iQIYI (NASDAQ: IQ) posts Q1 2026 loss as revenue falls 13%

Rhea-AI Filing Summary

iQIYI, Inc. reported unaudited first‑quarter 2026 results with total revenues of RMB6.23 billion, down 13% year over year. A lighter content slate and weaker advertising contributed to declines across membership, advertising, content distribution and other revenues.

The company swung to an operating loss of RMB228.4 million and a net loss attributable to iQIYI of RMB294.6 million, compared with profits a year earlier. Non-GAAP results also turned to a loss, while free cash flow remained positive at RMB109.8 million. Management highlighted strong overseas membership revenue and ongoing cost discipline.

iQIYI repurchased US$207.8 million principal of its 6.50% convertible senior notes due 2028, leaving US$0.3 million of these notes outstanding as of March 31, 2026. Under its up to US$100 million share repurchase program adopted in March 2026, the company had bought approximately 6.5 million ADSs for US$8.0 million by the date of the release.

Positive

• Positive free cash flow despite weaker earnings: Free cash flow was RMB109.8 million in Q1 2026, remaining positive though lower than RMB307.7 million a year earlier.
• Debt reduction via note repurchase: The company repurchased US$207.8 million principal of its 6.50% convertible senior notes due 2028, materially shrinking this tranche and leaving only US$0.3 million outstanding.
• Active capital return to shareholders: Under its up to US$100 million share repurchase program adopted in March 2026, iQIYI had repurchased about 6.5 million ADSs for US$8.0 million by the release date.
• Growing overseas membership contribution: Management stated that overseas business sustained strong momentum and achieved record membership revenue in Q1 2026, supporting the longer-term growth narrative.

Negative

• Double-digit revenue decline: Total revenues were RMB6.23 billion in Q1 2026, a 13% year-over-year decrease, with declines across membership, advertising, content distribution and other revenue streams.
• Sharp deterioration in profitability: Operating income of RMB341.9 million in Q1 2025 turned into an operating loss of RMB228.4 million, and net income attributable to iQIYI swung to a loss of RMB294.6 million.
• Non-GAAP metrics also turned negative: Non-GAAP operating income of RMB458.5 million a year earlier became a non-GAAP operating loss of RMB148.6 million; non-GAAP net income of RMB304.4 million became a non-GAAP net loss of RMB234.4 million.
• Pressure across revenue components: Membership revenue fell 5%, online advertising 7%, content distribution 43%, and other revenues 49% year over year, indicating broad-based top-line headwinds.
• Weaker cash generation: Net cash provided by operating activities declined to RMB186.4 million from RMB339.0 million in Q1 2025, and free cash flow was roughly one-third of the prior-year level.

Insights

Equity analyst

Revenue fell and profits turned to losses despite cost controls.

iQIYI reported Q1 2026 revenue of RMB6.23 billion, down 13% year over year. Membership revenue declined 5% and online advertising 7%, reflecting a lighter content slate and advertiser caution amid macro pressures.

Profitability deteriorated sharply. Operating income of RMB341.9 million in Q1 2025 became an operating loss of RMB228.4 million. Net income attributable to iQIYI shifted from RMB182.1 million to a loss of RMB294.6 million, with non-GAAP metrics showing a similar swing.

Free cash flow stayed positive at RMB109.8 million, but down from RMB307.7 million a year earlier. Management emphasized using AI to lower content costs and highlighted robust overseas membership revenue. Future quarterly results will show whether these initiatives can stabilize revenue and margins.

Credit and capital structure analyst

Leverage remains significant, but note repurchases and cash provide some buffer.

The company reported cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash of RMB3.99 billion as of March 31, 2026. It also holds an aggregate loan of US$636.6 million to PAG classified as a non-current asset.

iQIYI completed a repurchase right offer for its 6.50% convertible senior notes due 2028, buying back US$207.8 million principal and leaving US$0.3 million outstanding. Other convertible and PAG-related notes still total several hundred million dollars in principal.

Net cash from operating activities was RMB186.4 million, while financing activities used RMB933.1 million in Q1 2026, partly reflecting debt actions. The share repurchase program of up to US$100 million, with US$8.0 million spent on 6.5 million ADSs, modestly returns capital while also using cash in a period of weaker earnings.

Key Figures

Total revenue Q1 2026: RMB6.23 billion Net income/(loss) attributable to iQIYI: RMB-294.6 million Non-GAAP net income/(loss): RMB-234.4 million +5 more

8 metrics

Total revenue Q1 2026 RMB6.23 billion Three months ended March 31, 2026, down 13% YoY

Net income/(loss) attributable to iQIYI RMB-294.6 million Q1 2026 vs RMB182.1 million in Q1 2025

Non-GAAP net income/(loss) RMB-234.4 million Q1 2026 vs RMB304.4 million in Q1 2025

Free cash flow RMB109.8 million Q1 2026, down from RMB307.7 million in Q1 2025

Cash and investments RMB3.99 billion Cash, equivalents, restricted cash, short-term investments and long-term restricted cash as of March 31, 2026

PAG loan asset US$636.6 million Aggregate loan to PAG classified as non-current asset as of March 31, 2026

2028 notes repurchased US$207.8 million principal 6.50% convertible senior notes due 2028 repurchased in March 2026

ADSs repurchased 6.5 million ADSs for US$8.0 million Under up to US$100 million share repurchase program adopted March 2026

Key Terms

non-GAAP operating income/(loss), free cash flow, convertible senior notes, share repurchase program, +2 more

6 terms

non-GAAP operating income/(loss) financial

"Non-GAAP operating loss was RMB148.6 million (US$21.5 million), compared to non-GAAP operating income of RMB458.5 million in the same period in 2025."

free cash flow financial

"Free cash flow was RMB109.8 million (US$15.9 million), compared to free cash flow of RMB307.7 million in the same period of 2025."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

convertible senior notes financial

"In March 2026, the Company completed the repurchase right offer for its 6.50% convertible senior notes due 2028."

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

share repurchase program financial

"Pursuant to the Company’s share repurchase program of up to US$100 million adopted in March 2026 and effective through September 2027, as of the date of this earnings release, the Company has repurchased a total of approximately 6.5 million ADSs."

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

operating loss margin financial

"Non-GAAP operating loss margin was 2%, compared to non-GAAP operating income margin of 6% in the same period in 2025."

Operating loss margin is the percentage of a company’s sales that is lost on core business activities after paying everyday operating costs, calculated as operating loss divided by revenue. Think of a store that sells $100 of goods but spends $10 more than it earns on rent, wages and supplies—the operating loss margin tells you that core operations are losing 10% of sales; investors watch it to judge whether the business model and cost structure are sustainable and improving.

foreign exchange gain financial

"Total other expense was RMB28.0 million (US$4.1 million), decreasing 76% year over year, primarily due to gain from foreign exchange and decrease in interest expense."

A foreign exchange gain is the profit a company records when changes in currency exchange rates increase the value of its cash, receivables, or other items denominated in a foreign currency when converted into the company’s reporting currency. Think of it like holding money in another country whose exchange rate moves in your favor, so when you convert it back you get more than you expected. For investors, these gains can boost reported earnings and cash flow but may be temporary and driven by currency swings rather than the company’s core business performance, so they should be separated from ongoing operational results.

Form 6-K: How Foreign Companies Report to the SEC →

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2026

Commission File Number: 001-38431

iQIYI, Inc.

4/F, iQIYI Youth Center Yoolee Plaza,

No. 21, North Road of Workers’ Stadium, Chaoyang District Beijing, 100027,

People’s Republic of China

Tel: +86 10 6267-7171

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒   Form 40-F ☐

Exhibit Index

Exhibit 99.1 — Press Release — iQIYI Announces First Quarter 2026 Financial Results

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

iQIYI, Inc.
By		:		/s/ Ying Zeng
Name		:		Ying Zeng
Title		:		Interim Chief Financial Officer

Date: May 18, 2026

Exhibit 99.1

iQIYI Announces First Quarter 2026 Financial Results

BEIJING, CHINA, May 18, 2026 – 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 million¹), decreasing 13% year over year.

• Operating loss was RMB228.4 million (US$33.1 million) and operating loss margin was 4%, compared to operating income of RMB341.9 million and operating income margin of 5% in the same period in 2025.

• Non-GAAP operating loss² was RMB148.6 million (US$21.5 million) and non-GAAP operating loss margin was 2%, compared to non-GAAP operating income of RMB458.5 million and non-GAAP operating income margin of 6% 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, 2025				December 31, 2025				March 31, 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$902.5 million), decreasing 13% year over year.

Membership services revenue was RMB4.20 billion (US$608.8 million), decreasing 5% year over year, primarily due to a lighter content slate compared to the same period last year.

Online advertising services revenue was RMB1.24 billion (US$179.9 million), decreasing 7% year over year, as some advertisers adjusted their advertising and promotion strategies in response to macro pressures.

Content distribution revenue was RMB358.7 million (US$52.0 million), decreasing 43% year over year, primarily due to the decrease in barter transactions.

Other revenues were RMB426.7 million (US$61.9 million), decreasing 49% year over year, primarily due to the alteration of certain business cooperation arrangement.

Cost of revenues was RMB5.23 billion (US$758.7 million), decreasing 3% year over year. Content costs as a component of cost of revenues were RMB3.74 billion (US$542.8 million), decreasing 1% year over year.

Selling, general and administrative expenses were RMB816.5 million (US$118.4 million), decreasing 20% year over year. The decrease was primarily attributable to disciplined marketing spending.

Research and development expenses were RMB404.2 million (US$58.6 million), decreasing 2% year over year.

Operating loss was RMB228.4 million (US$33.1 million), compared to operating income of RMB341.9 million in the same period in 2025. Operating loss margin was 4%, compared to operating income margin of 5% in the same period in 2025.

Non-GAAP operating loss was RMB148.6 million (US$21.5 million), compared to non-GAAP operating income of RMB458.5 million in the same period in 2025. Non-GAAP operating loss margin was 2%, compared to non-GAAP operating income margin of 6% in the same period in 2025.

Total other expense was RMB28.0 million (US$4.1 million), decreasing 76% year over year, primarily due to gain from foreign exchange and decrease in interest expense.

Loss before income taxes was RMB256.4 million (US$37.2 million), compared to income before income taxes of RMB227.2 million in the same period in 2025.

Income tax expense was RMB37.2 million (US$5.4 million), compared to income tax expense of RMB41.6 million 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. Diluted net loss attributable to iQIYI per ADS was RMB0.31 (US$0.04) for the first quarter of 2026, compared to diluted net income attributable to iQIYI per ADS of RMB0.19 in the same period of 2025.

Non-GAAP net loss attributable to iQIYI 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. Non-GAAP diluted net loss attributable to iQIYI per ADS was RMB0.24 (US$0.04), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB0.31 in the same period of 2025.

Net cash provided by operating activities was RMB186.4 million (US$27.0 million), compared to net cash provided by operating activities of RMB339.0 million in the same period of 2025. Free cash flow was RMB109.8 million (US$15.9 million), compared to free cash flow of RMB307.7 million in the same period of 2025.

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$578.4 million). In addition, as of the same date, the Company had an aggregate loan of US$636.6 million to PAG, classified as a non-current asset under prepayments and other assets.

Repurchase of 6.50% Convertible Senior Notes due 2028

In March 2026, the Company completed the repurchase right offer for its 6.50% convertible senior notes due 2028 (the “2028 Notes”). An aggregate principal amount of US$207.8 million of the 2028 Notes were validly surrendered and repurchased with the same amount. Following settlement of the repurchase, US$259,000 aggregate principal amount of the 2028 Notes remains outstanding and continues to be subject to the existing terms of the Indenture and the 2028 Notes.

As of March 31, 2026, US$0.1 million principal amount of the 2026 Notes, US$522.5 million principal amount of the PAG Notes, US$0.3 million principal amount of the 2028 Notes, and US$350.0 million principal amount of the 2030 Notes remained outstanding.

Share Repurchase Program

Pursuant to the Company’s share repurchase program of up to US$100 million adopted in March 2026 and effective through September 2027, as of the date of this earnings release, the Company has repurchased a total of approximately 6.5 million ADSs for a total cost of US$8.0 million.

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, 2025				December 31, 2025				March 31, 2026
		RMB (Unaudited)				RMB (Unaudited)				RMB (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, 2025				March 31, 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, 2025				December 31, 2025				March 31, 2026
		RMB (Unaudited)				RMB (Unaudited)				RMB (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, 2025				December 31, 2025				March 31, 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.

FAQ

How did iQIYI (IQ) perform financially in Q1 2026?

iQIYI reported Q1 2026 revenue of RMB6.23 billion, down 13% year over year, and a net loss attributable to iQIYI of RMB294.6 million. This compares with net income of RMB182.1 million in Q1 2025, marking a significant profitability deterioration.

What drove iQIYI (IQ) revenue declines in Q1 2026?

Total revenue fell 13% year over year as membership revenue declined 5% and online advertising 7%. Content distribution revenue dropped 43% and other revenues 49%, attributed to a lighter content slate, macro-related advertising pressure and changes in business cooperation arrangements.

How did iQIYI (IQ) margins and profitability change in Q1 2026?

Operating results shifted from income to loss. Operating income of RMB341.9 million in Q1 2025 became an operating loss of RMB228.4 million, and operating margin moved from 5% to a 4% loss margin. Net income similarly swung to a substantial net loss.

What were iQIYI (IQ) non-GAAP results for Q1 2026?

Non-GAAP operating income of RMB458.5 million in Q1 2025 turned into a non-GAAP operating loss of RMB148.6 million in Q1 2026. Non-GAAP net income of RMB304.4 million became a non-GAAP net loss of RMB234.4 million, highlighting broad earnings pressure.

What is iQIYI (IQ) doing with its debt and convertible notes?

In March 2026, iQIYI repurchased US$207.8 million principal of its 6.50% convertible senior notes due 2028. After settlement, only US$0.3 million principal of these notes remained outstanding, alongside other existing note tranches disclosed in the balance sheet.

How much cash and liquidity does iQIYI (IQ) have?

As of March 31, 2026, iQIYI held RMB3.99 billion in cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash. It also reported a non-current loan asset to PAG totaling US$636.6 million, providing additional balance sheet resources.

How much stock has iQIYI (IQ) repurchased under its buyback program?

Under its up to US$100 million share repurchase program adopted in March 2026, iQIYI had repurchased about 6.5 million ADSs for a total cost of US$8.0 million as of the date of the earnings release, indicating an initial but modest execution.

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