iQIYI Announces First Quarter 2026 Financial Results
Rhea-AI Summary
iQIYI (Nasdaq: IQ) reported first quarter 2026 revenue of RMB6.23 billion, down 13% year over year, with a swing to an operating loss of RMB228.4 million and net loss of RMB294.6 million.
The company generated positive free cash flow, repurchased US$207.8 million of 2028 convertible notes, launched a US$100 million share buyback, and is pursuing a proposed Hong Kong Main Board listing.
Positive
- Free cash flow of RMB109.8 million, though down year over year
- Operating cash inflow of RMB186.4 million in Q1 2026
- Cost of revenues declined 3% year over year to RMB5.23 billion
- Selling, general and administrative expenses decreased 20% year over year
- Repurchased US$207.8 million principal of 6.50% 2028 convertible notes
- Authorized US$100 million share repurchase; 6.5 million ADSs bought for US$8.0 million
Negative
- Total revenues decreased 13% year over year to RMB6.23 billion
- Membership revenue down 5%, online advertising down 7% year over year
- Content distribution revenue fell 43%; other revenues declined 49% year over year
- Shift from operating income to RMB228.4 million operating loss
- Net result moved from profit to RMB294.6 million net loss
- Free cash flow dropped from RMB307.7 million to RMB109.8 million year over year
News Market Reaction – IQ
In the May 18 session, IQ declined 2.59%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Q4/FY 2025 earnings | Negative | -3.4% | Q4 and FY 2025 showed revenue decline and compressed 1% operating margins. |
| Nov 18 | Q3 2025 earnings | Negative | +6.3% | Q3 2025 revenues fell 8% YoY and results swung back to losses. |
| Aug 20 | Q2 2025 earnings | Negative | +0.9% | Q2 2025 revenues declined 11% YoY with broad weakness across segments. |
| May 21 | Q1 2025 earnings | Negative | -8.1% | Q1 2025 saw 9% YoY revenue decline and sharply lower profitability. |
| Feb 18 | Q4/FY 2024 earnings | Negative | -9.3% | Q4 and FY 2024 showed broad declines in revenue, operating income and net income. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases often highlight revenue contraction and losses; price reactions skew mildly negative on average but sometimes buck the tone.
Over the past year, iQIYI’s earnings reports have repeatedly featured declining revenues and swings back into net losses. Events on Feb 26, 2026, Nov 18, 2025, and Aug 20, 2025 all cited year‑over‑year revenue drops and operating or net losses. Market reactions varied: some quarters like Q3 2025 saw a positive move despite weak metrics, while others, such as Q1 2025 and FY 2024 results, drew notable declines, underscoring inconsistent trading responses to similar fundamental trends.
Key Terms
non-gaap financial
ads financial
free cash flow financial
convertible senior notes financial
indenture financial
h.10 statistical release regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
BEIJING, May 18, 2026 (GLOBE NEWSWIRE) -- iQIYI, Inc. (Nasdaq: IQ) (“iQIYI” or the “Company”), a leading provider of online entertainment video services in China, today announced its unaudited financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights
- Total revenues were RMB6.23 billion (US
$902.5 million 1), decreasing13% year over year. - Operating loss was RMB228.4 million (US
$33.1 million ) and operating loss margin was4% , compared to operating income of RMB341.9 million and operating income margin of5% in the same period in 2025. - Non-GAAP operating loss2 was RMB148.6 million (US
$21.5 million ) and non-GAAP operating loss margin was2% , compared to non-GAAP operating income of RMB458.5 million and non-GAAP operating income margin of6% in the same period in 2025. - Net loss attributable to iQIYI was RMB294.6 million (US
$42.7 million ), compared to net income attributable to iQIYI of RMB182.1 million in the same period in 2025. - Non-GAAP net loss attributable to iQIYI2 was RMB234.4 million (US
$34.0 million ), compared to non-GAAP net income attributable to iQIYI of RMB304.4 million in the same period in 2025.
“We are reinforcing our core strengths, unlocking new growth drivers, and building for the long term. In the first quarter, our hit drama lineup drove sequential membership revenue growth and cemented our leadership in domestic viewership market share, according to Enlightent. Meanwhile, our overseas business sustained its robust growth momentum, achieving record membership revenue this quarter,” commented Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. “Looking ahead, we are leveraging AI to reduce content production costs, accelerate production cycles, and expand our content ecosystem.”
“In March, we announced a proposed listing on the Main Board of the Hong Kong Stock Exchange, and our first share repurchase program, demonstrating our commitment to delivering shareholder value,” commented Ms. Ying Zeng, Interim Chief Financial Officer of iQIYI.
First Quarter 2026 Financial Highlights
| Three Months Ended | |||||||||
| (Amounts in thousands of Renminbi (“RMB”), except for per ADS data, unaudited) | March 31, | December 31, | March 31, | ||||||
| 2025 | 2025 | 2026 | |||||||
| RMB | RMB | RMB | |||||||
| Total revenues | 7,186,469 | 6,794,198 | 6,225,775 | ||||||
| Operating income/(loss) | 341,897 | 55,395 | (228,433 | ) | |||||
| Operating income/(loss) (non-GAAP) | 458,535 | 143,515 | (148,599 | ) | |||||
| Net income/(loss) attributable to iQIYI, Inc. | 182,145 | (5,816 | ) | (294,581 | ) | ||||
| Net income/(loss) attributable to iQIYI, Inc. (non-GAAP) | 304,420 | 109,668 | (234,352 | ) | |||||
| Diluted net income/(loss) per ADS | 0.19 | (0.01 | ) | (0.31 | ) | ||||
| Diluted net income/(loss) per ADS (non-GAAP)2 | 0.31 | 0.11 | (0.24 | ) | |||||
Footnotes:
[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB6.8980 as of March 31, 2026, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.
[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also “Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures” for more details).
First Quarter 2026 Financial Results
Total revenues reached RMB6.23 billion (US
Membership services revenue was RMB4.20 billion (US
Online advertising services revenue was RMB1.24 billion (US
Content distribution revenue was RMB358.7 million (US
Other revenues were RMB426.7 million (US
Cost of revenues was RMB5.23 billion (US
Selling, general and administrative expenses were RMB816.5 million (US
Research and development expenses were RMB404.2 million (US
Operating loss was RMB228.4 million (US
Non-GAAP operating loss was RMB148.6 million (US
Total other expense was RMB28.0 million (US
Loss before income taxes was RMB256.4 million (US
Income tax expense was RMB37.2 million (US
Net loss attributable to iQIYI was RMB294.6 million (US
Non-GAAP net loss attributable to iQIYI was RMB234.4 million (US
Net cash provided by operating activities was RMB186.4 million (US
As of March 31, 2026, the Company had cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash included in prepayments and other assets of RMB3.99 billion (US
Repurchase of
In March 2026, the Company completed the repurchase right offer for its
As of March 31, 2026, US
Share Repurchase Program
Pursuant to the Company’s share repurchase program of up to US
Conference Call Information
iQIYI’s management will hold an earnings conference call at 7:00 AM on May 18, 2026, U.S. Eastern Time (7:00 PM on May 18, 2026, Beijing Time).
Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique access PIN by a calendar invite.
Participant Online Registration: https://s1.c-conf.com/diamondpass/10054471-y7rp1m.html
It will automatically direct you to the registration page of "iQIYI First Quarter 2026 Earnings Conference Call", where you may fill in your details for RSVP.
In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.
A telephone replay of the call will be available after the conclusion of the conference call through May 25, 2026.
| Dial-in numbers for the replay are as follows: | |
| International Dial-in | +1 855 883 1031 |
| Passcode: | 10054471 |
A live and archived webcast of the conference call will be available at http://ir.iqiyi.com/.
About iQIYI, Inc.
iQIYI, Inc. is a leading provider of online entertainment video services in China. It combines creative talent with technology to foster an environment for continuous innovation and the production of blockbuster content. It produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content in a variety of formats. iQIYI distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. Over time, iQIYI has built a massive user base and developed a diversified monetization model including membership services, online advertising services, content distribution, online games, talent agency, experience business, etc.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the quotations from management in this announcement, as well as iQIYI's strategic and operational plans, contain forward-looking statements. iQIYI may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about iQIYI’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iQIYI’s strategies; iQIYI’s future business development, financial condition and results of operations; iQIYI’s ability to retain and increase the number of users, members and advertising customers, and expand its service offerings; competition in the online entertainment industry; changes in iQIYI's revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and iQIYI undertakes no duty to update such information, except as required under applicable law.
Non-GAAP Financial Measures
To supplement iQIYI’s consolidated financial results presented in accordance with GAAP, iQIYI uses the following non-GAAP financial measures: non-GAAP operating income/(loss), non-GAAP operating income/(loss) margin, non-GAAP net income/(loss) attributable to iQIYI, non-GAAP diluted net income/(loss) attributable to iQIYI per ADS and free cash flow. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
iQIYI believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance by excluding certain items that may not be indicative of its business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to the non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to iQIYI’s historical operating performance. The Company believes the non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that the non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.
Non-GAAP operating income/(loss) represents operating income/(loss) excluding share-based compensation expenses, amortization of intangible assets resulting from business combinations.
Non-GAAP net income/(loss) attributable to iQIYI, Inc. represents net income/(loss) attributable to iQIYI, Inc. excluding share-based compensation expenses, amortization of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, adjusted for related income tax effects. iQIYI’s share of equity method investments for these non-GAAP reconciling items, primarily amortization and impairment of intangible assets not on the investees’ books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded.
Non-GAAP diluted net income/(loss) per ADS represents diluted net income/(loss) per ADS calculated by dividing non-GAAP net income/(loss) attributable to iQIYI, Inc, by the weighted average number of ordinary shares expressed in ADS.
Free cash flow represents net cash provided by operating activities less capital expenditures.
For more information, please contact:
Investor Relations
iQIYI, Inc.
ir@qiyi.com
| iQIYI, INC. Condensed Consolidated Statements of Income/(Loss) (In RMB thousands, except for number of shares and per share data) | |||||||||
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| 2025 | 2025 | 2026 | |||||||
| RMB | RMB | RMB | |||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||
| Revenues: | |||||||||
| Membership services | 4,399,010 | 4,105,859 | 4,199,761 | ||||||
| Online advertising services | 1,327,827 | 1,352,811 | 1,240,611 | ||||||
| Content distribution | 628,743 | 787,669 | 358,749 | ||||||
| Others | 830,889 | 547,859 | 426,654 | ||||||
| Total revenues | 7,186,469 | 6,794,198 | 6,225,775 | ||||||
| Operating costs and expenses: | |||||||||
| Cost of revenues | (5,406,341 | ) | (5,376,079 | ) | (5,233,486 | ) | |||
| Selling, general and administrative | (1,025,742 | ) | (946,184 | ) | (816,530 | ) | |||
| Research and development | (412,489 | ) | (416,540 | ) | (404,192 | ) | |||
| Total operating costs and expenses | (6,844,572 | ) | (6,738,803 | ) | (6,454,208 | ) | |||
| Operating income/(loss) | 341,897 | 55,395 | (228,433 | ) | |||||
| Other income/(expense): | |||||||||
| Interest income | 78,756 | 84,499 | 80,459 | ||||||
| Interest expense | (233,429 | ) | (220,278 | ) | (213,951 | ) | |||
| Foreign exchange gain, net | 41,889 | 65,115 | 89,066 | ||||||
| Share of gains/(losses) from equity method investments | (3,617 | ) | 18 | (1,464 | ) | ||||
| Others, net | 1,724 | 43,491 | 17,936 | ||||||
| Total other expense, net | (114,677 | ) | (27,155 | ) | (27,954 | ) | |||
| Income/(loss) before income taxes | 227,220 | 28,240 | (256,387 | ) | |||||
| Income tax expense | (41,590 | ) | (35,757 | ) | (37,161 | ) | |||
| Net income/(loss) | 185,630 | (7,517 | ) | (293,548 | ) | ||||
| Less: Net income attributable to noncontrolling interests | 3,485 | (1,701 | ) | 1,033 | |||||
| Net income/(loss) attributable to iQIYI, Inc. | 182,145 | (5,816 | ) | (294,581 | ) | ||||
| Net income/(loss) attributable to ordinary shareholders | 182,145 | (5,816 | ) | (294,581 | ) | ||||
| Net income/(loss) per share for Class A and Class B ordinary shares: | |||||||||
| Basic | 0.03 | (0.00 | ) | (0.04 | ) | ||||
| Diluted | 0.03 | (0.00 | ) | (0.04 | ) | ||||
| Net income/(loss) per ADS (1 ADS equals 7 Class A ordinary shares): | |||||||||
| Basic | 0.19 | (0.01 | ) | (0.31 | ) | ||||
| Diluted | 0.19 | (0.01 | ) | (0.31 | ) | ||||
| Weighted average number of Class A and Class B ordinary shares used in net income/(loss) per share computation: | |||||||||
| Basic | 6,740,810,595 | 6,753,258,796 | 6,756,463,437 | ||||||
| Diluted | 6,780,303,294 | 6,753,258,796 | 6,756,463,437 | ||||||
| iQIYI, INC. Condensed Consolidated Balance Sheets (In RMB thousands, except for number of shares and per share data) | ||||||
| December 31, | March 31, | |||||
| 2025 | 2026 | |||||
| RMB | RMB | |||||
| (Unaudited) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | 4,354,275 | 2,941,129 | ||||
| Restricted cash | 23,123 | 379,928 | ||||
| Short-term investments | 314,819 | 668,710 | ||||
| Accounts receivable, net | 2,522,668 | 2,560,064 | ||||
| Prepayments and other assets | 2,406,222 | 2,354,731 | ||||
| Amounts due from related parties | 221,681 | 205,000 | ||||
| Licensed copyrights, net | 447,507 | 613,868 | ||||
| Total current assets | 10,290,295 | 9,723,430 | ||||
| Non-current assets: | ||||||
| Fixed assets, net | 903,427 | 896,350 | ||||
| Long-term investments | 1,773,309 | 1,789,985 | ||||
| Deferred tax assets, net | 20,773 | 17,323 | ||||
| Licensed copyrights, net | 5,962,954 | 6,139,134 | ||||
| Intangible assets, net | 217,085 | 225,868 | ||||
| Produced content, net | 14,578,037 | 14,580,537 | ||||
| Prepayments and other assets | 8,458,312 | 8,378,389 | ||||
| Operating lease assets | 489,720 | 483,737 | ||||
| Goodwill | 3,820,823 | 3,820,823 | ||||
| Amounts due from related parties | 167,000 | 119,000 | ||||
| Total non-current assets | 36,391,440 | 36,451,146 | ||||
| Total assets | 46,681,735 | 46,174,576 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts and notes payable | 6,652,432 | 7,292,405 | ||||
| Amounts due to related parties | 3,717,283 | 3,733,236 | ||||
| Customer advances and deferred revenue | 4,160,459 | 4,330,435 | ||||
| Convertible senior notes, current portion | 1,459,151 | 1,085 | ||||
| Short-term loans | 2,493,100 | 2,335,598 | ||||
| Long-term loans, current portion | 738,391 | 1,142,966 | ||||
| Operating lease liabilities, current portion | 84,174 | 83,565 | ||||
| Accrued expenses and other liabilities | 2,762,317 | 2,678,198 | ||||
| Total current liabilities | 22,067,307 | 21,597,488 | ||||
| Non-current liabilities: | ||||||
| Long-term loans | 3,368,876 | 3,658,848 | ||||
| Convertible senior notes | 6,711,948 | 6,671,382 | ||||
| Amounts due to related parties | 38,192 | 32,863 | ||||
| Operating lease liabilities | 340,256 | 328,005 | ||||
| Other non-current liabilities | 846,230 | 863,223 | ||||
| Total non-current liabilities | 11,305,502 | 11,554,321 | ||||
| Total liabilities | 33,372,809 | 33,151,809 | ||||
| Shareholders’ equity: | ||||||
| Class A ordinary shares | 239 | 240 | ||||
| Class B ordinary shares | 193 | 193 | ||||
| Additional paid-in capital | 56,026,232 | 56,107,367 | ||||
| Accumulated deficit | (44,015,680 | ) | (44,310,261 | ) | ||
| Accumulated other comprehensive income | 1,305,542 | 1,271,379 | ||||
| Non-controlling interests | (7,600 | ) | (46,151 | ) | ||
| Total shareholders’ equity | 13,308,926 | 13,022,767 | ||||
| Total liabilities and shareholders' equity | 46,681,735 | 46,174,576 | ||||
| iQIYI, INC. Condensed Consolidated Statements of Cash Flows (In RMB thousands) | ||||||||
| Three Months Ended | ||||||||
| March 31, | December 31, | March 31, | ||||||
| 2025 | 2025 | 2026 | ||||||
| RMB | RMB | RMB | ||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||
| Net cash provided by operating activities | 338,950 | 47,163 | 186,448 | |||||
| Net cash used for investing activities(1,2) | (30,136 | ) | (947,000 | ) | (274,759 | ) | ||
| Net cash provided by/(used for) financing activities | 860,477 | 518,404 | (933,140 | ) | ||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,232 | ) | (10,206 | ) | (34,896 | ) | ||
| Net increase/(decrease) in cash, cash equivalents and restricted cash | 1,168,059 | (391,639 | ) | (1,056,347 | ) | |||
| Cash, cash equivalents and restricted cash at the beginning of the period | 3,590,331 | 4,769,377 | 4,377,738 | |||||
| Cash, cash equivalents and restricted cash at the end of the period | 4,758,390 | 4,377,738 | 3,321,391 | |||||
Reconciliation of cash and cash equivalents and restricted cash: | ||||||||
| Cash and cash equivalents | 4,320,028 | 4,354,275 | 2,941,129 | |||||
| Restricted cash | 1,899 | 23,123 | 379,928 | |||||
| Long-term restricted cash | 436,463 | 340 | 334 | |||||
| Total cash and cash equivalents and restricted cash shown in the statements of cash flows | 4,758,390 | 4,377,738 | 3,321,391 | |||||
| Net cash provided by operating activities | 338,950 | 47,163 | 186,448 | |||||
| Less: Capital expenditures(2) | (31,252 | ) | (20,413 | ) | (76,698 | ) | ||
| Free cash flow | 307,698 | 26,750 | 109,750 | |||||
(1) Net cash used for investing activities primarily consists of net cash flows from loans provided to related party, investing in debt securities, purchase of long-term investments and capital expenditures.
(2) Capital expenditures are incurred primarily in connection with construction in process, computers and servers.
| iQIYI, INC. Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures (Amounts in thousands of Renminbi (“RMB”), except for per ADS information, unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | December 31, | March 31, | ||||||
| 2025 | 2025 | 2026 | ||||||
| RMB | RMB | RMB | ||||||
| Operating income/(loss) | 341,897 | 55,395 | (228,433 | ) | ||||
| Add: Share-based compensation expenses | 115,105 | 86,587 | 78,301 | |||||
| Add: Amortization of intangible assets(1) | 1,533 | 1,533 | 1,533 | |||||
| Operating income/(loss) (non-GAAP) | 458,535 | 143,515 | (148,599 | ) | ||||
| Net income/(loss) attributable to iQIYI, Inc. | 182,145 | (5,816 | ) | (294,581 | ) | |||
| Add: Share-based compensation expenses | 115,105 | 86,587 | 78,301 | |||||
| Add: Amortization of intangible assets(1) | 1,533 | 1,533 | 1,533 | |||||
| Add: Impairment of long-term investments | 2,000 | 9,990 | 9,009 | |||||
| Add: Fair value loss/(gain) of long-term investments | (1,740 | ) | 17,374 | (28,614 | ) | |||
| Add: Reconciling items on equity method investments(2) | 5,377 | - | - | |||||
| Net income/(loss) attributable to iQIYI, Inc. (non-GAAP) | 304,420 | 109,668 | (234,352 | ) | ||||
| Diluted net income/(loss) per ADS | 0.19 | (0.01 | ) | (0.31 | ) | |||
| Add: Non-GAAP adjustments to earnings per ADS | 0.12 | 0.12 | 0.07 | |||||
| Diluted net income/(loss) per ADS (non-GAAP) | 0.31 | 0.11 | (0.24 | ) | ||||
(1) This represents amortization of intangible assets resulting from business combinations.
(2) This represents iQIYI’s share of equity method investments for other non-GAAP reconciling items, primarily amortization and impairment of intangible assets not on the investee’s books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share.
