How Investors May Respond To iQIYI (IQ) Reversing to Q3 Net Loss Amid Falling Revenue

• iQIYI, Inc. recently announced its third-quarter 2025 results, reporting revenue of CNY 6,682.39 million, down from CNY 7,245.68 million a year earlier, and a net loss of CNY 248.93 million compared to net income of CNY 229.41 million in the same period last year.
• This marks a reversal from profitability to loss, highlighting the company's increased vulnerability to weaker content cycles and ongoing economic pressures in China.
• We’ll now assess how iQIYI’s swing to net loss and lower revenue could reshape its investment narrative and future outlook.

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iQIYI Investment Narrative Recap

For anyone considering iQIYI, the core belief centers on the company's ability to consistently deliver hit original content and translate this into stable subscription and advertising revenue. The third-quarter swing from net income to loss, alongside continuing revenue declines, directly impacts the most important short-term catalyst, renewed subscriber and advertiser momentum through compelling programming, while also highlighting the heightened risk of revenue volatility in a challenging content cycle. This news is material, as it may further pressure near-term profitability and visibility.

Among recent developments, the October premiere of The Blooming Journey Season 2 stands out as most relevant, aiming to boost user engagement and offset weaker quarters with highly anticipated content launches. However, as these releases are tested against softer demand, the company’s ability to reignite top-line growth could hinge on whether such shows generate enough viewership and buzz to reverse membership or advertising declines.

On the flip side, investors should be particularly aware of the persistent risk that, if blockbuster content production slips or fails to connect with audiences, the company’s top-line recovery could stall…

Read the full narrative on iQIYI (it's free!)

iQIYI's narrative projects CN¥29.2 billion revenue and CN¥1.3 billion earnings by 2028. This requires 1.8% yearly revenue growth and a CN¥1.21 billion increase in earnings from CN¥88.5 million today.

Uncover how iQIYI's forecasts yield a $2.33 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community range widely, from CN¥1.38 to CN¥3.34 per share. In light of iQIYI's recent net loss and declining revenue, this range reflects how much your outlook may depend on confidence in a rebound fueled by successful content releases.

Explore 5 other fair value estimates on iQIYI - why the stock might be worth as much as 50% more than the current price!

Build Your Own iQIYI Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your iQIYI research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free iQIYI research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate iQIYI's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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