Phoenix New Media (NYSE:FENG) reported higher second-quarter revenue and a return to net profitability, driven by rapid growth in paid services, while advertising revenue declined from a year earlier amid what management described as a mixed advertising environment.
Total revenue for the second quarter of 2026 rose 15.8% year over year to RMB216.7 million from RMB187.1 million. Net advertising revenue fell to RMB146.9 million from RMB153.3 million in the prior-year period, while paid services revenue more than doubled to RMB69.8 million from RMB33.8 million. The company said the paid-services increase was primarily driven by digital reading services offered through Mini Programs on third-party applications.
Loss from operations narrowed to RMB5.3 million from RMB7.2 million in the prior-year quarter. Net income attributable to ifeng was RMB6.5 million, compared with a net loss attributable to ifeng of RMB10.4 million a year earlier.
New CEO Emphasizes Content, Efficiency and Long-Term Value
Li Qi, Phoenix New Media’s new chief executive officer, said in his first earnings call in the role that management would focus on the company’s professional content capabilities, brand influence and commercial capabilities. He said the company intends to improve operational efficiency, strengthen its business foundation and enhance long-term shareholder value.
Management said demand from brand advertisers for high-quality content remained strong as information becomes more fragmented and audience attention becomes more difficult to capture. The company highlighted several major event coverage efforts as examples of how journalism and original content can support commercial opportunities.
During President Trump’s visit to China, Phoenix provided live coverage of key activities. A video titled, “Who Were the Chinese Company Representatives at Trump’s Welcome Dinner?” generated more than 40 million views on Douyin and WeChat Channels, according to the company, and led to additional opportunities with major brand clients.
The company also cited coverage of the Iran conflict, reporting on the Shanxi Xinyuan mine accident, and content and marketing products tied to the 2026 FIFA World Cup in Canada, Mexico and the United States. Phoenix said its original sports content intellectual property generated more than 75 million impressions, attracted more than 10 leading brands and delivered significant commercial growth.
Vertical Content and AI Adoption
Phoenix said its original content franchises, including “Journey,” “Endless Conversations” and “Shuiduo Wisdom Talk,” continued to create audience engagement and commercial value. The company said “Shuiduo Wisdom Talk” has operated for eight seasons and maintained brand partnerships for eight consecutive years, with its advertiser base expanding beyond traditional liquor brands to automotive and technology companies.
Management also pointed to growth in key verticals. After shifting toward more in-depth original videos on WeChat Channels, Phoenix’s technology channel recorded quarterly revenue growth of more than 100% year over year. Its ifeng car research lab generated revenue growth through event marketing around the Beijing Auto Show, supported by differentiated automotive content, the company said.
Large-scale event intellectual property also contributed to visibility, with the Her Power Weibo topic nearing 200 million reads and the Greater Bay Area Finance Forum surpassing 100 million impressions, according to management.
Phoenix said it has integrated artificial intelligence into content preparation, production and post-production workflows. Management said the effort is intended to preserve content quality while improving efficiency and optimizing costs, as well as strengthening distribution, user reach and operational precision.
Advertising Outlook and Third-Quarter Guidance
During the question-and-answer session, management said advertising conditions were mixed in the second quarter. In the Chinese liquor category, the timing of certain contract renewals fell outside the quarter, affecting advertising performance. However, the company said it did not see a fundamental change in underlying demand.
Management said growth was supported by deeper vertical content, event-based campaigns and branded content intellectual property that can foster long-term client relationships. It identified technology, automotive, finance and consumer brands as categories where those models have been gaining traction.
For the third quarter, Phoenix forecast total revenue of RMB220.9 million to RMB235.9 million. It projected net advertising revenue of RMB151.9 million to RMB161.9 million and paid-services revenue of RMB69 million to RMB74 million. The company said the outlook reflects its current preliminary view and is subject to change and substantial uncertainties.
As of June 30, Phoenix held RMB990 million in cash and cash equivalents, term deposits, short-term investments and restricted cash, equivalent to approximately $145.9 million.
About Phoenix New Media (NYSE:FENG)
Phoenix New Media Inc is a leading Chinese new media company that provides online news and information services through its flagship portal, ifeng.com, as well as a suite of mobile applications and video platforms. The company offers a wide array of multimedia content, including live streaming news, on-demand video, audio programming and article publishing across topics such as finance, technology, entertainment, lifestyle and sports. In addition to content distribution, Phoenix New Media generates revenue through digital advertising and subscription services.
Formed as a spin-off of its parent Nanfang Media Group’s overseas broadcasting business, Phoenix New Media was established to capitalize on the rapid growth of Internet and mobile consumption in China.
