iQIYI Q2 Loss Widens on Tax Charge; Revenue Down 5%
IQ sits 28% above its 52-week low of $0.95.
Summary
iQIYI reported a wider Q2 net loss of RMB287.5 million due to a one-time tax charge, while revenue declined 5% to RMB6.29 billion. The company generated positive free cash flow and continued its share repurchase program.
Key Events · Earnings and Guidance · IQ
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Q2 Net Loss Widens
Net loss attributable to iQIYI was RMB287.5 million (US$42.4 million), compared to RMB133.7 million in Q2 2025, primarily due to a RMB193.6 million discrete income tax expense at a Chinese mainland subsidiary.
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Revenue Declines 5%
Total revenues were RMB6.29 billion (US$926.6 million), down 5% year over year. Membership services revenue fell 2% to RMB4.01 billion, while content distribution revenue rose 56% to RMB681.5 million.
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Positive Free Cash Flow
Free cash flow was RMB319.6 million (US$47.1 million), compared to negative RMB34.1 million in Q2 2025, driven by net cash provided by operating activities of RMB339.6 million.
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Share Repurchase Update
Under the US$100 million buyback program adopted in March 2026, the company repurchased approximately 21.8 million ADSs for a total cost of US$24.1 million as of June 30, 2026.
Analysis · IQ · Trade & Services
A RMB193.6 million discrete income tax expense at a Chinese mainland subsidiary drove iQIYI's second-quarter net loss attributable to the company to RMB287.5 million, up from RMB133.7 million a year earlier. Revenue fell 5% year over year to RMB6.29 billion, though content distribution revenue jumped 56%. The company generated positive free cash flow of RMB319.6 million and repurchased 21.8 million ADSs for US$24.1 million under its US$100 million buyback program.
At the time of this filing, IQ was trading at $1.21 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $0.95 to $2.84. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.