HUYA (HUYA) Q1 2026 earnings summary

Executive summary

• Total net revenues grew 15% year-over-year to RMB 1.73 billion, driven by strong growth in game-related services, advertising, and other businesses.

• Game-related services, advertising, and other revenues surged 69.4% year-over-year to RMB 627.4 million, now accounting for 36.3% of total net revenues.

• Operating loss narrowed to RMB 28.8 million, compared to RMB 60 million last year; non-GAAP operating loss was RMB 2.7 million.

• Net loss attributable to shareholders was RMB 4.1 million; non-GAAP net income was RMB 21.1 million.

• Goose Goose Duck Mobile achieved top 5 ranking on iOS charts in China, demonstrating strong monetization potential.

Financial highlights

• Gross margin expanded to 14.6% for Q1, up from 12.5% a year ago.

• Non-GAAP net income was RMB 21.1 million for Q1.

• Cost of revenues increased 11.8% year-over-year to RMB 1.48 billion, mainly due to higher in-game virtual item costs and revenue sharing fees.

• Research and development expenses grew 1.7% to RMB 131.7 million; sales and marketing expenses jumped 45.1% to RMB 88.1 million, mainly due to Goose Goose Duck mobile promotion.

• Cash and equivalents stood at RMB 3.46 billion as of March 31, 2026.

Outlook and guidance

• Focus remains on scaling high-value opportunities across the game industry value chain and enhancing earnings quality.

• Margin improvements expected to become more visible in the second half of the year as higher-margin businesses scale.

• Continued investment in Goose Goose Duck and new game launches anticipated.

• Management remains focused on disciplined execution, prudent growth, and delivering long-term shareholder value.

• Continued emphasis on expanding game-related services and integrated marketing solutions for game companies.