iQIYI (NASDAQ:IQ) executives said the company ended fiscal 2025 with a return to revenue growth in the fourth quarter, citing a stronger content slate, progress in building long-running franchises, and continued momentum in overseas and other emerging businesses.
Fourth-quarter performance and 2025 highlights
CEO Yu Gong said iQIYI spent 2025 “strengthening our core business to renew growth” while advancing emerging initiatives. He noted that total revenue in the fourth quarter returned to growth both year-over-year and sequentially, and highlighted content performance led by long-form dramas.
Content: dramas, films, variety shows, and micro formats
Management detailed Q4 performance across several content categories:
- Dramas: Strange Tales of Tang Dynasty 3: To Changan was described as iQIYI’s first title with two seasons exceeding a 10,000 popularity score, and management said it ranked No. 1 among 2025 new releases in ad revenue and No. 2 in membership revenue. The company also pointed to The Punishment 2 as the first title of 2026 to surpass 10,000, calling it iQIYI’s second franchise with two seasons achieving that milestone.
- Movies: Gong said iQIYI maintained a broad lineup. The original film The Shadow’s Edge extended its theatrical performance to online viewing, topping Q4 film releases by peak iQIYI Heat Index score and becoming the highest-rated domestic action crime film of the past decade on Douban, according to management. The original online film The Sixth Robber set a category record for popularity score. iQIYI also said it retained No. 1 viewership market share for movies broadcast on its platform for 16 consecutive quarters.
- Revenue-sharing model for films: Management said an “innovative revenue sharing model” aimed at improving returns for films with limited theatrical box office gained traction, citing The Return of The Name Herald generating RMB 36 million in shared revenue, ranking first among titles under the model.
- Variety shows: iQIYI said multi-season franchises and new formats performed well in 2025. Management cited Enlightent Data showing three multi-season titles in the top 10 most-watched multi-season variety shows and two new releases in the top three most-watched new shows. The Rap of China reached its ninth season, while Hi, Young Farmers Three hit an all-time high popularity score.
- Micro dramas: iQIYI said it expanded free content to more than 70% of its 20,000-title library and scaled its original micro drama portfolio to more than 150 titles. Management said Q4 delivered record-high membership and distribution revenues from micro dramas and highlighted spin-offs tied to Strange Tales of Tang Dynasty, noting more than 70% of debut-week viewers also watched the related long-form dramas.
The company also said it is expanding into micro animations with a free-content-centric model and a pipeline of more than 10,000 titles, adding that viewership and time spent are growing rapidly.
Membership, advertising, and AI initiatives
Gong said membership services revenue increased by more than 30% year-over-year in 2025, with growth accelerating to 40% in the second half, and that the subscriber base reached an all-time high. He also described tactics to drive subscriptions and retention, including promoting Standard VIP upgrades with “Member Express Packages” that offered early access to finales at no extra cost, as well as emphasizing annual memberships in holiday promotions and bundled partnerships. iQIYI also introduced additional VIP benefits, including offline events and access tied to the iQIYI Scream Night.
On advertising, management said Q4 brand advertising revenue grew both year-over-year and sequentially, with double-digit annual growth from both variety shows and dramas. Core ad verticals including food and beverage, internet services, e-commerce, and telecom services also posted double-digit annual growth, according to the company. For performance-oriented “commerce ads,” iQIYI said it regained sequential growth in Q4 with increased contribution from small and medium-sized advertisers, led by internet services, e-commerce, and financial services.
Executives also emphasized AI as a major strategic focus. Gong said advances in AI video generation models are expected to reduce production costs, shorten timelines, and lower barriers to creation, which he argued should benefit long-form video platforms by increasing both the quantity and quality of content. He added that micro animation is “AI-native,” and said children’s animation and micro dramas can be produced by large models at “one-tenth or less” of traditional production costs. For live-action films and series, he said AI is already reducing costs in parts of the production process, and iQIYI expects AI-led commercial films could emerge within two to three years.
Management pointed to Nado Pro, an AI agent platform in closed beta designed to streamline professional content creation workflows, and said it is being used by internal teams and select partners across films, dramas, and animation. The company also discussed an AI agent-based NPC platform that allows users to interact with more than 1,700 NPC agents from iQIYI titles, which management said is seeing strong adoption and rising revenue in 2025.
Overseas growth and experience business expansion
iQIYI’s overseas business was described as a “sustainable and scalable second growth engine.” In Q4, management said overseas membership revenue increased 14% year-over-year, while markets including Brazil, Mexico, and Indonesia saw membership revenue growth of more than 80%. The company attributed performance to rising popularity of C-dramas overseas, highlighting Speed and Love as a top-performing title that reached No. 1 on popularity charts in 14 markets and led its category on Google Trends in Thailand, Malaysia, and Singapore. Management also cited local original content efforts, including the Taiwanese drama Ops, I’m in Jail and the Thai original variety show Ready Men Thailand, which launched in February 2026 and secured brand advertising partnerships.
In Q&A, executives said the overseas strategy for 2026 is to sustain high revenue growth, keep C-dramas at the core of the international content mix, and ramp up local licensing and production in markets such as Thailand, Malaysia, and Indonesia. Management also said AI-powered translation and dubbing are improving efficiency and lowering costs, while AI-generated promotional assets are reducing marketing expense and speeding distribution.
Separately, Gong discussed iQIYI’s developing “experience business,” focused on IP-based consumer products and offline “IP Land.” He said the first iQIYI Land in Yangzhou opened on Feb. 8, 2026, offering seven immersive experience categories, and that early performance met expectations. He cited average ratings of 4.8 out of 5 on major online travel agency platforms, with some reaching 4.9, and said visitor numbers have continued to rise. Gong said two additional locations are planned to open later in 2026 in Kaifeng and Beijing, and that revenue will primarily come from ticket sales and on-site spending. He also said iQIYI plans to strengthen self-operated consumer products and projected “at least” 100% revenue growth in that area this year.
Financial results
Interim CFO Ying Zeng reported fourth-quarter total revenue of RMB 6.8 billion, up 2% sequentially. Membership services revenue was RMB 4.1 billion, down 3% sequentially due to seasonality. Online advertising revenue was RMB 1.4 billion, up 9% sequentially, which she said was driven by streaming content and e-commerce “Double Eleven” campaigns. Content distribution revenue rose to RMB 787.7 million, up 22% sequentially, while other revenue was RMB 547.9 million, down 6% sequentially.
Content costs were RMB 3.8 billion, down 5% sequentially as iQIYI adopted a more curated acquisition strategy “centered on quality,” Zeng said. Total operating expenses were RMB 1.4 billion, up 2% sequentially. Non-GAAP operating income was RMB 143.5 million, with a non-GAAP operating margin of 2%.
As of quarter-end, iQIYI reported RMB 4.7 billion in cash equivalents, restricted cash, short-term investments, and long-term restricted cash (including prepayments and other assets). Zeng also noted a $636.6 million loan to PAG recorded under prepayments and other assets.
About iQIYI (NASDAQ:IQ)
iQIYI, Inc is a leading online entertainment service provider headquartered in Beijing, China, offering a comprehensive portfolio of streaming video content across multiple genres. The company operates a subscription-based video-on-demand (SVOD) platform, complemented by advertising-supported content (AVOD) and pay-per-view offerings. Its digital library encompasses original series, feature films, variety shows, animation and documentaries, catering to diverse demographic segments and viewer preferences.
Originally launched by Baidu in 2010 as an online video site, iQIYI was formally rebranded in early 2012 and has since expanded its footprint beyond China’s domestic market.
