DouYu International Holdings Limited (NASDAQ: DOYU) saw its shares tumble 5.59% in pre-market trading on Thursday after the Chinese live streaming platform reported a significant year-over-year revenue decline in its third quarter 2025 financial results.

The company's total net revenues for Q3 2025 came in at RMB899.1 million (US$126.3 million), down 15.4% compared to RMB1,063.1 million in the same period of 2024. This sharp revenue drop appears to be the primary driver behind the stock's pre-market plunge, as investors reacted negatively to signs of weakening top-line performance.

Further concerning investors, DouYu reported that its average mobile MAUs (Monthly Active Users) in Q3 were 30.5 million, representing a substantial 27.5% year-over-year decline from 42.1 million in Q3 2024. The company attributed this user engagement drop to "lagging effects of our content supply adjustments and cost-structure optimization." Additionally, DouYu saw a slight sequential decrease in paying users for its livestreaming business, citing reduced consumer spending amid challenging macroeconomic conditions.

Despite the revenue and user declines, DouYu did report some positive metrics, including a 90.9% year-over-year increase in gross profit to RMB116.1 million and a swing to positive operating income of RMB11.9 million compared to a loss in the prior year. However, these improvements in profitability were not enough to outweigh investor concerns about the company's shrinking revenue base and user engagement in the competitive Chinese live streaming market.