Core Viewpoint - iQIYI reported a solid first quarter for 2025, with total revenues and operating income showing sequential growth, although year-over-year comparisons indicate a decline in key financial metrics [3][6]. Financial Highlights - Total revenues for Q1 2025 were RMB 7.19 billion (approximately US$990.3 million), a decrease of 9% year-over-year [6][7]. - Operating income was RMB 341.9 million (US$47.1 million), with an operating income margin of 5%, down from 12% in the same period of 2024 [6][12]. - Non-GAAP operating income was RMB 458.5 million (US$63.2 million), with a margin of 6%, compared to 14% in Q1 2024 [6][12]. - Net income attributable to iQIYI was RMB 182.1 million (US$25.1 million), a significant drop from RMB 655.3 million in Q1 2024 [6][14]. - Non-GAAP net income attributable to iQIYI was RMB 304.4 million (US$42.0 million), down from RMB 844.3 million in the same period last year [6][15]. Revenue Breakdown - Membership services revenue was RMB 4.40 billion (US$606.2 million), an 8% decrease year-over-year, attributed to a lighter content slate [7]. - Online advertising services revenue was RMB 1.33 billion (US$183.0 million), down 10% year-over-year, primarily due to a decline in brand advertising [8]. - Content distribution revenue fell by 32% year-over-year to RMB 628.7 million (US$86.6 million), mainly due to reduced revenue from drama series [9]. - Other revenues increased by 16% year-over-year to RMB 830.9 million (US$114.5 million), driven by growth in certain business lines [9]. Cost and Expenses - Cost of revenues was RMB 5.41 billion (US$745.0 million), a decrease of 4% year-over-year, with content costs at RMB 3.79 billion (US$522.5 million), down 7% [10]. - Selling, general and administrative expenses rose by 11% year-over-year to RMB 1.03 billion (US$141.4 million), primarily due to increased marketing spending [11]. - Research and development expenses decreased by 4% year-over-year to RMB 412.5 million (US$56.8 million) [11]. Cash Flow and Balance Sheet - Net cash provided by operating activities was RMB 339.0 million (US$46.7 million), down from RMB 937.8 million in Q1 2024 [16]. - Free cash flow was RMB 307.7 million (US$42.4 million), compared to RMB 915.3 million in the same period last year [16]. - As of March 31, 2025, the company had cash and cash equivalents totaling RMB 5.70 billion (US$786.1 million) [17].