Bilibili Turns the Corner: First Quarter 2026 Marks Strong Profitability and Record Engagement
User Growth and Record Engagement Drive Revenue Expansion
Bilibili’s first quarter 2026 results showcase a business firing on all cylinders. Average daily active users jumped 8% year over year to 115.2 million, while average daily time spent on the platform climbed 11 minutes to 119 minutes—approaching the two-hour mark. These increases reflect a vibrant community and deeper user value, with total user engagement up 19% over last year.
Profitability Reached with Surging Ad Revenues and Margin Expansion
Financially, Bilibili broke through to profitability during the quarter, reporting a net profit of RMB202 million (US$29.3 million), a swing from a net loss in the prior year’s quarter. Adjusted net profit soared 62% year over year to RMB585.4 million (US$84.9 million), with adjusted net profit margin improving to 7.8% (up from 5.2%).
Advertising revenue was a standout, rising 30% to reach RMB2.59 billion (US$375.3 million). This was complemented by a 4% uptick in value-added services, though mobile game revenues saw a 12% dip, reflecting a high base from last year.
| Key Metrics | Q1 2026 | Q1 2025 | % Change |
|---|---|---|---|
| Average Daily Active Users (millions) | 115.2 | 106.7 | +8% |
| Average Daily Time Spent (minutes) | 119 | 108 | +10% |
| Net Revenues (RMB, bn) | 7.47 | 7.00 | +7% |
| Advertising Revenues (RMB, bn) | 2.59 | 1.99 | +30% |
| Gross Profit (RMB, bn) | 2.77 | 2.54 | +9% |
| Net Profit (RMB, mn) | 202.0 | -10.7 | Turned Profitable |
| Adjusted Net Profit (RMB, mn) | 585.4 | 361.5 | +62% |
| Gross Profit Margin | 37.1% | 36.3% | +0.8ppt |
| Adjusted Net Profit Margin | 7.8% | 5.2% | +2.6ppt |
Disciplined Cost Control and Accelerated AI Investment
Bilibili’s results reflect not just topline growth, but careful cost management and smart strategic bets. While research and development expenses rose 9% to RMB921.1 million, this increase was attributed to stepped-up investment in AI initiatives—now seen as key to content creation, discovery, and monetization. At the same time, sales and marketing spending actually fell 1% year over year, and overall operating expenses grew only 3%.
Balance Sheet Remains Robust Amidst Expansion
The company ended the quarter with RMB24.19 billion (US$3.51 billion) in cash, time deposits, and short-term investments. Bilibili also completed its US$200 million share repurchase program, buying back a total of 9.9 million shares over the past two years—including 2.5 million shares in the first quarter alone.
What Stands Out: Sustained Profitability and AI-Driven Momentum
This quarter marks Bilibili’s sustained profitability, not just a one-off, underpinned by expanding margins for the 15th consecutive quarter and accelerating ad revenue. The company’s AI-driven approach appears to be deepening user engagement and monetization. In a sector where growth and profitability rarely go hand in hand, Bilibili now stands as an exception—combining both while maintaining a robust financial position.
Key Takeaway: Sustainability and Strategic Flexibility
Investors and analysts will be watching how Bilibili capitalizes on its AI-led ecosystem, scales advertising, and manages costs in the coming quarters. The bounce to profitability, coupled with strong user and engagement metrics, suggests Bilibili is building a flywheel that could deliver compound growth. If the company can keep this momentum while navigating content trends and regulatory headwinds, it may remain one of China’s standout digital platforms in 2026 and beyond.
Note for Investors
Bilibili is set to host its earnings conference call soon. Details and a replay will be available at the company's IR website. As always, while the numbers are impressive, the real test will be maintaining growth and profitability as the digital content landscape evolves.
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