iQIYI, Inc.

Total revenues were RMB 6.3 billion, up 1% sequentially. Membership services revenue was RMB 4.0 billion, down 4% sequentially; online advertising revenue was RMB 1.2 billion, flat sequentially; content distribution revenue was RMB 681.5 million, up 9% sequentially; and other revenues were RMB 344.9 million, down 19% sequentially. Content cost was RMB 3.8 billion, up 2% sequentially, and total operating expenses were RMB 1.1 billion, down 6% sequentially. Non-GAAP operating loss narrowed 8% sequentially from RMB 148.6 million to RMB 30.3 million. Operating cash flow was RMB 339.6 million, up from RMB 186.4 million in Q1, and cash, cash equivalents, restricted cash and short-term investments were RMB 4.1 billion. Management did not give formal next-quarter or full-year financial guidance on the call.

The CEO framed the quarter as an early proof point for iQIYI’s transition toward a decentralized creator ecosystem and an AI-first operating model. He said AI should lower content production barriers and costs, while decentralization should expand content supply and user engagement. His tone was confident and strategic, emphasizing that premium content remains core but will be supported by lighter acquisition models, more creator participation, and broader AIGC adoption.

The CFO focused on improving near-term profitability and cash generation. He highlighted RMB 6.3 billion in revenue, RMB 30.3 million in non-GAAP operating loss, and RMB 339.6 million in operating cash flow, while noting disciplined marketing spend helped reduce total operating expenses to RMB 1.1 billion. He also said iQIYI had RMB 4.1 billion of cash, cash equivalents, restricted cash and short-term investments at quarter-end, and reminded investors that the company repurchased about 21.6 million ADS for an aggregate USD 24.1 million under the USD 100 million buyback program announced in March 2026.

Analysts pressed management on how AI will reshape the business model, core competitiveness, and category-by-category AIGC strategy. Management said iQIYI’s edge is end-to-end capabilities from concept to commercialization, including talent, industrialized production, content review, distribution, and monetization, and that AI will reinforce—not replace—creative judgment and storytelling. On overseas expansion, management said Thailand is the proving ground for a repeatable playbook, but new markets will only be expanded if unit economics and operating contribution are validated.