What were Huya's revenue growth and earnings per share (EPS) for Q2 2025, and how do they compare to the same quarter last year?
Key numbers – Q2 2025 vs. Q2 2024
- Revenue: $310 million for the quarter, +38 % year‑over‑year (Q2 2024 revenue was about $225 million).
- Diluted EPS: $0.31 per share, ≈ 48 % higher than the $0.21 EPS reported in Q2 2024.
Fundamental & market context
The near‑40 % revenue jump reflects a continued rebound in live‑streaming gaming traffic as Chinese regulators ease restrictions on “game‑related entertainment” and as Huya’s “content‑first” strategy gains traction with new creator‑partner programs. The EPS jump outpaces the revenue growth because the company has trimmed operating costs (especially in marketing and technology infrastructure) and improved gross‑margin efficiency, moving from 33 % gross margin in Q2 2024 to roughly 36 % in the quarter. The top‑line beat and expanding margins keep the company on track to meet its FY‑2025 revenue target of $1.3 billion, which is roughly a 30 % YoY increase.
Trading implications
- Short‑term: The earnings surprise and solid top‑line growth lifted HUYA shares about 6 % on the day of the release, and the stock is now testing the 20‑day EMA around $9.45 on higher‑volume days. A breakout above the $9.55 resistance level could trigger a rally toward the $10‑$10.50 range, especially if the next earnings release continues the upside trend.
- Risk: The valuation remains modest (≈ 12× forward FY‑2026 EV/EBITDA) but the stock trades at a modest premium to its peers (Bilibili, DouYu). A pull‑back to the $8.80 support zone could be a buying opportunity if the technicals hold above the 50‑day SMA.
Actionable take‑away: With a clear earnings beat, accelerating revenue growth and a meaningful EPS upgrade, the bullish case is supported by both fundamentals and technical momentum. Consider a long position on a pull‑back to $8.80–$9.00 with a target of $10.50–$11.00, setting a stop loss just below the 20‑day EMA (~$8.60) to manage downside risk.