iQIYI Q2 rev down 11% YoY to RMB6.63 bln, net loss of RMB133.7 mln.

• iQIYI Q2 revenue down 11% YoY to RMB6.63 billion ($925.3 million) • Operating loss of RMB46.2 million ($6.4 million) vs operating income of RMB342.1 million in Q2 2024 • Non-GAAP operating income at RMB58.7 million ($8.2 million) • Net loss of RMB133.7 million ($18.7 million) vs net income of RMB68.7 million in Q2 2024 • Non-GAAP net income at RMB70.8 million ($9.9 million)

iQIYI, Inc. (Nasdaq: IQ) reported its financial results for the second quarter of 2025, revealing a 11% year-over-year (YoY) decline in total revenues to RMB6.63 billion (US$925.3 million). The company's operating loss reached RMB46.2 million (US$6.4 million) compared to operating income of RMB342.1 million in the same period last year. Non-GAAP operating income was RMB58.7 million (US$8.2 million), while net loss attributable to iQIYI stood at RMB133.7 million (US$18.7 million), a significant turnaround from net income of RMB68.7 million in Q2 2024. Non-GAAP net income, however, was RMB70.8 million (US$9.9 million) [1].

The revenue decline was primarily driven by a 9% YoY decrease in membership services revenue to RMB4.09 billion (US$571.0 million), a 13% YoY drop in online advertising services revenue to RMB1.27 billion (US$177.6 million), and a 37% YoY decrease in content distribution revenue to RMB436.6 million (US$60.9 million). Other revenues, however, increased by 6% YoY to RMB829.3 million (US$115.8 million). Cost of revenues decreased by 7% YoY to RMB5.29 billion (US$738.9 million), with content costs accounting for RMB3.78 billion (US$528.0 million) of that figure.

Operating loss margin was 1%, down from 5% in Q2 2024, and non-GAAP operating income margin was 1%, down from 7% in the same period last year. Total other expense decreased by 74% YoY to RMB61.9 million (US$8.6 million), primarily due to a gain from foreign exchange. Loss before income taxes was RMB108.1 million (US$15.1 million), while income tax expense was RMB27.2 million (US$3.8 million).

Net cash used for operating activities was RMB12.7 million (US$1.8 million), compared to net cash provided by operating activities of RMB410.8 million in Q2 2024. Free cash flow was negative RMB34.1 million (US$4.8 million), compared to RMB382.5 million in the same period last year. As of June 30, 2025, iQIYI had RMB5.06 billion (US$705.7 million) in cash and cash equivalents, along with a loan of US$522.5 million to PAG.

iQIYI's management emphasized their focus on innovation and growth areas such as AI applications, micro dramas, experience business, and global expansion. The company also highlighted their effective resource management and capital structure optimization, with net interest expense declining over the last seven consecutive quarters.

References:
[1] https://www.marketscreener.com/news/iqiyi-announces-second-quarter-2025-financial-results-ce7c51d2da8bf32d