DouYu revenue drops 13% as cost disciplines secure return to profitability

DouYu International Holdings (NASDAQ:DOYU) reported a 13.2% decline in total net revenues for the first quarter of 2026, underscoring ongoing structural challenges in China’s game-centric live streaming market.

However, the platform successfully pulled its bottom line into the black, leveraging aggressive cost-optimization strategies to expand gross margins and generate positive net income.

Total net revenues for the three-month period ended March 31, 2026, contracted to RMB821.8 million, down from the prior-year period as user spending dynamics and platform adjustments impacted core monetization.

Despite the top-line compression, the company successfully minimized content acquisition and revenue-sharing expenses, driving gross profit upward to RMB129.4 million.

This targeted cost management lifted DouYu’s gross margin to 15.7% for the quarter.

The structural pivot toward operational efficiency translated into positive returns across all major earnings tiers.

DouYu recorded income from operations of RMB22.2 million, reversing historical operational cash drains.

Ultimate quarterly net income reached RMB27.4 million, while adjusted net income—which isolates ongoing operational health by stripping out stock-based compensation and non-operating line items—came in at RMB30.8 million.

The streaming specialist continues to rely on an exceptionally liquid balance sheet to anchor its market position amid intense domestic tech competition.

DouYu concluded the first quarter with a consolidated total of RMB2,254.9 million held in cash, cash equivalents, restricted cash, and short-term bank deposits.