Chinese video streaming service iQiYi experiences financial setback, reporting a 12% decrease in Q2 earnings
Streaming giant iQiyi has released its financial results for the second quarter of 2025, revealing a mixed bag of results.
In a significant decline, the company's operating income dropped to $8.2 million, a stark contrast to the $70 million recorded in the same period last year. This decrease was largely driven by a drop in content distribution revenues, which fell by 37% to $60.9 million. Advertising revenue also took a hit, decreasing by 13% to $177.6 million.
However, membership services continued to be a strong revenue driver for iQiyi, contributing $571 million to the company's revenues, albeit a 9% decrease compared to the same period last year. Other revenues, such as those from AI applications, micro dramas, experience business, and global expansion, grew by 6% to $115.8 million.
iQiyi's net loss for Q2 2025 was not specified in the report. The company's profit or loss before taxes, depreciation, and amortization (EBITDA) was also not reported. Free cash flow slipped into the red at negative $4.8 million, compared to positive $53.4 million in the prior-year quarter.
Despite the financial challenges, CFO Jun Wang stated that the company effectively managed resources and optimized its capital structure, with net interest expense consistently declining over the last seven consecutive quarters. This, according to Wang, better positions iQiyi for long-term value creation.
iQiyi posted a revenue decline in Q2 2025, with total revenues falling by 11% year over year to RMB6.63 billion ($925.3 million). The company's outstanding debt includes $0.1 million of 2026 notes, $522.5 million of PAG Notes, $208.1 million of 2028 notes, and $350 million of 2030 notes.
In a positive note, iQiyi delivered a series of blockbusters and secured the top market share in total drama viewership, according to Enlightent data, during the second quarter and summer season. The CEO of iQiyi during this quarter was Gong Yu. The company also repurchased $85 million in 2028 notes during the quarter.
As of June 30, iQiyi held $705.7 million in cash, equivalents, restricted cash, and investments. Non-GAAP net income was $2 million in Q2 2025, down from $34.5 million in the same period last year. Net loss attributable to iQiyi was $18.7 million in Q2 2025, compared to net income of $9.6 million in Q2 2024. The company reported an operating loss of $6.4 million in Q2 2025, compared to operating income of $47.8 million in the same period last year.
iQiyi remains focused on innovation and investing in key growth areas to drive sustainable, long-term success. The company continues to explore opportunities in AI applications, micro dramas, experience business, and global expansion.
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