--- title: "Bilibili's Q2 profit hits record high: Game revenue surges 60%, advertising enters fast lane" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/33277160.md" description: "On August 21, Bilibili's Q2 earnings report was released. In this report, both revenue and profits showed upward momentum, reflecting Bilibili's steadily improving commercial monetization capabilities. First, Bilibili's total revenue in Q2 reached RMB 7.34 billion, a year-on-year increase of 20%. Breaking it down by business segments, Bilibili's advertising revenue in Q2 was RMB 2.45 billion, up 20% YoY, outperforming the overall market; gaming revenue was RMB 1.61 billion, surging 60% YoY. Second, the gross margin this quarter rose from 29.9% in the same period last year..." datetime: "2025-08-23T09:22:17.000Z" locales: - [en](https://longbridge.com/en/topics/33277160.md) - [zh-CN](https://longbridge.com/zh-CN/topics/33277160.md) - [zh-HK](https://longbridge.com/zh-HK/topics/33277160.md) author: "[锦缎研究院](https://longbridge.com/en/profiles/2576456.md)" --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/topics/33277160.md) | [繁體中文](https://longbridge.com/zh-HK/topics/33277160.md) # Bilibili's Q2 profit hits record high: Game revenue surges 60%, advertising enters fast lane On August 21, Bilibili released its Q2 financial report. Both revenue and profits showed accelerated growth, reflecting Bilibili's steadily improving commercial monetization capabilities. First, Bilibili's total revenue in Q2 reached 7.34 billion yuan, a 20% year-on-year increase. Breaking it down by business segment, Bilibili's advertising revenue in Q2 was 2.45 billion yuan, up 20% year-on-year, outperforming the overall market; gaming revenue was 1.61 billion yuan, surging 60% year-on-year. Second, the gross margin for this quarter rose to 36.5%, up from 29.9% in the same period last year, marking 12 consecutive quarters of sequential growth. Bilibili expects its gross margin to reach 37% in Q4, with a long-term target of 40-50%. The operating margin also improved from -5% in the same period last year to 7.8%, with Bilibili maintaining its mid-term target of 15-20%. Both net profit and adjusted net profit hit record highs, reaching 220 million yuan and 560 million yuan, respectively, compared to a net loss of 600 million yuan in the same period last year. This is not hard to understand: With improved operating leverage, Bilibili naturally saw its operating margin improve faster than its gross margin. As commercial efficiency continues to rise and high-margin businesses break new ground, the operating margin will further improve in the second half of the year. In terms of shareholder returns, Bilibili repurchased and canceled $100 million worth of shares in Q2. Of the $200 million buyback plan approved by the board, approximately $83.6 million remains. Thanks to these results, Bilibili has performed well in the capital market this year: Before the earnings release on the 21st, its market cap had risen 36% year-to-date, adding nearly 20 billion yuan since the start of the year. ## **01 Strengthening Advertising Monetization Capabilities** Driving Bilibili's market cap and performance is its steadily improving monetization capabilities, especially in advertising: Bilibili's Q2 advertising growth outpaced the broader market, with single-quarter revenue hitting a record high of 2.4 billion yuan, up 20% year-on-year. Beyond integrated ad delivery and improved deep conversion rates, Bilibili has also leveraged AI this year. With multimodal large models, ad distribution efficiency has significantly improved, attracting more advertisers. In Q2, the number of advertisers grew 20% year-on-year. By vertical, there were many highlights: First, gaming remains Bilibili's largest ad revenue source. As one of China's largest and most active gaming content communities, Bilibili's core players and creators make it a key platform for game advertisers. From new game promotions to long-term operations of evergreen titles, Bilibili's high-quality content and player conversions help secure premium budgets. Second, thanks to its strengths in long-form content and reviews, home and furniture advertisers targeting young consumers have increased spending on Bilibili. In Q2, ad revenue in this category grew nearly 70% year-on-year. Third, a standout this year was digital appliances during the "618" shopping festival: During the event, Bilibili's live commerce ad revenue grew 41% year-on-year, with digital appliances surging 111%. For example, during 618, just four professional PC review videos by UP masters "Bilibili Evaluation Room," "Geek Bay," "Hi I'm Panda," and "If Technology" drove over 70 million yuan in sales for Lenovo. Lenovo achieved an ROI of 100+ per video on Bilibili, with 40% of its 618 sales coming from new customers. Take the 2 million-follower UP master "Bilibili Evaluation Room" as an example. During 618, they reviewed Lenovo's Legion R7000P. Unlike livestream sales that rely on hype and emotion, these reviews emphasize professionalism. The UP master didn't just analyze laptop specs but even tested Wi-Fi stability in different scenarios and noise levels at various power settings. The review also objectively pointed out product flaws. Professionalism builds trust, which translates to conversions—the video achieved an ROI of 135.5. Additionally, in the cleaning appliance category (e.g., floor cleaners, robot vacuums), since 2025, Bilibili has seen a 14x year-on-year increase in blue-link clicks for these products, with UP master-sponsored content growing 330%. Engagement from both UP masters and consumers continues to rise: On the consumer side, GMV for products over 1,000 yuan grew nearly 50% year-on-year; among UP masters, overall GMV during "618" rose 33%, with the number of UP masters exceeding 10 million yuan in GMV up over 60%. Today's Bilibili users are not only more willing to participate in major promotions like 618 but are also spending more per order. Going forward, as Bilibili expands user touchpoints—including PC searches, OTT, Story Mode, livestream searches, and trending searches—its ad revenue potential will grow. Better recommendation algorithms, including AIGC-generated ad thumbnails and titles, are also lowering advertiser costs and improving conversion efficiency. This is likely why Bilibili expressed confidence in continuing to outperform the ad market during its post-earnings call. ## **02 The Underlying Logic of Monetization: Bilibili's Community and Resonance** As China's internet user growth plateaus, Bilibili remains the spiritual home for young people, with an unshakable user base: Total MAU continues to grow, reaching 363 million; DAU hit 109 million, up 7% year-on-year, a record high; monthly paying users reached 31 million. Meanwhile, the average Bilibili user is now 26—a pivotal age as they transition from school to work, start families, and develop more diverse consumption needs. For advertisers, Bilibili's community ecosystem is key to building brand awareness: Its deep content and high engagement make it a launchpad for many brands. For digital product advertisers, choosing Bilibili as a branding hub is a no-brainer: In China's saturated consumer market, short-term conversion-focused marketing is no longer viable. As traffic bidding grows increasingly competitive, advertisers now prioritize long-term brand building and sustained ROI. This plays to Bilibili's strengths—no advertiser can ignore the influence and spending power of young people. Brand marketing thrives on quality content, and many viral trends start on Bilibili before going mainstream. For example, the 1 billion-yuan-grossing film "The Little Monster of Langlang Mountain" originated from the short "Little Monster's Summer," which first gained traction on Bilibili. The trailer for "Black Myth: Wukong's" sequel, "Black Myth: Zhong Kui," debuted on Bilibili and surpassed 12 million views in under two days. Bilibili's unique community vibe is increasingly demonstrating its irreplaceable value: In an era of content overload, users crave community and resonance to drive conversions. This isn't unique to Bilibili—even traditional e-commerce platforms are emphasizing community appeal, as the data and results speak for themselves to advertisers. This community spirit was on full display at this year's Bilibili World (BW): BW is Bilibili's ACGN expo. This year's event spanned 240,000 sqm, featuring 167 global exhibitors, nearly 800 itasha cars, and over 30,000 cosplayers across three days. This year's BW set attendance records, drawing over 400,000 visitors, with 13% purchasing passport tickets. Attendees came from over 20 countries and regions, many traveling to Shanghai specifically for BW. By scale and influence, BW is now the largest ACG gathering in China—if not Asia—boosting Shanghai's local economy and cementing its status as a cultural landmark. ## **03 Gaming: The Long-Term Anchor** Beyond advertising (33% of revenue), gaming remains a steady revenue anchor for Bilibili. Bilibili's "Three Kingdoms: Strategic Supremacy" celebrated its anniversary in Q2, with DAU hitting a yearly high, and is now entering long-term operations. Historically, Bilibili's games have enjoyed long lifecycles: "Fate/Grand Order" marked its ninth anniversary, re-entering the top 5 on the charts; "Azur Lane" held steady during its eighth anniversary. Beyond routine updates like new characters, skins, and overseas releases, Bilibili's community ecosystem enhances game longevity: Video creations and discussions boost engagement. For example, from August 8-10, "Fate/Grand Order" held its ninth-anniversary exhibition (FES) at Hangzhou International Expo Center. FES blends IP content with offline events for immersive experiences. Beyond the "Excalibur" sculpture that wowed BW, new themed installations debuted in Hangzhou. For a nine-year-old game like FGO, these in-game details resonate far more with players than generic interactions. On the earnings call, Bilibili mentioned 4-5 games awaiting licenses, with future titles focusing on youth and innovation to stay relevant. If all goes well, gaming will continue to be a stable revenue pillar. ## **04 Conclusion** In recent years, Bilibili has successfully accelerated monetization, proving its capabilities even in a challenging macro environment. Q2 is just the beginning. More importantly, Bilibili has struck a balance between community ethos and commercial success, allowing this premier youth platform to show quarter-by-quarter monetization growth—the real surprise of this earnings report. This article is based on public information and is for informational purposes only, not investment advice.$Bilibili(BILI.US) $BILIBILI-W(09626.HK) ### Related Stocks - [Bilibili Inc. (BILI.US)](https://longbridge.com/en/quote/BILI.US.md) - [BILIBILI-W (09626.HK)](https://longbridge.com/en/quote/09626.HK.md) ## Comments (1) - **Victor101 · 2025-08-24T13:02:24.000Z**: Bullish on Bilibili👍👍!