Bilibili Inc.

The company, Bilibili Inc., is a Cayman Islands holding company that operates primarily through its PRC subsidiaries and Variable Interest Entities (VIEs) in mainland China, functioning as a leading video community for young generations ¹. The core business model revolves around offering a full spectrum of video content, including Professional User Generated Videos (PUGV), live broadcasting, Occupationally Generated Videos (OGV), and mobile games, to a user base primarily composed of Generation Z+ ². Revenue is generated through a user-centric commercialization model, encompassing Value-Added Services (VAS), advertising, mobile games, and IP derivatives and other services ³. The company emphasizes its unique community culture, which is fostered by features like a membership exam and community discipline committee, and aims to unlock greater commercial value from its engaged user base ⁴.

The company's product and service lines are diversified. Value-Added Services (VAS) include a premium membership program, live broadcasting, audio drama on Maoer, comics on Bilibili Comic, and other PUGV and community-related VASs such as a fan charging program, Bilibili premium courses, and community-based avatar decoration ⁵. Live broadcasting is seen as a natural extension of video content, with games being the most popular category, and revenue is generated through the sale of virtual items, with a portion shared with hosts and talent agencies ⁶. OGV offerings consist of Bilibili-produced or jointly produced content and licensed content from third-party production companies, with anime being a core focus ⁷. Mobile games, a significant revenue contributor, are offered through exclusively distributed, jointly operated, and self-developed titles, with revenue primarily from the sale of in-game virtual items ⁸. The IP derivatives and others business focuses on ACG-related merchandise, generating revenue from product sales ⁹.

For the fiscal year ended December 31, 2025, Bilibili Inc. reported total net revenues of RMB30,347,766 thousand ¹⁰, an increase of 13.1% from RMB26,831,525 thousand in 2024 ¹¹. Gross profit increased by 26.7% compared to 2024, with the gross profit margin expanding from 32.7% in 2024 to 36.6% in 2025 ¹². The company recorded a net profit of RMB1,190,941 thousand ¹³, or RMB1,193,531 thousand (US$170.3 million) attributable to Bilibili Inc.'s shareholders ¹⁴, a significant improvement from net losses of RMB1,363,651 thousand in 2024 and RMB4,811,713 thousand in 2023 ¹⁵. Diluted EPS is not explicitly stated in the provided text. Cash and cash equivalents stood at RMB12,183,538 thousand ¹⁶ as of December 31, 2025, while short-term loans and current portion of long-term debt were RMB4,860,846 thousand (US$695.1 million) ¹⁷. Total liabilities were RMB25,619,200 thousand ¹⁸.

Year-over-year, total net revenues increased by 13.1% from RMB26,831,525 thousand in 2024 to RMB30,347,766 thousand in 2025 ¹⁹. Mobile game revenues increased by 14.0% from RMB5.6 billion in 2024 to RMB6.4 billion (US$914.4 million) in 2025 ²⁰. Gross profit margin improved from 32.7% in 2024 to 36.6% in 2025 ²¹. Content costs decreased from RMB2.7 billion in 2024 to RMB2.4 billion (US$349.1 million) in 2025 ²². The company transitioned from a net loss of RMB1,363,651 thousand in 2024 to a net profit of RMB1,190,941 thousand in 2025 ²³.

Significant operational developments during the period include the continued strengthening of core content categories, with watch time for Chinese anime and game-related content increasing by 55% and 20% respectively in 2025, and AI-related content watch time increasing by 73% ²⁴. The company expanded its offerings in lifestyle and consumption-related content and introduced new content formats like video podcasts ²⁵. In live broadcasting, the League of Legends S15 World Championship was offered in 2025 ²⁶. The company announced 40 new Chinese anime titles at its Made by Bilibili Chinese Anime Press Conference in November 2025 ²⁷. In mobile games, the exclusively distributed strategy game, San Guo: Mou Ding Tian Xia, launched in 2024, was a main driver of revenue growth, and the in-house developed title, Escape from Duckov, launched in October 2025, achieved sales exceeding three million copies ²⁸. The company also hosted Bilibili World and Bilibili Macro Link in Shanghai in July 2025, attracting over 400,000 audiences, and the New Year's Eve Gala, the Most Beautiful Night of 2025, was held ²⁹. In January 2026, the 2025 Bilibili Up100 Awards were hosted ³⁰. The company further advanced its advertising infrastructure and products by integrating AI into commercial algorithms, ad creative generation, and smart delivery systems ³¹.

The company plans to further unlock the value embedded within its community with more efficient commercialization products and services to drive sustainable profitability over the long run. The company expects its total content costs as a percentage of total revenue to gradually decrease, reflecting a disciplined focus on OGV investment strategy and elevating return on investment as a core criterion for capital allocation decisions.

The company's growth areas include strengthening core content categories, expanding offerings in lifestyle and consumption-related content, and introducing new content formats such as video podcasts to enhance user engagement. The company continues to attract more talents and hosts to introduce more live broadcasting channels and provide diversified content, enriching live broadcasting content and increasing user engagement. In mobile games, the company is building up its internal game development capabilities, leveraging its deep understanding of user preferences and rich game operation experience. The company also plans to continue leveraging its competence in ACG entertainment with like-minded game players in overseas markets, including South Korea, Japan, and other countries.

Operationally, the company is disciplined about its costs and operating expenses and will continue to undertake cost control measures. The company has successfully optimized its spending in recent periods, leading to an expected gradual decrease in total content costs as a percentage of total revenue. The company is also investing in servers, bandwidth, and computing power for its AI initiatives to maintain quality user experience while sustaining user base growth.

The company completed the offering of US$690 million in aggregate principal amount of 0.625% convertible senior notes due June 1, 2030, in May 2025. In November 2024, the company announced a share repurchase authorization program for up to US$500 million of its ADSs or Class Z ordinary shares, which was effective until December 31, 2025. In January 2026, the board of directors authorized a new share repurchase program for up to US$500 million of its listed securities, effective until December 31, 2026. The company currently intends to retain most, if not all, of its available funds and any future earnings to operate and expand its business, and does not expect to pay any cash dividends in the foreseeable future.

Bilibili Inc. faces several material risks. Macroeconomic and geopolitical tensions, particularly between the United States and China, could significantly impact the global economy and the company's business, potentially disrupting cross-border commerce, capital flows, and investor sentiment, leading to increased compliance costs, operational disruptions, and constraints on access to capital markets. The Holding Foreign Companies Accountable Act (HFCAA) poses a risk of delisting from U.S. exchanges if the PCAOB is unable to inspect the company's auditor for two consecutive years, which would substantially impair the ability to sell or purchase ADSs and negatively impact the price of securities. Regulatory risks in China are substantial, with uncertainties in the interpretation and enforcement of evolving laws, including those related to foreign investment in internet businesses, data security, anti-monopoly, and online game content and playing time for minors. For instance, if the PRC government deems the company's VIE structure non-compliant, it could face severe penalties or be forced to relinquish interests in operations, which contributed 64.8% of total revenues in 2025 ³². New regulations on generative AI also introduce risks related to harmful content, accuracy, and intellectual property infringement. Operationally, the company faces risks related to its fast-evolving industry, including the ability to successfully implement commercialization strategies, maintain profitability, and anticipate user preferences. Cybersecurity breaches, increases in content costs, and the potential for inappropriate or offensive content on its platform could materially and adversely affect its business and reputation. The company also faces intense competition for users, content providers, and advertisers, and relies on third-party logistics and payment services, which could pose risks if disrupted. Furthermore, the company's indebtedness, which includes short-term loans and current portion of long-term debt of RMB4.9 billion (US$695.1 million) ³³ as of December 31, 2025, could adversely affect its financial condition and ability to obtain additional capital.

Management's overall tone emphasizes a strategic shift towards sustainable profitability, driven by efficient commercialization and disciplined cost management. The company plans to further unlock the value embedded within its community with more efficient commercialization products and services to drive sustainable profitability over the long run. Management has successfully optimized spending in recent periods and expects total content costs as a percentage of total revenue to gradually decrease, reflecting a disciplined focus on OGV investment strategy and elevating return on investment as a core criterion for capital allocation decisions. Key strategic priorities include strengthening core content categories, expanding offerings in lifestyle and consumption-related content, introducing new content formats, attracting more talents and hosts for live broadcasting, building internal game development capabilities, and leveraging AI to enhance advertising infrastructure and products. The company also announced a new share repurchase program for up to US$500 million of its listed securities, effective until December 31, 2026 ³⁴, indicating a commitment to shareholder returns while maintaining a focus on reinvesting available funds and future earnings into business development and growth, with no plans for cash dividends in the foreseeable future.