Bilibili Q2 revenue increased by 20% year-on-year, with a net profit of 218 million yuan, and game business revenue grew by 60% | Financial Report Insights

Bilibili's Q2 total revenue increased by 20% year-on-year to RMB 7.34 billion, with a GAAP net profit of RMB 218 million, compared to a net loss of RMB 608 million in the same period last year. The growth was primarily driven by advertising and gaming businesses, which grew by 20% and 60% respectively.

On the 21st, Bilibili announced its Q2 financial report:

• In the second quarter of 2025, Bilibili's total revenue increased by 20% year-on-year to RMB 7.34 billion.
• GAAP net profit was RMB 218 million, compared to a net loss of RMB 608 million in the same period last year.
• Adjusted net profit reached RMB 561 million, far exceeding market expectations.
• Gross margin significantly improved from 29.9% in the same period last year to 36.5%, indicating a notable enhancement in profitability.

Core Business Progress:

• Gaming Business (+60%): Became the biggest highlight of the season, with revenue soaring 60% year-on-year to RMB 1.61 billion, mainly due to the strong performance of the blockbuster exclusive game "Three Kingdoms: Strategizing the World."
• Advertising Business (+20%): Maintained steady growth, with revenue reaching RMB 2.45 billion, driven primarily by performance-based advertising.
• Value-Added Services (+11%): Revenue reached RMB 2.84 billion, with relatively stable growth, mainly driven by live streaming and other services.
• IP Derivatives and Others (-15%): Revenue declined by 15% year-on-year, being the only business segment to experience negative growth.

Profitability: A Victory in Cost Control and a Leap in Gross Margin

In the second quarter of 2025, Bilibili achieved profitability under GAAP (Generally Accepted Accounting Principles), with a net profit of RMB 218 million, compared to a net loss of RMB 608 million in the same period last year.

Data shows that the company's total revenue increased by 20% year-on-year, while operating costs only grew by 9%. This drove the gross margin to soar from 29.9% in the same period last year to 36.5%. Total operating expenses remained basically flat compared to the same period last year, with R&D expenses decreasing by 3% year-on-year.

Daily Active Users (DAU) grew by 7% year-on-year to 109 million, with growth slowing down. However, user engagement further strengthened, with daily usage time reaching a record 105 minutes, an increase of 6 minutes year-on-year, demonstrating the strong cohesion of the core community.

Bilibili Chairman and CEO Chen Rui stated:

"This summer, our flagship offline events Bilibili World and Bilibili Marco Link attracted over 400,000 participants, making this three-day event one of the largest offline anime exhibitions in China. The enthusiastic participation highlights the vitality of our brand and the cohesion of our community, showcasing the immense potential of our young user base.

Looking ahead, we will continue to focus on providing high-quality content experiences that resonate with young users, driving user growth and deepening interactions, while further unleashing the full commercial potential of our vibrant community."

Game business shines, mobile game revenue surges 60% year-on-year

Bilibili's game business data this quarter is impressive. Mobile game revenue surged 60% year-on-year, reaching RMB 1.61 billion, becoming the strongest engine driving overall growth. The financial report clearly states that this is mainly attributed to the huge success of the exclusive agent strategy game "Three Kingdoms: Strategizing the World."

In contrast, advertising revenue grew 20% year-on-year, reaching RMB 2.45 billion, in line with the company's overall growth rate. The strong growth of performance-based advertising indicates that Bilibili's user value continues to gain recognition from advertisers.

The 11% year-on-year growth in value-added services appears somewhat lackluster. This may suggest that the growth of live streaming and premium membership services has entered a relatively stable phase, and how to further tap into the potential of paying users will be a challenge for management. IP derivatives and other businesses saw a 15% year-on-year decline, with the continued weakness in this segment dragging down overall revenue performance.

Bilibili's stock fell over 5% in pre-market trading.