JOYY Inc. reported second-quarter revenue of $591 million, up 16.3% from a year earlier and 6.3% sequentially, exceeding Wall Street’s $569.85 million forecast by 3.7%. The social entertainment and live-streaming group posted non-GAAP operating profit of $49 million, a 28.2% year-over-year increase, while non-GAAP net income reached $63 million.
Total gross profit rose 8.8% year-over-year to $202 million, with gross margin holding steady at 34.1%. Operating cash flow for the quarter was $65 million, and the company maintained a net cash position of $3.06 billion as of June 30. Foreign exchange pressures trimmed earnings by $14 million due to a weaker U.S. dollar.
Revenue growth was led by BIGO Ads, which surged 53.1% year-over-year to $134 million, including a 74.1% increase in the BIGO Audience Network. Shopline, the group’s e-commerce platform, grew 28.6% year-over-year to $34 million, driven by a 73.5% rise in cross-border merchant business. Social entertainment revenue, primarily from live streaming, totaled $423 million, up 7.4% year-over-year.
Global average monthly active users reached 277 million, an increase of 5.5% year-over-year, with instant messaging products accounting for 82% of total MAUs. Core live-streaming paying users rose 3.9% year-over-year, while AI-generated content and virtual gifts contributed 34.3% of virtual gift consumption on Bigo Live in May. VOICe, the group’s voice product portfolio, revenue grew more than 400% year-over-year.
Management raised its full-year 2026 non-GAAP operating profit guidance to about 20% year-over-year growth, up from prior targets in the mid-teens. For the third quarter, JOYY forecast total revenue of $602 million to $622 million, implying year-over-year growth of 11.4% to 15.2%. The company also set a long-term target for non-live-streaming segments to contribute nearly half of total revenue and operating profit by 2028.
JOYY authorized a $1.5 billion shareholder return program through the end of 2028, following $359 million returned to investors year-to-date via $216 million in share repurchases and $142 million in dividends. The board also reiterated its goal for the BIGO Audience Network to reach $1 billion in revenue and for Shopline to achieve operating breakeven by 2028.
Shares rose 4.03% in after-hours trading to $78.02, surpassing the prior 52-week high of $76.68. The stock closed at $75.00, up 2.08% on the day, bringing its 12-month return to 56.98%.
