Aug 20, 2026 earnings call — Games portfolio strength and Sea of Remnants launch
Total revenue reached RMB 30.1 billion in the second quarter, driven by games net revenues of RMB 25 billion.
Revenue $4.4B (est $4.3B) · EPS $1.77 (est $2.32)
Key quotes
"The strength of our portfolio stems from our sustained focus on innovation across the full life cycle of our games from original concept and development through long-term live operations."
"Youdao further advanced its AI native strategy and deepen AI-driven innovation across its ecosystem."
"In accordance with our dividend policy, we are pleased to report that our Board of Directors has approved a dividend of USD 0.096 per share or USD 0.48 per ADS for the second quarter."
Analyst Q&A 4
current game performance and fixes
Q (Alicis a Yap · Citi): The analyst asked for the game's latest performance, expectations for next quarter, what is working well, and what changes management will make to improve game performance.
A: Management said they received a lot of user feedback, including criticism that the early-stage learning curve was too high. They said the team has prepared a large amount of high-quality content as a foundation, they have been updating and optimizing the experience, and they will streamline early-stage content to improve acceptance. They expressed confidence in the game's long-term potential.
"In the meantime, our team has prepared a substantial amount of large high-quality amount of content and which provide the foundation of the long-term operation and sustainable player community operation." — Bill Pang
Ananta development and differentiation
Q (Xueqing Zhang · CICC): The analyst asked for an update on Ananta's development and how the game will stand out against other urban open-world titles.
A: Management said Ananta is on track and the team is still polishing the game. They will show the game's latest progress at Gamescom next week. They said the game will differentiate by its unique identity, theme, gameplay design, high-quality content, distinctive narrative, innovative gameplay, and thoughtful monetization.
"Ananta is well on track with its development as the team is now keep polishing the game experience." — Bill Pang
drivers of future growth
Q (Lincoln Kong · Goldman Sachs): With fewer new launches and a stronger existing portfolio, the analyst asked how the company will drive further growth and what the main operating strategy will be.
A: Management said they will continue to invest in high-quality premium products and ensure new products have a clear vision and top-notch quality. They said they will use AI capabilities to speed up development and improve the user experience, and they are confident AI helps them build more high-quality products than peers.
"Well, first of all, regarding the really high-quality products, we're not hesitated to keep investment in." — Bill Pang
status and monetization of two test games
Q (Ritchie Sun · HSBC): The analyst asked about the monetization potential and launch timing for Beneath The Mist and Tamas: Shadowveil.
A: Management said both games are still in intensive refinement. They said one is approaching a stage that will satisfy users and will be released when ready. They emphasized that player experience is the key, and delivering excellent experience is the foundation for commercial success.
"Both of the products you mentioned are still ongoing intensive refinement." — Bill Pang