JOYY Inc. (JOYY): Financial results for Q2 2026
JOYY Inc. (JOYY) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 JOYY Reports Second Quarter 2026 Unaudited Financial Results SINGAPORE, August 26, 2026 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ: JOYY) (“JOYY” or the “Company”), a global technology company, today announced its unaudited financial results for the second quarter of 2026
How this was made
The 30-second read
Why it matters
The earnings beat on revenue and cash generation could prompt short‑term buying interest, though profitability concerns remain.
Market read
JOYY's results provide insight into the health of the live‑streaming ad market and may influence peer valuations.
What to watch
Possible competition from TikTok and tighter Chinese content regulations could limit future upside.
JOYY Reports Second Quarter 2026 Unaudited Financial Results
Net revenues increased 16.3% year over year and 6.3% quarter over quarter, led by BIGO Ads and Shopline, while non-GAAP operating income, EBITDA and operating margin improved. Gross margin was below the corresponding period of 2025 and GAAP and non-GAAP net income from continuing operations were below the prior-year period.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenuesGAAP | US$590.8 million | 6.3% | 16.3% |
| Cost of revenuesGAAP | US$389.2 million | – | – |
| Gross profitGAAP | US$201.6 million | – | – |
| Gross marginGAAP | 34.1% | – | – |
| Sales and marketing expensesGAAP | US$79.6 million | – | – |
| Research and development expensesGAAP | US$53.0 million | – | – |
| General and administrative expensesGAAP | US$55.6 million | – | – |
| Operating expensesGAAP | US$188.2 million | – | – |
| Operating incomeGAAP | US$13.8 million | 102.0% | 138.1% |
| Non-GAAP operating incomenon-GAAP | US$49.1 million | – | – |
| Non-GAAP operating income marginnon-GAAP | 8.3% | – | – |
| Non-GAAP EBITDAnon-GAAP | US$56.9 million | 24.4% | 18.1% |
| Non-GAAP EBITDA marginnon-GAAP | 9.6% | – | – |
| Interest expensesGAAP | US$112 thousand | – | – |
| Interest income and investment incomeGAAP | US$39,476 thousand | – | – |
| Foreign currency exchange losses, netGAAP | US$13,502 thousand | – | – |
| Loss on disposal and deemed disposal of investmentsGAAP | US$415 thousand | – | – |
| Gain on fair value change of investmentsGAAP | US$1,461 thousand | – | – |
| Income before income tax expensesGAAP | US$40,711 thousand | – | – |
| Income tax expensesGAAP | US$9,849 thousand | – | – |
| Share of income in equity method investments, net of income taxesGAAP | US$17,887 thousand | – | – |
| Net income from continuing operationsGAAP | US$48,749 thousand | – | – |
| Net income attributable to controlling interest of JOYY Inc.GAAP | US$51,794 thousand | – | – |
| Net income from continuing operations attributable to controlling interest of JOYYGAAP | US$51.8 million | – | – |
| Net income marginGAAP | 8.8% | – | – |
| Non-GAAP net income from continuing operations attributable to controlling interest and common shareholders of JOYYnon-GAAP | US$63.5 million | – | – |
| Non-GAAP net income marginnon-GAAP | 10.7% | – | – |
| Diluted net income from continuing operations per ADSGAAP | US$1.01 | – | – |
| Non-GAAP diluted net income from continuing operations per ADSnon-GAAP | US$1.24 | – | – |
| Net cash from operating activitiesGAAP | US$64.9 million | – | – |
| Global average mobile MAUsother | 277.1 million | 0.3% | 5.5% |
| Core live streaming paying usersother | 1.56 million | – | 3.9% |
| ARPPUother | US$220.5 | – | 2.4% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Social EntertainmentHigher live streaming revenues, as expanded content categories and enhanced localized operations contributed to stronger user engagement and spending across key markets. | US$422.7 million | 5.6% | 7.4% |
| BIGO AdsExpansion of traffic, elevated advertiser demand across regions and verticals, and enhanced algorithm performance that resulted in improved advertisement delivery efficiency and higher advertiser spending. | US$133.7 million | 7.1% | 53.1% |
| ShoplineContinued merchant adoption and deeper penetration of value-added services. | US$34.4 million | 12.5% | 28.6% |
third quarter of 2026 outlook
- Revenuebetween US$602 million and US$622 million
- NoteFor the full year of 2026, the Group’s full-year 2026 non-GAAP operating income is expected to achieve approximately 20% year-over-year growth.
Capital returns
- The Company returned a total of US$358.8 million year-to-date through August 21, 2026, comprising US$142.4 million in dividends and US$216.4 million in share repurchases.
- Under the 2026 Share Repurchase Program, the Company repurchased approximately 1.1 million ADSs for an aggregate consideration of US$72.9 million during the second quarter of 2026.
- Under the previous share repurchase program, the Company repurchased approximately 0.6 million ADSs for an aggregate consideration of US$35.0 million during the second quarter of 2026.
- Between July 1, 2026 and August 21, 2026, the Company repurchased an additional approximately 0.8 million ADSs for an aggregate consideration of US$55.5 million under the 2026 Share Repurchase Program.
- The remaining unutilized amount under the 2026 Share Repurchase Program was approximately US$471.6 million as of August 21, 2026.
- The board declared a dividend of US$1.55 per ADS, or US$0.0775 per common share, for the second quarter of 2026, expected to be paid on October 16, 2026 to shareholders of record as of the close of business on September 30, 2026.
- The 2026 Dividend Program authorizes a total of approximately US$900 million in cash to be distributed on a quarterly basis between 2026 and 2028.
What drove it
- Total non-live streaming revenues reached US$188.1 million, up by 42.1% year over year, representing 31.8% of total net revenues, compared with 26.1% in the corresponding period of 2025.
- Live streaming revenues reached US$402.6 million, a 7.3% increase from the corresponding period of 2025; live streaming revenues in developed markets grew 11.8% year over year.
- BIGO Audience Network revenues increased by 74.1% year over year, while SDK advertising requests increased by 37.7% year over year.
- Web-based demand grew 91.7% year over year and In-App Advertising spending recorded 70.6% year-over-year growth.
- Shopline cross-border merchants revenue sustained growth of 73.5% year over year.
- Average daily active streamers increased by 4.4% quarter over quarter, and newly signed streamers going live increased by 5.4% quarter over quarter.
- In May 2026, AI-generated interactive virtual gifts accounted for 34.3% of total virtual gift consumption on Bigo Live.
Concerns
- Gross margin was 34.1%, compared with 36.5% in the corresponding period of 2025.
- Net income from continuing operations attributable to controlling interest of JOYY was US$51.8 million, compared with US$60.8 million in the corresponding period of 2025.
- Non-GAAP net income from continuing operations attributable to controlling interest and common shareholders of JOYY was US$63.5 million, compared with US$77.0 million in the corresponding period of 2025.
- BIGO Ads cost of revenues increased by 77.5% year over year to US$106.3 million, primarily attributable to higher traffic acquisition costs paid to third-party partners in relation to the expansion of BIGO Audience Network.
- The third-quarter forecast is subject to change, particularly as to the potential impact from macroeconomic uncertainties.
What to watch
- Third-quarter net revenues guidance of between US$602 million and US$622 million.
- Execution against the expectation for approximately 20% year-over-year growth in full-year 2026 non-GAAP operating income.
- BIGO Ads revenue growth and associated traffic acquisition costs.
- Social Entertainment monetization, including core live streaming paying users and ARPPU.
- Shopline merchant adoption, value-added-services penetration and cross-border merchant revenue.
- Capital deployment under the US$600 million 2026 Share Repurchase Program and the approximately US$900 million 2026 Dividend Program.
Balance sheet and cash flow
- Net cash was US$3,059.3 million as of June 30, 2026, compared with US$3,258.0 million as of December 31, 2025.
- Cash and cash equivalents were US$336,986 thousand as of June 30, 2026, compared with US$374,248 thousand as of December 31, 2025.
- Short-term investments were US$869,145 thousand as of June 30, 2026, compared with US$613,702 thousand as of December 31, 2025.
- Long-term deposits and held-to-maturity investments were US$1,686,501 thousand as of June 30, 2026, compared with US$2,059,386 thousand as of December 31, 2025.
- Short-term loans were US$43,908 thousand as of June 30, 2026, compared with US$10,672 thousand as of December 31, 2025.
- Total assets were US$7,541,392 thousand as of June 30, 2026, compared with US$7,552,488 thousand as of December 31, 2025.
- Total liabilities were US$1,035,600 thousand as of June 30, 2026, compared with US$950,458 thousand as of December 31, 2025.
- Total shareholders’ equity was US$6,479,659 thousand as of June 30, 2026, compared with US$6,576,697 thousand as of December 31, 2025.
- The Company had a total of 979.5 million common shares outstanding as of June 30, 2026, representing the equivalent of 49.0 million ADSs assuming the conversion of all common shares into ADSs.
Analysis
JOYY reported US$590.8 million of second-quarter net revenues, up 16.3% year over year and 6.3% quarter over quarter. Growth was diversified across all three newly reported segments. Social Entertainment generated US$422.7 million, BIGO Ads generated US$133.7 million, and Shopline generated US$34.4 million. Non-live streaming revenues reached US$188.1 million and represented 31.8% of total net revenues, compared with 26.1% in the corresponding period of 2025.
Social Entertainment growth reflected higher live streaming revenues, with expanded content categories and localized operations supporting engagement and spending. Live streaming revenues were US$402.6 million, while core live streaming paying users increased 3.9% year over year to 1.56 million and ARPPU increased 2.4% year over year to US$220.5. BIGO Ads was the fastest-growing segment, supported by traffic expansion, advertiser demand, and algorithm improvements. Shopline growth accelerated from the first quarter, with cross-border merchants revenue sustaining 73.5% year-over-year growth.
Profitability improved sequentially at the operating level. GAAP operating income was US$13.8 million, versus US$6.8 million in the first quarter, while non-GAAP operating income was US$49.1 million and its margin was 8.3%, compared with 6.8% in the first quarter. Non-GAAP EBITDA reached US$56.9 million and the EBITDA margin was 9.6%. However, gross margin was 34.1%, below 36.5% in the corresponding period of 2025. BIGO Ads cost of revenues increased 77.5% year over year as traffic acquisition costs rose with the expansion of BIGO Audience Network.
GAAP net income from continuing operations attributable to controlling interest was US$51.8 million and non-GAAP net income from continuing operations attributable to controlling interest and common shareholders was US$63.5 million. Both were above the first quarter but below the corresponding period of 2025. The quarter included US$13,502 thousand of foreign currency exchange losses, net, and US$17,887 thousand of income from equity method investments, net of income taxes. Net cash was US$3,059.3 million as of June 30, 2026, and net cash from operating activities was US$64.9 million.
Capital returns remained substantial. The Company reported US$358.8 million returned year-to-date through August 21, 2026 through dividends and share repurchases, and it declared a US$1.55 per ADS dividend for the second quarter. For the third quarter, JOYY expects net revenues of between US$602 million and US$622 million. Management also expects full-year 2026 non-GAAP operating income to achieve approximately 20% year-over-year growth, citing first-half operational performance and improved operating leverage.
Management, verbatim
We are pleased to report another quarter of strong performance. Total revenues for the second quarter reached US$590.8 million, up 16.3% year over year, with revenue growth accelerating and operating income improving notably. Our Social Entertainment, BIGO Ads, and Shopline businesses all advanced in tandem, and our globally diversified ecosystem continued to unlock new growth opportunities as we forged ahead towards the next stage of our development.
Ms. Ting Li, Chairperson and Chief Executive Officer of JOYY
On the profitability front, supported by a better-than-expected operational performance in the first half of the year and enhanced operating leverage from improved efficiency across our business segments, we expect the Group’s full-year 2026 non-GAAP operating income to achieve approximately 20% year-over-year growth.
Ms. Ting Li, Chairperson and Chief Executive Officer of JOYY
Not in the filing
stated, not guessed- Previous-period outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Free cash flow was not reported.
- Third-quarter gross margin guidance was not reported.
- Third-quarter operating-expense guidance was not reported.
- Third-quarter tax-rate guidance was not reported.
- A total debt figure was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
JOYY filed a Form 6‑K with the SEC reporting its Q2 2026 unaudited financial results.
Ticker impact
Q2 2026 unaudited results show revenue up 16.3% YoY to $590.8M and operating income up 138% YoY to $13.8M.
Potential modest price appreciation if investors focus on revenue beat and cash position.
Revenue and cash growth exceed prior year, indicating momentum; however, net income declined year‑over‑year, tempering enthusiasm.
Market effects
Social entertainment and ad‑tech sectors may see bullish sentiment from JOYY's revenue growth.
Positive earnings could lift Chinese‑listed tech stocks and broader Asia‑Pacific markets.
Highlights demand for AI‑driven streaming and programmatic ads worldwide.
Counterpoint
Revenue growth may be offset by declining net income and potential regulatory headwinds in China.
Key entities
- companyJOYY Inc.
NASDAQ‑listed global technology firm focused on live streaming and ad tech.
