Skip to content
    FENG
    Earnings call· Jun 2026(Q2 FY26)

    Phoenix New Media Q2 FY26 earnings call FENG

    Aug 12, 2026 Source

    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

    5

    • 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

    2

    • 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

    3
    CategoryTargetConfidence
    Total revenues
    RMB 220.9 million to RMB 235.9 million
    high materiality
    High
    Net advertising revenues
    RMB 151.9 million to RMB 161.9 million
    medium materiality
    High
    Paid service revenues
    RMB 69 million to RMB 74 million
    medium materiality
    High

    Operational metrics

    12
    Cost of revenues
    RMB 92.6 milliondecreased by 2.6% YoY
    Q2 FY26

    Compared to RMB 95.1 million in the same period of last year.

    Gross margin
    57.3%improved from 49.2% YoY
    Q2 FY26

    Compared to the same period of last year.

    Total operating expenses
    RMB 129.4 millionincreased by 30.4% YoY
    Q2 FY26

    Compared to RMB 99.2 million in the same period of last year, primarily due to higher sales and marketing expenses for digital reading services.

    Loss from operations
    RMB 5.3 millioncompared to RMB 7.2 million loss YoY
    Q2 FY26

    Compared to the same period of last year.

    Net income attributable to ifeng
    RMB 6.5 millioncompared to RMB 10.4 million net loss YoY
    Q2 FY26

    Compared to the same period of last year.

    Cash and cash equivalents, term deposits, short-term investments and restricted cash
    RMB 990 million
    as of June 30, 2026

    Total cash and cash equivalents, term deposits, short-term investments and restricted cash.

    Paid services revenues growth
    106.5%YoY
    Q2 FY26

    Primarily driven by revenue generated from digital reading services offered through mini programs on third-party applications.

    Tech channel revenue growth
    over 100%YoY
    Q2 FY26

    Following the shift toward more in-depth original vertical videos on WeChat Channels.

    Trump visit video views
    over 40 million
    Q2 FY26

    Video on Douyin and WeChat channels covering Chinese company representatives at Trump's welcome dinner.

    World Cup content impressions
    over 75 million
    Q2 FY26

    Generated across the web by original sports content IP around the 2026 World Cup.

    Her Power Weibo topic reads
    approached 200 million
    Q2 FY26

    Large-scale event IP performance.

    Greater Bay Area Finance Forum impressions
    over 100 million
    Q2 FY26

    Large-scale event IP performance, republished by industry organizations.

    Industry KPIs

    2
    MetricValueDetails
    Advertising revenue by segmentRMB 146.9 millionRMB
    Ai feature adoption monetization—

    Risks & headwinds

    2
    Mixed advertising environment and contract timing shiftsQ2 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 expensesQ2 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

    5

    Total Revenues

    Q3 FY26
    CurrentRMB 216.7 million
    TargetRMB 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.

    Q&A highlights

    1

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.