HUYA Inc., a game-related entertainment provider listed on the NYSE, reported a return to GAAP profitability for the second quarter ended June 30, 2026. The company posted net income attributable to the company of RMB1.6 million (US$0.2 million), compared to a net loss of RMB5.5 million in the same period of 2025. Total net revenues rose 11.0% year-over-year to RMB1,739.3 million (US$256.3 million), or US$256.346 million as reported in recent filings, up from US$218.757 million in Q2 2025. This turnaround signals improved operational efficiency, although non-GAAP earnings per share declined to US$0.02 from US$0.03 in the prior year period.

The Board of Directors authorized an increase in the total authorized amount of the 2026 Share Repurchase Program from US$50 million to US$100 million on August 7, 2026. As of June 30, 2026, HUYA had repurchased 3.2 million American depositary shares (ADSs) under the program for an aggregate consideration of US$7.6 million. Each ADS represents one Class A ordinary share. The filing notes that non-GAAP financial measures exclude share-based compensation expenses, amortization of intangible assets from business acquisitions, and impairment loss of investments.

Financial Performance Highlights

Live streaming revenues declined to RMB1,101.5 million (US$162.3 million) from RMB1,153.2 million in the same period of 2025, reflecting headwinds in the live streaming industry. However, this decline was offset by a 54.1% year-over-year surge in game-related services, advertising, and other revenues to RMB637.9 million (US$94.0 million). The commercialization of Goose Goose Duck mobile, which re-entered the Top 5 on the Apple App Store free games chart in the Chinese mainland at the end of July, contributed significantly to this segment's growth.

Cost of revenues increased by 9.6% to RMB1,484.3 million (US$218.8 million), primarily due to increased revenue sharing fees and costs of in-game virtual items. Revenue sharing fees and content costs rose by 3.2% year-over-year to RMB1,214.7 million (US$179.0 million). Consequently, gross profit expanded by 20.1% to RMB255.0 million (US$37.6 million), with the gross margin improving to 14.7% from 13.5% in the prior year period.

Operating expenses showed mixed trends. Research and development expenses decreased by 1.4% to RMB120.4 million (US$17.8 million). Sales and marketing expenses surged by 57.7% to RMB91.0 million (US$13.4 million), driven by promotional efforts for Goose Goose Duck mobile. General and administrative expenses decreased by 8.4% to RMB58.4 million (US$8.6 million) due to lower professional service fees. The operating loss narrowed significantly to RMB7.0 million (US$1.0 million) from RMB23.7 million in the prior year. Non-GAAP operating income stood at RMB16.2 million (US$2.4 million).

What the Numbers Show

The divergence between live streaming revenues and game-related services highlights Huya's strategic pivot. While traditional live streaming faces headwinds, evidenced by a decline in that specific revenue stream, the company is successfully leveraging its user base for higher-margin game publishing and advertising. The 54.1% growth in game-related services, now accounting for 36.7% of total net revenues, suggests a structural shift in the revenue mix. Furthermore, the return to GAAP profitability despite higher sales and marketing spend indicates that the incremental revenue from game publishing carries better unit economics than the core streaming business, validating management's content-led game publishing model.

Huya Inc. (NYSE: HUYA) announced on Aug. 6, 2026, that it will exclusively publish Xiao Xiao Qi Yu, a 3D match-based casual mobile game officially licensed under the Zanmang Loopy IP in the Chinese mainland. Pre-registration across platforms is set to open soon. This partnership marks a strategic expansion of Huya’s game-related services business, leveraging the widely recognized Zanmang Loopy character and a validated gameplay foundation from overseas markets.

The new title blends immersive 3D matching gameplay with food-town simulation and interactive social features. It incorporates core gameplay licensed from Ilyon, the Miniclip studio behind Triple Match 3D. The game offers various gameplay events, friend-based interaction mechanics, and extensive level content designed to deliver a long-lasting casual gaming experience.

Xiao Xiao Qi Yu further diversifies Huya’s game publishing business, which now spans social deduction, MMORPG, and casual games. This follows the successful publishing of Goose Goose Duck Mobile and the upcoming launch of The Legend of Swordman: Reunion. Huya plans to support the title’s launch through a content-led publishing strategy encompassing livestreaming campaigns, streamer collaborations, and community-driven initiatives.

Publishing Portfolio Expansion

Huya’s expansion into diverse genres strengthens its position as a leading game-related entertainment and services provider. The company leverages its extensive streamer network and growing game publishing capabilities to create long-term value for users, business partners, and shareholders.

Going forward, Huya will continue expanding its game publishing portfolio across multiple genres while further strengthening its game-related services. The company remains committed to enhancing its content ecosystem and deepening collaboration with industry partners. Huya delivers dynamic live streaming and video content to a highly engaged community of game enthusiasts, serving users and partners across the gaming universe including game companies, e-sports tournament organizers, broadcasters, and talent agencies.

What the Numbers Show

While no financial figures were disclosed, the strategic shift indicates Huya’s intent to monetize its user base through diversified content offerings beyond live streaming. By integrating established IPs like Zanmang Loopy with proven gameplay mechanics from Triple Match 3D, Huya aims to reduce market risk while capitalizing on its existing streamer network for distribution.