iQIYI, Inc. Sponsored ADR Class A(IQ.US) releases 2025Q4 and full year financial reports: Q4 revenue growth doubled both quarter-on-quarter and year-on-year, strengthening core business and accelerating growth in emerging businesses and AI in 2026.

On February 26th, iQIYI, Inc. Sponsored ADR Class A (IQ.US) released its unaudited fourth quarter and full year financial report as of December 31, 2025. The total annual revenue for the year was 27.29 billion RMB, with a Non-GAAP operating profit of 0.64 billion RMB, marking four consecutive years of operating profit. In the fourth quarter, iQIYI, Inc. Sponsored ADR Class A total revenue was 6.79 billion RMB, achieving double growth compared to the previous quarter. The Non-GAAP operating profit was 0.14 billion RMB. In 2025, iQIYI, Inc. Sponsored ADR Class A continued to produce high-quality content, with the annual effective viewing market share of the Cloud Alliance series ranking first. Five series under iQIYI, Inc. Sponsored ADR Class A had a content heat value exceeding 10,000. The serialization of iQIYI, Inc. Sponsored ADR Class AIP also achieved a breakthrough, expanding from creating individual hit products to building a diverse IP matrix covering different content forms and scenarios. The content heat value for "The Records of Strange Events in the Tang Dynasty: Chang'an" broke 10,000, establishing the "Tang Gui" IP as a model for the development of a diverse IP portfolio including long-form, medium-form, short-form content, and offline experiences. While consolidating its domestic core business, the overseas business within the emerging business sector showed strong growth potential in 2025, becoming a sustainable and scalable "second growth curve." Annual membership revenue in overseas markets grew by over 30%, with a 40% year-over-year growth rate in the second half of the year, setting a new record for total members. iQIYI, Inc. Sponsored ADR Class A is building a diverse entertainment ecosystem through experiential businesses to create a new engine for long-term value creation: in 2025, the IP consumer goods business model evolved from a single IP authorization model to a "self-operated + authorized" parallel model, with the first iQIYI, Inc. Sponsored ADR Class A theme park opening on February 8, 2026 in Yangzhou to an enthusiastic response from visitors. Gong Yu, founder and CEO of iQIYI, Inc. Sponsored ADR Class A, stated, "In the fourth quarter, our IP-focused strategy strengthened user engagement and market leadership on the platform, driving financial performance with total revenue achieving double growth compared to the previous quarter. As we enter 2026, we will continue to enhance content quality, strengthen membership and advertising business, solidify our domestic core business; accelerate growth in overseas and experiential business, utilize AI to create a vibrant content ecosystem, and enrich the ecosystem with supplementary AIGC content." The core content track maintains its lead with IP serialization securing both critical and commercial success. Content is the cornerstone of iQIYI, Inc. Sponsored ADR Class A's development. In the fourth quarter, high-quality content continued to emerge, cementing iQIYI, Inc. Sponsored ADR Class A's position as the top platform for long-form content in the Cloud Alliance series, with breakthroughs in IP serialization. "The Records of Strange Events in the Tang Dynasty" became the first IP to surpass 10,000 heat values for two consecutive seasons, with "The Records of Strange Events in the Tang Dynasty: Chang'an" ranking first in advertising revenue and second in membership revenue among new 2025 releases. Short-form dramas "The County Prefect of Chang'an in the Strange Tales of the Tang Dynasty" and "The Nine-Story Tower in the Strange Tales of the Tang Dynasty" continued to break records for short-form content heat values. These short dramas had over 70% of viewers watching the series, demonstrating the effectiveness of a diversified content portfolio to extend the IP lifecycle. In the beginning of 2026, the crime thriller "Punishment 2" surpassed 10,000 heat values, making "Punishment" the second serialized IP to achieve 10,000 heat values across two seasons for iQIYI, Inc. Sponsored ADR Class A. On the film front, iQIYI, Inc. Sponsored ADR Class A-produced theatrical film "Chasing Shadows" continued its success from offline to online platforms, topping the list for fourth quarter film heat values. "The Great Cash Theft" achieved a new high in online film heat values, while a variety of theatrical films including "Nanjing Photo Studio," "The Wandering Mountain Monster," "Adventures," and "Light as a Feather" were streamed online in the fourth quarter. These excellent film works collectively contributed to iQIYI, Inc. Sponsored ADR Class A's film Cloud Alliance maintaining the top effective viewing market share for sixteen consecutive quarters. In terms of variety shows, both traditional and innovative programs performed well. "Hello Young Farmers 3" set a new heat value record for the series, while the new variety show "Blinking Universe" achieved a heat value of over 8300 in the fourth quarter. Cloud Alliance data shows that in 2025, three traditional variety shows entered the top 10 in cumulative effective viewing rankings, and two new variety shows ranked in the top 3. In 2026, iQIYI, Inc. Sponsored ADR Class A will continue to deepen its long-term operations in traditional variety shows while exploring innovative IP development. In other content categories, iQIYI, Inc. Sponsored ADR Class A has a reserve of 20,000 short dramas, with over 70% being free content. The production of original short dramas exceeded 150 in total, contributing to record-high membership and distribution income in the fourth quarter. In 2026, the focus will be on refining the quality and innovation of original short-form content, while enhancing operational and commercial capabilities. The platform is centered around free content, focusing on the manhua (comics) business. Currently, iQIYI, Inc. Sponsored ADR Class A has a reserve of over 10,000 manhua content pieces, with rapid growth in user base and viewing time. In the new year, the anime of iQIYI, Inc. Sponsored ADR Class A will significantly expand its original Chinese anime lineup, and the children's channel will increase its production of original content while expanding AI-generated animation content. The continuous supply of high-quality and diverse content drove the fourth quarter total revenue of iQIYI, Inc. Sponsored ADR Class A to achieve double growth compared to the previous quarter. Of the total revenue, membership service revenue reached 4.11 billion RMB. Initiatives like "Additional Watch Free" effectively increased member subscriptions and upgrades. Festive promotions emphasizing annual membership cards and joint membership cards improved member retention. Exclusive VIP member events like the "2025 iQIYI, Inc. Sponsored ADR Class A Night of Screams" enhanced the perceived value of membership. Beyond membership services, online advertising services saw revenues of 1.35 billion RMB in the fourth quarter, with a 9% growth compared to the previous quarter. Brand advertising revenue saw double growth compared to the previous quarter, while both variety shows and dramas achieved double-digit year-over-year growth in advertising revenue. Effectiveness in advertising revenue significantly increased, with the deployment of self-developed AI models for scalable advertising campaigns to improve conversion rates. In the fourth quarter, content distribution revenue was 0.79 billion RMB, and other revenue was 0.55 billion RMB. Accelerated growth in overseas business, and scale operations for experiential businesses Zeng Ying, the interim CFO of iQIYI, Inc. Sponsored ADR Class A, stated, "We are creating new growth engines through emerging businesses. The overseas business demonstrated strong growth momentum in the fourth quarter with record revenues. Additionally, the opening of the first iQIYI, Inc. Sponsored ADR Class A theme park marks a significant milestone in the development of experiential businesses. We look forward to the long-term value creation from these emerging businesses." The overseas business, as the "second growth curve" for iQIYI, Inc. Sponsored ADR Class A, maintained strong growth in the fourth quarter of 2025. Membership revenue saw a 40% year-over-year increase, with notable performance in the markets of Brazil, Mexico, and Indonesia, where the year-over-year growth in membership revenue exceeded 80%. The influence of mainland content continued to rise internationally, driving significant revenue growth. "Double Tracks", a top-performing mainland drama in the 2025 international release cycle, ranked first on popularity charts in 14 markets and outperformed similar works in Alphabet Inc. Class C trends in Thailand, Malaysia, and Singapore. The spin-off variety show "Sweet in Thailand" became one of the most popular Chinese variety shows in the international version of iQIYI, Inc. Sponsored ADR Class A in 2025. Short-form dramas such as "Nine Layers of Spring Lock", "Wild Ten", and "Summer Fendela" were favored by overseas audiences, contributing to record-high short-form drama revenues from global audiences. Local content production accelerated, receiving positive feedback from local users: the self-produced drama "Prisoner's Record in the Prison" became the best-performing Taiwanese drama in the international version of iQIYI, Inc. Sponsored ADR Class A in 2025, with popular short-form dramas from Korea, Thailand, English-speaking countries, and Indonesia premiering in December. Yang Xianghua, President of iQIYI, Inc. Sponsored ADR Class A's overseas business, outlined the overall strategy for 2026 to achieve continued revenue growth in the overseas market. By focusing on mainland dramas alongside increasing the production and acquisition of local content in Thailand, Malaysia, and Indonesia, and leveraging market activities such as talent crossovers to promote content, iQIYI, Inc. Sponsored ADR Class A aims to enhance its brand influence in international markets. Leveraging its rich IP assets, iQIYI, Inc. Sponsored ADR Class A is building its experiential business around IP consumer goods and theme parks. The self-operated consumer goods business is making steady progress, with popular sales of items like "Fushan Hai." In the IP authorization business, "The Records of Strange Events in the Tang Dynasty: Chang'an" excelled in collaborations across various categories such as food and beverages, beauty, and collectibles, while "Tian Di Jianxin" set a new record for IP-authorized consumer goods sales during its broadcast period. In 2026, while continuing to expand its authorization business, iQIYI, Inc. Sponsored ADR Class A will focus on expanding its self-operated IP consumer goods business, replicating the success of card game products in categories like grains, and collectibles. The operation of iQIYI, Inc. Sponsored ADR Class A theme parks follows a light-asset model with revenue mainly coming from ticket sales and on-site consumption. Compared to traditional theme parks, iQIYI, Inc. Sponsored ADR Class A theme parks combine IP with cutting-edge technologies like AI and XR to provide users with immersive experiences more flexibly and efficiently. The Yangzhou iQIYI, Inc. Sponsored ADR Class A theme park, which officially opened on February 8th, received positive feedback from visitors, with two more parks planned to open in Kaifeng and Beijing later in the year, marking the scale-up of theme park operations. AI Leading Content Production and Experience Transformation - Building the AIGC Content Ecosystem AI is becoming a key force in reshaping content creation and user experience at iQIYI, Inc. Sponsored ADR Class A. In the past few months, the development of AI large models worldwide has highlighted the transformative potential of the film and television content production industry within the next 1-3 years. Gong Yu stated that video large models significantly reduce the cost of long-form video production, shorten production time, lower the production threshold, allowing more creators to enter the long-form video production industry, ultimately leading to a significant increase in the quantity and quality of long-form content - which benefits platforms like iQIYI, Inc. Sponsored ADR Class A. Currently, in addition to manhua content itself being AI-native, children's animations and short-form dramas have been proven to be directly generated by AI, reducing production costs to one-tenth or less compared to traditional methods; traditional web films, animations, documentaries, and more are increasingly produced using AI; even live-action theatrical films, series, and variety shows are now incorporating AI to cut costs. "We expect AI to dominate in the production of commercial blockbusters within 2-3 years," according to Gong Yu. iQIYI, Inc. Sponsored ADR Class A is developing the AI intelligent body platform "Duodou Pro," combining cutting-edge foundational models with iQIYI, Inc. Sponsored ADR Class A's deep experience in professional content production to optimize the production process from script evaluation to final generation. Currently in closed testing, Duodou Pro has been deployed in various professional content domains such as movies, series, and animations, to support internal teams and core partners. In terms of user experience, the interactive character "Dou Dou World" had over 1700 characters by the fourth quarter, creating immersive emotional experiences for users through dialogue, fan content creation, and virtual social interaction, extending the long-tail value of IP. In 2025, "Dou Dou World" saw significant revenue growth year-over-year. Innovation is at the core of iQIYI, Inc. Sponsored ADR Class A's business development. In the past year alone, iQIYI, Inc. Sponsored ADR Class A applied for nearly a thousand new patents, with a majority involving AI technology innovations. By the end of 2025, the total number of patents applied for by iQIYI, Inc. Sponsored ADR Class A exceeded 12,000, ranking 72nd among Chinese companies for effective invention patents. Gong Yu stated that in 2026, iQIYI, Inc. Sponsored ADR Class A will focus on achieving three core strategic goals: improving the quality of original content and solidifying membership and advertising business for stable domestic growth; maintaining strong growth in overseas and experiential business to build a more robust long-term development engine; and to stay ahead of the curve, iQIYI, Inc. Sponsored ADR Class A plans to build a vibrant AIGC ecosystem, with media platforms transitioning from centralized to decentralized modes, with specific initiatives to be announced at the iQIYI, Inc. Sponsored ADR Class A World Conference in April of this year.