Will iQIYI's (IQ) Shift to Net Loss Reshape Its Long-Term Growth Ambitions?

• iQIYI reported second quarter 2025 earnings showing revenue of CNY 6,628.25 million, down from CNY 7,438.79 million a year earlier, and a net loss of CNY 133.71 million compared to net income of CNY 68.69 million.
• This result marks a shift from profit to loss, with both quarterly and six-month revenues and profits falling year-over-year for the company.
• With iQIYI’s shift to a net loss and declining revenue now reported, we’ll examine the implications for its longer-term growth outlook and diversification strategy.

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iQIYI Investment Narrative Recap

To be an iQIYI shareholder, you need to believe in the company’s ability to stabilize and reignite growth by delivering engaging content and expanding its user base. The latest earnings report, showing a swing to net loss and declining revenues, directly impacts the biggest short-term catalyst, reviving membership and ad revenues through stronger content, and underscores the risk of continued subscriber and revenue declines if content issues are not resolved.

Among recent announcements, the launch of an AI Short Film Creation Competition in partnership with Google and ByteDance stands out. This initiative supports iQIYI’s strategy to leverage AI and innovative formats, with the potential to improve both content quality and operational efficiency, factors central to the company’s efforts to regain profitability and address its core challenges. But with declining membership revenue and persistent questions about content effectiveness, investors should not overlook the risk that...

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

iQIYI's narrative projects CN¥29.8 billion revenue and CN¥1.5 billion earnings by 2028. This requires 1.5% yearly revenue growth and a CN¥1.2 billion earnings increase from CN¥290.9 million.

Uncover how iQIYI's forecasts yield a $1.89 fair value, a 18% downside to its current price.

Exploring Other Perspectives

Four unique fair value estimates from the Simply Wall St Community range from CN¥1.38 to CN¥2.45 per share. As content-driven revenue pressures come into focus, you’ll find widely differing expectations for iQIYI’s potential, explore these alternative viewpoints to inform your own perspective.

Explore 4 other fair value estimates on iQIYI - why the stock might be worth 40% less 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 1 key reward and 2 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.

No Opportunity In iQIYI?

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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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