Bilibili (BILI) Is Up After Q3 Profit Breakthrough and Leadership Update Is the Turnaround Durable?

• Bilibili Inc. recently reported its third quarter results for the period ended September 30, 2025, highlighting a return to profitability with net income of CNY 470.23 million, along with the appointment of Ms. Lai Ying Tung as Joint Company Secretary in Hong Kong.
• One interesting insight is the company’s swing from a net loss previously to positive net income, reflecting material changes in operational performance.
• We'll explore how Bilibili's move to sustained profitability impacts its long-term growth narrative and risk profile for investors.

Find companies with promising cash flow potential yet trading below their fair value.

Bilibili Investment Narrative Recap

To be a Bilibili shareholder, you need to believe in the company’s unique ability to capture and monetize the digital habits of China's younger generations, despite competition and regulatory shifts. The return to profitability may be positive for sentiment, but it does not meaningfully reduce near-term execution risk tied to the company’s heavy reliance on blockbuster titles and evolving content preferences.

The Q3 announcement of CNY 470.23 million in net income, swinging from a net loss last year, stands out as the most relevant catalyst. This profit milestone is important, yet margin improvement could remain uncertain if content costs keep rising faster than user monetization.

On the other hand, investors should be aware that as margins improve, the risk from rising content costs and slower ARPU gains still looms...

Read the full narrative on Bilibili (it's free!)

Bilibili's narrative projects CN¥38.4 billion revenue and CN¥3.4 billion earnings by 2028. This requires 9.3% yearly revenue growth and a CN¥3.2 billion earnings increase from CN¥220.3 million currently.

Uncover how Bilibili's forecasts yield a $28.85 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community range from CN¥22.18 to CN¥36.06 per share. While appraisals differ, many are focused on whether Bilibili’s improving profitability can offset the concentration risks faced in its content pipeline.

Explore 6 other fair value estimates on Bilibili - why the stock might be worth 10% less than the current price!

Build Your Own Bilibili Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bilibili research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Bilibili research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bilibili's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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