iQIYI reports Q2 revenue growth and narrowing operating losses

iQIYI, a Chinese online entertainment provider, reported its second-quarter financial results, showing a sequential increase in revenue to approximately RMB 6.3 billion. While membership revenue saw a seasonal decline of 4%, content distribution revenue grew by 90% sequentially, driven by drama series.

The company reported a narrowing non-GAAP operating loss, which reached RMB 130.3 million, moving closer to a breakeven point. Total operating expenses decreased by 6% due to disciplined marketing spending. Net cash provided by operating activities also saw an increase compared to the previous quarter.

CEO Yu Gong stated that the company is undergoing a strategic transformation focused on decentralizing its content ecosystem and integrating artificial intelligence into production and distribution. The company aims to use AI to increase creator volume, user engagement, and overall profitability.