iQIYI(US:IQ) Zheng Quan Shi Bao Wang·2025-11-18 14:20Core Insights - iQIYI reported a revenue of 6.68 billion yuan for Q3 2025, marking an approximately 8% year-over-year decline, continuing a trend of revenue decrease for the third consecutive quarter since Q1 2025 [1] - The total revenue for the first three quarters of 2025 was approximately 20.5 billion yuan, reflecting a nearly 9% year-over-year decline [1] - The company experienced a net loss of nearly 250 million yuan in Q3 2025, compared to a net profit of 230 million yuan in the same period last year [1] Revenue Breakdown - Membership service revenue for Q3 2025 was 4.21 billion yuan, down approximately 4% year-over-year [1] - Content distribution revenue fell significantly to about 640 million yuan, a decline of approximately 21% year-over-year [1] - Despite the success of the film "Catching the Wind," the overall performance of the content distribution segment was negatively impacted by a decline in series-related content distribution revenue [1] Operational Performance - iQIYI had previously achieved operational profitability for three consecutive years leading up to 2024, with 2023 marking a record year for total revenue, operating profit, net profit, and cash flow [2] - The company’s total revenue for 2024 was 29.23 billion yuan, a decrease of about 2.6 billion yuan compared to 2023 [2] - The average revenue per member (ARM) has shown consistent quarter-over-quarter growth for five consecutive quarters [2] Future Outlook - CEO Gong Yu expressed optimism about AI's potential to transform the internet video industry, indicating that iQIYI is actively applying AI to enhance operational efficiency, monetization capabilities, content production, and user experience [2] - The company is confident in the growth of its membership business, attributing recent improvements to high-quality content, enhanced member benefits, and optimized marketing strategies [3] Stock Performance - iQIYI's stock price has seen a significant decline, closing at $2.05 per share, reaching historical lows, with a market capitalization of approximately $2 billion [3] - Following the earnings report on November 18, iQIYI's stock dropped nearly 2% in pre-market trading [3]