Phoenix New Media Limited

Q2 2026 total revenue was RMB 216.7 million, up 15.8% from RMB 187.1 million a year ago. Net advertising revenue was RMB 146.9 million, down from RMB 153.3 million, while paid services revenue was RMB 69.8 million, up 106.5% from RMB 33.8 million. Cost of revenues declined 2.6% to RMB 92.6 million, gross margin improved to 57.3% from 49.2%, operating expenses increased 30.4% to RMB 129.4 million, operating loss narrowed to RMB 5.3 million from RMB 7.2 million, and net income attributable to ifeng was RMB 6.5 million versus a net loss of RMB 10.4 million. Cash and cash equivalents, term deposits, short-term investments and restricted cash totaled RMB 990 million as of June 30, 2026. For Q3 2026, management guided total revenue to RMB 220.9 million-RMB 235.9 million, advertising revenue to RMB 151.9 million-RMB 161.9 million, and paid services revenue to RMB 69 million-RMB 74 million.

New CEO Li Qi introduced himself as focused on Phoenix New Media's core strengths: professional content, brand influence and commercial capabilities. He emphasized improving operating efficiency, strengthening the business foundation and enhancing long-term shareholder value. His tone was steady and strategic, framing the quarter as a continuation of the company's trusted-content positioning rather than a major reset.

The CFO said Q2 revenue growth was driven by paid services, especially digital reading services in mini programs on third-party apps, while cost of revenues fell 2.6% to RMB 92.6 million. Gross margin expanded to 57.3% from 49.2%, but operating expenses rose 30.4% to RMB 129.4 million mainly due to higher sales and marketing spending for digital reading services. He also noted a strong liquidity position with RMB 990 million in cash and liquid investments, and gave Q3 revenue guidance of RMB 220.9 million-RMB 235.9 million.

An analyst asked about the broader advertising picture, given the mixed quarter. Management said some categories, including Chinese liquor, were pressured by contract renewal timing, but they did not see a fundamental change in demand. They pointed to growth from deeper vertical content, event-based campaigns and branded content IP across technology, automotive, finance and consumer brands, and said these models suggest a structural shift toward content-driven monetization.