HUYA (NYSE:HUYA) Posts Earnings Results, Misses Estimates By $0.01 EPS

HUYA (NYSE:HUYA) announced its quarterly earnings data on Tuesday. The company reported $0.02 EPS for the quarter, missing analysts’ consensus estimates of $0.03 by ($0.01), FiscalAI reports. HUYA had a negative net margin of 1.76% and a positive return on equity of 0.40%.

Here are the key takeaways from HUYA’s conference call:

• Q2 revenue increased 11% year over year to RMB1.74 billion, driven by a 54% increase in game-related services, advertising, and other revenue. Gross margin improved to 14.7%, operating loss narrowed to RMB7 million, and non-GAAP operating income rose to RMB16 million.
• Goose Goose Duck Mobile maintained a resilient user base, returned to the top of China’s iOS free-game chart in late July, and is being supported by recurring IP collaborations and planned gameplay updates. HUYA is also developing a WeChat mini-game version to expand user reach and social sharing.
• HUYA is broadening its game-publishing pipeline beyond Goose Goose Duck with two exclusive titles and its first self-developed game, which received regulatory approval in July. Management emphasized a diversified, quality-first approach with phased testing and disciplined investment.
• AI initiatives are showing early traction: HUYA’s game tools have attracted more than one million users, while users of the Hextech ARAM assistant more than doubled their monthly active days on the platform. The VAM 1.0 digital-human model could increase content supply and reduce marginal production costs, although broader commercialization remains prospective.
• Live-streaming revenue declined low single digits year over year to approximately RMB1.1 billion amid weaker user spending and heightened competition. HUYA is reviewing streamer contracts and tournament licensing costs to improve returns, which may support efficiency but also signals pressure on the core business.
• The board doubled the 2026 share-repurchase authorization from $50 million to $100 million, alongside at least $30 million in annual cash dividends. Management estimated a potential shareholder yield of approximately 14%–15% based on the current market capitalization.

HUYA Stock Performance

HUYA stock traded up $0.10 during trading hours on Tuesday, reaching $2.52. 164,592 shares of the company’s stock traded hands, compared to its average volume of 1,407,047. HUYA has a fifty-two week low of $2.15 and a fifty-two week high of $4.93. The firm has a market capitalization of $564.41 million, a price-to-earnings ratio of -42.08 and a beta of 0.86. The firm’s 50 day moving average is $2.41 and its 200-day moving average is $3.07.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings lowered HUYA from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $3.45.

Institutional Investors Weigh In On HUYA

An institutional investor recently raised its position in HUYA stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of HUYA Inc. Sponsored ADR (NYSE:HUYA) by 10.3% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 154,694 shares of the company’s stock after buying an additional 14,456 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. owned approximately 0.07% of HUYA worth $497,000 as of its most recent filing with the Securities and Exchange Commission. 23.20% of the stock is owned by institutional investors and hedge funds.

HUYA Company Profile

HUYA Inc is a leading interactive live streaming platform based in Guangzhou, China, primarily focused on video game and esports content. The company operates a proprietary technology platform that enables users to broadcast and view live gameplay, participate in real-time chat, and engage with hosts through virtual gifting. Its services are accessible via web browsers, desktop applications and mobile apps for both iOS and Android.

At the core of HUYA’s business are user-generated live streams hosted by professional gamers, influencers and esports organizations.