iQIYI Releases Q2 2026 Earnings: Total Revenue of RMB 6.29 Billion, Fully Advancing Strategic Transformation

On August 18, iQIYI $iQIYI(IQ.US) released its unaudited financial results for the second quarter ended June 30, 2026. Total revenue for Q2 reached RMB 6.29 billion, a 1% increase quarter-over-quarter (QoQ). This comprised membership service revenue of RMB 4.01 billion, online advertising service revenue of RMB 1.25 billion, content distribution revenue of RMB 680 million, and other revenues of RMB 340 million.

Gong Yu, founder and CEO of iQIYI, stated: "In Q2, iQIYI consolidated its leading position in the content sector while advancing strategic transformation. In the domestic market, iQIYI continued to lead the industry in cloud market share for long-form series, movies, and children's content, with mid-length dramas claiming the top spot in June for the first time. The two key strategies—transitioning to decentralized social media and fully investing in AI—are showing initial results. We look forward to further leveraging AI to empower our content ecosystem and improve financial performance."

Tian Ying, CFO of iQIYI, added: "In Q2, our financial performance improved QoQ, with total revenue rising and operating losses narrowing significantly. Meanwhile, we implemented a share repurchase program, demonstrating our commitment to creating long-term value for shareholders."

iQIYI has achieved further breakthroughs in AI-driven content innovation and creator ecosystem development. The professional film and television production platform, Nadou Pro, officially entered commercial use in April, rolling out new features such as a scriptwriting assistant, a 3D director console, and a creator community. It is now fully integrated with iQIYI Hao, enabling one-stop operations from creation to distribution. iQIYI Hao, a one-stop platform designed for content creators, allows creators to join and publish short videos, micro-dramas, comic dramas, documentaries, movies, long-form series, and mid-length dramas with zero barriers. Supported by iQIYI's core user base, mature industrial systems, massive viewing data, and extensive copyright resources, the platform helps creators get seen, earn money, and gain recognition. Currently, tens of thousands of creators upload various works and host live streams on iQIYI Hao daily.

Q2 saw a steady stream of high-quality content across iQIYI's core tracks, maintaining its #1 cloud market share in long-form series, movies, and children's content, with significant breakthroughs in mid-length dramas. In long-form series, iQIYI's production 'Low IQ Crime' innovatively blended comedy and suspense elements, achieving a content heat index over 10,000. Two other series, 'Family Business' and 'Southern Archives', both exceeded a heat index of 9,300, garnering high popularity and critical acclaim. At the 31st Shanghai TV Festival Magnolia Awards announced in June, six iQIYI-produced or broadcast works and their outstanding creative teams won a total of 14 awards. During Q2, iQIYI's mid-length drama 'The Soul Steamer: Ten Years' peaked at over 60% cloud market share on a single day, driving iQIYI's mid-length drama cloud market share to #1 in the industry for the first time in June. The quarter also saw the launch of a series of excellent movies, variety shows, short dramas, animations, and children's programs. Movies like 'Counterfeit Case' and 'Chasing Evil' received enthusiastic responses. Variety show 'Hello! My Name Is... Season 6' hit a heat index of over 9,000, setting a new record for the franchise, while 'Rap Super Battle 2026' surpassed 8,800. Popular vertical short dramas included 'Everything About Secretary Li', 'Zhong Yi Ni', and 'Phoenix Blade', alongside self-produced animation 'Against the Gods Annual Series' and the sequel to the children's show 'Invincible Deer Squad'.

Operating costs for the quarter stood at RMB 5.25 billion. Content costs, the primary component, totaled RMB 3.82 billion, up 1% year-over-year (YoY). Selling, general, and administrative expenses were RMB 740 million, and R&D expenses were RMB 400 million.

Under Non-GAAP standards, operating losses narrowed significantly to approximately RMB 30.3 million in Q2, down from RMB 150 million in the previous quarter. iQIYI's operating cash flow improved, with net cash inflow from operating activities reaching RMB 340 million in Q2, compared to a net outflow of RMB 12.7 million in the same period of 2025.

As of June 30, iQIYI's cash balance (including cash, cash equivalents, restricted short-term funds, and short-term investments) totaled approximately RMB 4.12 billion. In March, iQIYI launched a share repurchase program with a total cap of $100 million and a validity period of 18 months. By June 30, it had repurchased approximately 21.8 million ADSs (American Depositary Shares) at a total cost of $24.1 million.