Bilibili Inc. (BILI) has released its unaudited financial results for the fourth quarter and the full year ended December 31, 2025. The report shows that the company’s total revenue for Q4 reached RMB 8.32 billion, an 8% year-over-year increase, with net profit of RMB 510 million, surging 478% compared to the same period last year. For the full year, total revenue amounted to RMB 30.35 billion, up 13% year-over-year, while adjusted net profit reached RMB 2.59 billion, marking the first time the company achieved annual profitability.
Following the earnings release, Bilibili Chairman and CEO Chen Rui, Vice Chairman and COO Li Ni, and CFO Fan Xin participated in a conference call to discuss the results and answer questions from analysts.
Below are key excerpts from the analyst Q&A session:
Goldman Sachs analyst Lincoln Kong began by congratulating the company on its strong finish to 2025. He noted that both user growth and traffic accelerated throughout the year and asked management to elaborate on the key drivers behind this trend. He also inquired about the remaining growth potential for user traffic and how Bilibili plans to retain content creators amid intense market competition.
Chen Rui responded that the core reason for Bilibili’s user growth is the continuous increase of high-quality content on the platform. He emphasized that in the competition among content platforms, the ultimate differentiator is which platform offers the most premium content. As industrialized, fast-consumption content becomes more common, high-quality content becomes scarcer and holds stronger appeal among users.
Chen attributed Bilibili’s ability to consistently produce quality content to its community, which he described as the "soil" that nurtures such content. The platform attracts users who appreciate and actively promote quality content, many of whom hold influential positions in society. These users provide valuable feedback to content creators, creating a positive cycle that encourages more premium content production.
He also highlighted that Bilibili’s decentralized platform structure, which supports thousands of content categories, helps cultivate a diverse and engaged community—a competitive moat that cannot be quickly replicated through industrial means.
According to Chen, content creators themselves are the "seeds" of quality content, bringing unique perspectives and creativity to the platform. He expressed confidence in Bilibili’s future growth, noting that content consumption is an "upgrade-only" process: as users consume more content, their preference for high-quality material increases. With the Chinese market now saturated with content, more users are seeking premium experiences, and Bilibili is well-positioned to meet that demand.
Additionally, Chen revealed that the average age of Bilibili users has now reached 26–27 years old. As these users enter a stage of greater disposable income, their spending on the platform is expected to rise.
Looking ahead, Chen said Bilibili’s strategy will focus on two priorities: strengthening user perception of Bilibili as a source of high-quality content, and ensuring that creators achieve sustainable growth, longer lifecycles, and greater commercial returns on the platform. He noted that in 2025, over 3 million creators earned income through Bilibili, with average creator income rising 21% year-over-year.
CICC analyst Xueqing Zhang congratulated the company on its better-than-expected Q4 advertising revenue and asked which industries or ad products drove this performance. She also inquired about the impact of increased AI-related advertising and management’s outlook for ad growth in Q1 and full-year 2026.
Li Ni stated that the advertising business performed in line with internal expectations throughout 2025, with accelerated growth each quarter. Year-over-year growth reached 20% in Q1 and 27% in Q4, reflecting both higher user value and improved commercialization efficiency.
She highlighted three key drivers for the Q4 outperformance: strong inventory release in non-core ad scenarios such as search, PC large screen, and mini-programs, where some areas saw growth exceeding 200%; continued improvements in ad efficiency through AIGC integration and AI-powered automated delivery systems; and robust demand from sectors including internet services, consumer electronics, home appliances, and e-commerce, as well as emerging areas like AI applications.
Li noted that while intensified competition in the AI industry has led to a short-term surge in ad budgets, the sector is likely to undergo significant restructuring in the medium to long term. Still, both near-term and long-term trends are favorable for Bilibili.
She emphasized that Bilibili’s user base—young, tech-savvy, and receptive to AI—makes the platform a natural fit for AI-related advertising. Advertisers can achieve better brand impact and conversion efficiency on Bilibili compared to pure traffic-driven platforms.
Looking forward, Li expects advertisers to increasingly prioritize conversion quality over sheer scale, a shift that plays to Bilibili’s strengths. With users entering their peak spending years and AI expected to accelerate the integration of content and advertising, she expressed confidence in further market share gains for Bilibili’s ad business in Q1 2026 and beyond.
(Updates in progress...)
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