Phoenix New Media's Q3 2025: Contradictions Emerge on Advertising Market Performance, Client Engagement Strategies, and Innovation Adaptation

Date of Call: November 12, 2025

Financials Results

• Revenue: RMB 200.9M, up 22.3% YOY from RMB 164.3M; net advertising RMB 159.3M (+7.3% YOY from RMB 148.4M); paid services RMB 41.6M (+161.6% YOY from RMB 15.9M)
• EPS: Net loss attributable to iFeng RMB 4.9M, improved from RMB 18.5M in the same period last year
• Operating Margin: Loss from operations RMB 13.3M, improved from loss of RMB 25.9M in the same period last year

Guidance:

• Total revenues for Q4 2025 expected to be RMB 205.9M–220.9M.
• Net advertising revenues expected to be RMB 171.4M–181.4M.
• Paid service revenues expected to be RMB 34.5M–39.5M.
• Guidance is preliminary and subject to change.

Business Commentary:

* Revenue Growth Despite Market Pressure: - Phoenix New Media Limited (FENG) reported total revenues of RMB 200.9 million for Q3 2025, representing a 22.3% year-on-year increase from RMB 164.3 million. - This growth was driven by increased net advertising revenues and significant growth in paid services revenues, which rose by 161.6% year-on-year.

• Advertising Revenue Resilience:
• Net advertising revenues were RMB 159.3 million, up 7.3% year-on-year from RMB 148.4 million.

• The company's focus on content innovation, marketing trends, and strengthened public sector client servicing contributed to the resilience in advertising revenue.

• Paid Services and Digital Reading Expansion:

• Paid services revenues were RMB 41.6 million, a 161.6% increase year-on-year from RMB 15.9 million, primarily driven by digital reading services offered through third-party applications.

• This growth was supported by strategic cooperation with HarmonyOS, optimizing the APP experience, and expanding user engagement across platforms.

• Operational Efficiency and Cost Management:

• Loss from operations was RMB 13.3 million, a reduction from RMB 25.9 million in the same period last year.

• The improvement in operational efficiency was achieved through cost control, focusing on sustainable long-term growth, and investment in innovative products and experiences.

• Ecosystem Expansion and User Growth:

• Phoenix video accounts gained nearly 0.5 million new followers this quarter, indicating strong traction on video platforms.
• This growth was supported by strategic cooperation with HarmonyOS, product suite expansion, and targeted efforts to build presence among younger audiences on platforms like RedNote.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Company reported total revenues of RMB 200.9M, up 22.3% YOY, paid services +161.6% YOY, and net loss narrowed to RMB 4.9M from RMB 18.5M, and issued modest positive Q4 revenue guidance.

Q&A:

• Question from Alice Tang (First Shanghai Securities Limited, Research Division): The company's advertising business managed to grow in the third quarter despite market pressure. Could you please share how this was achieved? And what's your outlook for the ad market in Q4?
  Response: Growth came from closer collaboration between industry sales units and content teams, leveraging large flagship events/public-sector partnerships and scaling the Star Anchor program (3x revenue); Q4 remains competitive so focus is on innovation and cost control to maintain performance.

Contradiction Point 1

Advertising Market and Company Performance

It involves differing perspectives on the company's ability to maintain advertising revenue stability amidst a challenging market, which is crucial for understanding the company's financial health and strategic direction.

How did the company achieve growth in its advertising business during Q3 despite market pressure, and what is your outlook for the ad market in Q4? - Alice Tang(First Shanghai Securities Limited)

2025Q3: Achieving growth in advertising revenue under current conditions was not easy. Clients are cautious with their budgets and marketing is changing. We focused on two main areas: first, closer collaboration between client industry sale units and content teams. Second, we followed marketing trends and strengthened the ability to work with public sector clients, such as organizing the Shanxi Culture and Tourism promotion event. The Star Anchor program tripled its revenue this year. - Xiaojing Lu(CFO)

How will the flat advertising market in the first half of the year impact the company, and what is your outlook for this core business segment? - Alice Tang(First Shanghai Securities Limited)

2025Q2: The overall ad market was not strong in the first half of the year, with many clients being cautious. While sectors like entertainment, tourism, and retail performed well, auto and alcohol real estate saw a slowdown. Phoenix New Media maintained ad business stability by understanding clients' needs and leveraging its mainstream outlet reputation. - Xiaojing Lu(CFO)

Contradiction Point 2

Client Engagement and Sales Strategy

It highlights varying approaches to client engagement and sales strategy, which can impact the company's ability to maintain or increase advertising revenue.

How did the company's advertising business grow in Q3 despite market pressure, and what is your outlook for the ad market in Q4? - Alice Tang(First Shanghai Securities Limited)

2025Q3: In terms of growth drivers, brand advertising revenue grew 43% year-over-year to reach RMB60.4 million, contributing 44% of total advertising revenue. - Xiaojing Lu(CFO)

How will the flat advertising market in H1 impact the company, and what is your outlook for this core business segment? - Alice Tang(First Shanghai Securities Limited)

2025Q2: Brand advertising revenue for the second quarter was RMB49.5 million, representing a year-over-year increase of 9%. - Xiaojing Lu(CFO)

Contradiction Point 3

Advertising Market Outlook and Strategy

It reflects differing perspectives on the advertising market outlook and the company's strategic response, which impacts revenue projections and competitive positioning.

How did the advertising business grow in Q3 despite market pressure, and what is your outlook for the ad market in Q4? - Alice Tang (First Shanghai Securities Limited, Research Division)

2025Q3: In Q4, competition will remain intense, and cost control is important, but we will focus on innovation and service capabilities. - Xiaojing Lu(CFO)

Are advertisers still cautious with marketing spending in Q2, but improving compared to Q1? - Alice Tang (First Shanghai)

2025Q1: Looking to Q2, advertisers are still cautious with marketing spending, but are improving compared to Q1. Based on market research, advertisers are focusing more on brand value and media influence. We will continue to use our strength as a leading Internet media platform, offering high-quality content and campaigns to create value for clients. Besides growing new industries and domestic clients, we are also exploring marketing partnerships with overseas companies in China. Our team is dedicated to staying competitive in this market. - Edward Lu(CFO)

Contradiction Point 4

Advertising Strategy and Client Collaboration

It involves the company's approach to advertising strategy and client collaboration, which directly impacts revenue generation and market positioning.

How did the company achieve growth in its advertising business amid market pressure in Q3? What is your outlook for the ad market in Q4? - Alice Tang (First Shanghai Securities Limited, Research Division)

2025Q3: Closely collaborate between client industry sale units and content teams. - Xiaojing Lu(CFO)

The company's advertising revenue increased over the past year despite a slowdown in the online advertising market. Can you share the strategies for attracting advertisers? - Unidentified Participant (First Shanghai Group)

2024Q4: Our sales team has shifted to industry-specific divisions. - Edward Lu(CFO)

Contradiction Point 5

Innovation and Market Adaptation

It highlights the company's approach to innovation and market adaptation, which are essential for maintaining growth and competitive advantage in the industry.

How did the company achieve growth in its advertising business during Q3 despite market pressure? What is the outlook for the ad market in Q4? - Alice Tang (First Shanghai Securities Limited, Research Division)

2025Q3: Follow marketing trends and strengthened the ability to work with public sector clients. - Xiaojing Lu(CFO)

How did the company increase advertising revenue last year despite a slowing online ad market? - Unidentified Participant (First Shanghai Group)

2024Q4: We have accelerated innovation in content resources and upgraded our marketing product. - Edward Lu(CFO)