Scienjoy 2025 Q2 Earnings Net Income Declines 32.1% Amid Strategic Investments in AI and Global Expansion

Scienjoy reported a significant drop in net income for Q2 2025, reflecting the challenges in its core business. The company emphasized its commitment to AI-driven innovations and global expansion, despite a 6.9% decline in total revenue and a 36.8% drop in EPS. No formal guidance was provided for the quarter.

Revenue
Scienjoy’s total revenue for Q2 2025 declined by 6.9% year-over-year to $349.03 million, primarily due to a reduction in paying users within the competitive Chinese mobile live streaming market. Revenue from live streaming—both consumable and time-based virtual items—was affected by this decline, with specific segment figures underscoring the broader trend.

Earnings/Net Income
Scienjoy’s net income dropped by 32.1% to $22.71 million in Q2 2025 from $33.42 million in the same period last year. Earnings per share (EPS) fell by 36.8% to $0.53 from $0.84, marking a significant decline in profitability, though driven in part by a one-time fair value loss of $13.7 million from a publicly traded investment.

Price Action
The stock experienced mixed performance in the short term, with a 2.43% rise in the latest trading day but a 2.29% decline during the most recent full trading week. On a monthly basis, the stock has dropped 15.72%, reflecting investor uncertainty amid the earnings report and strategic announcements.

Post-Earnings Price Action Review
The mixed price action underscores investor hesitancy in the wake of the earnings report. While the company highlighted progress in its "live streaming + gaming" ecosystem and AI initiatives, the sharp drop in net income and EPS appears to have weighed on sentiment, particularly as the stock continues to trend downward month-to-date.

CEO Commentary
Victor He, CEO of Scienjoy, emphasized the company’s strategic progress in the "live streaming + gaming" ecosystem and the development of AI Vista, an AIGC-driven creative community that has produced a significant amount of AI-generated content by Q2’s end. He reiterated confidence in scaling live streaming, AI-driven innovations, and global expansion under the "AI for Everyday Life" theme.

Guidance
Scienjoy did not provide specific forward-looking quantitative guidance for Q2 2025. Instead, the company focused on strategic priorities, including scaling its live streaming business, advancing AI technologies like AI Vista and AI Performer, and expanding into new international markets. CFO Denny Tang highlighted the company’s commitment to operating efficiency and liquidity to support innovation and long-term growth.

Additional News
In the weeks following the earnings report, Scienjoy’s CEO, Victor He, reiterated the company’s focus on AI and global expansion at a virtual investor event on September 3, 2025, where he outlined a roadmap for the AI Vista app to introduce more user-generated AI templates by the end of the year. On September 5, 2025, the company announced a partnership with an undisclosed European media firm to co-develop AI-driven digital influencers for global streaming platforms. Additionally, on September 7, 2025, Scienjoy revealed a 10% increase in R&D investment for Q3 2025, with a focus on refining AI Performer technology for real-time interactive applications in enterprise and consumer sectors.