HUYA Inc. Achieves Growth with Financial Results for Q3 2025

HUYA Inc. Reports Third Quarter 2025 Unaudited Financial Results

In its most recent financial update, HUYA Inc. (NYSE: HUYA), a prominent player in the game-related entertainment sector, revealed its unaudited financial results for the third quarter of 2025. The company reported positive growth metrics, indicating a shift back towards stability and expansion after previous challenges.

Financial Highlights

For the quarter ending September 30, 2025, HUYA achieved total net revenues of RMB 1,688.3 million, translating to approximately USD 237.1 million. This figure marked a notable increase of 9.8% compared to RMB 1,537.7 million during the same period in 2024. The growth was not only attributed to increased live streaming revenues but also to significant gains in game-related services and advertising, which saw increases of 29.6%, amounting to RMB 531.6 million.

Despite the positive trend in revenues, HUYA's net income attributable to the company was reported at RMB 9.6 million (USD 1.3 million), which showcased a decline from the RMB 23.6 million recorded in the prior year. Non-GAAP net income amounted to RMB 36.3 million (USD 5.1 million), down from RMB 78 million a year earlier. This discrepancy illustrates the complexities in navigating costs while attempting to expand revenue streams.

User Engagement and Operational Efficiency

HUYA reported an increase in average Monthly Active Users (MAUs), which rose to 162.3 million, underpinning the platform's capacity to engage a larger audience. According to Mr. Junhong Huang, Acting Co-CEO of HUYA, the rise in revenues reflects a stabilizing live streaming sector alongside substantial growth in game-related services, marking over 30% of their total revenues for the first time since HUYA's strategic transformation two years ago. This includes a notable emphasis on in-game item sales, greatly aided by collaborations with major game developers, including Tencent.

Moreover, the company's operational metrics showed improvements in revenue diversification and cost management efforts. Such initiatives have been pivotal in turning HUYA's financial outlook around, hinting at a focused strategy moving forward. Mr. Raymond Peng Lei, Acting Co-CEO and CFO, expressed satisfaction with the company's performance improvement, underscoring their commitment to exploring growth opportunities prudently to ensure long-term shareholder value.

Detailed Financial Review

Delving into the specifics, live streaming revenues recorded a modest increase of 2.6% to RMB 1,156.7 million (USD 162.5 million), fueled by higher spending among paying users. Furthermore, costs also rose, climbing 9.6% to RMB 1,461.6 million (USD 205.3 million), driven primarily by increased content-related expenses, including revenue sharing fees and costs related to in-game items. This was somewhat counterbalanced by reduced bandwidth and server costs.

Consequently, HUYA's gross profit saw an increase of 11.3%, reaching RMB 226.6 million (USD 31.8 million). The gross margin slightly improved to 13.4% from 13.2% a year prior.

In terms of expenditures, R&D costs decreased by 2.8%, indicating more efficient use of resources. However, general and administrative expenses saw an increase of 15.4%, mostly due to higher professional services and staffing costs.

Future Outlook

Looking ahead, HUYA plans to maintain its path toward growth while preserving its earnings quality. The firm is expected to continue leveraging its strong foundations to foster expansion, not only within China but internationally, targeting the evolving demands of both gamers and industry stakeholders.

As part of its ongoing engagement with investors and analysts, HUYA is set to host an earnings webinar to discuss financial performance and business outlook in more detail. Interested participants can register through provided links to access this online event and seek further insights into HUYA's operational advancements.

In conclusion, with a strategic focus on enhancing user engagement and exploring diversified revenue streams, HUYA Inc. appears well-positioned for continued growth in the game-related entertainment landscape as it navigates the complexities of the post-pandemic market environment.