Bilibili (09626 HK; Nasdaq: BILI) reported a return to profitability in the three months ended 31 March 2026, driven by double-digit growth in user engagement and a sharp acceleration in advertising sales.
Total net revenue rose 7% year-on-year to RMB 7.47 billion. Advertising revenue grew 30% to RMB 2.59 billion, offsetting a 12% decline in mobile-game revenue to RMB 1.52 billion. Value-added services contributed RMB 2.91 billion, up 4%, while IP derivatives and other income slipped 4% to RMB 448.21 million.
Gross profit increased 9% to RMB 2.77 billion, lifting gross margin to 37.1% from 36.3% a year earlier. Cost of revenue rose 5% to RMB 4.70 billion; revenue-sharing expenses accounted for RMB 2.85 billion, up 7%.
Operating expenses were tightly managed, rising 3% to RMB 2.61 billion. Research and development spending grew 9% to RMB 921.11 million, reflecting continued investment in AI, while sales and marketing costs edged down 1% to RMB 1.15 billion.
Operating profit surged to RMB 166.76 million from RMB 15.01 million in the prior-year period. Net profit reached RMB 202.00 million, reversing a RMB 10.68 million loss a year earlier, and translating into a 2.7% net margin. On a non-GAAP basis, adjusted net profit climbed 62% to RMB 585.43 million, with the adjusted margin improving to 7.8%.
Average daily active users increased 8% year-on-year to 115.2 million, while average daily time spent rose by 11 minutes to 119 minutes. Total user time spent expanded 19%. Monthly active users exceeded 376 million.
As of 31 March 2026, cash, time deposits and short-term investments amounted to RMB 24.19 billion. During the quarter, the company repurchased 2.5 million shares for US$ 60.30 million, completing its US$ 200 million two-year buyback programme.
Management highlighted sustained margin expansion—now in its 15th consecutive quarter—and reaffirmed a disciplined investment stance focused on AI-driven innovation.
