Phoenix New Media (FENG) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Communication Services· Aug 12, 2026

Source: earnings call transcript

Executive summary

Phoenix New Media Q2 FY26 — Strong Paid Services Growth and Content Monetization

Phoenix New Media delivered a strong Q2 FY26, driven by robust growth in paid services, particularly digital reading, which more than offset a decline in net advertising revenue. The company's new CEO emphasized a continued focus on high-quality content, AI integration, and vertical monetization to reinforce its position as a trusted media company and support sustainable long-term growth.

Highlights

Total revenues increased by 15.8% year-on-year to RMB 216.7 million.
Paid services revenues grew by 106.5% year-on-year to RMB 69.8 million, primarily driven by digital reading services.
Gross margin improved to 57.3% from 49.2% in the prior year.
Net income attributable to ifeng was RMB 6.5 million, compared to a net loss of RMB 10.4 million in the same period last year.
Tech channel achieved over 100% year-over-year quarterly revenue growth.

Concerns

Net advertising revenue decreased to RMB 146.9 million from RMB 153.3 million year-over-year.
Total operating expenses increased by 30.4% year-on-year to RMB 129.4 million, primarily due to higher sales and marketing for digital reading services.

Guidance & targets

Category	Target	Timeline	Confidence
Total revenues	RMB 220.9 million to RMB 235.9 million high materiality	Q3 · FY26	High
Net advertising revenues	RMB 151.9 million to RMB 161.9 million medium materiality	Q3 · FY26	High
Paid service revenues	RMB 69 million to RMB 74 million medium materiality	Q3 · FY26	High

Risks & headwinds

Mixed advertising environment and contract timing shifts Q2 FY26

Net advertising revenue decreased to RMB 146.9 million from RMB 153.3 million year-over-year.

Mitigation:Focus on content-driven monetization, expanding successful models, building client relationships as content partners, and expanding into new advertiser segments with lightweight, fast-turn campaigns.

Higher sales and marketing expenses Q2 FY26

Total operating expenses increased by 30.4% year-on-year to RMB 129.4 million, primarily due to higher sales and marketing for digital reading services.

Mitigation:Implied as an investment for growth in the rapidly expanding digital reading services segment.

What to watch in Q3 FY26

Total Revenues

Q3 FY26

Current RMB 216.7 million

Target RMB 220.9 million - RMB 235.9 million

Why it matters

Indicates overall business performance and growth trajectory, reflecting the company's ability to execute on its strategic priorities.

Finally, I'd like to provide our business outlook for the third quarter of 2026. We forecast total revenues to be between RMB 220.9 million and RMB 235.9 million.

Find out whether FENG delivers this. Inve re-checks your case every morning.

Q&A highlights

The analyst inquired about the dynamics of the advertising business, seeking clarity on factors creating pressure and those instilling confidence, as well as the near-to-medium term trajectory, given the nuanced market picture.

CFO Edward Lu explained that the advertising environment was mixed, with some categories like Chinese liquor experiencing contract timing shifts impacting Q2, but strong growth in others (tech, auto, finance, consumer brands) driven by content-driven monetization, event-based campaigns, and long-term client relationships. He views this as a structural shift towards content-driven monetization and plans to expand successful models and client partnerships.

“The advertising environment was mixed this quarter in some categories such as Chinese liquor, the timing of certain contract renewal fell outside Q2, which had an impact on the quarter. But we don't see any fundamental change in the underlying demand.”

asked by Alexandra Liu · answered by Xiaojing Lu

2 min read 6 chapters

Detailed narrative

Strategic Focus under New CEO

Li Qi, the new CEO, made his first appearance on the earnings call, emphasizing a continued focus on Phoenix New Media's core strengths. These include professional content capabilities, brand influence, and commercial capabilities. The management team aims to improve operational efficiency, strengthen the business foundation, and enhance long-term shareholder value, signaling a commitment to strategic continuity and growth.

Content-Driven Commercial Value

The company highlighted its ability to leverage high-quality content for commercial value, citing several major international events. Live coverage of President Trump's visit to China generated over 40 million views for a video on Douyin and WeChat channels, leading to new business opportunities.

Comprehensive content and marketing around the 2026 World Cup achieved over 75 million impressions and attracted more than 10 leading brands, demonstrating significant commercial growth.

IP Monetization and Vertical Growth

Phoenix New Media's original content IPs continue to demonstrate long-term value and monetization potential. The flagship interview show 'Wisdom Talk' has maintained 8 consecutive years of brand partnerships across 8 seasons, expanding its advertiser base from traditional liquor brands to automotive and technology sectors.

Additionally, the tech channel achieved over 100% year-over-year quarterly revenue growth by focusing on in-depth original vertical videos on WeChat Channels, showcasing successful vertical monetization strategies.

AI Integration and Efficiency

AI is now integrated into the company's content workflow, supporting preparation, production, and post-production processes. This integration allows Phoenix New Media to maintain high content quality while simultaneously improving efficiency and optimizing costs. The company is also enhancing content distribution, user reach, and operational precision through AI to maximize content value and commercial conversion, reinforcing its position as a trusted media company.

Digital Reading Services as Growth Driver

Paid services revenues saw substantial growth, primarily driven by digital reading services offered through mini-programs on third-party applications. This segment's strong performance contributed significantly to the overall revenue increase, offsetting declines in net advertising. The expansion of these services, however, also led to higher sales and marketing expenses, reflecting investment in this growing area.

Mixed Advertising Environment Dynamics

The advertising environment was described as mixed, with some categories like Chinese liquor experiencing contract renewal timing shifts that impacted Q2. However, the company observed growth in other areas, including technology, automotive, finance, and consumer brands. This growth is attributed to content-driven monetization, event-based campaigns, and long-term client relationships, which management views as a structural shift rather than a short-term trend.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.