iQiyi Falls Despite 4Q Revenue Rise; Narrows to Annual Loss

Shares of the video platform declined after reporting a 3% increase in revenue last quarter compared to the previous year, driven by a boost in content distribution and a record number of international subscribers. However, the company experienced a net loss last year due to decreased memberships and advertising revenue.

The stock closed at USD 1.71, down 3.4%, in New York yesterday. It has fallen 11% since the end of the previous year.

Revenue for the three months ending December 31 was CNY 6.8 billion (approximately USD 971.6 million). The net loss narrowed significantly to CNY 5.8 million (about USD 847,790), according to a financial report released yesterday. Adjusted net profit, excluding certain items, was CNY 109.7 million (roughly USD 16 million), compared to a loss of CNY 58.8 million (around USD 8.6 million) during the same period last year.

For the full year 2025, the company reported a net loss of CNY 206.3 million, contrasted with a net profit of CNY 764.1 million the previous year. Revenue declined 7% to CNY 27.3 billion, mainly due to a lighter content lineup affecting subscription income. Additionally, some advertisers adjusted their strategies amid macroeconomic pressures, the company noted.

“Our international operations have evolved into a sustainable and scalable second growth engine,” said the founder and CEO during a recent earnings call. Membership revenue outside mainland China grew 40% in the fourth quarter, with Brazil, Mexico, and Indonesia each experiencing over 80% growth. Overall global subscriber numbers reached a record high,” he added.

The company also reported non-GAAP operating income for the fourth year in a row, totaling CNY 638.9 million last year.

Revenue from content distribution increased 94% to CNY 787.7 million last quarter compared to the previous year. Revenue from brand advertising also grew year-over-year and quarter-over-quarter, with notable double-digit increases in income from variety shows and dramas.

Its long-form dramas topped viewership rankings in China last year, thanks in part to the “Strange Tales of Tang Dynasty” franchise, according to data from Enlighten. The micro-drama portfolio, with over 150 original titles, contributed to record revenue from memberships and distribution channels.

AI Initiatives

The platform has begun beta testing Nadou Pro, an AI-powered content creation platform for professional media production. The CEO mentioned that “AI-driven commercial filmmaking could emerge within the next two to three years,” a development expected to benefit established streaming platforms like this one.

“Going into 2026, we plan to strengthen our core domestic operations by enhancing content quality and expanding our membership and advertising businesses. We will accelerate innovation in overseas markets and experience segments, harness AI to develop a vibrant content ecosystem enriched by artificial intelligence-generated content,” he stated.

Detailed plans for AI-generated content are scheduled to be announced at the company’s World Conference in April.

Immersive Theme Parks

Earlier this month, the company opened its first immersive indoor theme park, iQiyi Land, in Yangzhou, a city in eastern Jiangsu province near Nanjing, which has received positive reviews on Chinese travel platforms. A second park is under construction in Kaifeng, and a third is expected to open later this year in Beijing.

“As demand for offline entertainment continues to grow, we see iQiyi Land as a key driver of our long-term growth,” the CEO previously stated.

Note: Martin Kadiev