iQIYI(US:IQ) Xin Lang Cai Jing·2025-08-25 04:31Core Viewpoint - iQIYI's overall performance in Q2 has worsened, transitioning from profit to loss, with continuous revenue decline [1][3] Revenue Performance - In Q2, iQIYI reported total revenue of 6.628 billion yuan, a year-on-year decrease of 11%, equating to a drop of over 800 million yuan [3] - Membership revenue, a significant portion of total revenue, fell by 9% year-on-year to 4.09 billion yuan, while advertising revenue decreased by 13% to 1.27 billion yuan, and content distribution revenue dropped by 37% to 437 million yuan [3][4] - The company experienced a net loss of 134 million yuan in Q2, compared to a net profit of 68.7 million yuan in the same period last year, indicating a shift from profit to loss [3] Strategic Challenges - iQIYI is facing challenges with member user attrition and declining membership revenue, a trend also observed across other long-video platforms [4] - The CEO has acknowledged a significant loss of viewers for dramas on both television and online platforms over the past few years [4] - In response to current challenges, iQIYI is strategically pivoting towards short dramas, although competition in this segment is intense [4] Future Outlook - The CEO indicated that iQIYI is expected to release popular content leading into the summer season, raising questions about Q3 performance [5] - Despite recent setbacks, iQIYI maintains a strong user base, reputation, and exclusive resources, having previously achieved profitability in Q1 2022 after a long period of losses [5]