Huya revenue rises with game-related services now 36% of mix

Huya (NYSE:HUYA) reported total net revenues of RMB 1,728.4 million ($250.6 million) for the first quarter ended March 31, 2026, a 14.6% increase over the prior-year period.

While traditional live-streaming revenues declined slightly to RMB 1,101 million, the company’s "game-related services, advertising, and other" segment skyrocketed 69.4% to RMB 627.4 million.

This segment now accounts for 36.3% of total revenue, up from approximately 24.6% a year ago.

The company achieved a gross margin of 14.6%, up from 12.5% in Q1 2025, driven by higher-margin in-game item sales and more efficient revenue-sharing structures.

On a GAAP basis, Huya reported a marginal net loss of RMB 4.1 million.

However, on a non-GAAP basis—which excludes share-based compensation and certain investment gains—the company turned a net income of RMB 21.1 million ($3.1 million), highlighting the underlying profitability of its core operations.

Elsewhere, Huya's strategic pivot focuses on moving beyond broad-based streaming toward a specialized "game services" platform.

The 69% jump in this segment was primarily attributed to successful distribution partnerships and the sale of in-game virtual items, particularly during major e-sports tournaments and seasonal promotional events.

Acting CEO Junhong Huang noted that the company is "well-positioned" to build on this momentum by leveraging its massive gamer community to drive higher-value transactions.

Meanwhile, the company maintains a formidable cash position, ending the quarter with approximately RMB 6.2 billion in cash, cash equivalents, and short-term deposits.

This liquidity has enabled Huya to continue its aggressive capital return strategy; the company recently authorized a new $50 million share repurchase program following the completion of its previous $100 million buyback initiative.