iQIYI (IQ) Q2 2025 earnings summary

Executive summary

• Delivered a vibrant and diverse content lineup in Q2, maintaining leadership in drama and variety show market share, with several original blockbusters achieving high popularity scores.

• Expanded Experience Business through IP-based consumer products and offline experiences, and saw strong growth in overseas markets, with record-high membership revenue and subscriber base.

• Leveraged AI to enhance user engagement, content production, and advertising efficiency, introducing innovative features and platforms.

• Total revenues for Q2 2025 were RMB 6.63 billion (US$925.3 million), down 11% year over year.

• Focused on innovation and investment in AI, micro dramas, experience business, and global expansion.

Financial highlights

• Total revenues for Q2 were RMB 6.6 billion, with membership services revenue at RMB 4.09 billion, down 9% year-over-year due to a lighter content slate.

• Online advertising revenue was RMB 1.27 billion, a 13% annual decrease, impacted by macroeconomic pressures.

• Content distribution revenue was RMB 436.6 million, down 37% annually; other revenues increased by 6% to RMB 829.3 million.

• Content cost was RMB 3.8 billion, saving 8% annually; total operating expenses were RMB 1.4 billion, saving 3% annually.

• Non-GAAP operating income was RMB 58.7 million, with a 1% margin; non-GAAP net income was RMB 14.7 million, down sharply from RMB 246.9 million in Q2 2024.

Outlook and guidance

• Plans to strengthen content strategies across categories, focusing on premium productions, innovation in both long-form and micro dramas, and expanding collaborations with top creators.

• Intends to ramp up original micro drama production overseas and scale global marketing events.

• Will continue to optimize debt structure and maintain a healthy capital position to support long-term growth.

• Continued investment in AI and global expansion to drive future performance.