Bilibili Inc. (BILI): Financial results for Q2 2026
Bilibili Inc. (BILI) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Bilibili Inc. Announces Second Quarter 2026 Financial Results SHANGHAI, China, August 27, 2026 — Bilibili Inc. (“Bilibili” or the “Company”) (Nasdaq: BILI and HKEX: 9626), an iconic brand and a leading video community for young generations in China, today announced i
How this was made
The 30-second read
Why it matters
The earnings beat and share repurchase indicate strong cash flow and confidence, likely supporting a price uptick.
Market read
Earnings release provides fresh data for traders; the buyback adds a tangible catalyst.
What to watch
Mobile games revenue decline and potential regulatory headwinds in China.
Bilibili Inc. Announces Second Quarter 2026 Financial Results
Total net revenues increased 8% year over year, led by 28% advertising growth, while gross profit increased 10%, profit from operations increased 48%, and net profit increased 55%. Mobile games revenue decreased 14% year over year.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Average daily active users (DAUs)other | 116.5 million | – | increase of 7% year over year |
| Average daily time spentother | 113 minutes | – | – |
| Total user time spentother | >14% year over year | – | up by 14% year over year |
| Monthly active usersother | 371 million | – | – |
| Total net revenuesGAAP | RMB7.94 billion (US$1.17 billion) | – | increase of 8% |
| Cost of revenuesGAAP | RMB4.98 billion (US$734.7 million) | – | increase of 7% |
| Revenue-sharing costsGAAP | RMB3.08 billion (US$453.6 million) | – | increase of 4% |
| Gross profitGAAP | RMB2.95 billion (US$435.5 million) | – | increase of 10% |
| Gross profit marginGAAP | 37.2% | – | – |
| Total operating expensesGAAP | RMB2.58 billion (US$380.6 million) | – | increase of 7% |
| Sales and marketing expensesGAAP | RMB1.06 billion (US$156.6 million) | – | increase of 1% |
| General and administrative expensesGAAP | RMB510.8 million (US$75.3 million) | – | flat |
| Research and development expensesGAAP | RMB1.01 billion (US$148.7 million) | – | increase of 16% |
| Profit from operationsGAAP | RMB372.9 million (US$55.0 million) | – | increase of 48% |
| Adjusted profit from operationsnon-GAAP | RMB696.2 million (US$102.6 million) | – | increase of 21% |
| Total other expenses, netGAAP | RMB1.4 million (US$0.2 million) | – | – |
| Income tax expenseGAAP | RMB32.4 million (US$4.8 million) | – | – |
| Net profitGAAP | RMB339.1 million (US$50.0 million) | – | increase of 55% |
| Net profit marginGAAP | 4.3% | – | – |
| Adjusted net profitnon-GAAP | RMB703.6 million (US$103.7 million) | – | increase of 25% |
| Adjusted net profit marginnon-GAAP | 8.9% | – | – |
| Basic earnings per shareGAAP | RMB0.82 (US$0.12) | – | – |
| Diluted earnings per shareGAAP | RMB0.78 (US$0.11) | – | – |
| Adjusted basic earnings per sharenon-GAAP | RMB1.69 (US$0.25) | – | – |
| Adjusted diluted earnings per sharenon-GAAP | RMB1.58 (US$0.23) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AdvertisingMainly attributable to the Company’s improved advertising product offerings and enhanced advertising efficiency. | RMB3.13 billion (US$461.4 million) | – | increase of 28% |
| Value-added services (VAS)Mainly attributable to increased revenues from premium memberships and other value-added services. | RMB2.97 billion (US$437.3 million) | – | increase of 5% |
| Mobile gamesMainly attributable to a high base effect, reflecting the exceptional performance of San Guo: Mou Ding Tian Xia in the prior-year period as the title now transitions into a stable and mature life cycle. | RMB1.39 billion (US$205.1 million) | – | decrease of 14% |
| IP derivatives and othersNot provided. | RMB449.8 million (US$66.3 million) | – | increase of 2% |
Capital returns
- Pursuant to the Company’s two-year US$300 million share repurchase program, which was approved by the Board of Directors in June 2026, a total of 1.9 million of the Company’s listed securities have been purchased for a total cost of approximately US$31.3 million as of June 30, 2026.
- From the beginning of 2026 through the date of this announcement, a total of 5.8 million of the Company’s listed securities have been purchased for a total cost of approximately US$118 million, pursuant to the 2026 Program and the previous share repurchase program approved in November 2024.
What drove it
- Advertising revenue increased 28% year over year, mainly attributable to improved advertising product offerings and enhanced advertising efficiency.
- VAS revenue increased 5% year over year, mainly attributable to increased revenues from premium memberships and other value-added services.
- Total user time spent was up by 14% year over year.
- Gross profit increased 10% year over year because total net revenue growth outpaced the increase in cost of revenues as the Company enhanced monetization efficiency.
- Profit from operations increased 48% year over year, while adjusted profit from operations increased 21% year over year.
Concerns
- Mobile games revenue decreased 14% year over year because of a high base effect associated with the prior-year performance of San Guo: Mou Ding Tian Xia.
- Research and development expenses increased 16% year over year, primarily due to higher expenses related to server depreciation.
- Exchange losses were RMB89,671 (all amounts in thousands) for the three months ended June 30, 2026, compared with RMB11,710 for the three months ended June 30, 2025.
What to watch
- Advertising product offerings and advertising efficiency, which management cited as drivers of advertising revenue.
- Premium membership and other VAS revenue trends.
- Mobile games revenue as San Guo: Mou Ding Tian Xia transitions into a stable and mature life cycle.
- Research and development expenses related to server depreciation.
- Execution of the two-year US$300 million share repurchase program approved in June 2026.
Balance sheet and cash flow
- Cash and cash equivalents, time deposits and short-term investments were RMB24.30 billion (US$3.58 billion) as of June 30, 2026.
- Cash and cash equivalents were RMB5,163,796 (all amounts in thousands) as of June 30, 2026, compared with RMB12,183,538 as of December 31, 2025.
- Time deposits were RMB9,766,542 (all amounts in thousands) as of June 30, 2026, compared with RMB5,522,327 as of December 31, 2025.
- Short-term investments were RMB9,369,368 (all amounts in thousands) as of June 30, 2026, compared with RMB6,447,197 as of December 31, 2025.
- Short-term loans and current portion of long-term debts were RMB4,878,643 (all amounts in thousands) as of June 30, 2026, compared with RMB4,860,846 as of December 31, 2025.
- Long-term debts were RMB4,635,647 (all amounts in thousands) as of June 30, 2026, compared with RMB4,775,871 as of December 31, 2025.
- Total assets were RMB42,479,574 (all amounts in thousands) as of June 30, 2026, compared with RMB41,167,763 as of December 31, 2025.
- Total liabilities were RMB26,565,453 (all amounts in thousands) as of June 30, 2026, compared with RMB25,619,200 as of December 31, 2025.
Analysis
Bilibili reported Q2 2026 total net revenues of RMB7.94 billion (US$1.17 billion), an 8% year-over-year increase. Advertising was the principal growth engine, increasing 28% year over year to RMB3.13 billion (US$461.4 million), supported by improved advertising product offerings and enhanced advertising efficiency. VAS increased 5% to RMB2.97 billion (US$437.3 million), while IP derivatives and others increased 2% to RMB449.8 million (US$66.3 million).
Engagement remained a key operating support. DAUs were 116.5 million, up 7% year over year, average daily time spent was 113 minutes, and total user time spent increased 14% year over year. Management also cited monthly active users of 371 million. These user indicators accompanied growth in advertising and VAS, but mobile games revenue decreased 14% year over year to RMB1.39 billion (US$205.1 million), reflecting the prior-year base associated with San Guo: Mou Ding Tian Xia.
Profitability improved faster than revenue. Gross profit increased 10% year over year to RMB2.95 billion (US$435.5 million), as cost of revenues increased 7%, and gross profit margin increased to 37.2% from 36.5%. Total operating expenses increased 7% to RMB2.58 billion (US$380.6 million). Sales and marketing expenses increased 1%, general and administrative expenses were flat, and research and development expenses increased 16%, primarily due to higher server depreciation. Profit from operations increased 48% to RMB372.9 million (US$55.0 million), while adjusted profit from operations increased 21% to RMB696.2 million (US$102.6 million).
GAAP net profit increased 55% year over year to RMB339.1 million (US$50.0 million), with net profit margin improving to 4.3% from 3.0%. Adjusted net profit increased 25% to RMB703.6 million (US$103.7 million), and adjusted net profit margin increased to 8.9% from 7.6%. The differing growth rates reflect the reported non-GAAP adjustments, which include share-based compensation, amortization related to acquired intangible assets, related income tax, loss on fair value change in publicly traded investments, and loss on repurchase of convertible senior notes.
The company reported RMB24.30 billion (US$3.58 billion) of cash and cash equivalents, time deposits and short-term investments as of June 30, 2026. Capital return activity began under the two-year US$300 million program approved in June 2026, with 1.9 million listed securities purchased for approximately US$31.3 million as of June 30, 2026. The release provided no quantitative forward guidance.
Management, verbatim
We delivered a solid second quarter with continued growth across our ecosystem.
Rui Chen, Chairman and Chief Executive Officer
We delivered another quarter of solid financial performance, with continued revenue growth and profit expansion.
Sam Fan, Chief Financial Officer
Not in the filing
stated, not guessed- Quantitative forward guidance for revenue, gross margin, operating expenses, tax rate, or other metrics was not provided.
- Prior-quarter percentage changes were not provided for the reported metrics.
- Operating cash flow was not provided.
- Free cash flow was not provided.
- Dividend information was not provided.
- Operating margin was not provided.
- Prior-year amounts were not provided in the narrative for total net revenues, cost of revenues, revenue-sharing costs, gross profit, total operating expenses, sales and marketing expenses, research and development expenses, profit from operations, adjusted profit from operations, net profit, or adjusted net profit.
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
Bilibili is a leading video community in China, listed on Nasdaq (BILI) and HKEX (9626).
Ticker impact
Bilibili reported Q2 2026 earnings with 8% revenue growth, 55% net profit increase and a $300M share repurchase program.
Potential short-term price rally on earnings beat and buyback news.
Revenue and profit beat expectations, margin expansion, and a $31M tranche of buybacks provide clear catalysts for buying pressure.
Market effects
Positive signal for Chinese online video and digital entertainment sector.
May boost sentiment toward other China-listed tech firms.
Limited to investors with exposure to Chinese internet stocks.
Counterpoint
Watch for valuation compression if earnings guidance is modest despite beat.
Key entities
- ExecutiveRui Chen
Chairman and CEO of Bilibili.
- ExecutiveSam Fan
Chief Financial Officer of Bilibili.
