Shares of HUYA Inc., a leading game-related entertainment and services provider in China, are soaring 5.29% in pre-market trading on Tuesday following the release of its second-quarter 2025 financial results. The company's earnings per share beat analyst expectations, and revenue showed growth despite a swing to a net loss.

HUYA reported total net revenues of RMB 1,567.1 million (USD 218.8 million) for Q2 2025, marking an increase from RMB 1,541.6 million in the same period of 2024. The company's game-related services and advertising revenues saw significant year-over-year growth, rising to RMB 413.9 million (USD 57.8 million) from RMB 308.5 million. However, HUYA recorded a net loss of RMB 5.5 million (USD 0.8 million) for the quarter, compared to a net income of RMB 29.6 million in the previous year. Despite the loss, the company's adjusted earnings per share of RMB 0.21 (USD 0.03) surpassed the mean expectation of RMB 0.17 from analysts.

Investors appear to be focusing on HUYA's strategic transformation and growth potential rather than the bottom-line loss. The company's CEO, Junhong Huang, highlighted the shift from live streaming to game-related services and entertainment as a key driver of revenue growth. HUYA's deepened cooperation with Tencent and other game companies has contributed to the increase in game-related services and advertising revenues. Additionally, the company's cross-platform strategy has led to an average of 162 million monthly active users, expanding its reach and monetization opportunities. As HUYA continues to focus on strategic expansion and strengthening industry partnerships, the market seems optimistic about its potential for sustainable long-term value creation.