Long video giant is undergoing a "blood-changing" transformation. On February 27, 2026, it released its full-year financial report for 2025. Although the fourth quarter showed signs of recovery, the fluctuating annual data revealed dual pressures from the impact of short videos and the growth bottleneck of membership.

Key Financial Report: Revenue Growth but Not Profit Growth, Pressure on Profits

The financial performance of iQIYI in 2025 can be described as "mixed":

Revenue Decline: Total revenue for the year was 27.29 billion yuan, down 6.6% year-on-year.

Sharp Drop in Profit: Non-GAAP operating profit dropped to 640 million yuan, a decrease of more than 70% compared to 23.6 billion yuan in 2024.

Partial Recovery: Revenue in Q4 grew by 2.7% year-on-year, but the platform still faces industry-wide growth ceilings in its two main businesses: membership services and advertising.

Strategic High Ground: Gong Yu's "AI Movie" Prediction and "Decentralization"

Facing financial pressure, founder Gong Yu did not continue to "compete" in traditional models. Instead, he focused on the technological tipping point expected in 2-3 years:

AI Dominance: Gong Yu boldly predicted that AI will play a leading role in the film industry within 2-3 years. iQIYI is using AI to increase content output, trying to break the expensive traditional production model.

Transition to "Decentralization": Gong Yu proposed that the platform will shift toward an "open and decentralized" model. This means iQIYI is trying to use AI to change the content production logic, moving from a "heavy asset" self-produced model to a lighter, AI-dependent production approach.

Overseas Advantage: AI has already shown early signs of strength in overseas operations, with over 30% year-on-year growth in overseas membership revenue, becoming one of the few bright spots in the financial report.

Industry Insight: Large-Scale Profits Still Require Time

Although AI shows potential in IP series operations (such as multi-season development and derivative content), it has not yet taken on the role of a major profit contributor. For iQIYI, the upcoming "World Conference" in April will be a key turning point. At that time, whether its new AI strategy can be implemented and how it can be monetized will be fully tested by the market.