JOYY Reports Q2 2025 Net Revenues of $507.8 Million

JOYY Inc., a global technology company, reported Q2 2025 net revenues of $507.8 million. The company operates several social products, including Bigo Live, Likee, Hago, and others. Bigo Live is a live streaming platform, Likee is a short-form video platform, and Hago is a multiplayer social networking platform. The company operates through two segments: BIGO and All other.

JOYY Inc. (NASDAQ: JOYY), a global technology company, reported its Q2 2025 earnings on August 26, 2025. The company's net revenue fell 10.1% to $507.8 million, driven primarily by a decline in live-streaming revenue. However, non-livestreaming revenue surged 25.6% to $132.4 million, highlighting the company's strategic pivot towards ad-tech.

The company's live-streaming revenue dropped to $375.4 million, down from $459.7 million in the previous year, due to a 7.6% decrease in average revenue per paying user (ARPPU) and macroeconomic pressures. The live-streaming segment stabilized sequentially but faces long-term structural challenges, with analysts projecting a 71.5% annual decline in long-term earnings per share.

Conversely, BIGO Ads, a key component of the non-livestreaming segment, grew by 29.0% year-over-year to $132.4 million. This segment is now a critical pillar of JOYY's dual-growth strategy, driven by algorithmic improvements in ad targeting and expanded advertiser demand. The company's focus on AI-driven ad tech has created a flywheel effect, attracting more advertisers and fueling further algorithmic refinement.

Operating expenses were reduced by 9.5% to $179.8 million, driven by a 19.5% cut in sales and marketing costs and a 14.1% reduction in R&D spending. This cost discipline boosted operating income to $5.8 million, a 155.4% increase year-over-year. Non-GAAP EBITDA rose 25.7% to $48.2 million, and the company's net cash position stood at $3.3 billion as of June 30, 2025.

The company also announced substantial shareholder returns, distributing $98.5 million in dividends and repurchasing $36.5 million in shares during H1 2025. A Q3 dividend of $0.95 per ADS was declared, signaling confidence in its strategy. However, revenue guidance for Q3 2025 is projected to be between $525–$539 million, indicating modest growth.

Investment Implications:
- Diversification Success: BIGO Ads' 29.0% YoY growth suggests JOYY can monetize its ecosystem beyond live streaming.
- Strong Balance Sheet: $3.3 billion in net cash provides flexibility for M&A or further share repurchases.
- Shareholder Returns: Dividends and buybacks enhance value in a low-growth environment.

However, the company faces significant risks:
- Structural Decline: Long-term EPS projections (-76.9% annually) indicate a shrinking core business.
- Competition in Ad Tech: Scaling BIGO Ads against industry giants is a high-stakes gamble.
- User Engagement Risks: Declining MAUs and paying users could erode the foundation of both segments.

Final Verdict: A High-Risk, High-Reward Play
JOYY's Q2 results reflect a company in transition. While the live-streaming segment faces existential challenges, the rise of BIGO Ads offers a compelling narrative. For risk-tolerant investors, JOYY could be a speculative bet on its ability to reinvent itself as an ad-tech player. However, those seeking stability may find the long-term outlook too uncertain.

In the end, JOYY's success will hinge on its ability to execute its dual-growth strategy. If BIGO Ads can become a dominant force in global ad tech, the company may yet defy the odds. But if the live-streaming decline accelerates and ad-tech growth stalls, the stock could face prolonged pressure. Investors must weigh these risks carefully—and act decisively.

References:
[1] https://www.ainvest.com/news/joyy-q2-2025-earnings-navigating-declines-diversification-long-term-growth-2508/
[2] https://www.marketscreener.com/quote/stock/JOYY-INC-11962799/
[3] https://www.quiverquant.com/news/JOYY+Inc.+Reports+Second+Quarter+2025+Financial+Results+with+Increased+Operating+Income+and+Non-GAAP+EBITDA