Bilibili Reports Q2 2025 Profit and Revenue Beat, Driven by Strong Advertising and Games Growth
Bilibili (BILI.US) announced its second quarter 2025 financial results, reporting significant improvements in profitability. The company achieved a net profit of RMB218.3 million (US$30.5 million), a substantial turnaround from a net loss of RMB608.1 million in the same period of 2024. Adjusted net profit reached RMB561.3 million (US$78.4 million), compared with an adjusted net loss of RMB271.0 million year-over-year, and exceeded the analyst EPS estimate of US$0.17 with an adjusted diluted EPS of US$0.18.
Total net revenues for Q2 2025 were RMB7.34 billion (US$1,024.3 million), marking a 20% increase from RMB6.13 billion in Q2 2024. This figure also surpassed the analyst revenue estimate of RMB7.33 billion. The strong revenue growth and improved profitability highlight Bilibili's successful monetization efforts and operational efficiency.
Robust Revenue Growth Across Key Segments
Bilibili's revenue growth was primarily driven by strong performances in its advertising and mobile games segments. Advertising revenues increased 20% year-over-year to RMB2.45 billion (US$341.9 million), reflecting robust growth in performance-based advertising.
Mobile games revenues saw a significant 60% increase year-over-year, reaching RMB1.61 billion (US$225.1 million). This was largely attributed to the strong performance of the company's exclusively licensed game, San Guo: Mou Ding Tian Xia. Value-added services (VAS) also contributed, with revenues rising 11% to RMB2.84 billion (US$396.0 million) due to increased revenues from live broadcasting and other services.
Enhanced Profitability and Operational Efficiency
Gross profit for the second quarter was RMB2.68 billion (US$373.5 million), representing a 46% increase year-over-year. The gross profit margin improved significantly to 36.5% from 29.9% in the same period of 2024. This improvement was a result of increased total net revenues and relatively stable costs related to platform operations, indicating enhanced monetization efficiency.
Total operating expenses remained stable compared to the prior year, contributing to the overall profitability. Research and development expenses decreased by 3%, further supporting the positive financial results. The company also generated a robust net operating cash flow of RMB1.99 billion (US$277.7 million).
Management's Strategic Focus
Bilibili's management emphasized the company's healthy momentum and commitment to delivering premium content experiences. Mr. Rui Chen, Chairman and CEO, highlighted sustained user growth and engagement, with average daily active users increasing 7% year-over-year to 109.4 million and average daily time spent rising to 105 minutes. These metrics underscore the growing influence and community strength among young generations in China.
Mr. Sam Fan, CFO, reaffirmed the company's focus on maintaining efficient, sustainable, and profitable operations. The successful repurchase of 5,588,140 Class Z ordinary shares for HK$782.9 million further demonstrates the company's commitment to creating value for its stakeholders. Bilibili plans to continue enhancing its content ecosystem and improving overall monetization efficiency.