Shares of DouYu International Holdings Limited (NASDAQ: DOYU) are surging 13.57% in Monday's intraday trading session, following the release of the Chinese game-centric live streaming platform's impressive second quarter 2025 financial results. The company demonstrated a significant turnaround, returning to profitability and posting revenue growth, which has excited investors.

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. More importantly, 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.