Beijing iQIYI Technology Co., Ltd. (iQIYI) saw a 73% year-on-year decline in profit in 2025. Analysts believe that with intensified industry competition, iQIYI is at a difficult crossroads.
On February 26, iQIYI released its financial performance for the fourth quarter and full year of 2025. The financial report revealed that the company’s total revenue in 2025 was 27.29 billion yuan, a 7% decrease compared to the previous year. The operating profit for the year based on non-US GAAP was only 640 million yuan, plummeting by approximately 73% compared to 23.6 billion yuan in 2024.
The financial report indicated that iQIYI’s revenue growth trend came to an end, with profits dwindling to a fraction of what they were in 2024.
Although iQIYI’s total revenue in the fourth quarter increased by 3% year-on-year, the market remains pessimistic. As of the closing on February 27, iQIYI’s stock price was $1.60. In February 2021, iQIYI’s stock price reached between $28 and $29 per share.
In response, “Titanium Media APP” under the China’s financial technology information service provider, Beijing Lingdong Technology Co., Ltd., expressed on March 1 that iQIYI is currently at a difficult crossroads: business division and sluggish growth of its user base.
Firstly, iQIYI’s main revenue source, membership service revenue, declined significantly. In 2025, iQIYI’s membership service revenue was 16.81 billion yuan, a decrease of about 5% year-on-year, accounting for 61.6% of total revenue for the year, indicating a continuing decline in membership revenue in 2025.
Secondly, industry competition has intensified. Data from QuestMobile showed that as of July 2025, Tencent Video had 365 million monthly active users, while iQIYI had 358 million monthly active users, with a difference of 7 million. iQIYI’s previous position as the leader in long-form video has been replaced by Tencent.
Furthermore, iQIYI’s second-largest revenue source, online advertising, has also decreased. In 2025, iQIYI’s online advertising service revenue was 5.19 billion yuan, a 9% decline year-on-year. iQIYI attributed this decline to macroeconomic influences, as some advertisers adjusted their advertising and promotion strategies in response to operational pressures, leading to a shrink in advertising revenue.
Reports suggest that under multiple pressures, it is becoming increasingly difficult for iQIYI to retain users who are willing to pay for services willingly.
Beijing iQIYI Technology Co., Ltd. was listed on the NASDAQ on March 29, 2018. Its online video platform, iQIYI, was officially launched on April 22, 2010, focusing on video playback software for clients.