Shares of DouYu International Holdings Limited (NASDAQ: DOYU) surged 7.27% in pre-market trading on Monday following the release of the company's impressive second quarter 2025 financial results. The Chinese game-centric live streaming platform demonstrated a significant turnaround, returning to profitability and posting revenue growth.
DouYu reported total net revenues of RMB1.054 billion (US$147.1 million) for Q2 2025, marking a 2.1% increase from the same period last year. The company achieved a net income of RMB37.8 million (US$5.3 million), a substantial improvement from a net loss of RMB49.2 million in Q2 2024. Adjusted net income (non-GAAP) reached RMB25.3 million (US$3.5 million), compared to an adjusted net loss of RMB45.5 million in the prior-year period.
The return to profitability was primarily attributed to effective cost efficiency initiatives and a focus on revenue diversification. Notably, revenues from innovative businesses, advertising, and other segments grew significantly, accounting for 45.2% of total revenue, up from 23.4% the previous year. This growth helped offset a 26.9% decline in traditional livestreaming revenues. DouYu's gross profit surged by 68.5% year-over-year, driven by reductions in content and bandwidth costs. Looking ahead, the company plans to continue enhancing user experience and optimizing cost efficiency while navigating the evolving macroeconomic environment.
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