HUYA (HUYA) investor relations material

Executive summary

• Achieved 11% year-over-year revenue growth in Q2 2026, reaching RMB 1.74 billion, driven by strong performance in game-related services, advertising, and in-game item sales.

• Operating loss narrowed to RMB 7 million, reflecting improved cost management and revenue mix.

• Net income attributable to shareholders was RMB 1.6 million, reversing a net loss of RMB 5.5 million in Q2 2025.

• Non-GAAP net income was RMB 36.4 million, down from RMB 48 million year-over-year.

• Strategic transformation and content-led game publishing, highlighted by Goose Goose Duck mobile's success, are key growth drivers.

Financial highlights

• Gross margin improved to 14.7% in Q2 2026, up from 13.5% year-over-year.

• Game-related services, advertising, and other revenues surged 54% year-over-year to RMB 638 million, now 37% of total revenue.

• Live streaming revenues declined to RMB 1.1 billion, reflecting industry headwinds.

• Non-GAAP operating income was RMB 16.2 million, up from RMB 0.4 million year-over-year.

• Cash and equivalents stood at RMB 3.21 billion as of June 30, 2026.

Outlook and guidance

• Higher-margin businesses like game publishing expected to further improve gross and operating margins as their revenue share increases.

• Management remains confident in the long-term potential of the content-led game publishing model and robust game pipeline.

• Continued focus on content-driven strategy, AI innovation, and expanding the game industry value chain role.

• The board increased the 2026 Share Repurchase Program authorization from US$50 million to US$100 million.