HUYA (HUYA) Q3 2025: Game-Related Revenue Jumps 30%, In-Game Sales Surge Over 200%
HUYA’s Q3 marked a turning point as non-livestream business surpassed 30% of revenue, powered by in-game item sales up over 200% year-over-year. The company is leveraging streamer reach, new publishing initiatives, and esports content to expand monetization and diversify beyond its core live streaming base. Management signals further acceleration in 2026 as game-related services take center stage for growth and profitability.
Summary
- Game-Related Revenue Expansion: In-game item sales and partnerships are now HUYA’s primary growth engine.
- Streaming Revenue Stabilization: Live streaming returned to positive growth after a multi-year decline.
- 2026 Acceleration Signal: Management targets faster overall growth as platform diversification deepens.
Performance Analysis
HUYA delivered its highest quarterly net revenue in nine quarters, with total revenue up 10% year-over-year to RMB 1.69 billion. Notably, game-related services, advertising, and other revenues rose 30% year-over-year to RMB 532 million, now accounting for 31.5% of total revenue. This marks a structural shift, as non-livestreaming businesses become a significant contributor to HUYA’s revenue mix.
Live streaming revenue, which has been under pressure since 2021, resumed growth with a 3% increase year-over-year, supported by stable paying user numbers and higher average spend per user. Gross profit rose 11% year-over-year, and gross margin remained stable at 13.4%. Non-GAAP operating profit improved to RMB 6.3 million, reflecting disciplined cost management in R&D and marketing. Despite a sharp drop in interest income due to special dividends, net income remained positive, underlining the operating leverage emerging from new business lines.
- In-Game Sales Momentum: In-game item sales revenue surged over 200% year-over-year, driving the bulk of non-livestream growth.
- Cost Structure Evolution: Revenue sharing and in-game item costs rose in line with topline, but efficiency gains in R&D and marketing offset these pressures.
- International and Esports Contributions: Overseas user growth and esports events bolstered brand and engagement, supporting monetization diversification.
HUYA’s business model is evolving from a pure live streaming platform to a multi-pronged gaming and content ecosystem, where new monetization avenues are delivering tangible financial impact and improving the quality of earnings.
Executive Commentary
"Revenues from game relative service, advertising and others have now surpassed the 30% of total net revenues of the first time this quarter. Our platform ecosystem and user base remain resilient in the third quarter, with total MAUs stable at around 162 million."
Vincent Junhong Huang, Acting Co-CEO and Senior Vice President
"Live streaming revenues has resumed growth at 3% year-over-year to RMB 1.16 billion. And game-related services, advertising, and other revenues grew around 30% year-over-year to RMB 532 million, accounting for 31.5% of total net revenues. We also achieved a non-gap operating income of RMB 6.3 million."
Raymond Peng Lei, Acting Co-CEO and CFO
Strategic Positioning
1. Game-Related Services as Core Growth Driver
HUYA’s collaboration with flagship game titles such as Peacekeeper Elite, League of Legends, and PUBG Mobile has transformed its revenue mix. In-game item sales, defined as digital goods purchased by users within games, grew over 200% year-over-year, now forming a substantial portion of total revenue. This segment’s rapid scale reflects HUYA’s ability to leverage its streamer influence and deepen integration with game developers, creating a flywheel between content, community, and commerce.
2. Live Streaming Platform Stabilization
After several quarters of contraction, live streaming revenue returned to growth, supported by a stable paying user base and improved content mix. The addition of outdoor streaming and short-form video features has broadened user engagement, while new tools like the Delta Force 3D map enhance platform stickiness for core gamers. This stabilization provides a solid foundation for HUYA’s diversification efforts.
3. Content-Driven Game Publishing
The launch of Goose Goose Dark Mobile, HUYA’s first published game, marks a strategic entry into game publishing. Early traction is strong, with pre-registrations exceeding 10 million. HUYA’s publishing strategy leverages its influencer network and esports presence to drive awareness and adoption, providing a natural advantage in distribution and marketing compared to traditional publishers.
4. Esports and International Expansion
HUYA continues to invest in esports, producing and hosting high-profile tournaments like the League of Legends Asia Invitational and Delta Force Diamond Champions. These initiatives build brand equity, attract hardcore gamers, and increase international exposure, with overseas user growth highlighted as a steady contributor to engagement and monetization.
Key Considerations
This quarter signals a structural pivot for HUYA, with non-livestream businesses now established as a material revenue engine. Management’s commentary and Q&A responses highlight a focus on sustainable growth, operational efficiency, and ecosystem leverage.
Key Considerations:
- In-Game Item Sales Scale: Over 200% growth signals product-market fit and strong execution in digital goods monetization.
- Revenue Mix Diversification: With 31.5% of revenue now from non-livestreaming, HUYA is less exposed to live streaming cyclicality.
- Content and Community Synergy: Esports events and streamer-led marketing amplify both user acquisition and monetization potential.
- Cost Discipline: R&D and sales expenses declined year-over-year, supporting margin stability even as topline investments ramp up.
- International User Growth: Overseas expansion is contributing to platform resilience and new monetization paths.
Risks
HUYA’s growth strategy hinges on continued success in game partnerships and the scalability of its in-game item sales platform. Competitive pressure from other streaming and gaming platforms, regulatory uncertainty in China’s gaming sector, and reliance on a few flagship titles for growth could impact future results. Sharp declines in interest income highlight sensitivity to capital allocation decisions.
Forward Outlook
For Q4 2025, HUYA expects:
- Live streaming revenue to remain stable, continuing the positive trend established this quarter.
- Game-related services, advertising, and other revenues to maintain rapid growth, driven by in-game item sales and deeper partnerships.
For full-year 2026, management signaled:
- Overall revenue growth is expected to accelerate versus 2025, with game-related services leading expansion.
Management highlighted several factors that will shape results:
- Further expansion of in-game item categories and game partnerships.
- Launch and scaling of new game publishing titles, leveraging streamer and esports ecosystems.
Takeaways
HUYA’s Q3 results confirm a business model transition from streaming-centric to a diversified gaming ecosystem, with digital goods and publishing as new profit engines. The company’s ability to scale in-game item sales and launch proprietary titles will be critical for sustaining growth and margin improvement into 2026.
- Revenue Mix Shift: Game-related services now drive growth, reducing reliance on the volatile live streaming segment.
- Execution on Ecosystem Leverage: Streamer reach, esports, and partnerships are proving effective in both user engagement and monetization.
- 2026 Growth Watch: Investors should monitor the ramp of new publishing efforts and the durability of in-game item sales momentum.
Conclusion
HUYA’s Q3 marks a decisive pivot toward a multi-vertical gaming and content platform, with in-game item sales and publishing delivering outsized growth. The strategic focus on ecosystem integration and operational discipline positions the company for accelerated expansion and improved profitability heading into 2026.
Industry Read-Through
HUYA’s results underscore a broader trend in the Chinese gaming and streaming sector: platforms must diversify revenue beyond live streaming, leveraging digital goods, publishing, and esports to drive sustainable growth. The rapid scaling of in-game item sales and successful streamer-led marketing provide a playbook for peers facing similar headwinds in live streaming monetization. For global gaming and media companies, HUYA’s pivot highlights the rising importance of integrated content, community, and commerce strategies to capture value across the gaming ecosystem.