HUYA (NYSE:HUYA) executives told investors the company delivered what management called a “record year” in 2025, with fourth-quarter revenue reaching its highest level in 10 quarters as game-related services and advertising continued to expand alongside a stable core live-streaming business.
Fourth-quarter growth led by game-related services and advertising
In the fourth quarter, HUYA reported total net revenues of CNY 1.74 billion, an increase of 16% year over year. Management said live streaming remained stable while the company’s transformation toward a broader gaming-services model accelerated.
Game-related services, advertising, and other revenues increased 59% year over year to CNY 593 million. Lei said the increase was driven mainly by higher revenue from game-related services and advertising, reflecting deeper cooperation with game companies in China and overseas.
Margins and expenses: provision and impairment weighed on results
Cost of revenues rose 30% year over year to CNY 1.49 billion, which management attributed to higher revenue-sharing fees and content costs as well as increased costs related to in-game items. Revenue-sharing fees and content costs increased 10% year over year to CNY 1.28 billion.
HUYA reported gross profit of CNY 245 million, up 44% year over year. Lei said gross margin improved to 40.1% in the quarter, compared with 11.4% a year earlier. Excluding share-based compensation, non-GAAP gross profit was CNY 248 million and non-GAAP gross margin was 40.3%.
Operating results were pressured by a one-time provision. General and administrative expenses increased 55% year over year to CNY 126 million, primarily due to a CNY 66 million provision related to a receivable stemming from a 2021 arrangement with a broadcaster that management deemed to have heightened non-recoverability risk. In response to an analyst question, management characterized the item as a non-cash accounting adjustment and said it did not reflect core operating trends, adding that it did not see additional large impairments required “at the moment,” while noting it would continue regular reviews under accounting standards.
HUYA also recorded CNY 81 million of impairment losses on investments in the quarter, which Lei said was primarily tied to weak performance at certain U.S. investees.
Other income was CNY 80 million versus CNY 4 million a year earlier, which the company attributed mainly to increased government subsidies. Interest income declined to CNY 32 million from CNY 75 million in the prior-year quarter, which management linked to a lower time deposit balance following special cash dividend payments.
Operating loss narrowed to CNY 65 million from CNY 93 million a year earlier. Excluding share-based compensation and amortization of intangibles from acquisitions, non-GAAP operating loss narrowed to CNY 36 million from CNY 69 million.
On the bottom line, the company reported a net loss attributable to HUYA Inc. that management said narrowed year over year. HUYA also reported diluted net loss per ADS of CNY 0.51 and non-GAAP diluted net loss per ADS of CNY 0.04. As of Dec. 31, 2025, HUYA said it had CNY 3.82 billion in cash and cash equivalents, short-term deposits, and long-term deposits, largely flat versus Sept. 30, 2025.
Full-year 2025: revenue returned to growth
For full-year 2025, HUYA reported total net revenues of CNY 6.5 billion, up 7% from the prior year. Live streaming revenues were CNY 4.59 billion, down from CNY 4.75 billion in the prior year, while game-related services, advertising, and other revenues increased to CNY 1.91 billion from CNY 1.33 billion.
Non-GAAP gross profit was CNY 884 million, up 7%, and non-GAAP gross margin was 30.6%, flat year over year. Non-GAAP net income attributable to HUYA was CNY 99 million, down from CNY 269 million in the prior year. Lei said the decline was largely due to the provision and lower interest income rather than a change in core business performance.
Net cash used in operating activities was CNY 176 million in 2025, compared with net cash provided by operating activities of CNY 94 million in the prior year, which management attributed primarily to lower interest income and higher amounts due from related parties.
Strategy update: publishing, in-game items, esports, and AI
Management emphasized that HUYA has moved beyond being solely a game live-streaming platform, describing its evolution into an “integrated game services provider” with broader reach across platforms. HUYA said it had approximately 160 million monthly active users in the fourth quarter.
Executives highlighted the January launch of Goose Goose Duck Mobile as a milestone in its entry into game publishing. Management said the title attracted more than 5 million new users within the first 24 hours and exceeded 10 million within six days, and that it ranked No. 1 on the iOS free game chart for most of the time since launch. The company credited a content-driven publishing approach, including streamer partnerships and a live-streaming variety show, and said social buzz generated hundreds of millions of impressions and more than 100 trending moments on platforms including Douyin and Red Note. Management said monetization is currently limited as it focuses on engagement, with expectations that monetization will increase after major content updates later this year.
In response to analyst questions, management said the game’s DAU has remained “high and steady,” with retention exceeding expectations, and it anticipates another DAU jump during the summer season tied to events and content updates. The company said it plans to extend the game’s lifecycle through rapid content updates, multi-platform user growth (including a WeChat mini-game version expected to launch later this year), and building a UGC ecosystem via an editor tool.
In in-game item sales, management said revenue grew more than 200% year over year, driven by titles including Peacekeeper Elite and CrossFire Mobile. The company also pointed to exclusive rights and localized partnerships, including becoming the first platform to secure exclusive pre-sale rights for the MVP skin in Honor of Kings. During the Q&A, management said the skin launch generated close to CNY 10 million in gross billings within the first hour and helped drive new paying users. HUYA also said it expects a higher mix of transactions to move into its proprietary in-game item mall over time.
Within esports, HUYA said it offered close to 100 licensed tournaments and around 40 self-produced tournaments and variety shows in the fourth quarter. A key highlight was hosting the Demacia Cup for the first time, which management said marked the first time the League of Legends organizer granted hosting rights to a third-party live-streaming platform. HUYA also cited its Delta Force esports events as setting new bars for the title’s esports circuit.
On product and technology, executives described progress in AI-powered live streaming, including AI hosts with human-like avatars for esports programs. In the Q&A, management said AI-powered channels contribute nearly 10% of overall DAU and that, on average, they outperform comparable channels by about 40% across metrics such as viewing time, retention, and attributed DAU, with top AI channels reaching about 80% outperformance. HUYA also discussed AI game tools such as its Delta Force Map Tool and said it planned to add an AI-powered real-time navigation feature in March. Management also referenced development of AI-enabled smart hardware based on the Goose Goose Duck IP and exploration of multi-agent systems in party game scenarios.
Dividend and buyback
Lei said HUYA’s board declared a 2026 special cash dividend of $0.135 per ordinary share (or $0.135 per ADS), totaling approximately $31 million, under its 2025–2027 dividend plan adopted in March 2025.
Under an up to $100 million share repurchase program, HUYA said it had repurchased 22.9 million shares for an aggregate consideration of $75.5 million as of the end of December 2025.
About HUYA (NYSE:HUYA)
HUYA Inc is a leading interactive live streaming platform based in Guangzhou, China, primarily focused on video game and esports content. The company operates a proprietary technology platform that enables users to broadcast and view live gameplay, participate in real-time chat, and engage with hosts through virtual gifting. Its services are accessible via web browsers, desktop applications and mobile apps for both iOS and Android.
At the core of HUYA’s business are user-generated live streams hosted by professional gamers, influencers and esports organizations.
