Shares of iQiyi Inc. (NASDAQ: IQ) surged 5.37% in pre-market trading on Tuesday after the Chinese video streaming platform reported better-than-expected third-quarter 2025 financial results and narrower losses than analysts had predicted.

For the quarter ended September 30, 2025, iQiyi reported a net loss of RMB 248.9 million (US$35.0 million), or RMB 0.26 per American depositary share (ADS). This was a significant improvement from the net income of RMB 229.4 million in the same period last year. The company's adjusted net loss came in at RMB 148.2 million (US$20.8 million), or RMB 0.15 per ADS, beating analyst estimates of RMB 0.21 per ADS.

While total revenues decreased 8% year-over-year to RMB 6.68 billion (US$938.7 million), iQiyi showed resilience in its core businesses. Membership services revenue, which accounts for the largest portion of the company's income, declined only 4% to RMB 4.21 billion (US$591.7 million). The company's brand advertising business achieved solid year-over-year growth, partially offsetting the decrease in performance-based advertising. Additionally, iQiyi reported robust growth in revenue from the distribution of theatrical movies, demonstrating its strength in content creation and monetization.