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olivLaw · US equity research

iQIYI, Inc. IQ

Services-Video Tape Rental · SIC 7841 · Vertical: Motion pictures (SIC 78xx)

0.92USD+4.37% · 1 dayClose 04 Nov 2026

iQIYI is an online entertainment video platform in China that earns most of its revenue from memberships, advertising and content distribution. In the latest reported fiscal year, total revenues fell 6.6%, and the company moved from profit to a net loss, so how it can recover is the key question.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, iQIYI, Inc. (IQ) stock was 0.92 USD (+4.37% on the day), with market capitalisation 314.6 m USD, beta 1.28, 52-week range 0.83–2.24 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
314.6 m USD
shares as of 31 Dec 2017
P/E (TTM)
unavailable
Diluted EPS TTM -1.15 · TTM to 31 Dec 2017
E/P (TTM)
-125.20%
TTM to 31 Dec 2017
Dividend yield
unavailable
Beta (2y)
1.28
Volatility (1y) 57%
52-week range
0.832.24

Price history

Loading chart…

Technical reading

RSI (14)
48.6
neutral
Bollinger (20, 2)
0.79 – 1.04
in the lower half of the band · %B 0.50 · band width 27.1%
SMA 50 / 200
0.96 / 1.28
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.04 / -0.04
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−10.8%−1.1%−9.7 pp—
3 months−28.8%−0.5%−28.3 pp—
6 months−25.3%+4.4%−29.7 pp—
Year to date−52.2%+12.3%−64.5 pp—
1 year−58.3%+13.5%−71.8 pp−27.3%
3 years−81.6%+76.4%−158.0 pp+6.0%
5 years−88.7%+63.7%−152.3 pp—
Max drawdown (1y)
−63.1%
19 Nov 2025 → 30 Oct 2026
Max drawdown (5y)
−90.9%
12 Nov 2021 → 30 Oct 2026
Compound annual growth (5y)
−35.3%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue3.6 bn4.2 bn4.6 bn4.8 bn4.2 bn4.5 bn4.0 bn3.9 bn
Revenue YoYunavailable+14.6%+9.3%+5.3%−12.3%+6.8%−10.8%−2.5%
Net income-1.3 bn-1.5 bn-1.1 bn-968.1 m-19.7 m271.2 m104.7 m-29.5 m
Net income YoYunavailableunavailableunavailableunavailableunavailableunavailable−61.4%−128.2%
Diluted EPSunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Diluted EPS YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
net %-36.5%-35.6%-23.7%-20.2%-0.5%6.0%2.6%-0.8%
Free cash flow330.5 m454.8 m-866.2 m-975.0 m-35.5 m466.9 m278.2 m1.4 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
622.7 m USD
Financial debt
356.5 m USD
Net debt
-266.1 m USD
Equity
1.9 bn USD
Total assets
6.7 bn USD
Debt / equity
0.19x
Current ratio
0.47x
ROE
-1.6%
ROA
-0.5%
FCF margin
0.0%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
4.5 bn
2024
4.0 bn
2025
3.9 bn

SEC (XBRL)· 16 Mar 2026verified

Cost of revenue
2023
3.3 bn
2024
3.0 bn
2025
3.1 bn

SEC (XBRL)· 16 Mar 2026verified

Gross profit
2023
1.2 bn ≈
2024
996.2 m ≈
2025
822.1 m ≈

SEC (XBRL)· 16 Mar 2026derived

Research & development
2023
248.8 m
2024
243.6 m
2025
237.8 m

SEC (XBRL)· 16 Mar 2026verified

SG&A
2023
565.4 m
2024
504.4 m
2025
551.5 m

SEC (XBRL)· 16 Mar 2026verified

Operating income
2023
421.1 m
2024
248.1 m
2025
32.8 m

SEC (XBRL)· 16 Mar 2026verified

Interest expense
2023
159.2 m
2024
145.5 m
2025
130.1 m

SEC (XBRL)· 16 Mar 2026verified

Pre-tax income
2023
286.3 m
2024
116.7 m
2025
-8.5 m

SEC (XBRL)· 16 Mar 2026verified

Income tax
2023
11.3 m
2024
8.4 m
2025
20.7 m

SEC (XBRL)· 16 Mar 2026verified

Net income
2023
271.2 m
2024
104.7 m
2025
-29.5 m

SEC (XBRL)· 16 Mar 2026verified

Balance sheet · USD

Cash
2023
624.6 m
2024
483.6 m
2025
622.7 m

SEC (XBRL)· 16 Mar 2026verified

Receivables
2023
305.5 m
2024
300.2 m
2025
360.7 m

SEC (XBRL)· 16 Mar 2026verified

Current assets
2023
1.8 bn
2024
1.3 bn
2025
1.5 bn

SEC (XBRL)· 16 Mar 2026verified

Property, plant & equipment, net
2023
121.7 m
2024
120.3 m
2025
129.2 m

SEC (XBRL)· 16 Mar 2026verified

Goodwill
2023
523.5 m
2024
523.5 m
2025
546.4 m

SEC (XBRL)· 16 Mar 2026verified

Intangibles (excl. goodwill)
2023
43.6 m
2024
39.7 m
2025
31.0 m

SEC (XBRL)· 16 Mar 2026verified

Total assets
2023
6.3 bn
2024
6.3 bn
2025
6.7 bn

SEC (XBRL)· 16 Mar 2026verified

Short-term debt
2023
503.1 m
2024
518.8 m
2025
356.5 m

SEC (XBRL)· 16 Mar 2026verified

Current liabilities
2023
3.1 bn
2024
2.9 bn
2025
3.2 bn

SEC (XBRL)· 16 Mar 2026verified

Total liabilities
2023
4.6 bn
2024
4.4 bn
2025
4.8 bn

SEC (XBRL)· 16 Mar 2026verified

Equity
2023
1.7 bn
2024
1.8 bn
2025
1.9 bn

SEC (XBRL)· 16 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
472.1 m
2024
289.1 m
2025
15.1 m

SEC (XBRL)· 16 Mar 2026verified

Capex
2023
5.2 m
2024
10.9 m
2025
13.7 m

SEC (XBRL)· 16 Mar 2026verified

Free cash flow
2023
466.9 m ≈
2024
278.2 m ≈
2025
1.4 m ≈

SEC (XBRL)· 16 Mar 2026derived

Investing cash flow
2023
-245.0 m
2024
-334.9 m
2025
-46.8 m

SEC (XBRL)· 16 Mar 2026verified

Financing cash flow
2023
-603.5 m
2024
-187.7 m
2025
152.2 m

SEC (XBRL)· 16 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-2.5%
computed by olivLawFY 2025
Revenue CAGR 3Y
-2.5%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
-3.0%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
-86.8%
computed by olivLawFY 2025
Net income growth (YoY)
-128.2%
computed by olivLawFY 2025
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
input data missing
EPS CAGR 3Y
unavailable
input data missing
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
-99.5%
computed by olivLawFY 2025

Profitability

Gross margin
21.1%
computed by olivLawFY 2025
EBITDA margin
unavailable
input data missing
EBIT margin
0.8%
computed by olivLawFY 2025
Net margin
-0.8%
computed by olivLawFY 2025
FCF margin
0.0%
computed by olivLawFY 2025

Returns

ROE
-1.6%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROA
-0.5%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROIC
1.6%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROCE
0.9%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-266.1 m USD
computed by olivLawbalance sheet at 31 Dec 2025
Net debt / EBITDA
unavailable
input data missing
Debt / equity
0.2x
computed by olivLawbalance sheet at 31 Dec 2025
Interest coverage
0.3x
computed by olivLawFY 2025

Liquidity

Current ratio
0.5x
computed by olivLawbalance sheet at 31 Dec 2025
Quick ratio
unavailable
input data missing
Cash ratio
0.2x
computed by olivLawbalance sheet at 31 Dec 2025

Cash

Operating cash flow
15.1 m USD
computed by olivLawFY 2025
Capital expenditure
13.7 m USD
computed by olivLawFY 2025
Free cash flow
1.4 m USD
computed by olivLawFY 2025
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
31 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
314.6 m USD
computed by olivLawbalance sheet at 31 Dec 2025
Enterprise value
48.5 m USD
computed by olivLawbalance sheet at 31 Dec 2025
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-9.4%
computed by olivLawFY 2025
P/B
0.2x
computed by olivLawbalance sheet at 31 Dec 2025
P/S
0.1x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
EV/EBIT
1.5x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
EV/Sales
0.0x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
P/FCF
219.9x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
FCF yield
0.5%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 43.8% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

0.92 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 314.6 m USD

Key indicators

Market capitalisation
314.6 m USD
computed by olivLawbalance sheet at 31 Dec 2025
P/E (TTM)
unavailable
insufficient data
P/B
0.2x
computed by olivLawbalance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
ROE
-1.6%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Net margin
-0.8%
computed by olivLawFY 2025
Revenue growth (YoY)
-2.5%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

26/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Dec 2025
Latest balance sheet date: 31 Dec 2025
Source: SEC (XBRL)published 16 Mar 2026
verified 208

Score by group

44% · Insufficient data

Estimated value range

Low
5.74
USD per share
Mid
7.27
USD per share
High
10.28
USD per share
Price: 0.92 USD
The price is below the range
Potential to the central value: 691.1% (value / price − 1)
Margin of safety: 87.4% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 5.74 – 10.28 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)5.74 – 10.28 (Mid 7.27)
    WACC 7.0% · starting FCFF 110.7 m USD · terminal value share of EV 80%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: no growth between −30% and +40% justifies the price
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Motion pictures (SIC 78xx)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 43.8% of at least 60%

FactorValueScoreWeight used
ROIC · Quality1.6%0 (on a fixed band)24%
Net margin · Quality-0.8%57 (vs peers)14%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth-2.5%0 (on a fixed band)19%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet0.3x0 (on a fixed band)14%
Current ratio · Balance sheet0.5x0 (on a fixed band)10%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation0.5%6 (on a fixed band)19%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet0/100 · 2/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality21/100 · 2/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partial6/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

iQIYI, Inc. (IQ). Latest full fiscal year: 2025; data up to 2025-12-31.

Figures computed from the financial statements: revenue 3.9 bn USD in 2025; YoY growth -2.5%; net margin -0.8%; ROE -1.6%.

The estimated value range is 5.74–10.28 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 7.27 USD, the price of 0.92 USD leaves a potential of 691.1% (value / price − 1) and a margin of safety of 87.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • The price is below the estimated value range

What contradicts it

  • ROIC: 1.6%
  • Revenue CAGR 3Y: -2.5%
  • Interest coverage: 0.3x
  • Current ratio: 0.5x
  • FCF yield: 0.5%

Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Motion pictures (SIC 78xx) · same major group (2-digit SIC) · compared with 14 companies

Multiples and returns vs the median

P/E
—
vertical median 21.2x
EV/EBITDA
—
vertical median 12.9x
P/S
0.1x
vertical median 1.2x
below median (−93.0%)
P/B
0.2x
vertical median 2.2x
below median (−92.5%)
ROE
-1.6%
vertical median -5.8%
above median
Net margin
-0.8%
vertical median -3.4%
above median
EBIT margin
0.8%
vertical median -1.5%
above median
Revenue YoY
-2.5%
vertical median 3.8%
below median (−165.9%)
Net debt/EBITDA
—
vertical median 4.0x
Dividend yield
—
vertical median 1.9%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
NFLXNetflix, Inc.272.6 bn19.253.5%29.7%+15.9%−38% / +40%
CNKCinemark Holdings, Inc.4.9 bn32.1—5.3%+2.1%+47% / +183%
LIONLionsgate Studios Corp.3.8 bn——-4.1%+1.8%+71% / +20%
AMCAmc Entertainment Holdings, Inc.3.1 bn——-2.6%+4.6%+44% / −47%
FUBOFuboTV Inc.2.8 bn—-5.8%-0.7%+18.6%−77% / −79%
ANGXAngel Studios, Inc.684.5 m——-37.5%+233.2%−25% / unavailable
MCSMarcus Corp533.6 m21.25.4%3.1%+3.1%+79% / +102%
STRZStarz Entertainment Corp.438.0 m—-87.9%-32.5%−1.6%+131% / unavailable
IQiQIYI, Inc.314.6 m—-1.6%-0.8%−2.5%−58% / −82%
CURICuriositystream Inc.157.8 m511.10.1%0.0%+40.1%−45% / +286%
MPUMega Matrix Inc50.4 m—-213.2%-131.4%−27.9%−95% / −94%
CNVSCineverse Corp.37.8 m—-28.1%-12.7%−15.9%−37% / +34%
TOONKartoon Studios, Inc.32.3 m10.521.7%26.9%+20.7%−30% / −68%
RDIReading International, Inc———-5.9%−3.6%+30% / −8%
GAIAGaia, Inc——-9.3%-1,090.3%+55.2%−67% / −52%

1- and 3-year price returns: for IQ from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 16 Mar 2026; since then the company filed 6-K (19 Aug 2026), 6-K (02 Jul 2026), 6-K (18 May 2026), 6-K (30 Mar 2026).

    In brief

    iQIYI is an online entertainment video platform in China that earns most of its revenue from memberships, advertising and content distribution. In the latest reported fiscal year, total revenues fell 6.6% 1, and the company moved from profit to a net loss, so how it can recover is the key question 1.

    SWOT

    Strengths

    • A large content library and a high share of original productions that reach strong popularity scores, supported by an in-house production team 1.
    • A diversified monetization model across memberships, advertising, distribution and other sources, which could reduce reliance on a single revenue stream 1.
    • Positive operating cash flow each year since 2023, which provides a financial base for content investment 1.

    Weaknesses

    • A net loss in fiscal 2025 after earlier profits, which shows how sensitive results are to content costs 1.
    • Content costs make up most of cost of revenues, and costly productions may not recover their investment 1.
    • Reliance on memberships, which declined in 2025 due to a lighter slate and competition 1.

    Opportunities

    • International expansion through the multilingual app and popular Asian content could open new audiences 1.
    • Micro dramas and short formats could attract users looking for quick entertainment 1.
    • IP-based businesses, such as consumer products and the iQIYI LAND offline experiences, could add new revenue 1.

    Threats

    • Intense competition among online entertainment video providers may hamper attracting and retaining subscribers 1.
    • Macro pressure may lead advertisers to cut their advertising budgets 1.
    • Chinese and international rules on cybersecurity and data could raise costs or limit operations 1.

    Risks

    • Net losseshigh

      The company recorded losses before 2023 and again in 2025, and continued investment in content and technology could lead to further losses 1.

    • Variable interest entity structurehigh

      Operations in mainland China are conducted through contractual arrangements with variable interest entities rather than direct ownership, and Chinese authorities could challenge these arrangements 1.

    • Indebtedness and working capitalmedium

      The company carries substantial indebtedness and has experienced working capital deficits in the past, which could limit its ability to meet debt obligations 1.

    • Regulation and cash transfersmedium

      Transfers of funds and dividends from mainland China require government approvals or filings, which can delay financing of operations 1.

    • HFCAA exposuremedium

      ADS trading could be prohibited in the United States if the company's auditor is not inspected by the PCAOB, a risk that could affect the value of an investment 1.

    Investment thesis

    What would need to be true (bull case)

    • If a more selective content approach wins back subscribers and original productions keep reaching strong popularity, membership revenue could recover 1.
    • The company has generated positive operating cash flow each year since 2023, which could support investment in content and new formats 1.
    • If IP-based businesses and short formats grow, they could diversify revenue beyond memberships and advertising 1.

    What would break the thesis

    • Total revenues fell in 2025 and the decline hit every main segment, which could signal broader pressure than expected 1.
    • Gross margin declined in 2025 and content costs remain the majority of costs, which could keep profitability under pressure 1.
    • The variable interest entity structure and Chinese regulation could continue to limit investors' access to operating results 1.

    What to watch

    • Trend in membership revenue after the more selective content strategyQ1 2027
    • Recovery of online advertising revenue2027
    • Operating income and gross margin in the next annual reportnext 10-K
    • Contribution of micro dramas and IP-based businesses to total revenues2027

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 16 Mar 2026; since then the company filed 6-K (19 Aug 2026), 6-K (02 Jul 2026), 6-K (18 May 2026), 6-K (30 Mar 2026).

    The business

    iQIYI is a leading provider of online entertainment video services in China, focused on quality content and user experience. As of December 31, 2025, its library held over 40,000 long-form titles and approximately 20,000 micro dramas 1. The company says its original drama series are the main source of premium content, which makes it dependent on the success of its own productions 1.

    Segments

    Membership services

    Membership services are the largest revenue source, at 61.6% of total revenues in fiscal 2025 1. Revenue from this segment fell 5.4% in 2025, which the company attributed to a lighter content slate and competition among online entertainment video providers 1.

    Online advertising

    Online advertising covers brand advertising and performance-based advertising sold through online bidding 1. Revenue fell 9.1% in 2025 as some advertisers adjusted their strategies in response to macro pressure 1.

    Market context

    The company operates in China's online entertainment video market, where competition among providers directly affects its ability to attract and retain paying subscribers. The source indicates that if the content slate does not draw enough viewers, pressure on membership and advertising revenue could persist 1. The drop in total revenues in the latest year shows the market has been difficult for the company 1.

    Trends

    • More selective content acquisitionmixed

      The company says it adopted a more curated acquisition strategy centered on quality, which reduced content costs by 1.7% in 2025 1. If this selection continues to attract viewers, it could support margins over the medium term, though a smaller slate risks weighing on memberships 1.

    • Pressure on advertisingheadwind

      Some advertisers adjusted their budgets in response to macro pressure, which led to lower advertising revenue in 2025 1. If this trend persists, the segment could remain under pressure 1.

    • Micro dramas and new formatstailwind

      Since 2024 the company has added micro dramas of one to five minutes, optimized for vertical viewing, to serve varied user preferences 1. If these formats attract new audiences, they could support user growth, though the source does not quantify their monetization 1.

    • Artificial intelligence in the producttailwind

      The company uses AI tools for script selection, micro animations and experience features such as the Taodou assistant 1. If these features raise engagement, they could support operating efficiency and retention 1.

    Competitive position

    The source cites competition among online entertainment video providers as a factor behind the 2025 decline in memberships 1. No specific competitors are named in the official text reviewed, so the analysis is limited to the competitive environment the company describes 1.

    • Other online entertainment video providers in China

      The source refers to competition among online entertainment video providers without naming them, and they are not identified as US-listed in the text reviewed 1.

    • Content distribution partners and TV stations

      The company sub-licenses content to TV stations and other streaming platforms, which can be both partners and competitors 1.

    • Content producers and studios

      Content costs depend on the market for professional productions, where prices have risen significantly in the past, which implies competition for talent and licenses 1.

    • Online game and other entertainment companies

      The company also competes through online games and IP-based experiences, where other entertainment companies are active 1.

    News & filings

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.