Companies /Communication Services

iQIYI Inc

NASDAQ: IQ Entertainment
$0.94
â–² $0.01 (+1.27%) today
Markets open · 11:37am ET

Q1 2025 Earnings

Reported May 21, 2025, 9:04am ET · SEC source
$0.05
Miss −84.75%
EPS · est. $0.30
$1.1B
Miss −85.13%
Revenue · est. $7.1B
−0.0%
Trailing market
IQ vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0+5%May 21May 22report 9:04am ETearnings−0.6%−9.9%
−10%−5%0+5%May 21May 22earnings−0.6%−9.9%
IQ −9.9%S&P 500 −0.6%
−10%−5%0+5%May 21May 22report 9:04am ETearnings+0.0%−9.9%
−10%−5%0+5%May 21May 22earnings+0.0%−9.9%
IQ −9.9%NASDAQ +0.0%
−6%0+6%May 20May 29report 9:04am ETearnings+0.2%−6.0%
−6%0+6%May 20May 29earnings+0.2%−6.0%
IQ −6.0%S&P 500 +0.2%
−6%0+6%May 20May 29report 9:04am ETearnings+0.8%−6.0%
−6%0+6%May 20May 29earnings+0.8%−6.0%
IQ −6.0%NASDAQ +0.8%
−8.06%
Day of report
−1.17%
Next session
−3.51%
One week
+4.09%
30 days

S&P 500 over the same 30 days: +4.10%.

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 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

“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.”

iQIYI CEO, on the earnings call

IQ YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$400.0M$800.0M$1.2B$1.2B$1.1BRevenue$337.3M$261.5MGross Profit$138.8M$50.2MOperating Income$96.3M$26.8MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

IQ Revenue by Segment

Membership Services$646.2M−8.0%
Online Advertising Services$195.1M−10.0%
Others$122.1M+16.0%
Content Distribution$92.4M−32.0%

Figures from SEC filings and company reports. Not investment advice.