Bilibili’s Gaming Decline Offset by Earnings Gains

Bilibili reported a mixed third quarter as gaming revenue dropped 17% to 1.5B yuan (approximately $212M), even as total revenue grew 5% to 7.7B yuan (approximately $1.08B). The company posted a net income of 469.4M yuan (approximately $66M), marking its third profitable quarter since going public in 2018.

The shift reflects a business realignment, with gaming once lifted by San Guo: Mou Ding Tian Xia that is now weakening, while advertising rose 23% to 2.6B yuan (approximately $366M). Value-added services increased 7% to 3B yuan (approximately $422M), and revenue from merchandise and IP deals reached 582M yuan (approximately $82M), up 3%.

Bilibili Earnings Driven by Ads, Duckov Sales Momentum

A surprise hit is helping limit the gaming slump: Escape From Duckov, a top-down shooter released Oct. 16, which has sold more than 3M copies worldwide. The game features ducks escaping a dystopian setting and has surpassed 300k peak concurrent players on Steam.

Bilibili Inc. CEO Chen Rui said it could become “the second largest Chinese single player hit,” following Black Myth: Wukong, which has sold 28M copies and generated more than 9B yuan (approximately $1.27B) since August.

Despite the new momentum, Bilibili’s profitability remains uneven. The company first turned a profit in late 2018 before returning to losses earlier in 2025, including a 10.7M yuan (approximately $1.5M) deficit in the first quarter. It returned to the black in the second quarter, reporting a net income of 218.3M yuan (approximately $30.7M).

Market response has been cautious. Bilibili’s shares slipped 1.8% to HKD209 in Hong Kong, while its Nasdaq listing fell 4.8% to $25.89.

In a volatile games market, Bilibili’s ability to post profit while benefiting from an unexpected global hit positions the company for steadier performance, even as core gaming revenue continues to soften.