This article first appeared on GuruFocus .
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Total Revenues:RMB222.3 million, a 1.9% increase year on year from RMB218.1 million.
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Net Advertising Revenues:RMB181.1 million compared to RMB189 million in the same period last year.
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Paid Services Revenue:RMB41.2 million, a 41.6% increase year on year from RMB29.1 million.
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Cost of Revenues:Decreased by 18.6% to RMB98.6 million from RMB121.1 million.
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Gross Margin:Improved to 55.6% from 44.5% in the same period last year.
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Total Operating Expenses:RMB99.2 million, a 9.9% increase year on year from RMB90.3 million.
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Income from Operations:Increased by 265.7% to RMB24.5 million from RMB6.7 million.
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Net Income Attributable to ifeng:RMB45.3 million compared to a net loss of RMB3.6 million in the same period last year.
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Cash and Cash Equivalents:RMB1.02 billion or approximately USD145.6 million as of December 31, 2025.
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Revenue Forecast for Q1 2026:Between RMB160 million and RMB175 million.
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Net Advertising Revenue Forecast for Q1 2026:Between RMB111.2 million and RMB121.2 million.
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Paid Service Revenue Forecast for Q1 2026:Between RMB48.8 million and RMB53.8 million.
Release Date: March 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Phoenix New Media Ltd ( NYSE:FENG ) reported a 1.9% year-on-year increase in total revenues for the fourth quarter of 2025, reaching RMB222.3 million.
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The company achieved a significant 41.6% increase in paid services revenue, driven by digital reading services offered through mini-programs on third-party applications.
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Gross margin improved to 55.6% from 44.5% in the same period of the previous year, indicating better cost management.
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Income from operations saw a substantial increase of 265.7%, reaching RMB24.5 million compared to RMB6.7 million in the same period last year.
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Net income attributable to Phoenix New Media Ltd ( NYSE:FENG ) was RMB45.3 million, a significant turnaround from a net loss of RMB3.6 million in the same period last year.
Negative Points
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Net advertising revenues decreased to RMB181.1 million from RMB189 million in the same period last year, reflecting challenges in the advertising market.
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Total operating expenses increased by 9.9% year-on-year to RMB99.2 million, primarily due to higher sales and marketing expenses.
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The macroeconomic environment and intense market competition posed challenges, impacting advertising budgets among major Internet platforms.
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The automotive and liquor sectors showed relative weakness, affecting overall advertising revenue.
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The company forecasts a potential decline in total revenue for the first quarter of 2026, projecting between RMB160 million and RMB175 million.
Q & A Highlights
Q: What are the key challenges the company is currently facing, and how do you view the outlook for the advertising market in 2026? A: Xiaojing Lu, Chief Financial Officer, explained that advertising budgets declined among major Internet platforms, with the automotive and liquor sectors being relatively weak. However, growth was achieved in consumer categories like personal care, tourism, entertainment, and home appliances. The company plans to optimize its client mix and explore new growth drivers, focusing on internationalization and innovation in short-term video content and AI technologies. They aim to prioritize sectors with stronger budget potential, such as home appliances, transportation, and daily consumer goods.
Q: How did Phoenix New Media perform in terms of content distribution and user engagement in the fourth quarter? A: Xiaojing Lu, Chief Financial Officer, reported that the company's presence across major platforms expanded, with average live per post increasing by 54% quarter over quarter and total followers growing to 18.9 million. The WeChat video account also saw strong follower growth, reaching over 6 million. AI applications improved content aggregation and user engagement, with interaction volume increasing by over 10% and average time spent per user rising 8% quarter over quarter.
Q: Can you provide an update on Phoenix New Media's financial performance for the fourth quarter of 2025? A: Xiaojing Lu, Chief Financial Officer, stated that total revenues were RMB222.3 million, a 1.9% increase year on year. Net advertising revenues were RMB181.1 million, while paid services revenue increased by 41.6% to RMB41.2 million. Cost of revenues decreased by 18.6%, and gross margin improved to 55.6%. Income from operations increased by 265.7% to RMB24.5 million, and net income attributable to ifeng was RMB45.3 million, compared to a net loss of RMB3.6 million in the same period last year.
Q: What strategic initiatives did Phoenix New Media undertake to enhance its content and brand value? A: Yusheng Sun, Chief Executive Officer, highlighted that the company focused on in-depth reporting, professional commentary, and thematic coverage to enhance the quality and influence of its core columns and flagship products. They optimized key events and branded initiatives, integrating content and product formats. The company also strengthened its presence in high-end events and expanded its content distribution across major platforms.
Q: What is the business outlook for Phoenix New Media in the first quarter of 2026? A: Xiaojing Lu, Chief Financial Officer, provided a forecast of total revenue between RMB160 million and RMB175 million. Net advertising revenues are projected to be between RMB111.2 million and RMB121.2 million, while paid service revenues are expected to be between RMB48.8 million and RMB53.8 million. The company remains focused on capability building, structural optimization, and leveraging technology to drive efficiency and business upgrades.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
