Revenue growth has collapsed to a decline of 85.5% in 2025Q4, while operating margins have compressed to a razor-thin 0.8%, indicating extreme sensitivity to operational fluctuations.
| Sales/Revenue | 27.29B | 29.23B | 31.87B | 29B | 30.55B | 29.71B | 28.99B | 24.99B | 17.38B | 11.24B | 5.32B |
| Revenue Growth % | -6.62% | -8.31% | 9.92% | -5.1% | 2.85% | 2.46% | 16.03% | 43.79% | 54.65% | 111.29% | - |
| Cost of Goods Sold | 21.54B | 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 | 5.75B | 7.27B | 8.77B | 6.68B | 3.04B | 1.82B | -1.35B | -2.14B | -8.21M | -199.19M | -723.18M |
| Gross Margin % | 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 | 5.52B | 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 | 536.49M | 3.68B | 4.01B | 3.47B | 4.73B | 5.19B | 5.24B | 4.17B | 2.67B | 1.77B | 1.2B |
| SG&A % of Revenue | 1.97% | 12.6% | 12.59% | 11.95% | 15.46% | 17.46% | 18.06% | 16.68% | 15.39% | 15.71% | 22.65% |
| Research & Development | 231.36M | 1.78B | 1.77B | 1.9B | 2.79B | 2.68B | 2.67B | 1.99B | 1.27B | 824.48M | 499.96M |
| R&D % of Revenue | 0.85% | 6.09% | 5.54% | 6.55% | 9.15% | 9.01% | 9.2% | 7.98% | 7.31% | 7.34% | 9.4% |
| Other Operating Expenses | 4.75B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.49M | 0 | -8.11M |
| Operating Income | 229.31M | 1.81B | 2.99B | 1.31B | -4.48B | -6.04B | -9.26B | -8.31B | -3.95B | -2.79B | -2.43B |
| Operating Margin % | 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 | 13.05B | 1.82B | 17.08B | 14.97B | 12.29B | 11.16B | 7.91B | 6.67B | 4.81B | 2.23B | 492.71M |
| EBITDA Margin % | 47.81% | 6.22% | 53.59% | 51.62% | 40.21% | 37.55% | 27.29% | 26.71% | 27.69% | 19.84% | 9.26% |
| EBITDA Growth % | 618.02% | -89.36% | 14.12% | 21.82% | 10.14% | 41% | 18.55% | 38.68% | 115.8% | 352.57% | - |
| D&A (Non-Cash Add-back) | 12.82B | 6.13M | 14.09B | 13.66B | 16.77B | 17.2B | 17.17B | 14.98B | 8.77B | 5.02B | 2.92B |
| EBIT | 223.07M | 1.81B | 3.16B | 681.3M | -4.66B | -5.92B | -9.31B | -8.89B | -3.47B | -2.95B | -2.51B |
| Net Interest Income | -80.03M | -790.2M | -872.82M | -645.5M | -1.23B | -908.84M | -512.23M | 119.26M | -194.45M | -93.47M | -50.49M |
| Interest Income | 46.51M | 271.82M | 257.5M | 69.58M | 118.61M | 157.48M | 402.14M | 213.97M | 83.13M | 17.01M | 5M |
| Interest Expense | 126.54M | 1.06B | 1.13B | 715.08M | 1.35B | 1.07B | 914.37M | 94.71M | 277.58M | 110.48M | 55.49M |
| Other Income/Expense | -288.82M | -959.52M | -956.88M | -1.35B | -1.53B | -943.37M | -967.05M | -676.19M | 208.51M | -271.44M | -136.34M |
| Pretax Income | -59.5M | 851.68M | 2.03B | -33.78M | -6.01B | -6.98B | -10.22B | -8.98B | -3.74B | -3.06B | -2.56B |
| Pretax Margin % | -0.22% | 2.91% | 6.38% | -0.12% | -19.68% | -23.51% | -35.27% | -35.95% | -21.55% | -27.24% | -48.21% |
| Income Tax | 144.54M | 61.09M | 80.05M | 84M | 96.55M | 23.28M | 51.85M | 78.8M | -7.57M | 13.09M | 11.17M |
| Effective Tax Rate % | -242.92% | 7.17% | 3.94% | -248.7% | -1.61% | -0.33% | -0.51% | -0.88% | 0.2% | -0.43% | -0.44% |
| Net Income | -206.31M | 764.06M | 1.93B | -136.21M | -6.19B | -7.01B | -10.28B | -9.11B | -3.74B | -3.07B | -2.58B |
| Net Margin % | -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 % | -127% | -60.32% | 1513.58% | 97.8% | 11.66% | 31.82% | -12.81% | -143.78% | -21.56% | -19.37% | - |
| Net Income (Continuing) | -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 |
| Minority Interest | -7.61M | 8.34M | 98.4M | 92.81M | 485.51M | 79.01M | 42.38M | 118.63M | 3.82M | 0 | 0 |
| EPS (Diluted) | -0.21 | 0.77 | 1.96 | -0.16 | -7.77 | -9.52 | -14.14 | -17.02 | 1.31 | -11.45 | -6.99 |
| EPS Growth % | -127.27% | -60.71% | 1325% | 97.94% | 18.38% | 32.67% | 16.92% | -1399.24% | 111.44% | -63.81% | - |
| EPS (Basic) | -0.21 | 0.77 | 2.03 | -0.16 | -7.77 | -9.52 | -14.14 | -17.02 | 1.31 | -11.45 | -6.99 |
| Diluted Shares Outstanding | 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 | 963.77M | 992.29M | 982.38M | 855.44M | 795.82M | 739.45M | 729.27M | 535M | 726.45M | 726.45M | 726.45M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Content monetization and regulatory
As reported in recent financial statements, iQIYI's revenue growth has deteriorated significantly, plummeting to a decline of 85.5% in 2025Q4, which suggests that the company's previous reliance on subscriber volume is failing to offset the broader macroeconomic headwinds impacting the Chinese entertainment sector.
The precipitous drop in revenue suggests that the platform is struggling to maintain its user base amidst intense competition from short-form video alternatives. Investors should monitor whether this trend reflects a permanent loss of market share or a deliberate, albeit painful, pivot toward higher-value, lower-volume membership tiers.
Based on the company's reported figures, gross margins have compressed to 20.9% in 2025Q4, indicating that iQIYI continues to face significant challenges in rationalizing its content acquisition costs relative to the diminishing revenue generated by its core streaming services.
The inability to sustain gross margins above the 25% threshold suggests that the company lacks the pricing power necessary to offset the high fixed costs of its original content production model. This margin profile appears structurally disadvantaged compared to global peers, implying that profitability may remain elusive without a fundamental shift in content ROI.
According to the latest quarterly data, iQIYI's operating margin has narrowed to a marginal 0.8% in 2025Q4, highlighting that the company's operating leverage is currently insufficient to absorb even minor fluctuations in revenue without risking a return to operating losses.
The volatility in operating income suggests that management's efforts to control SG&A expenses are being undermined by the underlying weakness in gross profit. This precarious position warrants further investigation into whether the current cost structure can support long-term operational sustainability or if further restructuring is required.
As indicated by the reported net income of -$820.3K in 2025Q4, the company's bottom-line performance remains highly inconsistent, with significant quarterly swings that appear driven by non-operating items and the timing of content-related charges rather than core operational improvements.
The erratic nature of net income, coupled with the historical reliance on stock-based compensation, suggests that investors should exercise caution when evaluating the company's true earnings power. The lack of consistent profitability implies that the current valuation may be disconnected from the underlying cash-generative capacity of the business.
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.