iQIYI, Inc. Sponsored ADR Class A (IQ.US) released its Q2 2026 financial report: total revenue of 6.29 billion yuan, fully committed to advancing its strategic transformation.

On August 18, iQIYI, Inc. Sponsored ADR Class A (IQ.US) released its unaudited financial results for the second quarter ending June 30, 2026. In the second quarter, iQIYI, Inc. Sponsored ADR Class A achieved total revenue of 6.29 billion RMB, representing a 1% increase quarter-over-quarter. This includes revenue from membership services of 4.01 billion RMB, online advertising services of 1.25 billion RMB, content distribution of 680 million RMB, and other income of 340 million RMB. Gong Yu, the founder and CEO of iQIYI, Inc. Sponsored ADR Class A, stated: "In the second quarter, iQIYI, Inc. Sponsored ADR Class A consolidated its leading advantage in the content field while simultaneously advancing its strategic transformation. In the domestic market, iQIYI, Inc. Sponsored ADR Class A continued to lead the industry in the market share of long series, films, and childrens content. In June, for the first time, mid-length dramas topped the market share rankings. Our two strategic focusesdecentralized social media transformation and comprehensive investment in AIare showing initial results. We look forward to further leveraging AI to empower our content ecosystem and improve our financial performance." Tian Ying, CFO of iQIYI, Inc. Sponsored ADR Class A, commented: "In the second quarter, our financial performance improved quarter-over-quarter, with total revenue rising and operating losses significantly narrowing. At the same time, we implemented a share buyback program, demonstrating our commitment to creating long-term value for our shareholders." iQIYI, Inc. Sponsored ADR Class A achieved further breakthroughs in AI-powered content innovation and creator ecosystem development. The professional film and television production platform, Nado Pro, officially launched in April and has successively rolled out new features including a screenwriter assistant, 3D director's table, and creator community, seamlessly integrating with iQIYI, Inc. Sponsored ADR Class A for one-stop operations from creation to distribution. The one-stop creation operation platform created for content creatorsiQIYI, Inc. Sponsored ADR Class Asupports creators to publish various types of content, including short videos, short dramas, comic dramas, documentaries, films, long series, and mid-length dramas with zero threshold entry. Relying on iQIYI, Inc. Sponsored ADR Class A's core user base, mature industrialized support systems, vast viewing data, and copyright resources, the platform helps creators to "be seen, earn money, and gain recognition." Currently, tens of thousands of creators upload various works and conduct live broadcasts on iQIYI, Inc. Sponsored ADR Class A every day. In the second quarter, iQIYI, Inc. Sponsored ADR Class A consistently produced excellent works in core content sectors, maintaining industry-leading market share in long series, films, and childrens content, while achieving significant breakthroughs in mid-length dramas. In terms of long series, iQIYI, Inc. Sponsored ADR Class A's produced series "Low IQ Crimes" innovatively integrated comedy and suspense elements, achieving a content popularity index exceeding 10,000. The dramas "Family Business" and "Southern Files" both surpassed a content popularity index of 9,300, garnering high popularity and acclaim. At the 31st Shanghai Television Festival, held in June, iQIYI, Inc. Sponsored ADR Class As six produced works and outstanding creators won 14 awards. In the second quarter, the mid-length drama "Soul Ferry: Ten Years," produced by iQIYI, Inc. Sponsored ADR Class A, reached a peak market share exceeding 60% in a single day, driving iQIYI, Inc. Sponsored ADR Class A's mid-length drama market share to the industrys first position for the first time in June. During this period, iQIYI, Inc. Sponsored ADR Class A also launched a series of excellent films, variety shows, short dramas, animations, and children's programs. The films produced by iQIYI, Inc. Sponsored ADR Class A, "Counterfeit Crimes" and "Chasing Evil," received enthusiastic responses. The variety show "Ha Ha Ha Ha Ha 6" achieved a content popularity index exceeding 9,000, setting a new high for this series, while "Rap Peak Showdown 2026" reached over 8,800. Popular vertical short dramas include "All About Secretary Li," "Im Fond of You," "Phoenix Blade," as well as the original animation "Heavenly Evil God Annual Volume" and the sequel to the children's content "Invincible Deer Battle Team." For the quarter, iQIYI, Inc. Sponsored ADR Class A's operating costs amounted to 5.25 billion RMB. As a major component of costs, content costs totaled 3.82 billion RMB, reflecting a year-over-year increase of 1%. During the same period, selling and administrative expenses and R&D expenses were 740 million RMB and 400 million RMB, respectively. In the second quarter, the operating loss under Non-GAAP standards was approximately 30.3 million RMB, significantly narrowing from 150 million RMB in the previous quarter. iQIYI, Inc. Sponsored ADR Class A saw improvements in cash flow from operations, with net cash inflows from operating activities of 340 million RMB, compared to net cash outflows of 12.7 million RMB during the same period in 2025. As of June 30, iQIYI, Inc. Sponsored ADR Class A's cash balance (including cash, cash equivalents, short-term restricted funds, and short-term investments) totaled approximately 4.12 billion RMB. iQIYI, Inc. Sponsored ADR Class A launched a share buyback program in March with a maximum total amount of 100 million USD, valid for 18 months. As of June 30, approximately 21.8 million ADS (American Depositary Shares) had been repurchased at a total cost of 24.1 million USD.