HUYA Inc. Q1 FY2026 earnings call

• Strategic Transformation

• HUYA is accelerating its evolution from a game live streaming platform to a full-service game services platform, with continued improvement in revenue mix toward higher-margin game-related businesses.
• The company's cross-platform content network now reaches over 200 million users across external platforms including Douyin and WeChat, doubling from last year. HUYA is the largest gaming MCN on WeChat Channels and ranks among the top 3 on Douyin, with nearly half of core streamers for top game titles partnered with the company.

• Game Publishing

• Goose Goose Duck mobile launched in January 2026, ranked #1 on the iOS free games chart for most of Q1, and reached top 5 on the iOS top grossing game chart in April 2026, validating its monetization potential. The company has launched multiple content updates, introduced new gameplay modes, and is scheduled to launch a WeChat mini-game version in summer 2026.
• A robust pipeline of new titles across casual, SLG, and MMO genres is planned for launch in 2026, with the next title (a proven 3D puzzle matching game) scheduled for summer holiday launch.

• In-Game Item Sales & Advertising

• In-game item sales grew solidly year-over-year, with strong contributions from top domestic titles (Peacekeeper Elite, Honor of Kings, Crossfire) and overseas titles (PUBG Mobile, Genshin Impact, Arena Breakout).
• Integrated content marketing solutions for game developers have delivered strong ROI, earning recognition from major advertisers including Tencent, NetEase, and Hypergryph, with one Q1 campaign generating over 70 million views across platforms.

• Content & Product Development

• HUYA hosted 55 licensed tournaments and over 20 self-produced tournaments/variety shows in Q1, including the high-viewership Uzi Cup for League of Legends. The company is also an official production partner for multiple top-tier domestic and international esports events, and added premium sports content including full rights to 2026 BWF events and 2026 World Snooker Tour.
• New AI-powered game tools were launched in Q1 for Delta Force and League of Legends, with plans to expand tools to additional game titles. The company is also developing an IP-based physical AI companion for Goose Goose Duck.

HUYA reported total net revenues of RMB 1.73 billion for Q1 2026, representing a 15% year-over-year increase. 1. Live streaming: Generated net revenues of RMB 1.1 billion, down slightly from RMB 1.14 billion in the year-ago quarter. This segment accounted for approximately 64% of total net revenues. 2. Game-related services, advertising and other: Generated net revenues of RMB 627 million, up 69% year-over-year. This segment reached a record 36% of total net revenues, driven by strong growth in in-game item sales, advertising, and game publishing.

• Management expects overall gross margin and operating margin to improve further for full-year 2026, driven by continued scaling of higher-margin game-related businesses and operating leverage. More visible margin improvement is expected in the second half of 2026, following investment paced for Goose Goose Duck mobile and new pipeline titles. • For Goose Goose Duck mobile, 2026 priorities are growing the user base and boosting user engagement, with gradual ramping of monetization. Key initiatives include expanding UGC gameplay, adding new social features, and launching the WeChat mini-game version in summer 2026. • HUYA will continue expanding AI applications across its core businesses, including rolling out AI-powered game tools for additional titles and exploring AI use cases for live streaming content, IP companionship, and casual game production. • The live streaming segment will focus on improving ROI for content and streamer costs to maintain stable performance amid ongoing market pressure.

• Forward-looking statements, including guidance on growth, margin improvement, and new product launches, involve inherent uncertainties that could cause actual results to differ materially from management expectations. Risks are detailed in HUYA's public filings with the U.S. SEC. • The core live streaming business continues to face pressure from the overall market environment, which may impact near-term revenue performance for the segment. • New game launches are dependent on product testing progress and regulatory license approval, which may delay scheduled release timelines.

Q: What are the 2026 operating strategy and current commercialization progress for Goose Goose Duck mobile? / A: The game has delivered strong early results, validating HUYA's content-driven publishing model. Monetization is still in early stages and being ramped gradually. For 2026, HUYA will prioritize growing user base and engagement, focusing on three key initiatives: expanding UGC gameplay mechanisms to support long-term vitality, adding new social community features including a home decoration system, and launching a WeChat mini-game version in summer 2026 to leverage WeChat's social graph for user growth.

Q: What is HUYA's strategic plan for AI integration across its core businesses? / A: AI initiatives are focused on four core areas aligned with HUYA's business. For live streaming, AI will expand mid-tier and long-tail content opportunities rather than replacing top human streamers. AI-powered game tools launched for two titles in Q1 will expand to more genres, providing high repeat-value match-specific decision support. HUYA is also developing IP-based physical AI companions with multimodal capabilities, and exploring AI to improve R&D efficiency for casual game content production.

Q: Can you share details on HUYA's upcoming game publishing pipeline? / A: HUYA has a robust pipeline of multiple new games launching in 2026 across casual, SLG, MMO and other genres, with partners including leading firms Tencent and Kingsoft. The next launch is a proven 3D puzzle matching game (already successful overseas with over 10 million cumulative downloads) scheduled for summer 2026, with exclusive publishing rights for mainland China, Hong Kong, and Macau. Launches will be paced based on product testing, regulatory approval, and market windows, leveraging HUYA's 200+ million cross-platform reach for user acquisition.

Q: What is the outlook for the live streaming business, and what strategic levers will HUYA use to maintain stability? / A: Live streaming remains a core HUYA business, but continues to face market pressure. HUYA will focus on improving ROI across content and streamer costs, leveraging its unique differentiator of creating high-impact gaming content that supports game publishing and distribution. It will continue to produce high-profile self-owned tournaments and expand engaging premium sports content to maintain user engagement.