iQIYI Reports Q2 2025 Financial Results: Revenue Down 11%, Operating Loss Widens.

iQIYI Inc reported Q2 2025 revenues of RMB6.63 billion ($925.3 million), an 11% YoY decrease. The company secured the top market share in drama viewership and saw other revenues increase 6% YoY. However, operating loss was RMB46.2 million ($6.4 million) and net loss attributable to iQIYI was RMB133.7 million ($18.7 million). Free cash flow was negative RMB34.1 million ($4.8 million).

iQIYI Inc, a leading provider of online entertainment video services in China, reported its financial results for the second quarter of 2025. The company's total revenues for the quarter were RMB6.63 billion (approximately US$925.3 million), representing an 11% year-over-year (YoY) decrease. This decline was primarily driven by a lighter content slate and adjustments in advertising strategies by some advertisers in response to macro pressures.

Despite the revenue drop, iQIYI secured the top market share in total drama viewership during the quarter. This performance was highlighted by CEO Yu Gong, who emphasized the success of blockbusters and the company's focus on innovation and key growth areas such as AI applications, micro dramas, experience business, and global expansion.

However, the company reported an operating loss of RMB46.2 million (approximately US$6.4 million), compared to an operating income of RMB342.1 million in the same period last year. The net loss attributable to iQIYI was RMB133.7 million (approximately US$18.7 million), a stark contrast to the net income of RMB68.7 million in the same period in 2024. The company's free cash flow was negative RMB34.1 million (approximately US$4.8 million), indicating a significant decline in financial health.

The report also indicated improvements in resource management, with net interest expenses declining over seven consecutive quarters. This trend has been beneficial for the company's capital structure and financial health.

In summary, while iQIYI faced challenges in the second quarter of 2025, including a decline in revenues and increased net losses, the company remains focused on growth in key areas such as AI applications and global expansion. The ongoing investments and strategic initiatives are aimed at driving sustainable, long-term success.

References:
[1] https://www.quiverquant.com/news/iQIYI%2C+Inc.+Reports+Second+Quarter+2025+Financial+Results+with+Revenue+Decline+and+Increased+Net+Loss