Chinese streaming giant iQiYi posted an 8% revenue decline in the third quarter of 2025, widening its deficit, but executives emphasized the platform’s leadership in the drama market and growth in its international business.
The company said total revenue for the quarter ended Sept. 30 fell to RMB6.68 billion ($938.7 million). This was an even sharper decline compared to the 11% decline in the previous quarter, when sales reached RMB 6.63 billion ($925.3 million).
The company reported a net loss attributable to iQiYi of RMB 248.9 million ($35 million), compared to a net profit of RMB 229.4 million ($32.2 million) for the same period in 2024. The loss widened from a loss of RMB 133.7 million ($18.7 million) in the previous quarter.
Operating loss was RMB 121.8 million ($17.1 million) and operating profit for the third quarter of 2024 was RMB 238.9 million ($33.5 million). This worsened from an operating loss of RMB46.2 million ($6.4 million) in the previous quarter.
Despite the economic headwinds, CEO Yu Gong remained upbeat. “The success of our recent drama hits confirms our consistent ability to amplify the value of IP through high-quality storytelling and advanced production, connect with a wide audience, and build business models with IP at the core,” said Gong, the company’s founder and director. “We will continue to expand our IP-centric ecosystem by expanding from online to offline, growing from domestic to international markets, and leveraging AI to revolutionize the creation and consumption of content.”
CFO Jun Wang highlighted market gains. “Our investments in new initiatives are beginning to bear fruit, as evidenced by the strong growth of our overseas operations in recent quarters,” Wang said. “Meanwhile, we maintain our domestic market leadership and maintain our top spot in total drama viewership market share in the third quarter of 2025, according to Enlightent data.”
Membership services revenue decreased 4% year-on-year to RMB4.21 billion ($591.7 million), improving from a 9% decline in the previous quarter. The company cited a lack of content compared to the same period last year as the main reason for this decline.
Revenue from online advertising services fell 7% to RMB 1.24 billion ($174.3 million), also an improvement from the 13% decline in the second quarter. The brand advertising business achieved solid year-on-year growth, offset by a decline in programmatic advertising.
Content distribution revenue decreased by 21% to RMB 644.5 million ($90.5 million). Distribution revenue for theatrical films invested by iQiYi recorded strong year-over-year growth, offset by a decline in distribution revenue for drama series. Other revenue decreased by 20% to RMB585 million ($82.2 million), primarily due to changes in business cooperation agreements.
Cost of revenue decreased by 3% to RMB 5.47 billion ($768 million), and content expenses decreased by 1% to RMB 4.04 billion ($567.9 million). Research and development expenses decreased by 8% to RMB412.1 million ($57.9 million), mainly due to lower personnel-related compensation.
As of Sept. 30, iQiYi had cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash of 4.88 billion yuan ($686 million), down from $705.7 million at the end of the previous quarter. The company also has a $522.5 million loan to PAG, which is recorded as an amount owed by related parties.
