating the value of our streamer IP plus self-produced tournament model. Also during the quarter, we partnered with a top entertainment live streamer for collaboration at major tourist attractions in Luoyang, generating strong online engagement and attracting over 100,000 peak concurrent viewers. The key game titles will continue to build self-produced content around them. For example, Dota 2 Immortal Cup Season 2 is currently one of the largest third-party Dota 2 tournaments in China. For Crossfire, we recently worked with CF team on live streaming campaigns around the Kung Fu IP collaboration, including Crossfire Kung Fu HUYA Duel Night. These campaigns helped generate significant social buzz for new updates and further improve user engagement. For Peacekeeper Elite, we launched Elite Journey Season 2 in the third quarter, which is a live streaming show that generated solid user participation that creatively combines game content, streamer influence and outdoor scenarios. We think this is a great way to improve user engagement and help game content reach a broader audience. HUYA also offers a broad range of highly-engaging sports content. We have already secured full rights for 2026 Badminton World Federation events and 2026 World Snooker Tour and will provide viewers with high-definition live broadcast of these events. The recently concluded 2026 World Snooker Championship generated more than 150 million total views on HUYA. In particular, the match between the 2 Chinese players, Ding Junhui and Zhao Xintong reached a peak of nearly 20 million viewers in a single live streaming room. Hanyu Liu: We will take the next question from Yiwen Zhang from China Renaissance. Yiwen Zhang: My question is on the advertising and in-game item sales. Can you share some operational color on that? Junhong Huang: [Interpreted] In third quarter, game-related services, advertising and other revenues reached RMB 226 million, up 69% year-over-year and increased to 36% of the total net revenue. The growth was mainly driven by the continued expansion in-game item sales, advertising, while game publishing also contributed incremental growth. This shows that HUYA's revenue mix is continuing to improve and non-live streaming game services have become an important growth driver. For in-game item sales, revenue continued to grow rapidly year-over-year. In the domestic market, growth was mainly driven by leading titles such as Peacekeeper Elite and Honor of Kings. More specifically, Honor of Kings benefited from the exclusive skin sales and Chinese New Year skin events, while Peacekeeper Elite saw better sales conversion as we continue to optimize item offering and content quality through our content ecosystem. Crossfire and other titles also benefited from key sales windows and tournament-related resources. Overseas, titles such as PUBG Mobile, Genshin Impact and Arena Breakout continue to contribute to incremental growth. We will continue to expand our overseas in-game items supply and strengthen our localized service capabilities. Looking ahead, we will continue to develop more customized bundles and rights-based partnerships while bringing more transactions into HUYA's own platform ecosystem. On advertising, we have continued to strengthen content-driven integrated game marketing solutions. By combining streamer network, tournament integrations, UGC co-creation, other core capabilities, we provide game developers with end-to-end marketing solutions. Our ROI performance on these advertising campaigns continue to earn recognition from leading advertisers such as Tencent, NetEase and Hypergryph. Hanyu Liu: Now we will take our last question today from Rebecca Xu from Morgan Stanley. Rebecca Xu: I'm honored to be the last to raise question. My question is about margin and net profit trend. Can management share some color on the margin and net profit trend maybe in the full year basis? Junhong Huang: [Interpreted] Our margins will continue to see improvement in the third quarter with non-GAAP operating margin approaching breakeven. This improvement was mainly driven by continued revenue mix optimization with higher contributions from relatively high-margin business such as advertising, game items and game publishing. We also continue to strengthen cost and expense management and improve operating efficiency. Looking ahead, as this margin -- as the higher-margin businesses continue to scale and operating leverage gradually come through, we expect further improvement in our overall gross margin and operating margin for the full year. In addition, given the pace of investments related to Goose Duck and other games, we expect improvement in both margins to become more visible in the second half of the year. Hanyu Liu: Thank you once again for joining us today. If you have further questions, please feel free to contact HUYA's Investor Relations through the contact information provided on our website of Piacente Financial Communications. This concludes today's call, and we look forward to speaking to you again next quarter. Thank you. Before you buy stock in HUYA, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and HUYA wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. HUYA (HUYA) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Net Revenues: RMB1.73 billion, up 15% year-over-year. Live Streaming Revenues: RMB1.1 billion for Q1. Game-related Services, Advertising, and Other Revenues: RMB627 million, up 69% year-over-year. Gross Margin: 14.6%, up from 12.5% in the same period last year. Non-GAAP Net Income: RMB21 million for Q1. Operating Loss: RMB29 million for Q1, narrowed from RMB60 million in the same period last year. Non-GAAP Operating Loss: RMB3 million for Q1, narrowed from RMB36 million in the same period last year. Net Loss Attributable to HUYA Inc.: RMB4 million for Q1. Non-GAAP Net Income Attributable to HUYA Inc.: RMB21 million for Q1. Cash and Cash Equivalents, Short-term and Long-term Deposits: RMB3.46 billion as of March 31, 2026. Warning! GuruFocus has detected 4 Warning Signs with HUYA. Is HUYA fairly valued? Test your thesis with our free DCF calculator. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total net revenues grew by 15% year-over-year to RMB1.73 billion, driven by strong growth in game-related services, advertising, and other businesses. Game-related services, advertising, and other revenues increased by 69% year-over-year, reaching RMB627 million and accounting for 36% of total net revenues. The Goose Goose Duck mobile game achieved impressive results, ranking number one on the iOS free games chart for most of the first quarter. HUYA's estimated reach across external platforms doubled from last year, exceeding 200 million users, including those on Douyin and WeChat platforms. Gross margin improved to 14.6% for the quarter, up from 12.5% in the same period last year, due to increased revenue contribution from higher-margin businesses. Live streaming revenues decreased to RMB1.1 billion from RMB1.14 billion in the same period last year, reflecting challenges in the live streaming industry's current environment. Cost of revenues increased by 12% year-over-year to RMB1.48 billion, driven by higher costs of in-game virtual items and increased revenue sharing fees and content costs. Operating loss narrowed but remained at RMB29 million for the quarter, compared to a loss of RMB60 million in the same period last year. Interest income decreased to RMB30 million from RMB65 million in the same period last year, primarily due to a lower time deposit balance following the payment of special cash dividends. Net loss attributable to HUYA Inc. was RMB4 million for the quarter, compared to net income of RMB1 million in the same period last year. Q: Congrats on a solid start from Goose Goose Duck. I want to ask about the latest operating and strategy and also commercialization progress for this game. What is this year's operating strategy going to be? A: Since its launch on January 7, Goose Goose Duck mobile has ranked number one on the iOS free game chart for most of the quarter. We are focused on marketing, promoting the game, and perfecting gameplay. Our priority for 2026 is growing the user base and engagement, enhancing UGC mechanisms, adding social features, and launching a WeChat mini-game version this summer. Q: Can management share your latest strategic planning on AI for the company? How should we integrate AI applications into the company core business? A: Our AI initiatives focus on live streaming, game tools, IP-based companionship, and game production. We are exploring AI-powered content creation and live streaming, developing real-time navigation features for game tools, and creating IP-based smart hardware for companionship. AI will help improve R&D efficiencies in casual games. Q: Could management maybe share some colors on the game publishing pipeline and what's the rough timeline for those releases? A: We have a robust publishing pipeline with multiple new games expected to launch this year, including collaborations with Tencent and Kingsoft. The next release is a casual 3D puzzle matching game scheduled for the summer holidays. We leverage our extensive user reach across platforms like Douyin and WeChat for efficient targeting and content creation. Q: Could management share your perspective on the recent trends and future outlook for the live streaming business? What are the core strategic levers and key drivers for the company to maintain stability in this segment? A: Live streaming remains core to HUYA's business, with Q1 revenue at RMB1.1 billion. We focus on improving ROI across content costs and leveraging our ability to create influential gaming content. Our self-produced tournaments and collaborations with top streamers enhance user engagement and game content reach. Q: Can you share some operational color on advertising and in-game item sales? A: In Q1, game-related services, advertising, and other revenues reached RMB226 million, up 69% year-over-year. Growth was driven by in-game item sales and advertising. We continue to expand our overseas in-game items supply and strengthen localized service capabilities, while providing end-to-end marketing solutions for game developers. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in HUYA Inc. Sponsored ADR? Here are five stocks we like better. HUYA’s first-quarter revenue rose 15% year over year to RMB 1.73 billion, with game-related services, advertising and other revenue jumping 69% and reaching a record 36% of total net revenue. The company said it is continuing to shift away from reliance on live streaming toward a broader game services model. Profitability improved as higher-margin businesses grew, with gross margin expanding to 14.6% from 12.5% a year earlier and operating loss narrowing. HUYA also reported non-GAAP operating loss of just RMB 3 million, while management said margin improvement should become more visible in the second half of the year. Goose Goose Duck Mobile and other game initiatives are a major growth focus, with the title ranking No. 1 on the iOS free games chart for most of the quarter and monetization still ramping up. HUYA is also expanding advertising, in-game item sales, AI tools and game publishing partnerships as part of its broader strategy. HUYA (NYSE:HUYA) reported first-quarter net revenue growth as the company continued to shift its business mix beyond live streaming and into game-related services, advertising, game publishing and in-game item sales. Acting CEO Vincent Junhong Huang said total net revenues rose 15% year over year to RMB 1.73 billion in the first quarter. Game-related services, advertising and other revenues increased 69% year over year to RMB 627 million, reaching a record 36% of total net revenues. Live streaming revenues were RMB 1.1 billion. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum Huang said HUYA is “accelerating its strategic evolution from a game live-streaming platform into a full service game services platform,” citing growth in game publishing, in-game item sales, advertising, marketing and tournament operations. CFO Raymond Peng Lei said the company’s stronger contribution from higher-margin businesses helped expand gross margin to 14.6% in the quarter, up from 12.5% a year earlier. Gross profit rose 34% year over year to RMB 253 million. → MercadoLibre Boldly Invests in Growth: Discount Deepens HUYA’s cost of revenues increased 12% year over year to RMB 1.48 billion, driven mainly by higher costs for in-game virtual items, along with increased revenue sharing fees and content costs. Revenue sharing fees and content costs rose 7% to RMB 1.23 billion. Operating loss narrowed to RMB 29 million from RMB 60 million in the year-ago period. On a non-GAAP basis, operating loss narrowed to RMB 3 million from RMB 36 million. Net loss attributable to Huya Inc. was RMB 4 million, compared with net income of RMB 1 million a year earlier. Non-GAAP net income attributable to the company was RMB 21 million, compared with RMB 24 million a year earlier. → 3 Ways to Target the Resources Powering AI and Data Centers Lei said interest income fell to RMB 30 million from RMB 65 million, primarily due to a lower time deposit balance following the payment of special cash dividends. As of March 31, 2026, HUYA held RMB 3.46 billion in cash and cash equivalents, short-term deposits and long-term deposits, down from RMB 3.82 billion at the end of 2025. Management highlighted Goose Goose Duck Mobile as a major driver of HUYA’s game publishing efforts. Huang said the title, launched Jan. 7, ranked No. 1 on the iOS free games chart for most of the first quarter. The company has accelerated content updates, including the April 1 launch of Season 2 with a new map and roles, and the April 29 launch of its first professionally generated gameplay mode, Goose Hunt. During the Q&A session, Head of Capital Markets Margaret Shi said Goose Goose Duck Mobile’s monetization remains in an early stage, but HUYA is gradually ramping it up. She said the game reached the top five on the iOS top-grossing game chart in April after new skins were offered. Shi said HUYA’s 2026 priorities for the title, especially in the first half, are growing the user base and increasing engagement. The company plans to expand user-generated content mechanisms, add social and community features such as inter-player connections and home decoration, and launch a WeChat mini game version this summer. HUYA said in-game item sales continued to grow year over year, driven domestically by titles including Peacekeeper Elite, Honor of Kings and CrossFire. Overseas, PUBG Mobile, Genshin Impact and Arena Breakout also contributed incremental growth. On advertising, Huang said HUYA is using its streamer network, tournament production capabilities and user-generated content expertise to provide integrated content marketing for game developers. He cited an Arknights: Endfield open beta campaign for Hypergryph that connected multiple top streamers and generated more than 70 million views across the internet. Executives said HUYA’s reach across external platforms doubled from last year and exceeded 200 million users, including users on Douyin and WeChat platforms. Huang said HUYA is the largest gaming MCN on WeChat channels, based on internal data, and remains among the top three on Douyin. Management said live streaming remains an important base business, even as market conditions continue to pressure the segment. Shi said HUYA will focus more closely on return on investment for content costs, including streamer expenses and licensing costs. In the first quarter, HUYA introduced 55 licensed tournaments and more than 20 self-produced tournaments and variety shows. Huang highlighted the UZI Cup, a self-produced League of Legends event named after esports figure UZI, which attracted more than 200 teams and generated more than 100 million views across the internet. HUYA also pointed to sports content as part of its live-streaming offering. Shi said the company secured full rights to 2026 Badminton World Federation events and the 2026 World Snooker Tour. The recently concluded 2026 World Snooker Championship generated more than 150 million total views on HUYA, she said. In response to an analyst question, Shi said HUYA’s AI work is focused on four areas: live streaming, game tools, IP-based companionship and game production. She said AI-powered live streaming products remain in early testing and are not expected to replace top human streamers in the near term, but could support mid-tier and long-tail content, 24-hour companionship and interactive formats. HUYA also launched real-time navigation for its Delta Force map tool and a League of Legends Hextech ARAM assistant tool in March. Shi said the company plans to expand game tools to more titles and categories, including Golden Spatula, Goose Goose Duck Mobile, card and board games, strategy games and auto chess games. Looking ahead, management said HUYA has a “robust” game publishing pipeline, including collaborations with Tencent and Kingsoft and titles across casual, strategy, SLG and MMO genres. Shi said one upcoming title is a licensed casual 3D puzzle matching game planned for the summer holiday period, with exclusive publishing rights in Mainland China, Hong Kong and Macao. On profitability, Lei said HUYA expects further room for improvement in full-year gross margin and operating margin as higher-margin businesses scale and operating leverage develops. He added that margin improvement is expected to become more visible in the second half of the year, given the pace of investments related to Goose Goose Duck and other games. HUYA Inc is a leading interactive live streaming platform based in Guangzhou, China, primarily focused on video game and esports content. The company operates a proprietary technology platform that enables users to broadcast and view live gameplay, participate in real-time chat, and engage with hosts through virtual gifting. Its services are accessible via web browsers, desktop applications and mobile apps for both iOS and Android. At the core of HUYA's business are user-generated live streams hosted by professional gamers, influencers and esports organizations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "HUYA Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

GUANGZHOU, China, May 12, 2026 /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game-related entertainment and services provider, today announced its unaudited financial results for the first quarter ended March 31, 2026. First Quarter 2026 Highlights Total net revenues increased by 14.6% to RMB1,728.4 million (US$250.6 million) for the first quarter of 2026, from RMB1,508.6 million for the same period of 2025. Game-related services, advertising and other revenues increased by 69.4% to RMB627.4 million (US$91.0 million) for the first quarter of 2026, from RMB370.4 million for the same period of 2025. Operating loss narrowed to RMB28.8 million (US$4.2 million) for the first quarter of 2026, compared with RMB59.6 million for the same period of 2025. Non-GAAP[1] operating loss narrowed to RMB2.7 million (US$0.4 million) for the first quarter of 2026, compared with RMB35.6 million for the same period of 2025. Net loss attributable to HUYA Inc. was RMB4.1 million (US$0.6 million) for the first quarter of 2026, compared with a net income attributable to HUYA Inc. of RMB0.9 million for the same period of 2025. Non-GAAP net income attributable to HUYA Inc. was RMB21.1 million (US$3.1 million) for the first quarter of 2026, compared with RMB24.0 million for the same period of 2025. Mr. Junhong Huang, Acting Chief Executive Officer of Huya, commented, "Huya continued to deliver solid results in the first quarter of 2026, underpinned by our ongoing transformation into a comprehensive game-related services provider. Total net revenues reached RMB1.73 billion, up 14.6% year-over-year, while game-related services, advertising, and other revenues grew 69.4% year-over-year to RMB627.4 million, representing a record 36.3% of total net revenues." "Goose Goose Duck mobile continued to gain traction in the Chinese mainland, reaching as high as Top 5 on the local Apple App Store top-grossing games chart in April, demonstrating the game's promising monetization potential. Beyond game publishing, our broader game-related services also made meaningful progress. In-game item sales maintained rapid year-over-year growth, fueled by deeper collaborations with top-tier game titles, while our content-driven advertising services continued to attract leading game companies seeking integrated marketing solutions. With multiple new publishing titles in our pipeline, we are well-positioned to build on this momentum through disciplined execution," Mr. Huang concluded. Mr. Raymond Peng Lei, Chief Financial Officer of Huya, added, "This quarter's steady top line growth and the continued improvement in both our revenue mix and operating performance underscore the earnings potential of our diversification efforts. The increased revenue contribution from businesses with higher gross margins led to a year-over-year and sequential gross margin expansion to 14.6% this quarter. Looking ahead, we remain focused on prudently pursuing growth opportunities while preserving earnings quality and delivering long-term value to our shareholders." First Quarter 2026 Financial Results Total net revenues increased by 14.6% to RMB1,728.4 million (US$250.6 million) for the first quarter of 2026, from RMB1,508.6 million for the same period of 2025. Live streaming revenues were RMB1,101.0 million (US$159.6 million) for the first quarter of 2026, compared with RMB1,138.2 million for the same period of 2025, primarily reflecting the live streaming industry's current environment. Game-related services, advertising and other revenues increased by 69.4% to RMB627.4 million (US$91.0 million) for the first quarter of 2026, from RMB370.4 million for the same period of 2025. The increase was primarily driven by higher revenues from in-game item sales and advertising, mainly attributable to the Company's deepened and broadened collaboration with game companies. Cost of revenues increased by 11.8% to RMB1,475.2 million (US$213.9 million) for the first quarter of 2026, from RMB1,320.1 million for the same period of 2025, primarily due to increased costs of in-game virtual items, as well as increased revenue sharing fees and content costs. Revenue sharing fees and content costs, a key component of cost of revenues, increased by 6.9% year-over-year to RMB1,234.7 million (US$179.0 million) for the first quarter of 2026, mainly reflecting higher revenues. Gross profit increased by 34.3% to RMB253.2 million (US$36.7 million) for the first quarter of 2026, from RMB188.5 million for the same period of 2025. Gross margin was 14.6% for the first quarter of 2026, compared with 12.5% for the same period of 2025. Research and development expenses increased by 1.7% to RMB131.7 million (US$19.1 million) for the first quarter of 2026, from RMB129.5 million for the same period of 2025. Sales and marketing expenses increased by 45.1% to RMB88.1 million (US$12.8 million) for the first quarter of 2026, from RMB60.7 million for the same period of 2025, primarily due to marketing and promotional efforts related to the launch of Goose Goose Duck mobile. General and administrative expenses increased by 5.9% to RMB65.1 million (US$9.4 million) for the first quarter of 2026, from RMB61.4 million for the same period of 2025, primarily due to increased share-based compensation expenses. Other income was RMB2.9 million (US$0.4 million) for the first quarter of 2026, compared with RMB3.5 million for the same period of 2025, primarily due to lower government subsidies. Operating loss narrowed to RMB28.8 million (US$4.2 million) for the first quarter of 2026, compared with RMB59.6 million for the same period of 2025. Non-GAAP operating loss narrowed to RMB2.7 million (US$0.4 million) for the first quarter of 2026, compared with RMB35.6 million for the same period of 2025. Interest income was RMB30.3 million (US$4.4 million) for the first quarter of 2026, compared with RMB64.9 million for the same period of 2025, primarily due to a lower time deposit balance, mainly reflecting the payment of special cash dividends. Net loss attributable to HUYA Inc. was RMB4.1 million (US$0.6 million) for the first quarter of 2026, compared with a net income attributable to HUYA Inc. of RMB0.9 million for the same period of 2025. Non-GAAP net income attributable to HUYA Inc. was RMB21.1 million (US$3.1 million) for the first quarter of 2026, compared with RMB24.0 million for the same period of 2025. Basic and diluted net loss per American depositary share ("ADS") were each RMB0.02 (US$0.00) for the first quarter of 2026. Basic and diluted net income per ADS were each RMB0.00 for the first quarter of 2025. Each ADS represents one Class A ordinary share of the Company. Non-GAAP basic and diluted net income per ADS were each RMB0.09 (US$0.01) for the first quarter of 2026. Non-GAAP basic and diluted net income per ADS were each RMB0.10 for the first quarter of 2025. As of March 31, 2026, the Company had cash and cash equivalents, short-term deposits and long-term deposits of RMB3,455.1 million (US$500.9 million), compared with RMB3,818.4 million as of December 31, 2025. Earnings Webinar The Company's management will host a Tencent Meeting Webinar at 6:00 a.m. U.S. Eastern Time on May 12, 2026 (6:00 p.m. Beijing/Hong Kong time on May 12, 2026), to review and discuss the Company's business and financial performance. For participants who wish to join the webinar, please complete the online registration in advance using the links provided below. Upon registration, participants will receive an email with webinar access information, including meeting ID, meeting link, dial-in numbers, and a unique attendee ID to join the webinar. Participant Online Registration: A live webcast of the webinar will be accessible at https://ir.huya.com, and a replay of the webcast will be available following the session. About HUYA Inc. HUYA Inc. is a leading game-related entertainment and services provider. Huya delivers dynamic live streaming and video content and a rich array of services spanning games, e-sports, and other interactive entertainment genres to a large, highly engaged community of game enthusiasts. Huya has cultivated a robust entertainment ecosystem powered by AI and other advanced technologies, serving users and partners across the gaming universe, including game companies, e-sports tournament organizers, broadcasters and talent agencies. Leveraging this strong foundation, Huya has also expanded into innovative game-related services, such as game distribution, in-game item sales, advertising and more. Huya continues to extend its footprint in China and abroad, meeting the evolving needs of gamers, content creators, and industry partners worldwide. For more information, please visit: https://ir.huya.com. Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of changes in shareholders' equity, consolidated statements of cash flows, and the detailed notes have not been presented. Huya uses non-GAAP gross profit, non-GAAP operating loss, non-GAAP net income (loss) attributable to HUYA Inc., non-GAAP net income (loss) attributable to ordinary shareholders, non-GAAP basic and diluted net income (loss) per ordinary share, and non-GAAP basic and diluted net income (loss) per ADS, which are non-GAAP financial measures. Non-GAAP gross profit is gross profit excluding share-based compensation expenses allocated in cost of revenues. Non-GAAP operating loss is operating loss excluding share-based compensation expenses and amortization of intangible assets from business acquisitions. Non-GAAP net income (loss) attributable to HUYA Inc. is net income (loss) attributable to HUYA Inc. excluding share-based compensation expenses, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. Non-GAAP net income (loss) attributable to ordinary shareholders is net income (loss) attributable to ordinary shareholders excluding share-based compensation expenses, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. Non-GAAP basic and diluted net income (loss) per ordinary share and per ADS is non-GAAP net income (loss) attributable to ordinary shareholders divided by the weighted average number of ordinary shares and ADS used in the calculation of non-GAAP basic and diluted net income (loss) per ordinary share and per ADS. The Company believes that separate analysis and exclusion of the impact of (i) share-based compensation expenses, (ii) impairment loss of investments, and (iii) amortization of intangible assets from business acquisitions (net of income taxes), add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures represent useful supplemental information for investors and analysts to assess its operating performance without the effect of (i) share-based compensation expenses, and (ii) amortization of intangible assets from business acquisitions, which have been and will continue to be significant recurring expenses in its business, and (iii) impairment loss of investments. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income (loss) for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider a non-GAAP financial measure in isolation from or as an alternative to the financial measures prepared in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this announcement. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.8980 to US$1.00, the noon buying rate in effect on March 31, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollar amounts referred to in this announcement could have been or could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this announcement, as well as Huya's strategic and operational plans, contain forward-looking statements. Huya may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Huya's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huya's goals and strategies; Huya's future business development, results of operations and financial condition; the expected growth of the live streaming industry and the game industry in mainland China and internationally; Huya's expectation regarding demand for and market acceptance of its products and services; Huya's ability retain and grow its user reach, broadcasters, talent agencies, business partners for game-related services and advertisers; Huya's ability to expand its product and service offerings; competition in the live streaming industry and game industry; Huya's efforts in complying with applicable data privacy and security regulations; fluctuations in general economic and business conditions in China; the economy in China and elsewhere generally; any regulatory developments in laws, regulations, rules, policies or guidelines applicable to Huya; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Huya's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Huya does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: In China: HUYA Inc. Investor Relations Tel: +86-20-2290-7829 E-mail: [email protected] Piacente Financial Communications Jenny Cai Tel: +86-10-6508-0677 E-mail: [email protected] In the United States: Piacente Financial Communications Brandi Piacente Tel: +1-212-481-2050 E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/huya-inc-reports-first-quarter-2026-unaudited-financial-results-302769116.html

-Earnings Webinar Scheduled for 6:00 a.m. ET on May 12, 2026- GUANGZHOU, China, April 21, 2026 /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game-related entertainment and services provider, today announced that it will report its first quarter 2026 unaudited financial results on Tuesday, May 12, 2026, before the open of U.S. markets. The Company's management will host a Tencent Meeting Webinar at 6:00 a.m. U.S. Eastern Time on May 12, 2026 (6:00 p.m. Beijing/Hong Kong time on May 12, 2026), to review and discuss the Company's business and financial performance. For participants who wish to join the webinar, please complete the online registration in advance using the links provided below. Upon registration, participants will receive an email with webinar access information, including meeting ID, meeting link, dial-in numbers, and a unique attendee ID to join the webinar. Participant Online Registration A live webcast of the webinar will be accessible at https://ir.huya.com, and a replay of the webcast will be available following the session. About HUYA Inc. HUYA Inc. is a leading game-related entertainment and services provider. Huya delivers dynamic live streaming and video content and a rich array of services spanning games, e-sports, and other interactive entertainment genres to a large, highly engaged community of game enthusiasts. Huya has cultivated a robust entertainment ecosystem powered by AI and other advanced technologies, serving users and partners across the gaming universe, including game companies, e-sports tournament organizers, broadcasters and talent agencies. Leveraging this strong foundation, Huya has also expanded into innovative game-related services, such as game distribution, in-game item sales, advertising and more. Huya continues to extend its footprint in China and abroad, meeting the evolving needs of gamers, content creators, and industry partners worldwide. For more information, please visit: https://ir.huya.com. For investor and media inquiries, please contact: In China: HUYA Inc. Investor Relations Tel: +86-20-2290-7829 E-mail: [email protected] Piacente Financial Communications Jenny Cai Tel: +86-10-6508-0677 E-mail: [email protected] In the United States: Piacente Financial Communications Brandi Piacente Tel: +1-212-481-2050 E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/huya-inc-to-report-first-quarter-2026-financial-results-on-tuesday-may-12-2026-302748098.html

This article first appeared on GuruFocus. Total Net Revenues (Q4): RMB1.74 billion, up 16% year-over-year. Live Streaming Revenues (Q4): RMB1.15 billion, up 2% year-over-year. Game-related Services, Advertising, and Other Revenues (Q4): RMB593 million, up 59% year-over-year. Gross Profit (Q4): RMB245 million, up 44% year-over-year. Gross Margin (Q4): 14.1%, improved from 11.4% year-over-year. Operating Loss (Q4): RMB65 million, narrowed from RMB93 million year-over-year. Non-GAAP Operating Loss (Q4): RMB36 million, narrowed from RMB69 million year-over-year. Net Loss Attributable to Huya Inc (Q4): RMB118 million, narrowed from RMB172 million year-over-year. Non-GAAP Net Loss Attributable to Huya Inc (Q4): RMB8 million, compared with non-GAAP net income of RMB1 million year-over-year. Cash and Cash Equivalents (End of 2025): RMB3.82 billion, largely flat compared to September 30, 2025. Total Net Revenues (Full Year 2025): RMB6.5 billion, up 7% year-over-year. Live Streaming Revenues (Full Year 2025): RMB4.59 billion, compared with RMB4.75 billion prior year. Game-related Services, Advertising, and Other Revenues (Full Year 2025): RMB1.91 billion, compared with RMB1.33 billion prior year. Non-GAAP Gross Profit (Full Year 2025): RMB884 million, up 7% year-over-year. Non-GAAP Net Income Attributable to Huya Inc (Full Year 2025): RMB99 million, compared with RMB269 million prior year. Special Cash Dividend (2026): USD0.135 per ordinary share or ADS, totaling approximately USD31 million. Share Repurchase Program: 22.9 million shares repurchased, totaling USD75.5 million as of December 2025. Warning! GuruFocus has detected 4 Warning Signs with HUYA. Is HUYA fairly valued? Test your thesis with our free DCF calculator. Release Date: March 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total net revenues grew by 16% in Q4 2025, reaching RMB1.74 billion, marking the highest in the last 10 quarters. Revenues from game-related services, advertising, and other businesses increased by 59% year-over-year. The successful launch of Goose Goose Duck Mobile attracted over 10 million users within six days and topped the iOS free game chart. In-game item sales revenue grew by more than 200% year-over-year, driven by new titles such as Peacekeeper Elite and Crossfire Mobile. AI-powered live streaming channels now contribute nearly 10% of overall DAU, outperforming real-life peers by 40% in key metrics. A one-time RMB66 million provision led to a non-GAAP operating loss of RMB36 million for Q4 2025. Net loss attributable to HUYA Inc was RMB118 million for Q4, compared to a loss of RMB172 million in the same period last year. Interest income decreased to RMB32 million for Q4, down from RMB75 million in the same period last year. Operating loss for Q4 was RMB65 million, although it narrowed compared to the same period last year. Non-GAAP net income for the full year 2025 decreased to RMB99 million, down from RMB269 million in the prior year. Q: We see profit fluctuations mainly driven by provisioning and investment impairments. Could management share the composition and underlying reasons for this item? And how should we think of the future trend on OP and net profit? A: The fluctuation in our profit this quarter was mainly driven by a RMB66 million one-off provision related to a receivable from a 2021 arrangement with a broadcaster and an RMB81 million impairment loss of investments. These are noncash accounting adjustments and are considered one-off impacts that do not reflect our core operating trends. We do not foresee additional impairments at the moment. Q: Could you share some metrics like DAU retention, ARPU, and revenue for Goose Goose Duck? Also, what are the KPIs for 2026, and how does management plan to extend the game's life cycle? A: Goose Goose Duck's DAU has remained high and steady, with user retention exceeding expectations. Monetization has been conservative, focusing on user growth, but ARPU spikes with new events. We plan to extend the game's life cycle by maintaining rapid content updates, expanding user growth across platforms, and building a UGC ecosystem. Q: What progress has been made in AI, especially in AI live streaming, AI game tools, and internal organizational efficiency? A: AI-powered live streaming channels now contribute nearly 10% of our DAU, outperforming real-life peers by 40% in key metrics. AI game tools like the Delta Force Map Tool have been well received, and we are developing AI hardware and interactive products. We plan to create more AI-driven companion tools for popular titles. Q: Can management share your future strategy on your game publishing business, latest publishing pipeline, and release schedule? A: We are committed to a content-driven strategy in game publishing, leveraging our strengths in live streaming and community engagement. Our pipeline includes mini games and mobile games with strong content appeal. Game publishing is expected to be a significant growth driver, diversifying beyond traditional live streaming. Q: Despite some net impact from provision impairment in Q4, there was no improvement in gross profit margin. What is management's view on future gross profit margin trends? A: Our gross margin improved by 2.7 percentage points year-over-year in Q4, driven by high-margin advertising and strong growth in in-game item sales. We expect continued gross margin improvement as higher-margin businesses grow and operating leverage improves. For the complete transcript of the earnings call, please refer to the full earnings call transcript.