Huya was once synonymous with gaming live streams in China, a company whose fate rose and fell with virtual gifting, celebrity streamers, and esports events. Today, it is aiming to become something different.
Its latest earnings report reveals more than just financial outcomes. It signals a gradual but deliberate redefinition of the company’s identity: a shift toward becoming a broader digital gaming platform with diversified revenue, international reach, and artificial intelligence–enhanced engagement. That evolution is already reshaping both its business mix and strategic direction.
For years, Huya’s bread and butter was live streaming. That core still makes up the lion’s share of its income at RMB 1.14 billion (USD 159.6 million) in the first quarter of 2025, but it’s shrinking. Year-on-year, Huya’s live streaming revenue dropped by nearly 10%.
Growth, meanwhile, came from other areas. Game-related services, advertising, and other segments surged 52% to RMB 370.4 million (USD 51.9 million), now accounting for nearly a quarter of Huya’s total top line. That’s a notable change from just a year ago, when the same categories made up only 16%.
This wasn’t an accident. In recent quarters, Huya has leaned into deeper collaboration with Tencent, its largest shareholder and China’s leading game publisher. That includes greater integration with Tencent titles and expanded roles in game promotion and distribution.
The company’s ambitions are not limited to China. Its management highlighted growing traction in international markets, especially in mobile game-related services through its overseas app platform. While no specific figures were disclosed, Huya reported “multi-fold sequential revenue growth” in these segments.
If taken at face value, that matters. As domestic saturation and tighter regulation constrain growth at home, Chinese digital firms are increasingly turning abroad. Huya’s calculated expansion suggests it views global markets as a central pillar of its future strategy.
AI is another component of Huya’s transformation. While often treated as a buzzword in tech, here it has tangible implications. During the third season of the Legend Cup, an in-house League of Legends tournament, Huya deployed “Hu Xiao Ai,” an AI-powered companion for viewers.
According to the company, the tool delivers real-time commentary, interprets gameplay, and provides play-by-play insights. It represents a small but telling shift toward turning passive spectators into active participants, potentially changing how audiences experience esports content.
Huya’s pivot isn’t without cost. Gross margins slipped to 12.5%, down from 14.7% a year ago. Revenue sharing fees and content costs climbed, particularly for broadcaster payments. Huya’s operating loss widened to RMB 59.6 million (USD 8.3 million), though it posted a modest net income of around RMB 927,000 (USD 129,780), buoyed by interest earnings.
User numbers stayed relatively flat. Paying users held at 4.4 million, while mobile MAUs (monthly active users) edged up slightly to 83.4 million, suggesting stable engagement but slow gains in monetization.
Huya is clearly moving beyond its origins as a game live streaming portal. It is gradually building a more diversified platform that integrates content, community, and commerce across geographies. The AI initiatives and international expansion are still in early stages, but they point to a broader ambition: to reimagine what a game streaming company can become.
Whether that ambition translates into lasting profitability or deeper user engagement is still unclear. But Huya’s latest results show one thing clearly: it’s no longer just playing the same old game.