iQIYI Reports Q2 Non-GAAP EPS of $0.00, Revenue of $925.3M (-11.0% Y/Y)

iQIYI reported Q2 Non-GAAP EPS of $0.00, in line with expectations. Revenue was $925.3M, a decrease of 11.0% YoY, due to a lighter content slate. Membership services revenue was $571.0M, down 9% YoY.

iQIYI, Inc. (Nasdaq: IQ) announced its unaudited financial results for the second quarter ended June 30, 2025. The company reported a decrease in total revenues to RMB6.63 billion (US$925.3 million), a 11% year-over-year (YoY) decline. This was primarily driven by a lighter content slate compared to the same period in 2024. Operating loss was RMB46.2 million (US$6.4 million) with an operating loss margin of 1%, compared to operating income of RMB342.1 million and an operating income margin of 5% in the same period last year.

Membership services revenue decreased to RMB4.09 billion (US$571.0 million), a 9% YoY drop. Online advertising services revenue fell to RMB1.27 billion (US$177.6 million), a 13% YoY decline, as some advertisers adjusted their strategies due to macro pressures. Content distribution revenue dropped to RMB436.6 million (US$60.9 million), a 37% YoY decrease, primarily due to a decrease in barter and cash transactions.

The company's non-GAAP operating income was RMB58.7 million (US$8.2 million), a significant drop from RMB501.4 million in the same period last year. Non-GAAP net income attributable to iQIYI was RMB14.7 million (US$2.0 million), down from RMB246.9 million in 2024. The company's 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 the same period last year.

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

References:
[1] https://finance.yahoo.com/news/iqiyi-announces-second-quarter-2025-090000054.html