iQIYI (IQ.US) Releases 2026 Q2 Financial Report: Total Revenue of 6.29 Billion RMB, Fully Committed to Strategic Transformation

On August 18, iQIYI (IQ.US) released its unaudited financial results for the second quarter ending June 30, 2026. In Q2, iQIYI’s total revenue reached RMB 6.29 billion, an increase of 1% quarter-on-quarter. Of this, membership services revenue was RMB 4.01 billion, online advertising services revenue was RMB 1.25 billion, content distribution revenue was RMB 680 million, and other revenues were RMB 340 million.

iQIYI founder and CEO Gong Yu stated: “In the second quarter, iQIYI consolidated its leading edge in the content sector while simultaneously advancing strategic transformation. In the domestic market, iQIYI continued to lead the industry in Yunhe market share for long-form dramas, movies, and children's content, with Chinese dramas achieving the number one Yunhe market share for the first time in June. Our two strategic focuses—pivoting towards a decentralized social media platform and fully embracing AI—are starting to deliver results. We look forward to further leveraging AI to empower our content ecosystem and improve financial performance.”

iQIYI’s CFO, Tian Ying, commented: “In the second quarter, our financial performance improved quarter-on-quarter, with total revenue increasing 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-powered content innovation and creator ecosystem development. Since its official commercial launch in April, the professional film and television production platform Natou Pro has gradually released new features such as Scriptwriting Assistant, 3D Directing Studio, and a Creator Community, and has been officially integrated with iQIYI Hao, enabling one-stop operations from creation to distribution. The one-stop creation and operation platform for content creators—iQIYI Hao—supports creators to join and publish short videos, short dramas, comics, documentaries, movies, long-form dramas, and Chinese dramas with zero entry barriers. Supported by iQIYI’s core user base, a mature industrial system, abundant viewing data, and copyright resources across the ecosystem, it helps creators “be discovered, earn income, and gain recognition.” Every day, tens of thousands of creators upload various works and conduct live streaming on iQIYI Hao.

In Q2, iQIYI continued to deliver outstanding content in its core areas, maintaining the top industry share in Yunhe for long-form dramas, movies, and children's content, and achieving significant breakthroughs in Chinese dramas. For long-form dramas, iQIYI’s original series “Low IQ Crimes” creatively merged comedy and suspense, earning a content popularity index of over 10,000. Both “Family Business” and “Southern Archives” registered popularity indices of over 9,300, garnering high popularity and strong word-of-mouth. At the 31st Shanghai TV Festival Magnolia Awards announced in June, iQIYI’s six productions and their outstanding creators won a total of 14 awards. In Q2, iQIYI’s self-produced Chinese drama “Soul Ferry: Ten Years” achieved a daily Yunhe market share peak exceeding 60%, driving iQIYI’s Yunhe market share for Chinese dramas to the industry’s top spot for the first time in June. During the quarter, iQIYI also released a series of outstanding movies, variety shows, short dramas, animations, and children’s programs. iQIYI’s original films “Counterfeit Crime” and “Chasing Evil” received strong responses. The variety show “HaHaHaHaHa 6” achieved a content popularity index of over 9,000, setting a new series high; “Rap Peak Showdown 2026” recorded a popularity index exceeding 8,800. Vertical short dramas such as “All About Secretary Li,” “Kind of Like You,” and “Phoenix Edge,” original animation “Against the Gods: Annual Edition,” and the latest installment of the children’s show “Invincible Deer Squad” were also widely welcomed.

In the quarter, iQIYI’s operating costs amounted to RMB 5.25 billion. As the main component of costs, content expenses were RMB 3.82 billion, a year-on-year increase of 1%. Sales and management expenses and R&D expenses for the quarter were RMB 740 million and RMB 400 million, respectively.

During Q2, under Non-GAAP (non-US GAAP) standards, the operating loss was approximately RMB 30.3 million, significantly narrowed from RMB 150 million in the previous quarter. iQIYI’s operating cash flow improved, generating net cash inflow of RMB 340 million for the quarter, 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, short-term restricted funds, and short-term investments) totaled approximately RMB 4.12 billion. In March, iQIYI launched a share repurchase program with a cap of USD 100 million and a validity of 18 months. As of June 30, about 21.8 million ADS (American Depositary Shares) had been repurchased, at a total cost of USD 24.1 million.