iQIYI (IQ) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw sequential growth in membership revenue, driven by a strong lineup of premium dramas and refined upselling strategies, while total revenues were RMB 6.23 billion (US$902.5 million), down 13% year-over-year.

• Overseas business emerged as a key growth engine, with membership revenue in Southeast Asia up over 40% year-over-year, Brazil/Mexico up over 100%, and record overseas membership revenue achieved.

• AI integration and regulatory support accelerated content approval, innovation in short-form formats, and operational efficiency.

• Nadou Pro, the proprietary AI content creation platform, now serves over 10,000 creators and is expanding internationally.

• Operating loss was RMB 228.4 million, reversing from operating income of RMB 341.9 million in Q1 2025, with a net loss attributable to shareholders of RMB 294.6 million.

Financial highlights

• Total Q1 revenue was RMB 6.2 billion, down 8% sequentially and 13% year-over-year.

• Membership services revenue reached RMB 4.2 billion, up 2% sequentially but down 5% year-over-year.

• Online advertising revenue was RMB 1.24 billion, down 8% sequentially and 7% year-over-year due to seasonality and macro pressures.

• Content distribution revenue was RMB 358.7 million, down 54% sequentially and 43% year-over-year, mainly due to fewer barter transactions.

• Non-GAAP operating loss was RMB 149 million, with a margin of approximately 2%.

Outlook and guidance

• Q2 content pipeline includes a diverse slate of dramas, variety shows, and animations, with several titles already achieving high popularity.

• Membership business expected to maintain steady growth, supported by premium content and operational initiatives targeting dormant users and large-screen expansion.

• Continued investment in Southeast Asia, Brazil, and emerging markets, with a focus on young female demographics and local content production.

• AI is being leveraged to reduce content production costs, accelerate cycles, and expand the content ecosystem.

• Management is focused on reinforcing core strengths and unlocking new growth drivers for long-term value.