iQIYI

iQIYI (IQ) Q1 2025 Earnings

Reported May 21, 2025 at 9:04 AM ET · SEC Source

Q1 25 EPS

$0.05

MISS 84.75%

Est. $0.30

Q1 25 Revenue

$1.06B

MISS 85.13%

Est. $7.10B

vs S&P Since Q1 25

-67.6%

TRAILING MARKET

IQ -39.5% vs S&P +28.1%

Market Reaction

Did IQ Beat Earnings? Q1 2025 Results

iQIYI delivered a sharply disappointing first quarter, missing Wall Street expectations by wide margins as a lighter content slate weighed heavily on the company's core businesses. The Chinese streaming giant posted revenue of $1.06 billion for Q1 20… Read more iQIYI delivered a sharply disappointing first quarter, missing Wall Street expectations by wide margins as a lighter content slate weighed heavily on the company's core businesses. The Chinese streaming giant posted revenue of $1.06 billion for Q1 2025, falling 9.3% year over year and coming in 85.13% below the $7.10 billion consensus estimate, while earnings per share of $0.05 missed the $0.30 analyst forecast by 84.75%. The primary culprit was a thinner drama and movie lineup compared to the content-rich Q1 2024 period, which dragged membership services revenue, the company's largest segment, down 8% year over year to $646.21 million, and pushed online advertising revenue 10% lower to $195.06 million. Operating income collapsed to $50.22 million from $138.78 million a year ago, compressing operating margin from 12% to just 5%. On a brighter note, iQIYI returned to profitability sequentially, posting net income of $26.76 million after a loss in Q4 2024, supported by a $6.15 million foreign exchange gain and improving interest expense trends.

Key Takeaways

  • Long-form dramas maintained leadership in total viewership market share according to Enlightent
  • Micro dramas demonstrated notable growth in viewership and engagement
  • Lighter content slate compared to Q1 2024 pressured membership and advertising revenue
  • Decrease in brand advertising business drove online advertising revenue decline
  • Content distribution decline due to lower drama series distribution and fewer theatrical movie releases
  • Content cost improvement from refined content strategy and lighter movie offerings
  • Higher marketing spending drove SG&A increase of 11% YoY
  • Foreign exchange gain and declining interest expense improved total other expense
24/7 Wall St

IQ YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

IQ Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We delivered a solid first quarter, with total revenues and operating income growing sequentially by 9% and 20%, respectively. We are pleased to see that our long-form dramas continued to lead in total viewership market share, according to Enlightent, while our micro dramas demonstrated notable growth in viewership and engagement during the quarter.”

— Yu Gong, Q1 2025 Earnings Press Release