SHENZHEN, CHINA, June 12, 2026 (GLOBE NEWSWIRE) — 2025 was a year of challenges and transformation for iQIYI.
According to the full-year financial data released at the end of February, iQIYI’s revenue was RMB 27.29 billion, a year-on-year decrease of 7%; net loss attributable to shareholders was RMB 206.3 million, ending its previous profitability cycle. However, it is noteworthy that in Q4, revenue reached RMB 6.79 billion, up 3% year-on-year, and ARPU increased by 13%, showing signs of improving profitability.
In Q1 2026, iQIYI is exploring new growth curves through hit content such as “Punishment 2” and “Dangerous Relationship,” as well as AI technology innovation, striving to break out of its loss-making predicament.
I. Core Financial Data: Short-term Pressure, Q4 Recovery Emerges
iQIYI’s 2025 financial report shows a “low-then-high” trend. Revenues in Q1 to Q3 declined year-on-year, while Q4 saw growth, though overall still lagging behind 2023 levels.
Q4 performance recovery became a key turning point:
- Membership revenue increased 4% quarter-on-quarter; advertising revenue reached RMB 1.35 billion, up 9% quarter-on-quarter.
- Brand advertising grew both year-on-year and quarter-on-quarter, with variety and drama advertising revenue up double digits year-on-year.
This change is closely related to the popularity of the hit drama “Strange Tales of Tang Dynasty 3,” which, despite lacking top stars, broke platform records with a heat score of 6,000 within one hour of launch and 8,850 within five hours. With a Douban rating of 8.1 and over 750 million cumulative views, it became a phenomenal hit of the year.
2025 Main Business Performance:
- Membership services, as the core, generated RMB 16.81 billion, accounting for 61.6% of total revenue, down 5% year-on-year.
- Online advertising services revenue was RMB 5.19 billion, down 9% year-on-year.
- Content distribution and other businesses contributed about RMB 5.29 billion, down 8% year-on-year.
The main reasons for the decline in these businesses are intensified competition, long-form video user scale peaking, and short-form video severely fragmenting user time and attention. With the sustained popularity of free and AI-generated micro-dramas, the 2026 Spring Festival saw a sharp drop in both TV and online engagement, and the industry downturn continued.
MoonFox Alternative Data shows that from January to March 2026, iQIYI’s MAU remained low, with March MAU down 16% year-on-year. However, average daily online time per user increased, peaking at 128 minutes/day in January (up 31% YoY).
MoonFox Alternative Data also shows that in Q4 2025, iQIYI’s MAU fell 9% year-on-year, but revenue grew and ARPU rose to RMB 22.07/month, up 13%. In Q1 2026, MAU dropped 13% year-on-year, while daily average usage per user increased to 118 minutes (up 43%). As individual online user retention time increases, platform monetization efficiency is expected to recover.
Currently, iQIYI’s core challenge is the emerging ceiling for membership growth, with the contradiction between price hikes and user churn intensifying.
II. Content Ecosystem: From Traffic Dependency to User Resonance with Realistic Themes
In 2025, the platform adhered to a “script-centric” approach and deepened content innovation.
“Strange Tales of Tang Dynasty 3” broke the recent impasse of slow updates and low popularity for costume drama sequels, proving that quality content still has strong market appeal.
As a model for IP series development, “Tang Legends 3” became the first IP to achieve heat scores above 10,000 for two consecutive seasons, ranking first in ad revenue and second in membership revenue. Without top stars, it topped ratings for three days, with Douyin topics exceeding 1.8 billion views, winning with high production quality and solid storytelling.
Additionally, “All Living Things” became the fastest drama to break 10,000 heat on the platform in 2025, achieving both TV and online success and strong word of mouth.
In Q1 2026, iQIYI’s platform heat recovered. New hit content covered crime, urban romance, and period comedy:
- “Punishment 2” surged to 10,000 heat on launch, becoming the first crime drama of the year to break that mark, continuing the first season’s hardcore style and sparking widespread discussion.
- “What a Spectacle,” a period comedy launched in February, became a “mini-hit,” one of the few Spring Festival blockbusters.
- “Dangerous Relationship,” launched at the end of March, is China’s first original long drama on emotional manipulation (PUA), rated 7.8 on Douban and generating significant social media buzz.
These hits all share the trait of breaking path dependency, shifting from relying on stars/IP to resonating with real life. The success of “Tang Legends 3” and “Punishment 2” proves the sustainability of IP series, while “Dangerous Relationship” shows iQIYI’s deep focus on realistic themes.
III. Future Development: Accelerating AI Empowerment, Overseas Expansion, and Offline Strategy
1. AI Technology Innovation
In Q1 2026, iQIYI launched “Nado Pro,” China’s first professional film/TV AI agent, supporting a one-stop creative process for creators. For agencies and advertisers, the platform launched a matrix of four AI products (“Qi Tou, Qi Hui, Qi Suan, Qi Ce”), covering the full ad delivery chain and boosting performance ad conversion rates.
AI technology is already applied in content creation. iQIYI’s “Peter Pau · iQIYI AI Theater” will have 16 AI live-action shorts online by mid-April, all focused on emotional resonance.
2. Capital and Offline Layout
At the end of March 2026, iQIYI reportedly submitted a confidential secondary listing application to the Hong Kong Stock Exchange and announced a share buyback plan of up to $100 million over 18 months, showing confidence in long-term value.
More financing has accelerated iQIYI’s offline expansion. By end-2025, the Immersive Theater had nearly 50 locations nationwide, with 20–30 more planned for 2026. By March 2026, iQIYI signed with Wuhan Urban Construction Group to launch Central China’s first iQIYI Park in Hanyangzao Creative Industry Park, building IP scenes such as “Tang Legends” and “Lotus Tower” to further unlock value.
3. Overseas Business Expansion
iQIYI’s overseas revenue share continues to rise, especially in Southeast Asia.
In 2026, the company will increase investment in localized content, create original dramas suited to local cultures, and promote quality Chinese content like “Tang Legends” overseas, boosting Chinese cultural influence.
The overseas market has become a key breakthrough to ease domestic growth pressure and provide new growth space.
Conclusion:
The short-term pressure in the 2025 financial report reflects both the industry downturn and an opportunity for iQIYI’s strategic transformation. Q4 recovery and continued hit content prove “content is king” still holds. With deep AI application and overseas expansion, iQIYI is expected to rebound in 2026.
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