Bilibili Inc reported a 55% year-over-year increase in net profit for the second quarter of 2026, driven by stronger advertising revenue and margin expansion. Total net revenue rose 8% to RMB 7.9 billion, while adjusted net profit climbed 25% to RMB 704 million, lifting the adjusted net profit margin to 8.9% from 7.8% a year earlier.
Gross profit increased 10% to RMB 3.0 billion, with gross margin widening to 37.2%—the 16th consecutive quarter of expansion. Operating profit surged 48% to RMB 373 million, while adjusted operating profit rose 21% to RMB 696 million. Advertising revenue jumped 28% to RMB 3.1 billion, accounting for 39% of total revenue and marking 14 straight quarters of growth above 20%. Value-added services revenue edged up 5% to RMB 3.0 billion, though gaming revenue declined 14% to RMB 1.4 billion due to a high comparative base set by the mobile game Sanmo.
User metrics showed steady growth, with daily active users rising 7% to 117 million and monthly active users reaching 371 million. Average daily time spent per user increased to 113 minutes from 105 minutes a year ago, while monthly paying users grew 7% to 33.4 million. Premium memberships rose 9% to 25.7 million, with roughly 80% on annual or auto-renewal plans.
Bilibili’s cash position stood at RMB 24.3 billion as of June 30, following $118 million in share repurchases over the past year. Capital spending on AI infrastructure reached 70% to 80% of the RMB 1 billion annual plan in the first half of 2026, primarily for server computing resources, with full-year AI R&D expenditure expected to total about RMB 500 million.
Management reaffirmed long-term margin targets of 40% to 45% for gross margin and 15% to 20% for operating margin. The company’s stock slipped 0.06% in premarket trading to $16.14, near its 52-week low of $15.79. Bilibili’s market capitalization remains at $6.76 billion, with a free cash flow yield of 15% and a PEG ratio of 0.1.
Looking ahead, Bilibili outlined a slate of game releases, including the global launch of the self-developed simulation game Lumi Master in September 2026 and the licensed strategy title Sanwang in late 2026. Gaming revenue is expected to return to year-over-year growth in the fourth quarter of 2026, supported by additional titles slated for 2027.
