BIDU(US:BIDU) Jin Rong Jie·2025-08-21 04:08Core Insights - Baidu reported a total revenue of 32.7 billion yuan (approximately 4.57 billion USD) for Q2 2025, representing a year-on-year decline of 4% [2] - The net profit attributable to Baidu was 7.3 billion yuan (approximately 1.02 billion USD), an increase from 5.5 billion yuan in the same period last year [7] Financial Performance - Total revenue for Q2 2025 was 32.7 billion yuan (approximately 4.57 billion USD), down 4% year-on-year [2] - Revenue from "Baidu Core" reached 26.3 billion yuan (approximately 3.66 billion USD), a decline of 2% year-on-year [2] - Online marketing revenue was 16.2 billion yuan (approximately 2.27 billion USD), down 15% year-on-year [2] - Non-online marketing revenue was 10 billion yuan (approximately 1.4 billion USD), up 34% year-on-year, driven mainly by AI cloud business [2] - Revenue from iQIYI was 6.6 billion yuan (approximately 926 million USD), down 11% year-on-year [2] Cost and Expenses - Cost of revenue was 18.4 billion yuan (approximately 2.56 billion USD), an increase of 12% year-on-year [3] - Selling, general and administrative expenses were 6 billion yuan (approximately 832 million USD), up 5% year-on-year [4] - R&D expenses were 5.1 billion yuan (approximately 715 million USD), down 13% year-on-year [5] Profitability Metrics - Operating profit was 3.3 billion yuan (approximately 457 million USD) with an operating margin of 13% [5] - Non-GAAP operating profit was 4.4 billion yuan (approximately 620 million USD) [5] - Net profit margin for "Baidu Core" was 28% with a net profit of 7.4 billion yuan (approximately 1.03 billion USD) [7] Cash Flow and Financial Position - As of June 30, 2025, Baidu held cash, cash equivalents, restricted cash, and short-term investments totaling 124.2 billion yuan (approximately 17.34 billion USD) [8] - Free cash flow for Q2 was negative 4.7 billion yuan (approximately negative 635 million USD), primarily due to increased investments in AI business [8] - Net cash held by Baidu was 155.1 billion yuan (approximately 21.66 billion USD) as of June 30, 2025 [9]