Chinese streaming giant iQiYi returned to revenue growth in the fourth quarter of 2025, posting a 3% year-over-year increase and narrowing its quarterly loss, though the company swung to a full-year loss as profitability eroded sharply.
Total revenues reached RMB6.79 billion ($971.6 million) for the quarter ended Dec. 31, the company said Thursday. The gain marked a marked a return to growth after recent quarterly declines, including an 8% drop in Q3.
The company narrowed its quarterly net loss attributable to iQiYi to RMB5.8 million ($800,000), compared to a net loss of RMB189.4 million ($27.1 million) in the same period of 2024 and a loss of RMB248.9 million ($35.6 million) in the previous quarter.
For the full year 2025, however, the company posted a net loss attributable to iQiYi of RMB206.3 million ($29.5 million), compared to net income of RMB764.1 million ($109.3 million) in 2024. On a non-GAAP basis (a measure that excludes certain items not reflective of core operations, unlike GAAP – Generally Accepted Accounting Principles), full-year net income was RMB280.6 million ($40.1 million), compared to RMB1.51 billion ($216 million) in 2024.
On a non-GAAP basis for the fourth quarter, the company posted net income of RMB109.7 million ($15.7 million), compared to a non-GAAP net loss of RMB58.8 million ($8.4 million) a year earlier.
“In the fourth quarter, our IP-centric strategy reinforced user engagement and market leadership, and we delivered improved financial performance, with total revenues growing both annually and sequentially,” said Yu Gong, founder, director and CEO of iQiYi. “Heading into 2026, we will fortify our domestic core by advancing content excellence and strengthening our membership and advertising businesses, accelerate breakthroughs across our overseas and experience businesses, and harness AI to cultivate a thriving content ecosystem enriched by AIGC.”
Interim CFO Ying Zeng highlighted emerging growth drivers. “Our emerging businesses are shaping new growth engines. Notably, our overseas business maintained strong growth momentum, achieving record top-line performance in the fourth quarter,” Zeng said. “We look forward to these emerging businesses contributing to long-term value creation.”
For the fourth quarter, membership services revenue remained flat year over year at RMB4.11 billion ($587.1 million). Online advertising services revenue declined 6% to RMB1.35 billion ($193.4 million), as some advertisers adjusted their strategies in response to macro pressures.
Content distribution revenue surged 94% to RMB787.7 million ($112.6 million), primarily driven by an increase in cash transactions. Other revenues fell 18% to RMB547.9 million ($78.3 million), primarily due to altered business cooperation arrangements.
Cost of revenues increased 8% to RMB5.38 billion ($768.8 million). Content costs rose 11% to RMB3.83 billion ($548.1 million), mainly attributable to a more robust lineup of original dramas during the quarter. Selling, general and administrative expenses increased 7% to RMB946.2 million ($135.3 million), primarily driven by higher marketing spending.
Operating income was RMB55.4 million ($7.9 million), compared to operating income of RMB285.4 million ($40.8 million) in Q4 2024. Non-GAAP operating income was RMB143.5 million ($20.5 million), compared to RMB405.9 million ($58.0 million) a year earlier.
Free cash flow was RMB26.8 million ($3.8 million), compared to RMB498.1 million ($71.2 million) in the same period of 2024.
For the full year 2025, total revenues declined 7% to RMB27.29 billion ($3.9 billion). Membership services revenue declined 5% to RMB16.81 billion ($2.40 billion), primarily due to a lighter content slate. Online advertising services revenue decreased 9% to RMB5.19 billion ($742.6 million). Content distribution revenue fell 12% to RMB2.50 billion ($357.1 million), primarily due to a decrease in barter transactions.
As of Dec. 31, iQiYi held cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash of RMB4.69 billion ($671 million). The company had an aggregate loan of $636.6 million to investment firm PAG.
In October 2025, the company entered into an additional facility agreement with PAG providing a loan facility of $114.1 million at a 4.5% annual interest rate. In connection with this loan, PAG released all remaining restricted cash collateralized by the company under its convertible senior notes.