Allurion Technologies, Inc. (ALUR) Q1 Earnings Beat Estimates
This quarterly report represents an earnings surprise of 128.10%. A quarter ago, it was expected that this company would post a loss of $5 per share when it actually produced a loss of $7, delivering a surprise of -40%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Allurion Technologies, Inc. , which belongs to the Zacks Medical - Products industry, posted revenues of $5.58 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.11%. This compares to year-ago revenues of $9.39 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Allurion Technologies, Inc. Shares have lost about 78.1% since the beginning of the year versus the S&P 500's gain of 0.1%.
While Allurion Technologies, Inc. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Allurion Technologies, Inc. Mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$1.15 on $6.05 million in revenues for the coming quarter and -$4.19 on $28.6 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Medtronic (MDT), is yet to report results for the quarter ended April 2025. The results are expected to be released on May 21.
This medical device company is expected to post quarterly earnings of $1.58 per share in its upcoming report, which represents a year-over-year change of +8.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Medtronic's revenues are expected to be $8.81 billion, up 2.6% from the year-ago quarter.
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For pre-registration, please click: In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration. Additionally, a live and archived webcast of this conference call will be available at About BaiduFounded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares. Safe Harbor StatementThis announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, Baidu's and other parties' strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law. Non-GAAP Financial MeasuresTo supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. Non-GAAP operating income represents operating income excluding share-based compensation expenses, and amortization and impairment of intangible assets resulting from business combinations. Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, and fair value gain or loss of long-term investments and exchangeable bonds, adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded. Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, and share-based compensation expenses. For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measure." Baidu, Inc. Condensed Consolidated Statements of Income (In millions except for per share (or ADS) information, unaudited)Three Months EndedSix Months EndedJune 30,March 31,June 30,June 30,June 30,June 30,June 30,2024202520252025202420252025RMBRMBRMBUS$(2)RMBRMBUS$(2)Revenues:Online marketing services20,62517,30617,4852,44139,11534,7914,857Others13,30615,14615,2282,12626,32930,3744,240Total revenues 33,93132,45232,7134,56765,44465,1659,097Costs and expenses:Cost of revenues(1)16,39817,48718,3572,56331,68935,8445,004Selling, general and administrative(1)5,7005,9135,96083211,07511,8731,657Research and development(1)5,8894,5445,11971511,2529,6631,349Total costs and expenses27,98727,94429,4364,11054,01657,3808,010Operating income5,9444,5083,27745711,4287,7851,087Other income:Interest income1,9932,6641,9572734,0844,621645Interest expense(742)(801)(701)(98)(1,508)(1,502)(210)Foreign exchange gain (loss), net93(210)(621)(87)494(831)(116)Share of (losses) earnings from equity method investments (119)57469497(324)1,268177Others, net(454)2,2603,534493(729)5,794809Total other income, net7714,4874,8636782,0179,3501,305Income before income taxes6,7158,9958,1401,13513,44517,1352,392Income tax expense1,1311,1778811232,0142,058287Net income 5,5847,8187,2591,01211,43115,0772,105Net income (loss) attributable to noncontrolling interests96101(63)(10)495385Net income attributable to Baidu5,4887,7177,3221,02210,93615,0392,100Earnings per ADS (1 ADS representing 8 Class A ordinary shares): -Basic15.1121.8620.902.9230.1242.765.97 -Diluted15.0121.5920.352.8429.9841.955.86Earnings per share for Class A and Class B ordinary shares: -Basic1.892.732.610.363.775.350.75 -Diluted1.882.702.540.353.745.240.73Weighted average number of Class A and Class B ordinary shares outstanding (in millions): -Basic 2,7962,7512,7202,7202,8002,7352,735 -Diluted2,8042,7622,7302,7302,8102,7462,746(1) Includes share-based compensation expenses as follows: Cost of revenues 146771201725419728 Selling, general and administrative 3853132763880258982 Research and development 981361685961,5991,046146 Total share-based compensation expenses 1,5127511,0811512,6551,832256(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.1636 to US$1.00, the exchange rate in effect as of June 30, 2025 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. 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Condensed Consolidated Balance Sheets (In millions, unaudited)December 31,June 30,June 30, 202420252025 RMBRMBUS$ ASSETS Current assets: Cash and cash equivalents24,83229,9404,179 Restricted cash11,69732045 Short-term investments, net102,60893,92613,112 Accounts receivable, net10,10411,5681,615 Amounts due from related parties790758106 Other current assets, net18,81820,7062,890 Total current assets168,849157,21821,947Non-current assets: Fixed assets, net30,10232,4564,531 Licensed copyrights, net6,9306,670931 Produced content, net14,69514,4682,020 Intangible assets, net7723,266456 Goodwill22,58637,6375,254 Long-term investments, net41,72145,1036,296 Long-term time deposits and held-to-maturity investments98,535110,12315,373 Amounts due from related parties13711917 Deferred tax assets, net2,1932,352328 Operating lease right-of-use assets10,89810,6821,491 Receivables related to the proposed acquisition of YY Live, net13,547-- Other non-current assets16,81530,4754,253 Total non-current assets258,931293,35140,950Total assets427,780450,56962,897LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY Current liabilities: Short-term loans10,6697,048984 Accounts payable and accrued liabilities41,44338,2085,334 Customer deposits and deferred revenue14,62413,1421,835 Deferred income68449068 Long-term loans, current portion16815,0222,097 Convertible senior notes, current portion2421,484207 Notes payable, current portion8,0264,653650 Amounts due to related parties1,7941,636228 Operating lease liabilities3,3033,442480 Total current liabilities80,95385,12511,883Non-current liabilities: Deferred income23119427 Deferred revenue58566393 Amounts due to related parties56466 Long-term loans15,5962,300321 Notes payable27,99646,5126,493 Convertible senior notes8,3516,739941 Deferred tax liabilities3,8704,196586 Operating lease liabilities4,9734,643648 Other non-current liabilities1,5572,239312 Total non-current liabilities63,21567,5329,427Total liabilities144,168152,65721,310Redeemable noncontrolling interests9,87012,6521,766Equity Total Baidu shareholders' equity263,620275,05738,396 Noncontrolling interests10,12210,2031,425 Total equity273,742285,26039,821Total liabilities, redeemable noncontrolling interests, and equity427,780450,56962,897 Baidu, Inc. Selected Information(In millions, unaudited)Three months endedThree months endedThree months endedThree months endedJune 30, 2024 (RMB)March 31, 2025 (RMB)June 30, 2025 (RMB)June 30, 2025 (US$)Baidu Core iQIYI Elim & adj(2)Baidu, Core iQIYI Elim & adj(2)Baidu, Core iQIYI Elim & adj(2)Baidu, Core iQIYI Elim & adj(2)Baidu, revenues 26,687 7,439 (195)33,93125,463 7,186 (197)32,45226,251 6,628 (166)32,7133,664 926 (23)4,567 YOY(2 %) (11 %) (4 %) QOQ3 % (8 %) 1 %Costs and expenses: Cost of revenues (1)10,888 5,678 (168)16,39812,246 5,406 (165)17,48713,214 5,292 (149)18,3571,844 739 (20)2,563 Selling, general and administrative (1)4,751 970 (21)5,7004,921 1,026 (34)5,9135,018 960 (18)5,960700 134 (2)832 Research and development (1)5,440 449 -5,8894,132 412 -4,5444,697 422 -5,119656 59 -715Total costs and expenses 21,079 7,097 (189)27,98721,299 6,844 (199)27,94422,929 6,674 (167)29,4363,200 932 (22)4,110 YOY Cost of revenues 21 % (7 %) 12 % Selling, general and administrative 6 % (1 %) 5 % Research and development (14 %) (6 %) (13 %) Costs and expenses9 % (6 %) 5 %Operating income (loss)5,608 342 (6)5,9444,164 342 24,5083,322 (46) 13,277464 (6) (1)457 YOY(41 %) - (45 %) QOQ(20 %) - (27 %)Operating margin 21 % 5 % 18 %16 % 5 % 14 %13 % (1 %) 10 % Add: total other income (loss), net1,011 (240) -7714,602 (115) -4,4874,925 (62) -4,863687 (9) -678 Less: income tax expense1,105 26 -1,1311,136 41 -1,177854 27 -881119 4 -123 Less: net income (loss) attributable to NCI52 7 37(3)96(3) 4 100(3)10111 (1) (73)(3)(63)2 - (12)(3)(10)Net income (loss) attributable to Baidu5,462 69 (43)5,4887,633 182 (98)7,7177,382 (134) 747,3221,030 (19) 111,022 YOY35 % - 33 % QOQ(3 %) - (5 %)Net margin 20 % 1 % 16 %30 % 3 % 24 %28 % (2 %) 22 %Non-GAAP financial measures:Operating income (non-GAAP)7,005 501 7,5004,872 459 5,3334,385 59 4,445612 9 620 YOY(37 %) (88 %) (41 %) QOQ(10 %) (87 %) (17 %)Operating margin (non-GAAP)26 % 7 % 22 %19 % 6 % 16 %17 % 1 % 14 %Net income attributable to Baidu (non-GAAP)7,290 247 7,3966,330 304 6,4694,792 15 4,795669 2 669 YOY(34 %) (94 %) (35 %) QOQ(24 %) (95 %) (26 %)Net margin (non-GAAP)27 % 3 % 22 %25 % 4 % 20 %18 % 0 % 15 %Adjusted EBITDA8,617 536 9,1476,712 495 7,2096,397 94 6,492893 14 906 YOY(26 %) (82 %) (29 %) QOQ(5 %) (81 %) (10 %)Adjusted EBITDA margin 32 % 7 % 27 %26 % 7 % 22 %24 % 1 % 20 %(1) Includes share-based compensation as follows: Cost of revenues 117 29 14650 27 7788 32 12012 5 17 Selling, general and administrative 292 93 385257 56 313238 38 27633 5 38 Research and development 945 36 981329 32 361652 33 68591 5 96 Total share-based compensation 1,354 158 1,512636 115 751978 103 1,081136 15 151(2) Relates to intersegment eliminations and adjustments(3) Relates to the net income attributable to iQIYI noncontrolling interests Baidu, Inc. Condensed Consolidated Statements of Cash Flows (In millions,unaudited)Three months ended Three months ended Three months ended Three months ended June 30, 2024 (RMB)March 31, 2025 (RMB)June 30, 2025 (RMB)June 30, 2025 (US$) Baidu excl. iQIYI iQIYI Baidu, Inc. Baidu excl. iQIYI iQIYI Baidu, iQIYI Baidu, iQIYI Baidu,Inc. Net cash provided by (used in) operating activities 7,970 409 8,379(6,340) 339 (6,001)(864) (13) (877)(120) (2) (122) Net cash provided by (used in) investing activities 13,824 337 14,161(1,175) (30) (1,205)(8,428) (113) (8,541)(1,176) (16) (1,192) Net cash (used in) provided by financing activities(9,946) 869 (9,077)19,639 860 20,499(8,688) (465) (9,153)(1,213) (65) (1,278) Effect of exchange rate changes on cash, cash equivalents and restricted cash66 22 88(5) (1) (6)(210) (28) (238)(29) (4) (33) Net increase (decrease) in cash, cash equivalents and restricted cash 11,914 1,637 13,55112,119 1,168 13,287(18,190) (619) (18,809)(2,538) (87) (2,625) Cash, cash equivalents and restricted cash At beginning of period36,964 6,270 43,23432,999 3,590 36,58945,118 4,758 49,8766,298 664 6,962 At end of period48,878 7,907 56,78545,118 4,758 49,87626,928 4,139 31,0673,760 577 4,337Net cash provided by (used in) operating activities7,970 409 8,379(6,340) 339 (6,001)(864) (13) (877)(120) (2) (122) Less: Capital expenditures(2,090) (28) (2,118)(2,869) (31) (2,900)(3,779) (21) (3,800)(528) (3) (531) Free cash flow5,880 381 6,261(9,209) 308 (8,901)(4,643) (34) (4,677)(648) (5) (653)Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI's consolidated cash flows. Baidu, Inc. Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures (In millions except for per ADS information, unaudited)Three months ended Three months ended Three months ended Three months ended June 30, 2024 (RMB)March 31, 2025 (RMB)June 30, 2025 (RMB)June 30, 2025 (US$) Baidu Core iQIYI Baidu, Core iQIYI Baidu, Core iQIYI Baidu, Core iQIYI Baidu, Inc. Operating income (loss)5,608 342 5,9444,164 342 4,5083,322 (46) 3,277464 (6) 457 Add: Share-based compensation expenses1,354 158 1,512636 115 751978 103 1,081136 15 151 Add: Amortization and impairment of intangible assets(1)43 1 4472 2 7485 2 8712 - 12 Operating income (non-GAAP)7,005 501 7,5004,872 459 5,3334,385 59 4,445612 9 620Add: Depreciation of fixed assets1,612 35 1,6471,840 36 1,8762,012 35 2,047281 5 286 Adjusted EBITDA8,617 536 9,1476,712 495 7,2096,397 94 6,492893 14 906Net income (loss) attributable to Baidu5,462 69 5,4887,633 182 7,7177,382 (134) 7,3221,030 (19) 1,022 Add: Share-based compensation expenses1,353 158 1,425635 115 687977 103 1,024136 14 142 Add: Amortization and impairment of intangible assets(1)41 1 4170 2 7183 2 8412 - 12 Add: Disposal (gain)(30) - (30)(91) - (91)(262) - (267)(37) - (37) Add: Impairment of long-term investments26 17 34- 2 1101 26 11314 4 16 Add: Fair value loss (gain) of long-term investments and exchangeable bonds531 2 531(1,889) (2) (1,890)(3,317) 18 (3,309)(462) 3 (462) Add: Reconciling items on equity method investments(2)83 - 83(66) 5 (64)(121) - (121)(17) - (17) Add: Tax effects on non-GAAP adjustments(3)(176) - (176)38 - 38(51) - (51)(7) - (7) Net income attributable to Baidu (non-GAAP)7,290 247 7,3966,330 304 6,4694,792 15 4,795669 2 669Diluted earnings per ADS15.0121.5920.352.84 Add: Accretion of the redeemable noncontrolling interests0.570.570.640.09 Add: Non-GAAP adjustments to earnings per ADS5.44(3.62)(7.41)(1.03) Diluted earnings per ADS (non-GAAP)21.0218.5413.581.90(1) This represents amortization and impairment of intangible assets resulting from business combinations. (2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee's books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share. (3) This represents tax impact of all non-GAAP adjustments. View original content: SOURCE Baidu, Inc.
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iQIYI Announces Second Quarter 2025 Financial Results
BEIJING, Aug. 20, 2025 (GLOBE NEWSWIRE) -- iQIYI, Inc. (Nasdaq: IQ) ('iQIYI' or the 'Company'), a leading provider of online entertainment video services in China, today announced its unaudited financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights Total revenues were RMB6.63 billion (US$925.3 million1), decreasing 11% year over year. Operating loss was RMB46.2 million (US$6.4 million) and operating loss margin was 1%, compared to operating income of RMB342.1 million and operating income margin of 5% in the same period in 2024. Non-GAAP operating income2 was RMB58.7 million (US$8.2 million) and non-GAAP operating income margin was 1%, compared to non-GAAP operating income of RMB501.4 million and non-GAAP operating income margin of 7% in the same period in 2024. Net loss attributable to iQIYI was RMB133.7 million (US$18.7 million), compared to net income attributable to iQIYI of RMB68.7 million in the same period in 2024. Non-GAAP net income attributable to iQIYI2 was RMB14.7 million (US$2.0 million), compared to non-GAAP net income attributable to iQIYI of RMB246.9 million in the same period in 2024. 'During the second quarter and into the summer season, we delivered a series of blockbusters and secured the top market share in total drama viewership, according to Enlightent data,' commented Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. 'Meanwhile, we are focusing on innovation and investing in key growth areas such as AI applications, micro dramas, experience business, and global expansion, all with the goal of driving sustainable, long-term success.' 'We effectively managed our resources and optimized our capital structure, with net interest expense³ consistently declining over the last seven consecutive quarters. This better positions us for long-term value creation,' commented Mr. Jun Wang, Chief Financial Officer of iQIYI. Second Quarter 2025 Financial Highlights Three Months Ended (Amounts in thousands of Renminbi ('RMB'), except for per ADS data, unaudited) June 30, March 31, June 30, 2024 2025 2025 RMB RMB RMB Total revenues 7,438,785 7,186,469 6,628,248 Operating income/(loss) 342,093 341,897 (46,168 ) Operating income (non-GAAP) 501,417 458,535 58,678 Net income/(loss) attributable to iQIYI, Inc. 68,685 182,145 (133,708 ) Net income attributable to iQIYI, Inc. (non-GAAP) 246,914 304,420 14,652 Diluted net income/(loss) per ADS 0.07 0.19 (0.14 ) Diluted net income per ADS (non-GAAP)2 0.25 0.31 0.02 Footnotes: [1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.1636 as of June 30, 2025, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also 'Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures' for more details).[3] Net interest expense refers to the net amount of interest expense and interest income, both of which are presented in the Condensed Consolidated Statements of Income/(Loss). Second Quarter 2025 Financial Results Total revenues reached RMB6.63 billion (US$925.3 million), decreasing 11% year over year. Membership services revenue was RMB4.09 billion (US$571.0 million), decreasing 9% year over year, primarily due to a lighter content slate compared to the same period last year. Online advertising services revenue was RMB1.27 billion (US$177.6 million), decreasing 13% year over year. During the quarter, some advertisers adjusted their advertising and promotion strategies in response to macro pressures. Content distribution revenue was RMB436.6 million (US$60.9 million), decreasing 37% year over year, primarily due to the decrease in barter transactions and, to a lesser extent, the decrease in cash transactions. Other revenues were RMB829.3 million (US$115.8 million), increasing 6% year over year. Cost of revenues was RMB5.29 billion (US$738.9 million), decreasing 7% year over year. Content costs as a component of cost of revenues were RMB3.78 billion (US$528.0 million), decreasing 8% year over year. The decrease in content cost was primarily due to a lighter content slate in the quarter. Selling, general and administrative expenses were RMB959.6 million (US$134.0 million), decreasing 1% year over year. Research and development expenses were RMB421.9 million (US$58.9 million), decreasing 6% year over year. Operating loss was RMB46.2 million (US$6.4 million), compared to operating income of RMB342.1 million in the same period in 2024. Operating loss margin was 1%, compared to operating income margin of 5% in the same period in 2024. Non-GAAP operating income was RMB58.7 million (US$8.2 million), compared to non-GAAP operating income of RMB501.4 million in the same period in 2024. Non-GAAP operating income margin was 1%, compared to non-GAAP operating income margin of 7% in the same period in 2024. Total other expense was RMB61.9 million (US$8.6 million), decreasing 74% year over year, primarily due to gain from foreign exchange. Loss before income taxes was RMB108.1 million (US$15.1 million), compared to income before income taxes of RMB101.7 million in the same period in 2024. Income tax expense was RMB27.2 million (US$3.8 million), compared to income tax expense of RMB25.7 million in the same period in 2024. Net loss attributable to iQIYI was RMB133.7 million (US$18.7 million), compared to net income attributable to iQIYI of RMB68.7 million in the same period in 2024. Diluted net loss attributable to iQIYI per ADS was RMB0.14 (US$0.02) for the second quarter of 2025, compared to diluted net income attributable to iQIYI per ADS of RMB0.07 in the same period of 2024. Non-GAAP net income attributable to iQIYI was RMB14.7 million (US$2.0 million), compared to non-GAAP net income attributable to iQIYI of RMB246.9 million in the same period in 2024. Non-GAAP diluted net income attributable to iQIYI per ADS was RMB0.02 (US$0.00), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB0.25 in the same period of 2024. Net cash used for operating activities was RMB12.7 million (US$1.8 million), compared to net cash provided by operating activities of RM410.8 million in the same period of 2024. Free cash flow was negative RMB34.1 million (negative US$4.8 million), compared to free cash flow of RMB382.5 million in the same period of 2024. As of June 30, 2025, the Company had cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash included in prepayments and other assets of RMB5.06 billion (US$705.7 million). In addition, as of the same date, the Company had a loan of US$522.5 million to PAG, recorded under the line item of amounts due from related parties. In the second quarter of 2025, the Company had repurchased an aggregate principal amount of US$85.0 million of the 2028 Notes for cash. As of June 30, 2025, US$0.1 million principal amount of the 2026 Notes, US$522.5 million principal amount of the PAG Notes, US$208.1 million principal amount of the 2028 Notes, and US$350.0 million principal amount of the 2030 Notes remained outstanding. Conference Call Information iQIYI's management will hold an earnings conference call at 7:00 AM on August 20, 2025, U.S. Eastern Time (7:00 PM on August 20, 2025, Beijing Time). Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique access PIN by a calendar invite. Participant Online Registration: It will automatically direct you to the registration page of "iQIYI Second Quarter 2025 Earnings Conference Call", where you may fill in your details for RSVP. In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration. A telephone replay of the call will be available after the conclusion of the conference call through August 27, 2025. Dial-in numbers for the replay are as follows: International Dial-in +1 855 883 1031Passcode: 10049037 A live and archived webcast of the conference call will be available at About iQIYI, Inc. iQIYI, Inc. is a leading provider of online entertainment video services in China. It combines creative talent with technology to foster an environment for continuous innovation and the production of blockbuster content. It produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content in a variety of formats. iQIYI distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. Over time, iQIYI has built a massive user base and developed a diversified monetization model including membership services, online advertising services, content distribution, online games, IP licensing, talent agency, online literature, etc. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates,' 'confident' and similar statements. Among other things, the quotations from management in this announcement, as well as iQIYI's strategic and operational plans, contain forward-looking statements. iQIYI may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about iQIYI's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iQIYI's strategies; iQIYI's future business development, financial condition and results of operations; iQIYI's ability to retain and increase the number of users, members and advertising customers, and expand its service offerings; competition in the online entertainment industry; changes in iQIYI's revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and iQIYI undertakes no duty to update such information, except as required under applicable law. Non-GAAP Financial Measures To supplement iQIYI's consolidated financial results presented in accordance with GAAP, iQIYI uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income/(loss) attributable to iQIYI, non-GAAP diluted net income/(loss) attributable to iQIYI per ADS and free cash flow. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. iQIYI believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance by excluding certain items that may not be indicative of its business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to the non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to iQIYI's historical operating performance. The Company believes the non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that the non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization of intangible assets resulting from business combinations. Non-GAAP net income/(loss) attributable to iQIYI, Inc. represents net income/(loss) attributable to iQIYI, Inc. excluding share-based compensation expenses, amortization of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, adjusted for related income tax effects. iQIYI's share of equity method investments for these non-GAAP reconciling items, primarily amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded. Non-GAAP diluted net income/(loss) per ADS represents diluted net income/(loss) per ADS calculated by dividing non-GAAP net income/(loss) attributable to iQIYI, Inc, by the weighted average number of ordinary shares expressed in ADS. Free cash flow represents net cash provided by operating activities less capital expenditures. For more information, please contact: Investor RelationsiQIYI, Consolidated Statements of Income/(Loss) (In RMB thousands, except for number of shares and per share data) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2024 2025 2025 2024 2025 RMB RMB RMB RMB RMB (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues: Membership services 4,495,310 4,399,010 4,090,126 9,294,171 8,489,136 Online advertising services 1,461,367 1,327,827 1,272,198 2,943,419 2,600,025 Content distribution 698,175 628,743 436,578 1,626,184 1,065,321 Others 783,933 830,889 829,346 1,502,366 1,660,235 Total revenues 7,438,785 7,186,469 6,628,248 15,366,140 13,814,717 Operating costs and expenses: Cost of revenues (5,678,342 ) (5,406,341 ) (5,292,894 ) (11,309,581 ) (10,699,235 ) Selling, general and administrative (969,673 ) (1,025,742 ) (959,604 ) (1,891,708 ) (1,985,346 ) Research and development (448,677 ) (412,489 ) (421,918 ) (878,005 ) (834,407 ) Total operating costs and expenses (7,096,692 ) (6,844,572 ) (6,674,416 ) (14,079,294 ) (13,518,988 ) Operating income/(loss) 342,093 341,897 (46,168 ) 1,286,846 295,729 Other income/(expenses): Interest income 68,688 78,756 87,779 127,428 166,535 Interest expenses (288,162 ) (233,429 ) (235,267 ) (570,297 ) (468,696 ) Foreign exchange gain/(loss), net (51,338 ) 41,889 100,811 (82,889 ) 142,700 Share of gains/(losses) from equity method investments (2,100 ) (3,617 ) (1,086 ) 11,414 (4,703 ) Others, net 32,476 1,724 (14,134 ) 12,617 (12,410 ) Total other expense, net (240,436 ) (114,677 ) (61,897 ) (501,727 ) (176,574 ) Income/(loss) before income taxes 101,657 227,220 (108,065 ) 785,119 119,155 Income tax expense (25,741 ) (41,590 ) (27,155 ) (43,374 ) (68,745 ) Net income/(loss) 75,916 185,630 (135,220 ) 741,745 50,410 Less: Net income/(loss) attributable to noncontrolling interests 7,231 3,485 (1,512 ) 17,743 1,973 Net income/(loss) attributable to iQIYI, Inc. 68,685 182,145 (133,708 ) 724,002 48,437 Net income/(loss) attributable to ordinary shareholders 68,685 182,145 (133,708 ) 724,002 48,437 Net income/(loss) per share for Class A and Class B ordinary shares: Basic 0.01 0.03 (0.02 ) 0.11 0.01 Diluted 0.01 0.03 (0.02 ) 0.11 0.01 Net income/(loss) per ADS (1 ADS equals 7 Class A ordinary shares): Basic 0.07 0.19 (0.14 ) 0.75 0.05 Diluted 0.07 0.19 (0.14 ) 0.74 0.05 Weighted average number of Class A and Class B ordinary shares used in net income/(loss) per share computation: Basic 6,725,978,497 6,740,810,595 6,743,563,754 6,721,815,708 6,742,194,780 Diluted 6,857,915,450 6,780,303,294 6,743,563,754 6,822,994,286 6,780,167,606iQIYI, Consolidated Balance Sheets (In RMB thousands, except for number of shares and per share data) December 31, June 30, 2024 2025 RMB RMB (Unaudited) ASSETS Current assets: Cash and cash equivalents 3,529,679 3,329,708 Restricted cash - 2,062 Short-term investments 941,610 917,165 Accounts receivable, net 2,191,178 2,191,126 Prepayments and other assets 2,192,928 2,172,378 Amounts due from related parties 283,123 264,262 Licensed copyrights, net 388,718 579,132 Total current assets 9,527,236 9,455,833 Non-current assets: Fixed assets, net 877,982 839,284 Long-term investments 2,108,477 1,978,055 Deferred tax assts, net 23,536 21,197 Licensed copyrights, net 6,930,053 6,669,903 Intangible assets, net 289,861 252,596 Produced content, net 14,707,869 14,484,001 Prepayments and other assets 2,913,919 4,470,231 Operating lease assets 609,832 513,704 Goodwill 3,820,823 3,820,823 Amounts due from related parties 3,950,937 3,859,086 Total non-current assets 36,233,289 36,908,880 Total assets 45,760,525 46,364,713 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts and notes payable 6,482,209 6,956,061 Amounts due to related parties 3,239,036 3,361,596 Customer advances and deferred revenue 4,403,686 4,457,113 Convertible senior notes, current portion 242,460 1,483,936 Short-term loans 3,786,901 2,757,119 Long-term loans, current portion 167,987 717,991 Operating lease liabilities, current portion 96,675 81,728 Accrued expenses and other liabilities 3,058,379 2,725,586 Total current liabilities 21,477,333 22,541,130 Non-current liabilities: Long-term loans 1,036,835 2,300,177 Convertible senior notes 8,350,570 6,739,446 Amounts due to related parties 59,226 49,057 Operating lease liabilities 461,974 363,730 Other non-current liabilities 1,000,823 860,803 Total non-current liabilities 10,909,428 10,313,213 Total liabilities 32,386,761 32,854,343 Shareholders' equity: Class A ordinary shares 238 238 Class B ordinary shares 193 193 Additional paid-in capital 55,623,841 55,842,259 Accumulated deficit (43,809,369 ) (43,760,932 ) Accumulated other comprehensive income 1,550,523 1,438,027 Non-controlling interests 8,338 (9,415 ) Total shareholders' equity 13,373,764 13,510,370 Total liabilities and shareholders' equity 45,760,525 46,364,713 iQIYI, Consolidated Statements of Cash Flows (In RMB thousands, except for number of shares and per share data) Three Months Ended June 30, March 31, June 30, 2024 2025 2025 RMB RMB RMB (Unaudited) (Unaudited) (Unaudited) Net cash provided by/(used for) operating activities 410,752 338,950 (12,731 ) Net cash provided by/(used for) investing activities (1,2) 336,256 (30,136 ) (114,005 ) Net cash provided by/(used for) financing activities 865,894 860,477 (465,256 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 23,113 (1,232 ) (27,881 ) Net increase/(decrease) in cash, cash equivalents and restricted cash 1,636,015 1,168,059 (619,873 ) Cash, cash equivalents and restricted cash at the beginning of the period 6,271,368 3,590,331 4,758,390 Cash, cash equivalents and restricted cash at the end of the period 7,907,383 4,758,390 4,138,517 Reconciliation of cash and cash equivalents and restricted cash: Cash and cash equivalents 6,301,808 4,320,028 3,329,708 Restricted cash - 1,899 2,062 Long-term restricted cash 1,605,575 436,463 806,747 Total cash and cash equivalents and restricted cash shown in the statements of cash flows 7,907,383 4,758,390 4,138,517 Net cash provided by/(used for) operating activities 410,752 338,950 (12,731 ) Less: Capital expenditures (2) (28,299 ) (31,252 ) (21,410 ) Free cash flow 382,453 307,698 (34,141 ) (1) Net cash provided by or used for investing activities primarily consists of net cash flows from investing in debt securities, purchase of long-term investments and capital expenditures.(2) Capital expenditures are incurred primarily in connection with construction in process, computers and of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures(Amounts in thousands of Renminbi ('RMB'), except for per ADS information, unaudited) Three Months Ended June 30, March 31, June 30, 2024 2025 2025 RMB RMB RMB Operating income/(loss) 342,093 341,897 (46,168 ) Add: Share-based compensation expenses 157,791 115,105 103,313 Add: Amortization of intangible assets(1) 1,533 1,533 1,533 Operating income (non-GAAP) 501,417 458,535 58,678 Net income/(loss) attributable to iQIYI, Inc. 68,685 182,145 (133,708 ) Add: Share-based compensation expenses 157,791 115,105 103,313 Add: Amortization of intangible assets(1) 1,533 1,533 1,533 Add: Impairment of long-term investments 16,591 2,000 25,950 Add: Fair value loss/(gain) of long-term investments 2,577 (1,740 ) 17,564 Add: Reconciling items on equity method investments - 5,377 - Add: Tax effects on non-GAAP adjustments(2) (263 ) - - Net income attributable to iQIYI, Inc. (non-GAAP) 246,914 304,420 14,652 Diluted net income/(loss) per ADS 0.07 0.19 (0.14 ) Add: Non-GAAP adjustments to earnings per ADS 0.18 0.12 0.16 Diluted net income per ADS (non-GAAP) 0.25 0.31 0.02 (1) This represents amortization of intangible assets resulting from business combinations.(2) This represents tax impact of all relevant non-GAAP in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
