iQiYi, Chinese Video Streamer, Swings Deeper Into Loss
iQiYi, a prominent Chinese streaming platform, faced a challenging third quarter in 2025 with an 8% revenue decline and increased losses. Despite these financial setbacks, the company continues to emphasize its leadership in the drama market and its expanding international operations.
Total revenues for the quarter dropped to RMB6.68 billion ($938.7 million), showing a slight improvement from the previous quarter’s 11% decline. iQiYi reported a net loss of RMB248.9 million ($35 million), a significant contrast from the net income of RMB229.4 million ($32.2 million) in the same period in 2024. Operating loss also deteriorated to RMB121.8 million ($17.1 million) from an operating income of RMB238.9 million ($33.5 million) in Q3 2024.
Despite these challenges, CEO Yu Gong remains optimistic about the company’s future. Gong highlighted the success of recent drama hits and the company’s ability to create high-quality content that resonates with a wide audience. He emphasized iQiYi’s focus on expanding its IP-centric ecosystem both domestically and internationally, utilizing advanced technologies like AI to innovate content creation and consumption.
CFO Jun Wang pointed out the positive growth in overseas operations and the company’s continued dominance in the domestic market. iQiYi maintained the top position in total drama viewership market share for the third quarter of 2025, according to Enlightent data.
Membership services revenue saw a 4% decline year over year, attributed to a lighter content slate compared to the previous year. Online advertising services revenue also fell by 7%, with solid growth in brand advertising offset by declines in performance-based advertising.
Content distribution revenue dropped by 21%, primarily due to decreases in drama series distribution revenue. Cost of revenues decreased by 3%, with content costs declining by 1% and research and development expenses falling by 8%.
As of September 30, iQiYi held cash, cash equivalents, and investments amounting to RMB4.88 billion ($686 million), down from the previous quarter. 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 strengthening its position in the market, expanding its international presence, and continuing to deliver compelling content to its viewers.
