IQ iQiyi Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2025

Commission File Number: 001-38431

iQIYI, Inc.

4/F, iQIYI Youth Center Yoolee Plaza,

No. 21, North Road of Workers’ Stadium, Chaoyang District Beijing, 100027,

People’s Republic of China

Tel: +86 10 6267-7171

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒   Form 40-F ☐

Exhibit Index

Exhibit 99.1 — Press Release — iQIYI Announces Fourth Quarter and Fiscal Year 2024 Financial Results

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 18, 2025

Exhibit 99.1

iQIYI Announces Fourth Quarter and Fiscal Year 2024 Financial Results

BEIJING, CHINA, February 18, 2025 – 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 fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024 Highlights

Fiscal Year 2024 Highlights

“Since late November 2024, we have launched a series of blockbusters, driving a strong rebound of business performances and reinforcing our No.1 position in total drama market share in Q4 2024, according to Enlightent. With the release of more smash hits, the momentum continued into the start of 2025, which led to a significant increase in subscribing members from the end of 2024 to now.” commented Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI.

“Meanwhile, our investment in mini-dramas also achieved significant progress. We have revamped our products to optimize user experience, expanded our mini-drama portfolio to over ten thousand titles, and enhanced the ad-placement system to more effectively monetize the growing traffic of our mini-dramas,” Mr. Yu Gong further commented. “Although still in an early stage, we have seen great potential of mini-dramas to bolster our ad inventory and contribute to our ad revenue growth in 2025.”

“We continued to execute with a focus on discipline and efficiency, which led to sequential growth in operating profit for the fourth quarter. The strong operational momentum is extending into the opening of 2025, marking an encouraging start for the year.” commented Mr. Jun Wang, Chief Financial Officer of iQIYI.

Fourth Quarter and Fiscal 2024 Financial Highlights

Footnotes:

Fourth Quarter 2024 Financial Results

Total revenues reached RMB6.61 billion (US$906.0 million), decreasing 14% year over year.

Membership services revenue was RMB4.10 billion (US$562.1 million), decreasing 15% year over year, primarily due to a lighter content slate.

Online advertising services revenue was RMB1.43 billion (US$196.4 million), decreasing 13% year over year. The decrease was primarily due to the decrease in brand advertising business, partially offset by the growth of performance-based advertising business.

Content distribution revenue was RMB406.6 million (US$55.7 million), decreasing 20% year over year, primarily due to lower revenue from the distribution of theatrical movies invested by iQIYI, as well as a decrease in barter transactions, partially offset by the increase of revenue from cash transactions.

Other revenues were RMB670.2 million (US$91.8 million), decreasing 10% year over year.

Cost of revenues was RMB4.99 billion (US$684.2 million), decreasing 10% year over year. Content costs¹ as a component of cost of revenues were RMB3.44 billion (US$471.7 million), decreasing 9% year over year. The decrease in content cost was primarily due to our improvement in content strategy, as well as a lighter content slate in the quarter.

Selling, general and administrative expenses were RMB882.5 million (US$120.9 million), decreasing 7% year over year. The decrease was primarily due to disciplined marketing spending.

Research and development expenses were RMB451.4 million (US$61.8 million), flat year over year.

Operating income was RMB285.4 million (US$39.1 million), decreasing 63% year over year. Operating income margin was 4%, compared to operating income margin of 10% in the same period in 2023.

Non-GAAP operating income was RMB405.9 million (US$55.6 million), decreasing 56% year over year. Non-GAAP operating income margin was 6%, compared to non-GAAP operating income margin of 12% in the same period in 2023.

Total other expense was RMB466.2 million (US$63.9 million), increasing 79% year over year, primarily driven by the foreign exchange loss arising from the depreciation of the Renminbi against the U.S. dollar.

Loss before income taxes was RMB180.8 million (US$24.8 million), compared to income before income taxes of RMB513.9 million in the same period in 2023.

Income tax expense was RMB6.2 million (US$0.9 million), compared to income tax expense of RMB38.5 million in the same period in 2023.

Footnotes:

Net loss attributable to iQIYI was RMB189.4 million (US$25.9 million), compared to net income attributable to iQIYI of RMB466.2 million in the same period in 2023. The net loss was primarily due to the foreign exchange loss in the quarter. Diluted net loss attributable to iQIYI per ADS was RMB0.20 (US$0.03) for the fourth quarter of 2024, compared to diluted net income attributable to iQIYI per ADS of RMB0.48 in the same period of 2023.

Non-GAAP net loss attributable to iQIYI was RMB58.8 million (US$8.1 million), compared to non-GAAP net income attributable to iQIYI of RMB682.0 million in the same period in 2023. Non-GAAP diluted net loss attributable to iQIYI per ADS was RMB0.06 (US$0.01), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB0.70 in the same period of 2023.

Net cash provided by operating activities was RMB519.0 million (US$71.1 million), compared to net cash provided by operating activities of RMB633.6 million in the same period of 2023. Free cash flow was RMB498.1 million (US$68.2 million), compared to free cash flow of RMB614.4 million in the same period of 2023.

As of December 31, 2024, the Company had cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash included in prepayments and other assets of RMB4.53 billion (US$620.9 million). In December 2024, PAG drew down $122.5 million from the loan facility. As of December 31, 2024, PAG had drawn down the full amount of $522.5 million under the loan facility, and the repurchase right for the corresponding amount of the convertible senior notes due January 2028 had been waived.

Fiscal Year 2024 Financial Results

Total revenues were RMB29.23 billion (US$4.00 billion), decreasing 8% from 2023.

Membership services revenue was RMB17.76 billion (US$2.43 billion), decreasing 13% from 2023, primarily due to a lighter content slate.

Online advertising services revenue was RMB5.71 billion (US$782.8 million), decreasing 8% from 2023. The decrease was primarily due to the decrease in brand advertising business, partially offset by the growth of performance-based advertising business.

Content distribution revenue was RMB2.85 billion (US$390.0 million), increasing 16% from 2023, primarily driven by the increase in barter transactions.

Other revenues were RMB2.90 billion (US$397.5 million), increasing 1% from 2023.

Cost of revenues was RMB21.95 billion (US$3.01 billion), decreasing 5% from 2023. Content costs as a component of cost of revenues were RMB15.71 billion (US$2.15 billion), decreasing 5% from 2023. The decrease in content cost was primarily due to a lighter content slate.

Selling, general and administrative expenses were RMB3.68 billion (US$504.4 million), decreasing 8% from 2023. The decrease was primarily due to disciplined marketing spending and a decrease in personnel-related compensation expenses.

Research and development expenses were RMB1.78 billion (US$243.6 million), increasing 1% from 2023.

Operating income was RMB1.81 billion (US$248.1 million), decreasing 39% from 2023. Operating income margin was 6%, compared to operating income margin of 9% in 2023.

Non-GAAP operating income was RMB2.36 billion (US$323.6 million), decreasing 35% from 2023. Non-GAAP operating income margin was 8%, compared to non-GAAP operating income margin of 11% in 2023.

Total other expense was RMB959.5 million (US$131.5 million), flat year over year.

Income before income taxes was RMB851.7 million (US$116.7 million), compared to income before income taxes of RMB2.03 billion in 2023.

Income tax expense was RMB61.1 million (US$8.4 million), compared to income tax expense of RMB80.0 million in 2023.

Net income attributable to iQIYI was RMB764.1 million (US$104.7 million), decreasing 60% from 2023. Diluted net income attributable to iQIYI per ADS was RMB0.79 (US$0.11) for 2024, compared to diluted net income attributable to iQIYI per ADS of RMB1.98 in 2023.

Non-GAAP net income attributable to iQIYI was RMB1.51 billion (US$207.2 million), decreasing 47% from 2023. Non-GAAP diluted net income attributable to iQIYI per ADS was RMB1.56 (US$0.21), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB2.91 in 2023.

Net cash provided by operating activities was RMB2.11 billion (US$289.1 million), compared to net cash provided by operating activities of RMB3.35 billion in 2023. Free cash flow was RMB2.03 billion (US$278.2 million), compared to free cash flow of RMB3.31 billion in 2023.

Conference Call Information

iQIYI’s management will hold an earnings conference call at 6:30 AM on February 18, 2025, U.S. Eastern Time (7:30 PM on February 18, 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: https://s1.c-conf.com/diamondpass/10044736-lk98u7.html

It will automatically direct you to the registration page of “ iQIYI Fourth Quarter and Fiscal Year 2024 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 February 25, 2025.

Dial-in numbers for the replay are as follows:

International Dial-in   +1 855 883 1031

Passcode:        10044736

A live and archived webcast of the conference call will be available at http://ir.iqiyi.com/.

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 Relations

iQIYI, Inc.

ir@qiyi.com

iQIYI, INC.

Condensed Consolidated Statements of Income/(Loss)

(In RMB thousands, except for number of shares and per share data)

iQIYI, INC.

Condensed Consolidated Balance Sheets

(In RMB thousands, except for number of shares and per share data)

iQIYI, INC.

Condensed Consolidated Statements of Cash Flows

(In RMB thousands, except for number of shares and per share data)

iQIYI, INC.

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures

(Amounts in thousands of Renminbi (“RMB”), except for per ADS information, unaudited)