HUYA (HUYA) Q1 2026 earnings summary

Executive summary

• Total net revenues for Q1 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, and non-GAAP operating loss narrowed to RMB 2.7 million.

• Goose Goose Duck Mobile achieved top rankings on iOS charts in China, ramping up monetization and validating the content-driven publishing model.

• The company is evolving from a pure live-streaming platform to a full-service game services platform, with a diversified revenue mix.

Financial highlights

• Gross margin expanded to 14.6% in Q1, up from 12.5% a year ago, driven by higher-margin business contributions.

• Non-GAAP net income was RMB 21.1 million for Q1, compared to RMB 24 million last year.

• Operating loss narrowed to RMB 28.8 million, and non-GAAP operating loss narrowed to RMB 2.7 million.

• Cost of revenues increased 11.8% year-over-year to RMB 1.48 billion, mainly due to higher costs for in-game virtual items and content.

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

Outlook and guidance

• Focus remains on growing user base and engagement for Goose Goose Duck Mobile, with monetization ramping up gradually.

• Multiple new game titles across genres are set to launch this year, with a robust publishing pipeline and exclusive rights for key titles.

• Margins are expected to improve further in the second half of the year as higher-margin businesses scale and operating leverage increases.

• 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.