The income statement reveals a severe structural margin collapse, with gross margins contracting sharply to 16.5% in 2026Q2 from a high of 29.0% in 2024Q1, as a -6.6% TTM revenue decline has overwhelmed cost-cutting efforts and pushed operating margins to -1.7%.
iQIYI, Inc. (IQ) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 25.97B | 27.29B | 29.23B | 31.87B | 29B | 30.55B | 29.71B | 28.99B | 24.99B | 17.38B | 11.24B | 5.32B |
| Revenue Growth % | -6.15% | -6.62% | -8.31% | 9.92% | -5.1% | 2.85% | 2.46% | 16.03% | 43.79% | 54.65% | 111.29% | - |
| Cost of Goods Sold | 21.31B | 21.54B | 21.95B | 23.1B | 22.32B | 27.51B | 27.88B | 30.35B | 27.13B | 17.39B | 11.44B | 6.04B |
| COGS % of Revenue | - | 78.93% | 75.12% | 72.48% | 76.97% | 90.05% | 93.86% | 104.67% | 108.58% | 100.05% | 101.77% | 113.6% |
| Gross Profit | 4.66B | 5.75B | 7.27B | 8.77B | 6.68B | 3.04B | 1.82B | -1.35B | -2.14B | -8.21M | -199.19M | -723.18M |
| Gross Margin % | 17.95% | 21.07% | 24.88% | 27.52% | 23.03% | 9.95% | 6.14% | -4.67% | -8.58% | -0.05% | -1.77% | -13.6% |
| Gross Profit Growth % | - | -20.94% | -17.09% | 31.32% | 119.62% | 66.82% | 234.56% | 36.81% | -26001.24% | 95.88% | 72.46% | - |
| Operating Expenses | 5.06B | 5.52B | 5.46B | 5.78B | 5.37B | 7.52B | 7.86B | 7.9B | 6.16B | 3.94B | 2.59B | 1.7B |
| OpEx % of Revenue | - | 20.22% | 18.68% | 18.14% | 18.5% | 24.61% | 26.47% | 27.26% | 24.66% | 22.7% | 23.05% | 32.05% |
| Selling, General & Admin | 3.43B | 3.86B | 3.68B | 4.01B | 3.47B | 4.73B | 5.19B | 5.24B | 4.17B | 2.67B | 1.77B | 1.2B |
| SG&A % of Revenue | - | 14.13% | 12.6% | 12.59% | 11.95% | 15.46% | 17.46% | 18.06% | 16.68% | 15.39% | 15.71% | 22.65% |
| Research & Development | 1.63B | 1.66B | 1.78B | 1.77B | 1.9B | 2.79B | 2.68B | 2.67B | 1.99B | 1.27B | 824.48M | 499.96M |
| R&D % of Revenue | - | 6.09% | 6.09% | 5.54% | 6.55% | 9.15% | 9.01% | 9.2% | 7.98% | 7.31% | 7.34% | 9.4% |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.49M | 0 | -8.11M |
| Operating Income | -399.31M | 229.31M | 1.81B | 2.99B | 1.31B | -4.48B | -6.04B | -9.26B | -8.31B | -3.95B | -2.79B | -2.43B |
| Operating Margin % | -1.54% | 0.84% | 6.2% | 9.38% | 4.53% | -14.66% | -20.33% | -31.93% | -33.24% | -22.75% | -24.82% | -45.64% |
| Operating Income Growth % | - | -87.34% | -39.41% | 127.78% | 129.3% | 25.85% | 34.75% | -11.46% | -110.12% | -41.71% | -14.91% | - |
| EBITDA | -6.67M | 13.49B | 15.44B | 17.08B | 14.97B | 12.29B | 11.16B | 7.91B | 6.67B | 4.81B | 2.23B | 492.71M |
| EBITDA Margin % | -0.03% | 49.44% | 52.82% | 53.59% | 51.62% | 40.21% | 37.55% | 27.29% | 26.71% | 27.69% | 19.84% | 9.26% |
| EBITDA Growth % | -100.16% | -12.59% | -9.63% | 14.12% | 21.82% | 10.14% | 41% | 18.55% | 38.68% | 115.8% | 352.57% | - |
| D&A (Non-Cash Add-back) | 71.09M | 13.26B | 13.63B | 14.09B | 13.66B | 16.77B | 17.2B | 17.17B | 14.98B | 8.77B | 5.02B | 2.92B |
| EBIT | 115.37M | 850.12M | 1.91B | 3.16B | 681.3M | -4.66B | -5.92B | -9.31B | -8.89B | -3.47B | -2.95B | -2.51B |
| Net Interest Income | -520.65M | -575.26M | -790.2M | -872.82M | -645.5M | -1.23B | -908.84M | -512.23M | 119.26M | -194.45M | -93.47M | -50.49M |
| Interest Income | 321.09M | 334.36M | 271.82M | 257.5M | 69.58M | 118.61M | 157.48M | 402.14M | 213.97M | 83.13M | 17.01M | 5M |
| Interest Expense | 841.74M | 909.62M | 1.06B | 1.13B | 715.08M | 1.35B | 1.07B | 914.37M | 94.71M | 277.58M | 110.48M | 55.49M |
| Other Income/Expense | -145.67M | -288.82M | -959.52M | -956.88M | -1.35B | -1.53B | -943.37M | -967.05M | -676.19M | 208.51M | -271.44M | -136.34M |
| Pretax Income | -544.98M | -59.5M | 851.68M | 2.03B | -33.78M | -6.01B | -6.98B | -10.22B | -8.98B | -3.74B | -3.06B | -2.56B |
| Pretax Margin % | -2.1% | -0.22% | 2.91% | 6.38% | -0.12% | -19.68% | -23.51% | -35.27% | -35.95% | -21.55% | -27.24% | -48.21% |
| Income Tax | 332.12M | 144.54M | 61.09M | 80.05M | 84M | 96.55M | 23.28M | 51.85M | 78.8M | -7.57M | 13.09M | 11.17M |
| Effective Tax Rate % | -60.94% | -242.92% | 7.17% | 3.94% | -248.7% | -1.61% | -0.33% | -0.51% | -0.88% | 0.2% | -0.43% | -0.44% |
| Net Income | -836.02M | -206.31M | 764.06M | 1.93B | -136.21M | -6.19B | -7.01B | -10.28B | -9.11B | -3.74B | -3.07B | -2.58B |
| Net Margin % | -3.22% | -0.76% | 2.61% | 6.04% | -0.47% | -20.26% | -23.59% | -35.44% | -36.45% | -21.5% | -27.36% | -48.42% |
| Net Income Growth % | -1044.72% | -127% | -60.32% | 1513.58% | 97.8% | 11.66% | 31.82% | -12.81% | -143.78% | -21.56% | -19.37% | - |
| Net Income (Continuing) | -877.1M | -204.04M | 790.59M | 1.95B | -117.78M | -6.11B | -7.01B | -10.28B | -9.06B | -3.74B | -3.07B | -2.58B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -90.48M | -7.6M | 8.34M | 98.4M | 92.81M | 485.51M | 79.01M | 42.38M | 118.63M | 3.82M | 0 | 0 |
| EPS (Diluted) | -0.87 | -0.21 | 0.79 | 1.98 | -0.14 | -7.77 | -9.52 | -14.14 | -17.02 | 1.31 | -11.45 | -6.99 |
| EPS Growth % | -1872.6% | -126.58% | -60.1% | 1514.29% | 98.2% | 18.38% | 32.67% | 16.92% | -1399.24% | 111.44% | -63.81% | - |
| EPS (Basic) | - | -0.21 | 0.79 | 2.02 | -0.14 | -7.77 | -9.52 | -14.14 | -17.02 | 1.31 | -11.45 | -6.99 |
| Diluted Shares Outstanding | 959.24M | 963.77M | 971.36M | 974.8M | 855.43M | 795.82M | 739.45M | 729.27M | 552.56M | 726.45M | 726.45M | 726.45M |
| Basic Shares Outstanding | 959.24M | 963.77M | 961.42M | 953.65M | 855.43M | 795.82M | 739.45M | 729.27M | 535M | 726.45M | 726.45M | 726.45M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying IQ stock.
For fiscal year 2025, iQIYI, Inc. (IQ) reported total revenue of $27.29B. This represents a 413.1% increase compared to $5.32B in 2015.
iQIYI, Inc. (IQ) reported a net loss of $206.3M for the fiscal year ending 2025.
iQIYI, Inc. (IQ) reported an operating income of $229.3M, resulting in an operating profit margin of 0.8%. This margin reflects the operational efficiency of the business before interest and taxes.
iQIYI, Inc. (IQ) generated $5.75B in gross profit for the year, representing a gross profit margin of 21.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Negative margins with high leverage
Severe Revenue Contraction Persists
iQIYI's top line remains in significant contraction, with TTM revenue of $27.29B showing a -6.6% decline, a trend that has persisted across most recent quarters despite a temporary sequential uptick in the latest period.
The revenue trajectory is overwhelmingly negative, with year-over-year declines accelerating from -4.7% in 2024Q2 to -87.7% in 2025Q2, though this extreme volatility suggests potential accounting or segment reclassification anomalies. The underlying trend, as evidenced by the more normalized -9.3% to -14.2% declines in 2025Q1 and 2024Q4, points to a structural erosion in the company's core revenue streams, likely driven by both subscriber headwinds and advertising market softness in China.
Structural Margin Compression Intensifies
Gross margins have deteriorated sharply to 15.9%-16.5% in recent quarters from a high of 29.0% in 2024Q1, indicating severe pricing power erosion and rising content costs relative to revenue.
The collapse in gross margin from 29.0% to below 17% in a single year represents a fundamental deterioration in the unit economics of iQIYI's business model. This compression suggests the company is losing the ability to pass on content costs to consumers or is facing a less favorable content mix, a trend that is particularly alarming given that its peer Netflix maintains a stable 48.5% gross margin. The current margin level appears insufficient to cover the company's overhead, as evidenced by the negative operating margins in the two most recent quarters.
SG&A Discipline Masks Underlying Cost Rigidity
While SG&A expenses have been cut by roughly 18% from their 2024Q1 peak, the cost base remains structurally high relative to the shrinking revenue, with SG&A representing 12.5% of revenue in 2026Q2 versus 11.7% a year ago.
Management has demonstrated clear discipline in reducing absolute SG&A spend, but the cost ratio is worsening because revenue is declining faster than expenses can be cut. The primary cost burden remains COGS, which consistently consumes over 83% of revenue, leaving minimal room for operating expenses. R&D spending has been held relatively flat in dollar terms, which may indicate a necessary but constrained investment in platform technology and content production capabilities.
Negative Leverage Amplifies Losses
Operating leverage is working in reverse, as a -6.6% revenue decline translated into a 73% collapse in operating income from $341.9M to -$104.5M between 2025Q1 and 2026Q2, highlighting extreme cost inflexibility.
The company exhibits powerful but negative operating leverage; its high fixed-cost structure, dominated by content amortization, means that incremental revenue generates outsized margin expansion, while revenue declines cause disproportionate profit deterioration. The swing from a healthy 11.9% operating margin in 2024Q1 to -1.7% in 2026Q2 demonstrates how quickly profitability evaporates in this model without top-line support. This dynamic makes the company's path to sustainable profitability highly dependent on arresting the revenue decline.
Stock-Based Compensation Obscures True Cash Burn
The reported net loss of -$286.7M in 2026Q2 is significantly deeper than the operating loss due to substantial non-operating items, while persistent stock-based compensation of ~$73M quarterly dilutes shareholders.
The quality of earnings is poor, as the gap between operating loss (-$104.5M) and net loss (-$286.7M) indicates material non-operating expenses, likely related to interest on debt or foreign exchange losses. Furthermore, the consistent stock-based compensation, which reached $416.2M in 2024Q4, represents a significant non-cash charge that dilutes shareholder value but is excluded from certain profitability metrics. Investors should be wary that headline EPS figures may understate the true economic dilution and cash consumption of the business.
Sustainable Profitability Appears Unattainable at Current Scale
The core analytical challenge is that iQIYI's current revenue scale of ~$6B per quarter generates insufficient gross profit to cover its fixed cost structure, resulting in persistent operating losses.
The most significant risk to the investment thesis is that the company may be trapped in a low-margin equilibrium. With gross profit of ~$1.0B per quarter struggling to cover $396.9M in R&D and $742.1M in SG&A, the business is structurally unprofitable at this revenue level. A return to the 24%+ gross margins of 2024Q1 appears unlikely given the competitive landscape and pricing trends, suggesting that even if revenue stabilizes, sustained profitability may require further, potentially painful, cost restructuring or a strategic pivot.