Chinese streaming giant iQiYi faced a challenging third quarter in 2025, with an 8% decline in revenue and increased losses. Despite this, the company’s executives remain optimistic about their position in the drama market and the growth of their international operations.
Total revenues for the quarter dropped to RMB6.68 billion ($938.7 million), compared to a steeper decline in the previous quarter. The company reported a net loss of RMB248.9 million ($35 million), a significant contrast to the net income in the same period the previous year.
CEO Yu Gong emphasized the success of their recent drama hits and their ability to amplify intellectual property value through high-quality storytelling. He mentioned the company’s focus on expanding from online to offline, growing in overseas markets, and utilizing AI to enhance content creation and consumption.
CFO Jun Wang highlighted the positive results of their investments in new initiatives, particularly in overseas operations. He also mentioned the company’s continued leadership in the domestic market, holding the top position in total drama viewership market share for the third quarter of 2025.
Membership services revenue declined by 4% year over year, attributed to a lighter content slate. Online advertising services revenue also fell by 7%, with decreases in performance-based advertising offsetting growth in brand advertising.
Content distribution revenue saw a significant drop of 21%, primarily due to declining drama series distribution revenue. Other revenues fell by 20% due to altered business cooperation arrangements.
Cost of revenues decreased by 3%, with content costs declining by 1%. Research and development expenses also fell by 8%, mainly due to reduced personnel-related compensation.
As of September 30, iQiYi held cash, cash equivalents, and investments totaling RMB4.88 billion ($686 million). The company also had a loan of $522.5 million to PAG, recorded under amounts due from related parties.
Despite the financial challenges, iQiYi remains focused on innovation and growth, aiming to strengthen its position in the streaming market both domestically and internationally.
