iQIYI, Inc. reported a wider-than-expected loss for the second quarter, with shares falling 3.01% following the results. The Chinese online entertainment video provider posted an adjusted loss per ADS of RMB0.30, missing the analyst estimate of a RMB0.09 loss by RMB0.21. Revenue reached RMB6.29 billion, slightly below the consensus estimate of RMB6.32 billion and down 5% YoY from RMB6.63 billion in the second quarter of 2025. The company’s net loss attributable to iQIYI widened to RMB287.5 million from RMB133.7 million in the same period last year, primarily due to a significant increase in income tax expense.
Financial Highlights
The company reported an adjusted operating loss of RMB30.3 million, compared to adjusted operating income of RMB58.7 million in the second quarter of 2025. Income tax expense surged to RMB219.8 million from RMB27.2 million YoY, primarily due to discrete enterprise income tax expenses and related interest totaling RMB193.6 million relating to certain adjustments at a Chinese mainland subsidiary. According to Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI, 'In the second quarter, we reinforced our content leadership and advanced our strategic transformation.' Membership services revenue declined 2% YoY to RMB4.01 billion, while online advertising services revenue fell 2% to RMB1.25 billion. Content distribution revenue increased 56% to RMB681.5 million, driven by increased cash transactions. Operating cash flow improved to RMB339.6 million from negative RMB12.7 million in the prior-year period. As of June 30, 2026, iQIYI had repurchased approximately 21.8 million ADSs for $24.1 million under its $100 million share repurchase program.