HUYA Inc. (NYSE:HUYA) shares declined about 4.6% on Tuesday after the company reported a fourth-quarter loss that came in worse than analysts had anticipated.
The gaming-focused entertainment platform posted an adjusted loss of RMB0.04 per American depositary share (ADS), compared with analyst expectations for earnings of RMB0.20 per ADS.
Quarterly revenue totaled RMB1.74 billion ($248.6 million), slightly ahead of the consensus estimate of RMB1.73 billion and representing a 16.2% increase from RMB1.50 billion recorded in the same quarter a year earlier. The rise in revenue was mainly supported by strong growth in game-related services, advertising and other revenue streams, which jumped 59.4% year-on-year to RMB592.5 million.
The company said its fourth-quarter results were affected by a one-time accounting provision of RMB66.0 million linked to a receivable from a broadcaster partnership established in 2021. This charge had a significant impact on operating performance during the quarter.
General and administrative expenses climbed 55.4% year-on-year to RMB126.0 million, largely due to the accounting provision.
“Our fourth quarter results included a one-off accounting provision, which had a significant impact on our reported operating results and led to an operating loss for the quarter,” said Raymond Peng Lei, Acting Co-Chief Executive Officer and Chief Financial Officer.
For the full year 2025, HUYA reported total net revenue of RMB6.50 billion, marking a 7.0% increase from RMB6.08 billion in 2024. Adjusted net income for the year came in at RMB99.5 million ($14.2 million), compared with RMB268.8 million in the previous year.
The company’s board also approved a special cash dividend of $0.135 per ADS for 2026, which is expected to be paid around June 30, 2026.