The Bull Case For iQIYI (IQ) Could Change Following Swing to Net Loss in Q3 2025 Results

• iQIYI, Inc. recently reported its third quarter 2025 earnings, revealing revenue of CNY 6,682.39 million and a net loss of CNY 248.93 million, both weaker than the same period last year.
• This marks a significant shift from profitability to loss for the company, highlighting ongoing operational and financial pressures.
• To assess how this swing to a net loss might affect iQIYI's longer-term outlook, we will examine its investment narrative in light of these results.

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iQIYI Investment Narrative Recap

To be an iQIYI shareholder, you have to believe in the company’s ability to reignite sustainable revenue growth by creating hit original content and expanding globally, despite recent setbacks. The company’s return to a net loss materially increases urgency around its most immediate catalyst, restoring subscription and advertising momentum, while amplifying risk tied to persistent revenue volatility and sensitive content cycles.

One announcement that stands out in the context of the Q3 loss is iQIYI’s October 2025 launch of The Blooming Journey Season 2, which underscores the emphasis on diverse, high-quality content as a key driver for user engagement and premium subscriptions. The success and consistency of such releases directly relate to the company’s ability to accelerate top-line recovery and counteract near-term revenue sensitivities.

However, investors should also keep in mind that this heightened reliance on constant content hits makes the business acutely exposed to periods when...

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

iQIYI's outlook anticipates CN¥29.2 billion in revenue and CN¥1.3 billion in earnings by 2028. This scenario assumes annual revenue growth of 1.8% and an earnings increase of about CN¥1.2 billion from the current CN¥88.5 million.

Uncover how iQIYI's forecasts yield a $2.44 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community estimate iQIYI’s fair value ranging from CN¥0.86 to CN¥3.34 per share. While some see upside, the company’s rising revenue volatility and dependence on fresh content add new uncertainty worth your attention.

Explore 5 other fair value estimates on iQIYI - why the stock might be worth less than half 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 and 3 important warning signs 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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