On August 20, iQiyi Inc. (NASDAQ: IQ) released its unaudited second quarter financial results for the period ending June 30, 2025. For the second quarter, iQiyi Inc. achieved total revenue of 6.63 billion yuan. The revenue breakdown included membership services revenue of 4.09 billion yuan, online advertising services revenue of 1.27 billion yuan, content distribution revenue of 440 million yuan, and other revenue of 830 million yuan. During the quarter, iQiyi Inc. recorded Non-GAAP operating profit of 58.7 million yuan, marking its 14th consecutive quarter of Non-GAAP operating profitability.

Gong Yu, Founder and Chief Executive Officer of iQiyi Inc., commented: "From the second quarter through the summer season, iQiyi Inc. has consistently delivered hit content, with our drama series achieving the highest market share according to Yunhe data. Meanwhile, we are focusing on innovation by investing in key growth areas including AI applications, micro-dramas, user experience services, and international business, aiming to drive sustainable long-term development and success."

Wang Jun, Chief Financial Officer of iQiyi Inc., stated: "We have effectively managed resources and optimized our capital structure, achieving seven consecutive quarters of declining net interest expenses to support long-term value creation."

From the second quarter through the summer season, iQiyi Inc. has produced numerous hit content across both long-form and short-form formats, with "great content, horizontal and vertical viewing on iQiyi Inc." continuing to capture users' mindshare. Three drama series - "Lingjiang Xian," "Zhaoxue Lu," and "Sheng Wanwu" - achieved content heat values exceeding 10,000 on iQiyi Inc.'s platform, further consolidating the company's leading position in female-oriented and realistic themes. "Wuyou Du" and "Shujuan Yi Meng" both achieved content heat values exceeding 9,500, garnering high popularity and positive reviews. Other genres also delivered outstanding works, with "Jue Mi Jiao Liang" and suspense dramas from the "Mist Theater" series - "Wu Yun Zhi Shang" and "Jie Ming Er Sheng" - receiving enthusiastic user response.

In the second quarter, iQiyi Inc. achieved significant breakthroughs in self-produced premium micro-dramas, launching popular works including "Zhiai Nantao," "Cheng He Titong," and "Zhangshangzhu." Among these, iQiyi Inc.'s first IP-adapted micro-drama "Cheng He Titong" reached a peak content heat value of over 5,500, setting a new platform record for micro-dramas. To date, iQiyi Inc. has approximately 15,000 micro-drama content reserves.

For the quarter, iQiyi Inc.'s total costs were 5.29 billion yuan, down 7% year-over-year. Content costs, as the primary component of total costs, amounted to 3.78 billion yuan. Sales and administrative expenses and research and development expenses were 960 million yuan and 420 million yuan, respectively.

In the second quarter, under Non-GAAP standards, iQiyi Inc. recorded operating profit of 58.7 million yuan and net income attributable to iQiyi Inc. of 14.7 million yuan. As of June 30, 2025, iQiyi Inc.'s total cash balance (including cash, cash equivalents, short-term restricted funds, short-term investments, and long-term restricted funds in prepaid and other assets) totaled 5.06 billion yuan.