Huya Inc. (NYSE: HUYA) released its financial results for the second quarter of 2026 on August 11. Total net revenue reached 1.74 billion yuan (US$256.3 million), demonstrating an 11.0% increase compared to the same period last year. Non-GAAP net income reached 36.4 million yuan.
A significant aspect was the change in revenue structure: revenue from gaming services, advertising, and other sources increased by 54.1% year-over-year, reaching 637.9 million yuan, which accounts for 36.7% of total net revenue. These changes were reflected in the income statement: gross profit rose by 20.1% to 255.0 million yuan, and the gross margin expanded from 13.5% to 14.7%. Operating loss decreased from 23.7 million yuan to 7.0 million yuan.
On August 11, Huya's board of directors approved an additional $50 million under the 2026 Share Repurchase Program, bringing the total limit to $100 million from the previously approved $50 million in March. Huya's CFO, Raymond Pan Lai, noted that this decision reflects management's confidence in the company's business prospects and commitment to long-term shareholder value.
The company's strategy is to gradually expand along the entire value chain in the gaming industry. Over approximately three years, Huya has transitioned from focusing on game streaming to selling in-game items, advertising, and marketing services, and now engages in game publishing, allowing it to participate at all stages of the game lifecycle.
According to CEO Junhun Huang, a distinguishing feature of Huya's approach is that its publishing model is built around content rather than attracting paid traffic. The company utilizes its network of streamers and user communities to generate user-generated content and create social buzz on Douyin, RedNote, and WeChat Channels, thereby reducing dependence on the traffic buying race that dominates mobile game marketing in China.
A successful implementation example is the game Goose Goose Duck mobile. Since July, the company has enhanced the in-game voice environment with an AI-based voice moderation system and a multi-level player matching mechanism within the Good Goose Alliance program. On July 20, a collaboration with the 'Journey to the West' intellectual property and a new party game mode were launched, expanding the game's capabilities beyond core deduction gameplay into broader social scenarios. As a result, the game regained the top spot in the free games ranking on iOS in mainland China at the end of July.
Future plans include two exclusively published titles. The first is The Legend of Swordman: Reunion, an action RPG licensed from Xishanju, which has completed initial testing. The second is the casual match-based mobile game, Xiao Xiao Qi Yu, utilizing the licensed intellectual property Zanmang Loopy. Deeper in the chain, Huya's first proprietary project, Zhe Dao You Huanshou, a casual SLG built around islands and pet collection, received regulatory approval in July. Additional revenue streams include the sale of in-game items, advertising, and the development of its own multimodal digital humanoid model VAM 1.0.



