iQiYi, Chinese Video Streamer, Swings Deeper Into Loss as Q3 Revenues Drop 8%, but Chiefs Tout Content Wins

Chinese streaming giant iQiYi posted an 8% revenue decline and deepened losses in the third quarter of 2025, though executives emphasized the platform’s drama market leadership and growing international operations.

Total revenues fell to RMB6.68 billion ($938.7 million) for the quarter ended Sept. 30, the company said. That compares to a steeper 11% drop in the previous quarter, when revenues hit RMB6.63 billion ($925.3 million).

The company reported a net loss attributable to iQiYi of RMB248.9 million ($35 million), compared to net income of RMB229.4 million ($32.2 million) in the same period in 2024. The loss widened from the previous quarter’s RMB133.7 million ($18.7 million) deficit.

Operating loss was RMB121.8 million ($17.1 million), compared to operating income of RMB238.9 million ($33.5 million) in Q3 2024. This marked a deterioration from the previous quarter’s operating loss of RMB46.2 million ($6.4 million).

Despite the financial headwinds, CEO Yu Gong struck a positive note. “The success of our recent drama hits underscores our consistent ability to amplify IP value through high-quality storytelling and advanced production, to connect with broad audiences, and to build our business model with IP at its core,” said Gong, the company’s founder and director. “We continue to scale our IP-centric ecosystem by expanding from online to offline, growing from domestic to overseas markets, and leveraging AI to revolutionize content creation and consumption.”

CFO Jun Wang highlighted market gains. “Our investments in new initiatives have started to bear fruit, as demonstrated by the robust growth of our overseas operations in recent quarters,” Wang said. “Meanwhile, we have maintained our leadership in the domestic market, holding the top position in total drama viewership market share for the third quarter of 2025, according to Enlightent data.”

Membership services revenue declined 4% year over year to RMB4.21 billion ($591.7 million), an improvement from the prior quarter’s 9% drop. The company attributed the decline primarily to a lighter content slate compared to the same period last year.

Online advertising services revenue fell 7% to RMB1.24 billion ($174.3 million), also an improvement over Q2’s 13% decline. Brand advertising business achieved solid year-over-year growth, though this was offset by decreases in performance-based advertising.

Content distribution revenue dropped 21% to RMB644.5 million ($90.5 million). Revenue from distribution of theatrical movies invested by iQiYi recorded robust year-over-year growth, but this was offset by declining drama series distribution revenue. Other revenues fell 20% to RMB585 million ($82.2 million), mainly due to altered business cooperation arrangements.

Cost of revenues decreased 3% to RMB5.47 billion ($768 million), with content costs declining 1% to RMB4.04 billion ($567.9 million). Research and development expenses fell 8% to RMB412.1 million ($57.9 million), primarily due to reduced personnel-related compensation.

As of Sept. 30, iQiYi held cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash of RMB4.88 billion ($686 million), down from $705.7 million at the end of the previous quarter. The company also had a loan of $522.5 million to PAG, recorded under amounts due from related parties.