Chinese video streaming platform iQIYI swings to Q2 loss as advertisers adjust strategies

IQIYI

20/08/2025 10:11

Overview

iQIYI Q2 revenue falls 11% yr/yr to RMB6.63 bln ($925.3 mln)

Company reports operating loss of RMB46.2 mln, reversing last year's profit

Net loss attributable to iQIYI is RMB133.7 mln, compared to net income last year

Result Drivers

LIGHTER CONTENT SLATE - Membership services revenue fell 9% yr/yr due to a lighter content slate, according to CEO Yu Gong

ADVERTISING REVENUE DROP - Online advertising services revenue decreased 13% yr/yr as advertisers adjusted strategies amid macroeconomic pressures

CONTENT DISTRIBUTION DECLINE - Content distribution revenue fell 37% yr/yr, primarily due to a decrease in barter and cash transactions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
RMB 6.63 bln
Q2 Adjusted Net Income
RMB 14.70 mln
Q2 Net Income
-RMB 133.70 mln
Q2 Adjusted Operating Income
RMB 58.70 mln
Q2 Adjusted Operating Margin
1.0%
Q2 Operating Income
-RMB 46.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for iQIYI Inc is $2.00, about 14% below its August 19 closing price of $2.28

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX4FQHsY

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)