Bilibili reported another quarter of improving profitability during the second quarter of 2026, with net profit increasing substantially faster than revenue as advertising growth, higher engagement and continued operating leverage supported the business.
Total net revenue increased 8% year-over-year to RMB7.94 billion, or approximately $1.17 billion.
Advertising remained one of Bilibili’s strongest growth engines. Advertising revenue rose 28% to RMB3.13 billion, or approximately $461.4 million, substantially outpacing overall revenue growth. Bilibili attributed the increase primarily to improvements in its advertising products and greater advertising efficiency.
Value-added services revenue increased 5% to RMB2.97 billion, or approximately $437.3 million. Growth in that category was driven primarily by higher revenue from premium memberships and other value-added services.
Mobile games remained a relative weak spot, with revenue declining 14% to RMB1.39 billion, or approximately $205.1 million. The company attributed the decline largely to the difficult year-over-year comparison created by the exceptional performance of San Guo: Mou Ding Tian Xia in the prior-year period, as that title transitions to a more mature stage of its lifecycle.
Revenue from IP derivatives and other businesses increased 2% to RMB449.8 million, or approximately $66.3 million.
Bilibili’s profitability metrics showed faster improvement than the top line.
Gross profit increased 10% to RMB2.95 billion, or approximately $435.5 million. Gross margin expanded to 37.2% from 36.5% in the prior-year period.
The quarter marked Bilibili’s 16th consecutive quarter of gross-margin improvement, highlighting the sustained operating leverage the company has generated as it scales revenue and improves monetization.
Net profit increased 55% year-over-year to RMB339.1 million, or approximately $50 million.
Net profit margin reached 4.3%, up from 3% a year earlier, representing an improvement of approximately 130 basis points.
Adjusted net profit increased 25% to RMB703.6 million, or approximately $103.7 million, while adjusted net profit margin expanded to 8.9% from 7.6%.
The profitability growth was supported by continued expansion in engagement across Bilibili’s platform.
Average daily active users reached 116.5 million, increasing 7% year-over-year. Monthly active users reached approximately 371 million.
Average daily time spent on the platform reached 113 minutes, helping total user time spent increase more than 14% from the prior-year period.
That growth is strategically important for Bilibili because greater engagement expands the inventory and opportunities available for advertising, subscriptions and other forms of monetization.
Management is also positioning AI as a way to increase the efficiency and scale with which Bilibili connects users with relevant content.
The combination of 28% advertising growth, expanding engagement and a 16-quarter streak of gross-margin improvement suggests that Bilibili is increasingly converting user activity into earnings.
The most notable financial trend remains the disparity between 8% revenue growth and 55% net-profit growth. While individual businesses such as gaming can remain volatile, Bilibili’s continued improvement in margins provides the company with a larger earnings base as its advertising and value-added-services operations expand.
KEY QUOTES:
“Our high-quality content and interest-based community continue to deepen user engagement, driving DAUs to 117 million, monthly active users to 371 million, and total user time spent up by over 14% year over year.”
“As AI enables us to fulfill this mission with greater precision and scale, we remain highly confident in our trajectory ahead.”
Rui Chen, Chairman and Chief Executive Officer of Bilibili
“Total net revenues increased 8% year over year to RMB7.9 billion, while gross profit grew 10% year over year and gross margin expanded to 37.2%, marking our 16th consecutive quarter of margin improvement.”
“Supported by continued topline growth and stronger operating leverage, net profit increased by 55% year over year.”
Sam Fan, Chief Financial Officer of Bilibili
