China's HUYA Q2 revenue rises as game services grow

HUYA

11/08/2026 09:41

Overview
China game streaming firm's Q2 revenue rose 11% yr/yr, driven by game-related services growth
Company returned to profit with net income attributable to HUYA of RMB1.6 mln, versus loss a year earlier
Board doubled share repurchase program to $100 mln

Outlook
Company did not provide specific financial guidance for future quarters or the full year

Result Drivers
GAME-RELATED SERVICES GROWTH - Revenue from game-related services, advertising and other segments rose 54% yr/yr, driven by higher in-game item sales, advertising, and Goose Goose Duck mobile commercialization
LIVE STREAMING DECLINE - Live streaming revenue fell yr/yr, which the company attributed to the live streaming industry's current environment
HIGHER MARKETING SPEND - Sales and marketing expenses rose ~58% yr/yr, mainly due to promotional efforts for Goose Goose Duck mobile

Company press release: ID:nPnc3bRbha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 1.74 bln
 
Q2 Net Income
 
RMB 1.62 mln
 
Q2 Gross Profit
 
RMB 254.99 mln
 
Q2 Operating Income
 
-RMB 7.02 mln
 
Q2 Pretax Profit
 
RMB 3.39 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for HUYA Inc is $3.50, about 44% above its August 10 closing price of $2.43
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
Aug 10 - China's Sohu.com Q2 revenue rises on growth in online gaming
Aug 10 - GameSquare Q2 revenue jumps 137% on recent acquisitions 
Aug 10 - WEBTOON Q2 revenue slightly misses estimates on lower Paid Content and IP Adaptations

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)