Iqiyi Inc ( (IQ) ) has released its Q2 earnings. Here is a breakdown of the information Iqiyi Inc presented to its investors.
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iQIYI, Inc. is a leading provider of online entertainment video services in China, known for its innovative use of AI and big data analytics to deliver a wide variety of content, including dramas, films, and other video formats. In its latest earnings report, iQIYI announced a decrease in total revenues by 11% year-over-year for the second quarter of 2025, amounting to RMB6.63 billion. The company reported an operating loss of RMB46.2 million, a significant decline from the operating income of RMB342.1 million in the same period last year.
Key financial metrics revealed that membership services revenue decreased by 9% to RMB4.09 billion, while online advertising services revenue fell by 13% to RMB1.27 billion. Content distribution revenue also saw a sharp decline of 37%, attributed to fewer barter transactions. Despite these challenges, other revenues increased by 6% year-over-year. The company managed to reduce its cost of revenues by 7%, primarily due to a lighter content slate.
iQIYI’s net loss attributable to the company was RMB133.7 million, compared to a net income of RMB68.7 million in the same quarter of 2024. Non-GAAP net income also saw a significant drop to RMB14.7 million from RMB246.9 million the previous year. The company emphasized its strategic focus on innovation and investment in growth areas like AI applications and global expansion to drive long-term success.
Looking ahead, iQIYI’s management remains committed to optimizing its capital structure and managing resources effectively. The company aims to continue its focus on innovation and strategic investments to position itself for sustainable growth in the competitive online entertainment industry.