JOYY (JOYY) Is Up 17.8% After Q2 Profit Beat and Dividend Announcement

• JOYY Inc. recently reported its second-quarter 2025 results, announcing net income of US$60.48 million on revenues of US$507.76 million, issued third-quarter revenue guidance of US$525 million to US$539 million, and declared a US$0.95 per ADS dividend to be paid in October 2025.
• This series of developments is especially interesting as JOYY achieved higher net income despite reporting lower revenues year-over-year, indicating improved profitability and ongoing focus on shareholder returns.
• With the newly declared dividend as a key highlight, we’ll explore how this update affects JOYY’s broader investment narrative and future outlook.

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JOYY Investment Narrative Recap

At its core, JOYY appeals to investors who are confident in the company’s ability to drive margin improvement and platform expansion, supported by disciplined cost control and diversification beyond livestreaming. The Q2 earnings beat, despite year-over-year revenue declines, underpins profitability as a near-term catalyst, but rapidly changing engagement and advertiser demand remain key risks for its ad tech division. Overall, these results provide incremental confirmation for those focused on earnings resilience, though the biggest headwind, sustaining user and revenue growth, remains only partially addressed by recent announcements.

The newly declared US$0.95 per ADS dividend stands out in this round of news, reinforcing management’s stated intention to provide ongoing shareholder returns. While consistent capital return measures can support investor confidence, the most immediate catalyst in play is continued net income growth driven by operating leverage and efficiencies, which will likely remain under scrutiny as top-line growth slows.

Yet, in contrast to the positive earnings surprise, investors should be aware that revenue forecasts still suggest heightened uncertainty for...

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

JOYY's outlook suggests $2.4 billion in revenue and $267.8 million in earnings by 2028. This is based on a 4.0% annual revenue growth rate, but earnings are expected to decrease by $1.43 billion from the current $1.7 billion.

Uncover how JOYY's forecasts yield a $56.88 fair value, a 11% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have published four fair value estimates for JOYY ranging from US$56.88 to over US$36,021,387, highlighting sharp differences in outlook. With net income resilience now more visible, consider how shifting user growth trends could influence future fair value and risk views.

Explore 4 other fair value estimates on JOYY - why the stock might be worth 11% less than the current price!

Build Your Own JOYY 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 JOYY research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free JOYY research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate JOYY'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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