This article first appeared on GuruFocus .
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Total Revenues:RMB216.7 million, a 15.8% increase year over year from RMB187.1 million.
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Net Advertising Revenues:RMB146.9 million, compared to RMB153.3 million in the same period last year.
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Paid Services Revenues:RMB69.8 million, a 106.5% increase year over year from RMB33.8 million, driven by digital reading services.
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Cost of Revenues:Decreased 2.6% to RMB92.6 million from RMB95.1 million.
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Gross Margin:Improved to 57.3% from 49.2% in the prior-year quarter.
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Total Operating Expenses:RMB129.4 million, a 30.4% increase year over year from RMB99.2 million, due to higher sales and marketing expenses for digital reading services.
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Loss from Operations:RMB5.3 million, compared to a loss of RMB7.2 million in the same period last year.
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Net Income Attributable to Ifeng:RMB6.5 million, compared to a net loss of RMB10.4 million in the prior-year quarter.
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Cash and Investments:Totaled RMB990 million (approximately USD145.9 million) as of June 30, 2026.
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Q3 2026 Outlook:Total revenues forecast between RMB220.9 million and RMB235.9 million; Net Advertising revenues between RMB151.9 million and RMB161.9 million; Paid Services revenues between RMB69 million and RMB74 million.
Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Total revenues increased 15.8% year-over-year to RMB216.7 million, driven by strong growth in paid services.
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Paid services revenues surged 106.5% year-over-year, primarily from digital reading services via mini-programs.
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Gross margin improved significantly to 57.3% from 49.2% in the prior year period.
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Net income attributable to Phoenix New Media Ltd ( NYSE:FENG ) turned positive at RMB6.5 million, versus a net loss of RMB10.4 million a year ago.
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High-quality content IPs, such as the flagship interview program, have maintained long-term brand partnerships and expanded into new advertiser categories.
Negative Points
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Net advertising revenues declined to RMB146.9 million from RMB153.3 million in the same quarter last year.
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Total operating expenses increased 30.4% year-over-year, driven by higher sales and marketing costs for digital reading services.
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The advertising environment remains mixed, with timing of contract renewals in categories like Chinese liquor impacting quarterly results.
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The company still reported a loss from operations of RMB5.3 million, though improved from a loss of RMB7.2 million a year ago.
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The business outlook for Q3 2026 reflects uncertainty, with revenue forecasts subject to change due to substantial uncertainties.
Q & A Highlights
Q: Can you walk us through the dynamics of the advertising business, what's creating pressure, and what's giving you confidence, and how you see the near to medium-term trajectory? A: Xiaojing Lu (CFO) stated that the advertising environment was mixed last quarter. While some categories like Chinese liquor saw contract renewals fall outside Q2, impacting the quarter, there was no fundamental change in underlying demand. Growth was seen in deeper vertical content, event-based campaigns, and branded content IPs across technology, automotive, finance, and consumer brands. The company views this as a structural shift toward content-driven monetization and is focused on extending successful models and building relationships with clients as content partners.
Q: What were the key drivers behind the company's strong financial performance in Q2 2026? A: Xiaojing Lu (CFO) reported total revenues of RMB216.7 million, a 15.8% increase year-over-year. This was primarily driven by Paid Services revenues, which surged 106.5% to RMB69.8 million, largely due to digital reading services offered through mini-programs on third-party applications. Gross margin improved significantly to 57.3% from 49.2%, and the company achieved a net income attributable to Ifeng of RMB6.5 million, compared to a net loss of RMB10.4 million in the same period last year.
Q: How is Phoenix New Media leveraging major events to drive commercial value? A: Qi Li (CEO) highlighted the company's ability to produce high-quality content and respond quickly during major international events. During President Trump's visit to China, a video on Chinese company representatives at the welcome dinner achieved over 40 million views on Douyin and WeChat, leading to additional business opportunities with major brand clients. For the 2026 World Cup, the company built comprehensive content and marketing products, with original sports content IP generating over 75 million impressions, attracting over 10 leading brands and achieving significant commercial growth.
Q: What is the company's strategy regarding AI integration and its impact on operations? A: Qi Li (CEO) explained that AI is now integrated into the content workflow, supporting content preparation, production, and post-production. This integration allows the company to maintain high quality while improving efficiency and optimizing costs. The company is also enhancing content distribution, user reach, and operational precision to maximize content value and commercial conversions.
Q: What is the company's business outlook for the third quarter of 2026? A: Xiaojing Lu (CFO) provided the forecast for Q3 2026, projecting total revenues between RMB220.9 million and RMB235.9 million. This includes Net Advertising revenues between RMB151.9 million and RMB161.9 million, and Paid Services revenues between RMB69 million and RMB74 million. The forecast reflects the company's current and preliminary view, subject to change and substantial uncertainties.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
