Bilibili Inc. (Bilibili-W, HK: 09626; NASDAQ: BILI) reported a sharp improvement in profitability for the six months ended 30 June 2026, propelled by strong advertising traction and disciplined cost control.
Revenue and Profitability • Total net revenue rose 7.5% year on year to RMB 15.41 billion. – Advertising advanced 29% to RMB 5.72 billion, accounting for 37% of group revenue. – Value-added services (VAS) increased 4% to RMB 5.88 billion, supported by 25.7 million premium members (+9%). – Mobile games fell 13% to RMB 2.91 billion, reflecting the post-launch normalisation of flagship title “San Guo: Mou Ding Tian Xia”. – IP derivatives and other income were broadly stable at RMB 0.90 billion.
• Gross profit grew 9.8% to RMB 5.73 billion, lifting gross margin to 37.2% (1H 2025: 36.4%). • Net profit surged 160.6% to RMB 0.54 billion, translating to a 3.5% net margin. • Non-GAAP adjusted net profit expanded 39.7% to RMB 1.29 billion, with an 8.4% margin.
Operating Metrics • Daily active users reached nearly 116 million (+7% YoY); monthly active users climbed to 373 million. • Average daily time spent per user increased by nine minutes to 116 minutes, driving a 17% rise in total user time. • Creators with over 1,000 followers climbed 30%; average creator income rose 22%.
Cash & Balance Sheet • Cash, cash equivalents, time deposits and short-term investments totalled RMB 24.30 billion at 30 June 2026. • Total assets grew 3.2% to RMB 42.48 billion; total liabilities rose 3.7% to RMB 26.57 billion, resulting in a gearing ratio of 62.5%. • Net operating cash inflow reached RMB 2.95 billion (1H 2025: RMB 3.29 billion).
Capital Actions • The US$200 million 2024 share-repurchase program concluded in May 2026 after buying 9.9 million securities. • A new two-year US$300 million program began in June 2026; 1.9 million shares had been repurchased for US$31.3 million by period-end. • Combined 2026 year-to-date buybacks totalled 5.8 million shares for approximately US$118 million.
Post-Period Financing • In September 2026 Bilibili issued US$500 million of 0.00% convertible senior notes due 2031 and repurchased about US$100 million of Class Z Ordinary Shares. Tencent separately agreed to subscribe for an additional US$200 million of the notes, alongside a planned US$200 million share repurchase from Tencent, pending shareholder approval.
Strategic Outlook Management plans to deepen investment in high-quality PUGV content, AI-driven creation tools and targeted advertising solutions. With user engagement at record highs and new monetisation initiatives gaining traction, Bilibili targets further expansion of its community-commerce flywheel while continuing disciplined cost and capital management.