Bilibili (NasdaqGS:BILI) has just reported its FY 2025 third quarter with revenue of CN¥7.7b and basic EPS of CN¥1.13, putting hard numbers around its latest operating performance. The company has seen quarterly revenue move from CN¥6.1b in FY 2024 Q2 to CN¥7.3b in FY 2025 Q2 and CN¥7.7b in FY 2025 Q3, while basic EPS shifted from a loss of CN¥1.46 per share in FY 2024 Q2 to CN¥0.52 in FY 2025 Q2 and CN¥1.13 in FY 2025 Q3. This sets up a story where profitability and margins are firmly in focus for investors.

See our full analysis for Bilibili.

With the latest figures on the table, the next step is to see how this earnings profile lines up against the big narratives around Bilibili, and where the numbers start to challenge those stories.

TTM profit swings to CN¥770m

• On a trailing twelve month basis, Bilibili went from a net loss of CN¥4,005.2m in FY 2024 Q2 to net income of CN¥770.1m by FY 2025 Q3, while TTM basic EPS moved from a loss of CN¥9.65 to a profit of CN¥1.84.
• Bulls point to this shift back into profit as evidence that margins can keep improving, yet the data also includes a CN¥490.3m one off loss, which means:
  • The bullish view of structurally higher margins sits on top of earnings that were temporarily reduced by that one off item, so reported TTM profit is more conservative than underlying operations alone.
  • At the same time, the bullish claim that earnings can compound from a CN¥220.3m base is starting from a period that already shows TTM net income in the hundreds of millions of CNY, so future gains would need to build on a healthier, not distressed, starting point.

Bulls argue the latest profit swing is only the first step, and that the bigger story is how fast earnings could stack up from here in their scenarios. 🐂 Bilibili Bull Case

Premium P/E of 94.8x

• The stock trades on a trailing P/E of 94.8x compared with a peer average of 36.4x and an industry average of 15.3x. The current share price of US$25.55 sits below a DCF fair value of US$37.76 and an analyst price target of US$31.37.
• Bears highlight this high multiple as a key concern, arguing that even with earnings now positive, valuation leaves little room for error, which the numbers reflect in a few ways:
  • The TTM rebound to CN¥770.1m of net income supports a premium to loss making peers, but a P/E of 94.8x still prices in far stronger earnings than the last twelve months alone justify.
  • Even though the DCF fair value and analyst target both sit above the current US$25.55 price, the gap between the 94.8x P/E and the 15.3x industry average shows why cautious investors question how long such a premium can last if growth falls short of forecasts.

Skeptics focus on that 94.8x P/E and argue that any wobble in execution could matter more here than in lower multiple peers. 🐻 Bilibili Bear Case

Earnings growth outpacing 9.1% revenue

• Over the last year, revenue growth is presented at about 9.1% annually, while earnings are reported to have grown 24.6% per year over five years and are forecast in the data to grow roughly 29.3% per year.
• The consensus narrative leans on this gap between revenue and earnings growth to argue that efficiency is doing more of the heavy lifting than pure top line, which shows up in a few ways:
  • Quarterly revenue in FY 2025 moved within a relatively tight band from CN¥7,003.2m in Q1 to CN¥7,685.5m in Q3, yet basic EPS swung from a small loss of CN¥0.02 in Q1 to a profit of CN¥1.13 in Q3, pointing to margin and cost effects rather than outsized revenue gains alone.
  • Because revenue growth in the data trails the broader US market reference of 10.2%, while earnings growth is faster, consensus voices tend to watch whether this margin story can keep going if revenue growth stays closer to single digits.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Bilibili on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of profit recovery and premium valuation leaves you on the fence, now is a good time to look through the numbers yourself, stress test both the upside and the risks that matter most to you, and then weigh 4 key rewards and 1 important warning sign before deciding what the story really looks like for your portfolio.

See What Else Is Out There

For all the progress on profitability, Bilibili still carries a very high 94.8x P/E against a 15.3x industry average, which leaves limited room for disappointment.

If that rich valuation makes you hesitant, you may wish to focus instead on companies where price and fundamentals appear more closely aligned by running your own search starting with 46 high quality undervalued stocks today.

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.