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Baidu Announces Second Quarter 2025 Results

1. Baidu's Q2 2025 revenue dropped 4% year-over-year to RMB 32.7 billion. 2. Non-online marketing revenue rose 34% year-over-year, exceeding RMB 10 billion. 3. Baidu AI Cloud maintains leading position, with significant revenue growth in AI solutions. 4. Apollo Go's driverless rides surged 148%, broadening its international partnerships. 5. Share buyback totaled USD 677 million, reflecting strong commitment to shareholder returns.

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FAQ

Why Bullish?

Baidu's strong growth in AI and non-online marketing could enhance long-term performance. Historical instances like Q1 2024 saw increased investor interest following similar growth patterns.

How important is it?

The report reinforces Baidu's strategic shifts towards AI, impacting market confidence and stock price. Strong revenue growth in AI products signals a potential recovery from past performance dips.

Why Long Term?

The sustained investment in AI innovations and international expansions (like Apollo Go) has the potential to set a robust foundation, similar to how tech-driven companies like Nvidia evolved over time.

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NIOBABATCEHY
, /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the second quarter ended June 30, 2025. "In the second quarter, our AI Cloud business continued to deliver robust and healthy revenue growth, supported by our strengthening full-stack AI capabilities and comprehensive end-to-end AI products and solutions. This performance helped mitigate the near-term pressure on online marketing business, as we intensified the AI transformation of Baidu Search to elevate user experience and establish a stronger foundation for long-term growth. Apollo Go accelerated global expansion while actively exploring new business models, underscored by our leadership in both left-hand drive and right-hand drive robotaxi markets globally," said Robin Li, Co-founder and CEO of Baidu. "We remain focused on AI initiatives that offer the greatest long-term value creation potential, where our technology and innovation can make the most meaningful and lasting impact." "In Q2, mainly propelled by new AI initiatives, Baidu Core's non-online marketing revenue exceeded RMB 10 billion for the first time, delivering 34% year-over-year growth and marking a more balanced, diversified mix," said Haijian He, CFO of Baidu. "We remain committed to our AI investments, focusing on advancing AI transformation across the Mobile Ecosystem, sustaining healthy growth momentum in AI Cloud, and accelerating Apollo Go's global expansion. While navigating near-term challenges, we believe these strategic priorities will drive significant long-term value." Second Quarter 2025 Financial Highlights[1] Baidu, Inc. (In millions except per Q2 Q1 Q2 ADS, unaudited) 2024 2025 2025 YOY QOQ RMB RMB RMB US$ Total revenues 33,931 32,452 32,713 4,567 (4 %) 1 % Operating income 5,944 4,508 3,277 457 (45 %) (27 %) Operating income (non-GAAP)[2] 7,500 5,333 4,445 620 (41 %) (17 %) Net income to Baidu 5,488 7,717 7,322 1,022 33 % (5 %) Net income to Baidu (non-GAAP)[2] 7,396 6,469 4,795 669 (35 %) (26 %) Diluted earnings per ADS 15.01 21.59 20.35 2.84 36 % (6 %) Diluted earnings per ADS (non-GAAP)[2] 21.02 18.54 13.58 1.90 (35 %) (27 %) Adjusted EBITDA[2] 9,147 7,209 6,492 906 (29 %) (10 %) Adjusted EBITDA margin 27 % 22 % 20 % 20 % Baidu Core Q2 Q1 Q2 (In millions, unaudited) 2024 2025 2025 YOY QOQ RMB RMB RMB US$ Total revenues 26,687 25,463 26,251 3,664 (2 %) 3 % Operating income 5,608 4,164 3,322 464 (41 %) (20 %) Operating income (non-GAAP)[2] 7,005 4,872 4,385 612 (37 %) (10 %) Net income to Baidu Core 5,462 7,633 7,382 1,030 35 % (3 %) Net income to Baidu Core (non-GAAP)[2]  7,290 6,330 4,792 669 (34 %) (24 %) Adjusted EBITDA[2] 8,617 6,712 6,397 893 (26 %) (5 %) Adjusted EBITDA margin 32 % 26 % 24 % 24 % [1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.1636 as of June 30, 2025, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader. [2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details). Operational HighlightsCorporate Baidu open-sourced the ERNIE 4.5 series, its latest and most advanced family of foundation models comprising ten models of different architectures and sizes, in June 2025. The ERNIE 4.5 series delivers strong performance particularly in instruction following, world knowledge memorization, and visual understanding. Baidu has returned US$677 million to shareholders since the beginning of Q1 2025, bringing the cumulative repurchase to US$2.3 billion under the 2023 share repurchase program. Baidu launched MuseSteamer, its proprietary video generation model in July 2025. AI Cloud Baidu AI Cloud was ranked the No.1 AI cloud provider for the sixth consecutive year, according to IDC's 2024 report on China's AI public cloud market, issued in July 2025. Qianfan, Baidu's MaaS platform, expanded its model library with the open-sourced ERNIE 4.5 series and additional third-party models, while integrating more AI tools and functions to better support AI-native application development. Intelligent Driving Apollo Go, Baidu's autonomous ride-hailing service, provided over 2.2 million fully driverless rides in the second quarter of 2025, representing a 148% year-over-year increase. As of August 2025, the cumulative rides provided to the public by Apollo Go surpassed 14 million. Apollo Go entered into a multi-year strategic partnership with Uber Technologies, Inc. in July 2025 to deploy thousands of Apollo Go's fully autonomous vehicles on the Uber platform across multiple international markets, with initial deployments planned for Asia and the Middle East. Apollo Go entered into a strategic partnership with Lyft, Inc. in August 2025 to deploy Apollo Go's fully autonomous vehicles across key European markets through the Lyft platform, starting with Germany and the United Kingdom and scaling to thousands of vehicles across Europe. Apollo Go expanded its open-road testing area in Hong Kong to Tung Chung residential areas in June 2025, and to the Southern District in August. Apollo Go commenced open-road testing in designated areas in both Dubai and Abu Dhabi in August 2025. Apollo Go's global footprint covered 16 cities as of June 2025. Mobile Ecosystem The AI transformation of Baidu Search accelerated rapidly. By the end of June, over 50% of mobile search result pages contained AI-generated content, up from 35% in April. By July, 64% of mobile search result pages contained AI-generated content, with traditional link-based results progressively replaced by structured, intelligent, and multimodal-first AI answers. In June 2025, Baidu App's MAUs reached 735 million, up 5% year over year. Managed Page accounted for 50% of Baidu Core's online marketing revenue in the second quarter of 2025. Second Quarter 2025 Financial Results Total revenues were RMB32.7 billion ($4.57 billion), decreasing 4% year over year. Revenue from Baidu Core was RMB26.3 billion ($3.66 billion), decreasing 2% year over year; online marketing revenue was RMB16.2 billion ($2.27 billion), decreasing 15% year over year, and non-online marketing revenue was RMB10.0 billion ($1.40 billion), up 34% year over year, primarily driven by the boost of AI Cloud business. Revenue from iQIYI was RMB6.6 billion ($926 million), decreasing 11% year over year. Cost of revenues was RMB18.4 billion ($2.56 billion), increasing 12% year over year, primarily due to an increase in costs related to AI Cloud business and content costs. Selling, general and administrative expenses were RMB6.0 billion ($832 million), increasing 5% year over year, primarily due to an increase in channel spending expenses, partially offset by a decrease in personnel-related expenses. Research and development expenses were RMB5.1 billion ($715 million), decreasing 13% year over year, primarily due to a decrease in personnel-related expenses. Operating income was RMB3.3 billion ($457 million). Baidu Core operating income was RMB3.3 billion ($464 million), and Baidu Core operating margin was 13%. Non-GAAP operating income was RMB4.4 billion ($620 million). Non-GAAP Baidu Core operating income was RMB4.4 billion ($612 million), and non-GAAP Baidu Core operating margin was 17%. Total other income, net was RMB4.9 billion ($678 million), increasing 531% year over year, primarily due to an increase in fair value gain and pickup of earnings from long-term investments, partially offset by an increase in net foreign exchange loss arising from exchange rate fluctuation between Renminbi and U.S. dollar. Income tax expense was RMB881 million ($123 million), compared to RMB1.1 billion in the same period last year. Net income attributable to Baidu was RMB7.3 billion ($1.02 billion), and diluted earnings per ADS was RMB20.35 ($2.84). Net income attributable to Baidu Core was RMB7.4 billion ($1.03 billion), and net margin for Baidu Core was 28%. Non-GAAP net income attributable to Baidu was RMB4.8 billion ($669 million). Non-GAAP diluted earnings per ADS was RMB13.58 ($1.90). Non-GAAP net income attributable to Baidu Core was RMB4.8 billion ($669 million), and non-GAAP net margin for Baidu Core was 18%. Adjusted EBITDA was RMB6.5 billion ($906 million) and adjusted EBITDA margin was 20%. Adjusted EBITDA for Baidu Core was RMB6.4 billion ($893 million) and adjusted EBITDA margin for Baidu Core was 24%. As of June 30, 2025, cash, cash equivalents, restricted cash and short-term investments were RMB124.2 billion ($17.34 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB119.9 billion ($16.74 billion). As of June 30, 2025, cash, cash equivalents, short-term investments and long-term time deposits and held-to-maturity investments for Baidu Core were RMB229.7 billion ($32.07 billion). Free cash flow was negative RMB4.7 billion (negative $653 million), and free cash flow excluding iQIYI was negative RMB4.6 billion (negative $648 million), primarily due to an increase of investment in AI business. We define net cash position as total cash, cash equivalents, restricted cash, short-term investments, net, long-term time deposits and held-to-maturity investments, and others, less total loans, convertible senior notes, and notes payable. As of June 30, 2025, net cash position for Baidu was RMB155.1 billion ($21.66 billion). Conference Call InformationBaidu's management will hold an earnings conference call at 8.00 AM on Aug 20, 2025, U.S. Eastern Time (8.00 PM on Aug 20, 2025, Beijing Time). Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of "Baidu Inc. Q2 2025 Earnings Conference Call". Please follow the steps to enter your registration details, then click "Register". Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite. For pre-registration, please click:https://s1.c-conf.com/diamondpass/10049043-p7skv7.html  In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration. Additionally, a live and archived webcast of this conference call will be available at https://ir.baidu.com. About BaiduFounded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares. Safe Harbor StatementThis announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, Baidu's and other parties' strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law. Non-GAAP Financial MeasuresTo supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. Non-GAAP operating income represents operating income excluding share-based compensation expenses, and amortization and impairment of intangible assets resulting from business combinations. Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, and fair value gain or loss of long-term investments and exchangeable bonds, adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded. Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, and share-based compensation expenses. For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measure." Baidu, Inc.  Condensed Consolidated Statements of  Income  (In millions except for per share (or ADS) information, unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, June 30, June 30, 2024 2025 2025 2025 2024 2025 2025 RMB RMB RMB US$(2) RMB RMB US$(2) Revenues: Online marketing services 20,625 17,306 17,485 2,441 39,115 34,791 4,857 Others 13,306 15,146 15,228 2,126 26,329 30,374 4,240 Total revenues  33,931 32,452 32,713 4,567 65,444 65,165 9,097 Costs and expenses: Cost of revenues(1) 16,398 17,487 18,357 2,563 31,689 35,844 5,004 Selling, general and administrative(1) 5,700 5,913 5,960 832 11,075 11,873 1,657 Research and development(1) 5,889 4,544 5,119 715 11,252 9,663 1,349 Total costs and expenses 27,987 27,944 29,436 4,110 54,016 57,380 8,010 Operating income 5,944 4,508 3,277 457 11,428 7,785 1,087 Other income: Interest income 1,993 2,664 1,957 273 4,084 4,621 645 Interest expense (742) (801) (701) (98) (1,508) (1,502) (210) Foreign exchange gain (loss), net 93 (210) (621) (87) 494 (831) (116) Share of (losses) earnings from equity method investments (119) 574 694 97 (324) 1,268 177 Others, net (454) 2,260 3,534 493 (729) 5,794 809 Total other income, net 771 4,487 4,863 678 2,017 9,350 1,305 Income before income taxes 6,715 8,995 8,140 1,135 13,445 17,135 2,392 Income tax expense 1,131 1,177 881 123 2,014 2,058 287 Net income  5,584 7,818 7,259 1,012 11,431 15,077 2,105 Net income (loss) attributable to noncontrolling interests 96 101 (63) (10) 495 38 5 Net income attributable to Baidu 5,488 7,717 7,322 1,022 10,936 15,039 2,100 Earnings per ADS (1 ADS representing 8 Class A ordinary shares):  -Basic 15.11 21.86 20.90 2.92 30.12 42.76 5.97  -Diluted 15.01 21.59 20.35 2.84 29.98 41.95 5.86 Earnings per share for Class A and Class B ordinary shares:  -Basic 1.89 2.73 2.61 0.36 3.77 5.35 0.75  -Diluted 1.88 2.70 2.54 0.35 3.74 5.24 0.73 Weighted average number of Class A and Class B ordinary shares outstanding (in millions):  -Basic  2,796 2,751 2,720 2,720 2,800 2,735 2,735  -Diluted 2,804 2,762 2,730 2,730 2,810 2,746 2,746 (1) Includes share-based compensation expenses as follows:  Cost of revenues  146 77 120 17 254 197 28  Selling, general and administrative  385 313 276 38 802 589 82  Research and development  981 361 685 96 1,599 1,046 146  Total share-based compensation expenses  1,512 751 1,081 151 2,655 1,832 256 (2) All translations from RMB to U.S. dollars are made at a rate of RMB7.1636 to US$1.00, the exchange rate in effect as of June 30, 2025 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. Baidu, Inc.  Condensed Consolidated Balance Sheets (In millions, unaudited) December 31, June 30, June 30, 2024 2025 2025 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 24,832 29,940 4,179 Restricted cash 11,697 320 45 Short-term investments, net 102,608 93,926 13,112 Accounts receivable, net 10,104 11,568 1,615 Amounts due from related parties 790 758 106 Other current assets, net 18,818 20,706 2,890 Total current assets 168,849 157,218 21,947 Non-current assets: Fixed assets, net 30,102 32,456 4,531 Licensed copyrights, net 6,930 6,670 931 Produced content, net 14,695 14,468 2,020 Intangible assets, net 772 3,266 456 Goodwill 22,586 37,637 5,254 Long-term investments, net 41,721 45,103 6,296 Long-term time deposits and held-to-maturity investments 98,535 110,123 15,373 Amounts due from related parties 137 119 17 Deferred tax assets, net 2,193 2,352 328 Operating lease right-of-use assets 10,898 10,682 1,491 Receivables related to the proposed acquisition of YY Live, net 13,547 - - Other non-current assets 16,815 30,475 4,253 Total non-current assets 258,931 293,351 40,950 Total assets 427,780 450,569 62,897 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY Current liabilities: Short-term loans 10,669 7,048 984 Accounts payable and accrued liabilities 41,443 38,208 5,334 Customer deposits and deferred revenue 14,624 13,142 1,835 Deferred income 684 490 68 Long-term loans, current portion 168 15,022 2,097 Convertible senior notes, current portion 242 1,484 207 Notes payable, current portion 8,026 4,653 650 Amounts due to related parties 1,794 1,636 228 Operating lease liabilities 3,303 3,442 480 Total current liabilities 80,953 85,125 11,883 Non-current liabilities: Deferred income 231 194 27 Deferred revenue 585 663 93 Amounts due to related parties 56 46 6 Long-term loans 15,596 2,300 321 Notes payable 27,996 46,512 6,493 Convertible senior notes 8,351 6,739 941 Deferred tax liabilities 3,870 4,196 586 Operating lease liabilities 4,973 4,643 648 Other non-current liabilities 1,557 2,239 312 Total non-current liabilities 63,215 67,532 9,427 Total liabilities 144,168 152,657 21,310 Redeemable noncontrolling interests 9,870 12,652 1,766 Equity Total Baidu shareholders' equity 263,620 275,057 38,396 Noncontrolling interests 10,122 10,203 1,425 Total equity 273,742 285,260 39,821 Total liabilities, redeemable noncontrolling interests, and equity 427,780 450,569 62,897 Baidu, Inc.  Selected Information (In millions, unaudited) Three months ended Three months ended Three months ended Three months ended June 30, 2024 (RMB) March 31, 2025 (RMB) June 30, 2025 (RMB) June 30, 2025 (US$) Baidu Core iQIYI Elim & adj(2) Baidu, Inc. Baidu Core iQIYI Elim & adj(2) Baidu, Inc. Baidu Core iQIYI Elim & adj(2) Baidu, Inc. Baidu Core iQIYI Elim & adj(2) Baidu, Inc. Total revenues  26,687 7,439 (195) 33,931 25,463 7,186 (197) 32,452 26,251 6,628 (166) 32,713 3,664 926 (23) 4,567   YOY (2 %) (11 %) (4 %)   QOQ 3 % (8 %) 1 % Costs and expenses:    Cost of revenues (1) 10,888 5,678 (168) 16,398 12,246 5,406 (165) 17,487 13,214 5,292 (149) 18,357 1,844 739 (20) 2,563   Selling, general and administrative (1) 4,751 970 (21) 5,700 4,921 1,026 (34) 5,913 5,018 960 (18) 5,960 700 134 (2) 832   Research and development (1) 5,440 449 - 5,889 4,132 412 - 4,544 4,697 422 - 5,119 656 59 - 715 Total costs and expenses  21,079 7,097 (189) 27,987 21,299 6,844 (199) 27,944 22,929 6,674 (167) 29,436 3,200 932 (22) 4,110   YOY    Cost of revenues  21 % (7 %) 12 %   Selling, general and administrative  6 % (1 %) 5 %   Research and development  (14 %) (6 %) (13 %)   Costs and expenses 9 % (6 %) 5 % Operating income (loss) 5,608 342 (6) 5,944 4,164 342 2 4,508 3,322 (46) 1 3,277 464 (6) (1) 457   YOY (41 %) - (45 %)   QOQ (20 %) - (27 %) Operating margin  21 % 5 % 18 % 16 % 5 % 14 % 13 % (1 %) 10 %   Add: total other income (loss), net 1,011 (240) - 771 4,602 (115) - 4,487 4,925 (62) - 4,863 687 (9) - 678   Less: income tax expense 1,105 26 - 1,131 1,136 41 - 1,177 854 27 - 881 119 4 - 123   Less: net income (loss) attributable to NCI 52 7 37(3) 96 (3) 4 100(3) 101 11 (1) (73)(3) (63) 2 - (12)(3) (10) Net income (loss) attributable to Baidu 5,462 69 (43) 5,488 7,633 182 (98) 7,717 7,382 (134) 74 7,322 1,030 (19) 11 1,022   YOY 35 % - 33 %   QOQ (3 %) - (5 %) Net margin  20 % 1 % 16 % 30 % 3 % 24 % 28 % (2 %) 22 % Non-GAAP financial measures: Operating income (non-GAAP) 7,005 501 7,500 4,872 459 5,333 4,385 59 4,445 612 9 620   YOY (37 %) (88 %) (41 %)   QOQ (10 %) (87 %) (17 %) Operating margin (non-GAAP) 26 % 7 % 22 % 19 % 6 % 16 % 17 % 1 % 14 % Net income attributable to Baidu (non-GAAP) 7,290 247 7,396 6,330 304 6,469 4,792 15 4,795 669 2 669   YOY (34 %) (94 %) (35 %)   QOQ (24 %) (95 %) (26 %) Net margin (non-GAAP) 27 % 3 % 22 % 25 % 4 % 20 % 18 % 0 % 15 % Adjusted EBITDA 8,617 536 9,147 6,712 495 7,209 6,397 94 6,492 893 14 906   YOY (26 %) (82 %) (29 %)   QOQ (5 %) (81 %) (10 %) Adjusted EBITDA margin  32 % 7 % 27 % 26 % 7 % 22 % 24 % 1 % 20 % (1) Includes share-based compensation as follows:  Cost of revenues  117 29 146 50 27 77 88 32 120 12 5 17  Selling, general and administrative  292 93 385 257 56 313 238 38 276 33 5 38  Research and development  945 36 981 329 32 361 652 33 685 91 5 96  Total share-based compensation  1,354 158 1,512 636 115 751 978 103 1,081 136 15 151 (2) Relates to intersegment eliminations and adjustments (3) Relates to the net income attributable to iQIYI noncontrolling interests Baidu, Inc.   Condensed Consolidated Statements of Cash Flows  (In millions,unaudited) Three months ended  Three months ended   Three months ended   Three months ended  June 30, 2024 (RMB) March 31, 2025 (RMB) June 30, 2025 (RMB) June 30, 2025 (US$)  Baidu excl. iQIYI iQIYI  Baidu, Inc.  Baidu excl. iQIYI iQIYI Baidu, Inc. Baiduexcl.iQIYI iQIYI Baidu,Inc. Baiduexcl.iQIYI  iQIYI Baidu,Inc. Net cash provided by (used in) operating activities   7,970  409 8,379 (6,340) 339 (6,001) (864) (13) (877) (120) (2) (122) Net cash provided by (used in) investing activities  13,824 337 14,161 (1,175) (30) (1,205) (8,428) (113) (8,541) (1,176) (16) (1,192) Net cash (used in) provided by financing activities (9,946) 869 (9,077) 19,639 860 20,499 (8,688) (465) (9,153) (1,213) (65) (1,278) Effect of exchange rate changes on cash, cash equivalents and restricted cash 66 22 88 (5) (1) (6) (210) (28) (238) (29) (4) (33) Net increase (decrease) in cash, cash equivalents and restricted cash   11,914  1,637 13,551 12,119 1,168 13,287 (18,190) (619) (18,809) (2,538) (87) (2,625) Cash, cash equivalents and restricted cash   At beginning of period 36,964 6,270 43,234 32,999 3,590 36,589 45,118 4,758 49,876 6,298 664 6,962   At end of period 48,878 7,907 56,785 45,118 4,758 49,876 26,928 4,139 31,067 3,760 577 4,337 Net cash provided by (used in) operating activities 7,970 409 8,379 (6,340) 339 (6,001) (864) (13) (877) (120) (2) (122) Less: Capital expenditures (2,090) (28) (2,118) (2,869) (31) (2,900) (3,779) (21) (3,800) (528) (3) (531)  Free cash flow 5,880 381 6,261 (9,209) 308 (8,901) (4,643) (34) (4,677) (648) (5) (653) Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI's consolidated cash flows. Baidu, Inc.  Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures   (In millions except for per ADS information, unaudited) Three months ended  Three months ended  Three months ended  Three months ended  June 30, 2024 (RMB) March 31, 2025 (RMB) June 30, 2025 (RMB) June 30, 2025 (US$) Baidu Core iQIYI Baidu, Inc. Baidu Core iQIYI Baidu, Inc. Baidu Core iQIYI Baidu, Inc. Baidu Core iQIYI Baidu, Inc. Operating income (loss) 5,608 342 5,944 4,164 342 4,508 3,322 (46) 3,277 464 (6) 457 Add: Share-based compensation expenses 1,354 158 1,512 636 115 751 978 103 1,081 136 15 151 Add: Amortization and impairment of intangible assets(1) 43 1 44 72 2 74 85 2 87 12 - 12 Operating income (non-GAAP) 7,005 501 7,500 4,872 459 5,333 4,385 59 4,445 612 9 620 Add:  Depreciation of fixed assets 1,612 35 1,647 1,840 36 1,876 2,012 35 2,047 281 5 286 Adjusted EBITDA 8,617 536 9,147 6,712 495 7,209 6,397 94 6,492 893 14 906 Net income (loss) attributable to Baidu 5,462 69 5,488 7,633 182 7,717 7,382 (134) 7,322 1,030 (19) 1,022 Add: Share-based compensation expenses 1,353 158 1,425 635 115 687 977 103 1,024 136 14 142 Add: Amortization and impairment of intangible assets(1) 41 1 41 70 2 71 83 2 84 12 - 12 Add: Disposal (gain) (30) - (30) (91) - (91) (262) - (267) (37) - (37) Add: Impairment of long-term investments 26 17 34 - 2 1 101 26 113 14 4 16 Add: Fair value loss (gain) of long-term investments and exchangeable bonds 531 2 531 (1,889) (2) (1,890) (3,317) 18 (3,309) (462) 3 (462) Add: Reconciling items on equity method investments(2) 83 - 83 (66) 5 (64) (121) - (121) (17) - (17) Add: Tax effects on non-GAAP adjustments(3) (176) - (176) 38 - 38 (51) - (51) (7) - (7) Net income attributable to Baidu (non-GAAP) 7,290 247 7,396 6,330 304 6,469 4,792 15 4,795 669 2 669 Diluted earnings per ADS 15.01 21.59 20.35 2.84 Add:  Accretion of the redeemable noncontrolling interests 0.57 0.57 0.64 0.09 Add:  Non-GAAP adjustments to earnings per ADS 5.44 (3.62) (7.41) (1.03) Diluted earnings per ADS (non-GAAP) 21.02 18.54 13.58 1.90 (1) This represents amortization and impairment of intangible assets resulting from business combinations. (2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee's books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share. (3) This represents tax impact of all non-GAAP adjustments. SOURCE Baidu, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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