iQIYI(US:IQ) Huan Qiu Wang Zi Xun·2025-08-20 12:40Core Insights - iQIYI reported total revenue of 6.63 billion RMB for Q2, with membership services contributing 4.09 billion RMB, online advertising services 1.27 billion RMB, content distribution 440 million RMB, and other revenues 830 million RMB [1][2] - The company maintained Non-GAAP operating profit of 58.7 million RMB for the 14th consecutive quarter, while net profit attributable to iQIYI was 14.7 million RMB [3] - iQIYI's CEO highlighted the success of popular content during the summer season, with a focus on innovation and investment in AI applications, micro-dramas, and overseas business for sustainable growth [1] Revenue Breakdown - Membership services accounted for the largest share of revenue at 61.7%, followed by online advertising at 19.2%, content distribution at 6.6%, and other revenues at 12.5% [1] - The total cost for the quarter was 5.29 billion RMB, a year-on-year decrease of 7%, with content costs being the largest component at 3.78 billion RMB [2] Content Performance - iQIYI launched several successful self-produced micro-dramas, including "The Love That Cannot Escape" and "What Kind of Body," with the first IP adaptation micro-drama achieving a peak content popularity score of 5,500 [2] - The company has a content reserve of approximately 15,000 micro-dramas, indicating a strong pipeline for future releases [2] Financial Position - As of June 30, 2025, iQIYI's cash balance totaled 5.06 billion RMB, which includes cash, cash equivalents, short-term restricted funds, short-term investments, and long-term restricted funds within prepaid and other assets [3]