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iQIYI Announces Second Quarter 2025 Financial Results

1. Total revenues fell 11% year-over-year to RMB6.63 billion. 2. Operating loss of RMB46.2 million contrasts with last year's profit. 3. Non-GAAP net income dropped to RMB14.7 million from RMB246.9 million. 4. Content slate lighter, impacting membership and advertising revenues. 5. Investment in AI and global expansion noted for driving future growth.

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Why Bearish?

The decrease in revenues and significant losses indicate potential ongoing challenges. Historically, similar revenue dips triggered stock declines; this trend may repeat.

How important is it?

The financial results are critical in assessing iQIYI's business health, influencing investor decisions and share prices significantly.

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Immediate responses to disappointing financials can affect investor sentiment. Other companies have seen shares drop post-earnings announcements amid loss signals.

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BEIJING, Aug. 20, 2025 (GLOBE NEWSWIRE) -- iQIYI, Inc. (Nasdaq: IQ) (“iQIYI” or the “Company”), a leading provider of online entertainment video services in China, today announced its unaudited financial results for the second quarter ended June 30, 2025.          Second Quarter 2025 Highlights Total revenues were RMB6.63 billion (US$925.3 million1), decreasing 11% year over year.Operating loss was RMB46.2 million (US$6.4 million) and operating loss margin was 1%, compared to operating income of RMB342.1 million and operating income margin of 5% in the same period in 2024.Non-GAAP operating income2 was RMB58.7 million (US$8.2 million) and non-GAAP operating income margin was 1%, compared to non-GAAP operating income of RMB501.4 million and non-GAAP operating income margin of 7% in the same period in 2024.Net loss attributable to iQIYI was RMB133.7 million (US$18.7 million), compared to net income attributable to iQIYI of RMB68.7 million in the same period in 2024.Non-GAAP net income attributable to iQIYI2 was RMB14.7 million (US$2.0 million), compared to non-GAAP net income attributable to iQIYI of RMB246.9 million in the same period in 2024. “During the second quarter and into the summer season, we delivered a series of blockbusters and secured the top market share in total drama viewership, according to Enlightent data,” commented Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. “Meanwhile, we are focusing on innovation and investing in key growth areas such as AI applications, micro dramas, experience business, and global expansion, all with the goal of driving sustainable, long-term success.” “We effectively managed our resources and optimized our capital structure, with net interest expense³ consistently declining over the last seven consecutive quarters. This better positions us for long-term value creation,” commented Mr. Jun Wang, Chief Financial Officer of iQIYI. Second Quarter 2025 Financial Highlights  Three Months Ended(Amounts in thousands of Renminbi (“RMB”), except for per ADS data, unaudited) June 30, March 31, June 30,  2024 2025 2025  RMB RMB RMBTotal revenues 7,438,785 7,186,469 6,628,248        Operating income/(loss) 342,093 341,897 (46,168)Operating income (non-GAAP) 501,417 458,535 58,678        Net income/(loss) attributable to iQIYI, Inc. 68,685 182,145 (133,708)Net income attributable to iQIYI, Inc. (non-GAAP) 246,914 304,420 14,652        Diluted net income/(loss) per ADS  0.07 0.19 (0.14)Diluted net income per ADS (non-GAAP)2 0.25 0.31 0.02          Footnotes: [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).[3] Net interest expense refers to the net amount of interest expense and interest income, both of which are presented in the Condensed Consolidated Statements of Income/(Loss). Second Quarter 2025 Financial Results Total revenues reached RMB6.63 billion (US$925.3 million), decreasing 11% year over year. Membership services revenue was RMB4.09 billion (US$571.0 million), decreasing 9% year over year, primarily due to a lighter content slate compared to the same period last year. Online advertising services revenue was RMB1.27 billion (US$177.6 million), decreasing 13% year over year. During the quarter, some advertisers adjusted their advertising and promotion strategies in response to macro pressures. Content distribution revenue was RMB436.6 million (US$60.9 million), decreasing 37% year over year, primarily due to the decrease in barter transactions and, to a lesser extent, the decrease in cash transactions. Other revenues were RMB829.3 million (US$115.8 million), increasing 6% year over year. Cost of revenues was RMB5.29 billion (US$738.9 million), decreasing 7% year over year. Content costs as a component of cost of revenues were RMB3.78 billion (US$528.0 million), decreasing 8% year over year. The decrease in content cost was primarily due to a lighter content slate in the quarter. Selling, general and administrative expenses were RMB959.6 million (US$134.0 million), decreasing 1% year over year. Research and development expenses were RMB421.9 million (US$58.9 million), decreasing 6% year over year. Operating loss was RMB46.2 million (US$6.4 million), compared to operating income of RMB342.1 million in the same period in 2024. Operating loss margin was 1%, compared to operating income margin of 5% in the same period in 2024. Non-GAAP operating income was RMB58.7 million (US$8.2 million), compared to non-GAAP operating income of RMB501.4 million in the same period in 2024. Non-GAAP operating income margin was 1%, compared to non-GAAP operating income margin of 7% in the same period in 2024. Total other expense was RMB61.9 million (US$8.6 million), decreasing 74% year over year, primarily due to gain from foreign exchange. Loss before income taxes was RMB108.1 million (US$15.1 million), compared to income before income taxes of RMB101.7 million in the same period in 2024. Income tax expense was RMB27.2 million (US$3.8 million), compared to income tax expense of RMB25.7 million in the same period in 2024. Net loss attributable to iQIYI was RMB133.7 million (US$18.7 million), compared to net income attributable to iQIYI of RMB68.7 million in the same period in 2024. Diluted net loss attributable to iQIYI per ADS was RMB0.14 (US$0.02) for the second quarter of 2025, compared to diluted net income attributable to iQIYI per ADS of RMB0.07 in the same period of 2024. Non-GAAP net income attributable to iQIYI was RMB14.7 million (US$2.0 million), compared to non-GAAP net income attributable to iQIYI of RMB246.9 million in the same period in 2024. Non-GAAP diluted net income attributable to iQIYI per ADS was RMB0.02 (US$0.00), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB0.25 in the same period of 2024. Net cash used for operating activities was RMB12.7 million (US$1.8 million), compared to net cash provided by operating activities of RM410.8 million in the same period of 2024. Free cash flow was negative RMB34.1 million (negative US$4.8 million), compared to free cash flow of RMB382.5 million in the same period of 2024. As of June 30, 2025, the Company had cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash included in prepayments and other assets of RMB5.06 billion (US$705.7 million). In addition, as of the same date, the Company had a loan of US$522.5 million to PAG, recorded under the line item of amounts due from related parties. In the second quarter of 2025, the Company had repurchased an aggregate principal amount of US$85.0 million of the 2028 Notes for cash. As of June 30, 2025, US$0.1 million principal amount of the 2026 Notes, US$522.5 million principal amount of the PAG Notes, US$208.1 million principal amount of the 2028 Notes, and US$350.0 million principal amount of the 2030 Notes remained outstanding. Conference Call Information iQIYI’s management will hold an earnings conference call at 7:00 AM on August 20, 2025, U.S. Eastern Time (7:00 PM on August 20, 2025, Beijing Time). Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique access PIN by a calendar invite. Participant Online Registration: https://s1.c-conf.com/diamondpass/10049037-erdm7c.html It will automatically direct you to the registration page of "iQIYI Second Quarter 2025 Earnings Conference Call", where you may fill in your details for RSVP. In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration. A telephone replay of the call will be available after the conclusion of the conference call through August 27, 2025. Dial-in numbers for the replay are as follows: International Dial-in                 +1 855 883 1031Passcode:                                  10049037 A live and archived webcast of the conference call will be available at http://ir.iqiyi.com/. About iQIYI, Inc. iQIYI, Inc. is a leading provider of online entertainment video services in China. It combines creative talent with technology to foster an environment for continuous innovation and the production of blockbuster content. It produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content in a variety of formats. iQIYI distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. Over time, iQIYI has built a massive user base and developed a diversified monetization model including membership services, online advertising services, content distribution, online games, IP licensing, talent agency, online literature, etc. Safe Harbor Statement This 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, the quotations from management in this announcement, as well as iQIYI's strategic and operational plans, contain forward-looking statements. iQIYI may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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 iQIYI’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: iQIYI’s strategies; iQIYI’s future business development, financial condition and results of operations; iQIYI’s ability to retain and increase the number of users, members and advertising customers, and expand its service offerings; competition in the online entertainment industry; changes in iQIYI's revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and iQIYI undertakes no duty to update such information, except as required under applicable law. Non-GAAP Financial Measures To supplement iQIYI’s consolidated financial results presented in accordance with GAAP, iQIYI uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income/(loss) attributable to iQIYI, non-GAAP diluted net income/(loss) attributable to iQIYI per ADS and free cash flow. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. iQIYI believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance by excluding certain items that may not be indicative of its 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 the 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 iQIYI’s historical operating performance. The Company believes the 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 the 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, amortization of intangible assets resulting from business combinations. Non-GAAP net income/(loss) attributable to iQIYI, Inc. represents net income/(loss) attributable to iQIYI, Inc. excluding share-based compensation expenses, amortization of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, adjusted for related income tax effects. iQIYI’s share of equity method investments for these non-GAAP reconciling items, primarily 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 net income/(loss) per ADS represents diluted net income/(loss) per ADS calculated by dividing non-GAAP net income/(loss) attributable to iQIYI, Inc, by the weighted average number of ordinary shares expressed in ADS. Free cash flow represents net cash provided by operating activities less capital expenditures. For more information, please contact: Investor RelationsiQIYI, Inc.ir@qiyi.com iQIYI, INC.Condensed Consolidated Statements of Income/(Loss) (In RMB thousands, except for number of shares and per share data)  Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2024 2025 2025 2024 2025 RMB RMB RMB RMB RMB (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues:          Membership services4,495,310  4,399,010  4,090,126  9,294,171  8,489,136 Online advertising services1,461,367  1,327,827  1,272,198  2,943,419  2,600,025 Content distribution698,175  628,743  436,578  1,626,184  1,065,321 Others783,933  830,889  829,346  1,502,366  1,660,235  Total revenues 7,438,785   7,186,469    6,628,248    15,366,140    13,814,717             Operating costs and expenses:          Cost of revenues(5,678,342) (5,406,341) (5,292,894) (11,309,581) (10,699,235)Selling, general and administrative(969,673) (1,025,742) (959,604) (1,891,708) (1,985,346)Research and development(448,677) (412,489) (421,918) (878,005) (834,407) Total operating costs and expenses (7,096,692) (6,844,572)  (6,674,416)  (14,079,294)  (13,518,988) Operating income/(loss) 342,093  341,897  (46,168) 1,286,846  295,729            Other income/(expenses):          Interest income68,688  78,756  87,779  127,428  166,535 Interest expenses(288,162) (233,429) (235,267) (570,297) (468,696)Foreign exchange gain/(loss), net(51,338) 41,889  100,811  (82,889) 142,700 Share of gains/(losses) from equity method investments(2,100) (3,617) (1,086) 11,414  (4,703)Others, net32,476  1,724  (14,134) 12,617  (12,410) Total other expense, net (240,436) (114,677)  (61,897) (501,727) (176,574)           Income/(loss) before income taxes 101,657  227,220  (108,065) 785,119  119,155 Income tax expense(25,741) (41,590) (27,155) (43,374) (68,745)           Net income/(loss) 75,916   185,630  (135,220 ) 741,745   50,410  Less: Net income/(loss) attributable to noncontrolling interests7,231  3,485  (1,512) 17,743  1,973                Net income/(loss) attributable to iQIYI, Inc. 68,685   182,145   (133,708 ) 724,002  48,437                 Net income/(loss) attributable to ordinary shareholders 68,685   182,145    (133,708 )  724,002    48,437             Net income/(loss) per share for Class A and Class B ordinary shares:          Basic0.01  0.03  (0.02) 0.11  0.01 Diluted0.01  0.03  (0.02) 0.11  0.01            Net income/(loss) per ADS (1 ADS equals 7 Class A ordinary shares):         Basic0.07  0.19  (0.14) 0.75  0.05 Diluted0.07  0.19  (0.14) 0.74  0.05           Weighted average number of Class A and Class B ordinary shares used in net income/(loss) per share computation:          Basic6,725,978,497  6,740,810,595  6,743,563,754  6,721,815,708  6,742,194,780 Diluted6,857,915,450  6,780,303,294  6,743,563,754  6,822,994,286  6,780,167,606  iQIYI, INC.Condensed Consolidated Balance Sheets (In RMB thousands, except for number of shares and per share data)   December 31, June 30,  2024 2025  RMB RMB    (Unaudited) ASSETS     Current assets:    Cash and cash equivalents 3,529,679  3,329,708 Restricted cash -  2,062 Short-term investments 941,610  917,165 Accounts receivable, net 2,191,178  2,191,126 Prepayments and other assets 2,192,928  2,172,378 Amounts due from related parties 283,123  264,262 Licensed copyrights, net 388,718  579,132  Total current assets  9,527,236    9,455,833        Non-current assets:    Fixed assets, net 877,982  839,284 Long-term investments 2,108,477  1,978,055 Deferred tax assts, net 23,536  21,197 Licensed copyrights, net 6,930,053  6,669,903 Intangible assets, net 289,861  252,596 Produced content, net 14,707,869  14,484,001 Prepayments and other assets 2,913,919  4,470,231 Operating lease assets 609,832  513,704 Goodwill 3,820,823  3,820,823 Amounts due from related parties 3,950,937  3,859,086  Total non-current assets 36,233,289  36,908,880      Total assets 45,760,525  46,364,713      LIABILITIES AND SHAREHOLDERS’ EQUITY    Current liabilities:    Accounts and notes payable 6,482,209  6,956,061 Amounts due to related parties 3,239,036  3,361,596 Customer advances and deferred revenue 4,403,686  4,457,113 Convertible senior notes, current portion 242,460  1,483,936 Short-term loans 3,786,901  2,757,119 Long-term loans, current portion 167,987  717,991 Operating lease liabilities, current portion 96,675  81,728 Accrued expenses and other liabilities 3,058,379  2,725,586  Total current liabilities  21,477,333   22,541,130 Non-current liabilities:    Long-term loans 1,036,835  2,300,177 Convertible senior notes 8,350,570  6,739,446 Amounts due to related parties 59,226  49,057 Operating lease liabilities 461,974  363,730 Other non-current liabilities 1,000,823  860,803  Total non-current liabilities  10,909,428    10,313,213       Total liabilities 32,386,761   32,854,343            Shareholders’ equity:         Class A ordinary shares 238  238 Class B ordinary shares 193  193 Additional paid-in capital 55,623,841  55,842,259 Accumulated deficit (43,809,369) (43,760,932)Accumulated other comprehensive income 1,550,523  1,438,027 Non-controlling interests 8,338  (9,415)Total shareholders’ equity  13,373,764    13,510,370       Total liabilities and shareholders' equity 45,760,525   46,364,713   iQIYI, INC.Condensed Consolidated Statements of Cash Flows (In RMB thousands, except for number of shares and per share data)  Three Months Ended June 30, March 31, June 30, 2024 2025 2025 RMB RMB RMB (Unaudited) (Unaudited) (Unaudited)      Net cash provided by/(used for) operating activities410,752  338,950  (12,731)Net cash provided by/(used for) investing activities (1,2)336,256  (30,136) (114,005)Net cash provided by/(used for) financing activities865,894  860,477  (465,256)Effect of exchange rate changes on cash, cash equivalents and restricted cash23,113  (1,232) (27,881)Net increase/(decrease) in cash, cash equivalents and restricted cash1,636,015  1,168,059  (619,873)Cash, cash equivalents and restricted cash at the beginning of the period6,271,368  3,590,331  4,758,390 Cash, cash equivalents and restricted cash at the end of the period7,907,383  4,758,390  4,138,517 Reconciliation of cash and cash equivalents and restricted cash:     Cash and cash equivalents6,301,808  4,320,028  3,329,708 Restricted cash-  1,899  2,062 Long-term restricted cash1,605,575  436,463  806,747 Total cash and cash equivalents and restricted cash shown in the statements of cash flows7,907,383  4,758,390  4,138,517       Net cash provided by/(used for) operating activities410,752  338,950  (12,731)Less: Capital expenditures (2)(28,299) (31,252) (21,410)Free cash flow382,453  307,698  (34,141) (1)   Net cash provided by or used for investing activities primarily consists of net cash flows from investing in debt securities, purchase of long-term investments and capital expenditures.(2)   Capital expenditures are incurred primarily in connection with construction in process, computers and servers. iQIYI, INC.Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures(Amounts in thousands of Renminbi (“RMB”), except for per ADS information, unaudited)  Three Months Ended June 30, March 31, June 30, 2024 2025 2025 RMB RMB RMB      Operating income/(loss)342,093  341,897  (46,168)Add: Share-based compensation expenses157,791  115,105  103,313 Add: Amortization of intangible assets(1)1,533  1,533  1,533 Operating income (non-GAAP)501,417  458,535  58,678       Net income/(loss) attributable to iQIYI, Inc.68,685  182,145  (133,708)Add: Share-based compensation expenses157,791  115,105  103,313 Add: Amortization of intangible assets(1)1,533  1,533  1,533 Add: Impairment of long-term investments16,591  2,000  25,950 Add: Fair value loss/(gain) of long-term investments2,577  (1,740) 17,564 Add: Reconciling items on equity method investments-  5,377  - Add: Tax effects on non-GAAP adjustments(2)(263) -  - Net income attributable to iQIYI, Inc. (non-GAAP)246,914  304,420  14,652       Diluted net income/(loss) per ADS 0.07  0.19  (0.14)Add: Non-GAAP adjustments to earnings per ADS0.18  0.12  0.16 Diluted net income per ADS (non-GAAP)0.25  0.31  0.02  (1)    This represents amortization of intangible assets resulting from business combinations.(2)    This represents tax impact of all relevant non-GAAP adjustments.

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