Bilibili reported its third‑quarter 2025 results, showing revenue of RMB 7.7 billion, a 5% year‑over‑year increase, and a net profit of RMB 469 million—an improvement from the net loss of RMB 79.8 million recorded in Q3 2024.
The company’s revenue mix was 39% from value‑added services, 33% from advertising, 20% from games, and 8% from IP derivatives and other businesses. Advertising revenue rose 23% to RMB 2.57 billion, while mobile‑games revenue fell 17% to RMB 1.51 billion, reflecting the impact of high benchmarks set by earlier successful titles.
Gross margin expanded to 36.7% from 34.9% year‑over‑year, driven by the higher‑margin VAS and advertising mix and disciplined cost management. The improvement in margin translated into a stronger net profit margin compared with the prior year.
Earnings per share of $0.24 beat the consensus estimate of $0.21, a 14% beat, while revenue of $1.08 billion surpassed the consensus of $1.07 billion by $10 million. Some reports noted a miss, but the consensus figures support the beat.
Daily active users reached 117 million, up 9% year‑over‑year, and monthly active users grew to 376 million, an 8% increase, underscoring continued user engagement growth.
CEO Rui Chen highlighted that “high‑quality content is a strong and sustainable growth driver” and that “AI will be a fundamental efficiency booster for high‑quality video creation.” CFO Sam Fan noted that the company’s gross‑margin expansion marks the 13th consecutive quarter of growth and that operating cash flow was about RMB 2 billion in the quarter.
Bilibili maintained its mid‑term guidance, targeting a gross margin of 40‑45% and an adjusted operating margin of 15‑30%, signaling confidence in sustaining profitability and margin expansion.
Market reaction was negative, with investors disappointed by the EPS and revenue miss relative to some estimates, despite the company’s margin expansion and user growth.
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