The revenue decline and widening GAAP and non-GAAP losses are clear negatives, though the sequential improvement in operating loss and positive free cash flow provide some cushion. Watch for the Q3 2026 outlook on the earnings call for signs of stabilization in membership and advertising revenue, and monitor the resolution of the discrete tax item that inflated Q2 expenses.
Price Chart
Executive Summary
iQIYI reported Q2 2026 results with total revenues of RMB6.29 billion, down 5% YoY, and a net loss attributable to iQIYI of RMB287.5 million, more than double the RMB133.7 million loss in Q2 2025. The revenue decline and widening losses, driven by a sharp increase in income tax expense (RMB219.8 million vs RMB27.2 million) and a 58% plunge in other revenues, signal continued operational challenges despite sequential improvement in operating loss and positive free cash flow of RMB319.6 million.
Key Facts
- Total revenues decreased 5% YoY to RMB6.29 billion (US$926.6 million).
- Net loss attributable to iQIYI widened to RMB287.5 million from RMB133.7 million in Q2 2025.
- Non-GAAP net loss was RMB209.7 million, compared to non-GAAP net income of RMB14.7 million a year ago.
- Income tax expense surged to RMB219.8 million from RMB27.2 million, including RMB193.6 million in discrete items at a Chinese mainland subsidiary.
- Membership services revenue fell 2% YoY to RMB4.01 billion; online advertising revenue fell 2% to RMB1.25 billion.
- Content distribution revenue grew 56% YoY to RMB681.5 million, but other revenues dropped 58% to RMB344.9 million.
- Free cash flow turned positive at RMB319.6 million, vs negative RMB34.1 million in Q2 2025.
- Company repurchased ~21.8 million ADSs for US$24.1 million under a US$100 million buyback program.
Financial Impact
Revenue decline of 5% YoY and net loss more than doubling to RMB287.5 million; income tax expense increased ~8x YoY.
Risk Factors
- Continued revenue contraction in core membership and advertising segments.
- Elevated income tax expenses may persist if the Chinese subsidiary adjustments are not one-time.
- High debt load with convertible senior notes and loans totaling over RMB13.7 billion in current and non-current liabilities.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-356051 |
| Document: d926532d6k.htm | 0001193125-26-356051 |
| Document: 0001193125-26-356051-index-headers.html | 0001193125-26-356051 |
| Document: 0001193125-26-356051-index.html | 0001193125-26-356051 |
| Document: 0001193125-26-356051.txt | 0001193125-26-356051 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 23, 2026 4w ago | Press Release | $1.01 $1.04 | ▲ +2.97% | ▲ +3.05% | $0.8376 (−17.07%) |
Aug 19, 2026 9w ago | 6-K | $1.13 $1.03 | ▲ +9.29% | ▲ +8.45% | $0.8376 (+25.88%) |
Aug 18, 2026 10w ago | Press Release | $1.23 $1.13 | ▲ +8.13% | ▲ +8.34% | $0.8376 (+31.90%) |
Jul 31, 2026 12w ago | Press Release | $1.27 | awaiting T+1 | — | $0.8376 (−34.05%) |
Jul 2, 2026 16w ago | 6-K | $1.01 $1.07 | ▲ +5.94% | ▲ +5.07% | $0.8376 (−17.07%) |
Jun 11, 2026 19w ago | Institutional Cluster | $1.03 $1.03 | · 0.00% | ▼ −0.54% | $0.8376 (−18.68%) |
May 18, 2026 23w ago | 6-K | $1.11 $1.10 | ▲ +0.90% | ▲ +1.94% | $0.8376 (+24.54%) |
May 18, 2026 23w ago | Press Release | $1.13 $1.11 | ▲ +1.77% | ▲ +1.12% | $0.8376 (+25.88%) |
Apr 23, 2026 26w ago | Press Release | $1.20 $1.17 | ▼ −2.50% | ▼ −3.28% | $0.8376 (−30.20%) |
Mar 30, 2026 30w ago | 6-K | $1.35 $1.38 | ▲ +2.22% | ▲ +1.47% | $0.8376 (−37.96%) |
US Market Status
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