Stock Track | DouYu Shares Plunge 5.59% in Pre-market as Q3 Revenue Drops 15.4% Amid User Decline

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DouYu International Holdings Limited (NASDAQ: DOYU) saw its shares plummet 5.59% in pre-market trading on Thursday following the release of its third quarter 2025 financial results. The Chinese live streaming platform reported a significant revenue decline and user base contraction, overshadowing improvements in profitability.

For the third quarter, DouYu's total net revenues fell 15.4% year-over-year to RMB899.1 million (US$126.3 million), primarily due to a 30.6% decrease in livestreaming revenues. The company attributed this decline to fewer promotional activities and a moderation in the operating environment. More concerning was the sharp drop in user engagement, with average mobile MAUs down 27.5% year-over-year to 30.5 million, while quarterly average paying users for livestreaming declined slightly from the previous quarter to 2.7 million.

Despite the top-line pressure, DouYu managed to improve its bottom line. Net income for the quarter increased 232.8% year-over-year to RMB11.3 million (US$1.6 million), driven by significant cost reductions across various operational areas. However, investors appear to be focusing more on the company's shrinking user base and revenue decline, as reflected in the pre-market stock price drop. The results suggest DouYu faces challenges in maintaining user engagement and monetization in an increasingly competitive live streaming market.

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