Bilibili ended 2025 with a combination it had promised for years: sustained user momentum alongside its first full year of GAAP profitability. The quarter’s results also reinforced a structural shift in the company’s model: advertising is emerging as the primary growth driver, while tighter cost control continues to lift margins.
Bilibili reported fourth-quarter net revenue of RMB 8.32 billion (USD 1.19 billion), up 8% year-on-year (YoY). Gross profit increased 11%, and gross margin improved to 37%, marking the company’s 14th consecutive quarter of margin expansion. Net profit rose to RMB 514 million (USD 73.5 million) from RMB 89 million a year earlier. Adjusted net profit climbed to RMB 878 million (USD 125.6 million), lifting adjusted net margin to 10.6%.
For the full year, revenue grew 13% YoY to RMB 30.35 billion (USD 4.2 billion). Bilibili reported GAAP net profit of RMB 1.19 billion (USD 163.8 million), compared with a net loss in 2024.
According to consensus estimates by Zacks, Bilibili reported adjusted EPS of USD 0.28, above the USD 0.27 consensus forecast. Revenue of USD 1.19 billion exceeded the Zacks estimate by 2.87%.
Investors remain unenthused despite the headline beats. Bilibili’s US-listed shares closed at USD 25.55 on March 5, about 7.1% below the previous day’s close and well below the 52-week high of USD 36.4.
Advertising becomes Bilibili’s main growth driver
Advertising provided the clearest evidence that engagement is translating into commercial value. Advertising revenue rose 27% YoY to RMB 3.04 billion (USD 435 million) in the fourth quarter, significantly faster than overall revenue growth. Full-year advertising revenue increased 23% to RMB 10.06 billion (USD 1.4 billion).
Management characterized the acceleration as a product and efficiency story rather than a cyclical rebound in advertising budgets. During the earnings call, executives pointed to expanding advertising inventory across additional scenarios, including search, PC, and OTT (over-the-top) platforms. The company also cited improvements in targeting and conversion measurement driven by artificial intelligence tools, as well as a growing contribution from AI-focused advertisers.
Executives further said the platform’s user base is becoming more valuable to advertisers as users age into higher-spending life stages.
The broader implication is that Bilibili is attempting to grow advertising revenue without significantly increasing ad load. Instead, it is relying on improved matching, conversion-focused formats, and additional surfaces for monetization. The central risk mirrors that faced by other content platforms: how far advertising can scale without eroding the user experience tied to the platform’s reputation for high-quality content.
Community growth and paying activity increase
Bilibili’s user metrics strengthened toward the end of the year. Average daily active users rose 10% YoY to 113 million in the fourth quarter, while monthly active users increased 8% to 366 million. Average daily time spent per active user climbed 8% to 107 minutes, indicating deeper engagement.
Management also introduced a direct indicator of spending activity. Monthly paying users reached a record 36 million, up 21% YoY.
During the earnings call, executives attributed the growth to what they described as a “content consumption upgrade” toward longer, higher-quality video and interest-based communities. They pointed to stronger watch time for longer-form content and increasing creator activity as evidence that the platform’s content flywheel remains intact.
Games decline in Q4 but remain stable for the year
Gaming was the weakest segment in Bilibili’s fourth-quarter mix. Mobile games revenue declined 14% YoY to RMB 1.54 billion (USD 220.3 million). Management attributed the drop to a difficult comparison following a strong launch quarter in the previous year.
The full-year performance was more stable. Mobile games revenue increased 14% to RMB 6.39 billion (USD 875.4 million), suggesting the segment remains resilient even though quarterly revenue can fluctuate depending on launch timing.
Management outlined two priorities. The first is extending the lifecycle of its main title, San Guo: Mou Ding Tian Xia, through seasonal updates and community engagement. The second is developing new titles with the potential to become category leaders. This approach aligns with Bilibili’s broader strategy, where its community and content ecosystem support game marketing and distribution. However, revenue can still vary depending on release schedules.
Cost discipline continues to lift margins
The improvement in profitability was not driven solely by revenue growth. Operating expenses declined 3% YoY to RMB 2.58 billion in the fourth quarter. Sales and marketing expenses fell 9%, largely due to reduced marketing spending on games. R&D spending remained nearly unchanged at RMB 921 million.
As a result, operating profit rose to RMB 504 million. Adjusted operating profit reached RMB 838 million, with an adjusted operating margin of 10.1%.
Cash generation strengthened the company’s financial position. Operating cash flow totaled RMB 1.84 billion in Q4 and RMB 7.15 billion for the full year. Bilibili ended 2025 with RMB 24.15 billion (USD 3.45 billion) in cash, time deposits, and short-term investments.
Outlook centers on margins and AI investment
Management provided directional guidance rather than formal quantitative forecasts. During the earnings call, CFO Xin Fan said gross profit should improve slightly quarter-on-quarter in Q1 2026. Adjusted operating margin is also expected to improve YoY during the same period.
The company reiterated its medium- to long-term targets of 40–45% gross margin and 15–20% adjusted operating margin.
At the same time, Bilibili said it plans to modestly increase investment in AI. Part of the incremental profit will be reinvested into AI applications tied to its core business, with the stated goal of improving high-quality content supply and monetization efficiency.
The central question for investors in the coming year is whether Bilibili can sustain advertising growth while preserving the community experience that drives engagement. Recent results suggest the platform’s growth remains steady. The next test is how far operating leverage can expand, particularly if gaming revenue remains uneven and AI spending rises.
Note: RMB figures are converted to USD at a rate of RMB 1 = USD 0.14 for reference, unless otherwise stated. Company disclosures may apply different exchange rates.