Phoenix New Media (NYSE:FENG) reported an 8.3% increase in third-quarter 2026 revenue as growth in paid services offset a decline in advertising revenue. The company narrowed its operating loss, but its net loss attributable to Ifeng widened from a year earlier.
Total revenue rose to CNY 217.6 million from CNY 200.9 million, Chief Financial Officer Edward Lu said on the earnings call. Paid services revenue increased 64.4% to CNY 68.4 million, driven primarily by digital reading services offered through mini-programs on third-party applications. Net advertising revenue fell to CNY 149.2 million from CNY 159.3 million.
CEO Li Qi said the company continued to invest in original content and pursue business in key industry sectors. Phoenix is also exploring ways to make its content more accessible to artificial intelligence models and platforms as audiences change how they find information, he said in remarks translated by Investor Relations Manager Muzi Guo.
Margins Improve as Spending Rises
Cost of revenue declined 12.4% to CNY 92.2 million, while gross margin improved to 57.6% from 47.6% a year earlier. Operating expenses increased 18% to CNY 128.6 million, primarily because of higher sales and marketing spending for digital reading services, Edward Lu said.
The operating loss narrowed to CNY 3.2 million from CNY 13.3 million. Net loss attributable to Ifeng, however, widened to CNY 24.3 million from CNY 4.9 million.
As of Sept. 30, the company held a combined CNY 935.4 million, or approximately $139.5 million, in cash and cash equivalents, term deposits, short-term investments and restricted cash.
Advertising Clients Remain Cautious
Responding to a question from First Shanghai analyst Alexander Lu, Edward Lu said advertisers remained careful with their budgets and wanted to understand what campaigns could achieve. Results varied by industry and client.
Revenue from home appliance, e-commerce and automotive clients declined during the quarter, while revenue from liquor and food and beverage clients grew, the CFO said. He also pointed to progress with technology clients, particularly in AI and robotics.
Revenue from AI and robotics clients in the first nine months of 2026 was more than three times the amount generated in all of 2025, with most coming from original content services, Edward Lu said. Phoenix is seeking to turn projects tied to industry events into longer-term client relationships, including follow-up content and campaigns for product launches.
The company also hosted the Phoenix Greater Bay Area Finance Forum with Phoenix TV. Edward Lu said livestreaming and coverage across multiple platforms generated more than 800 million impressions. Short videos related to its coverage of President Xi Jinping’s visit to the U.S. received more than 50 million views in total, he said.
Fourth-Quarter Outlook
Phoenix forecast fourth-quarter revenue of CNY 236.7 million to CNY 251.7 million. That includes projected net advertising revenue of CNY 148.4 million to CNY 158.4 million and paid services revenue of CNY 88.3 million to CNY 93.3 million.
Edward Lu said the outlook reflects the company’s current preliminary view and is subject to change and substantial uncertainties.
About Phoenix New Media (NYSE:FENG)
Phoenix New Media Limited is a Chinese digital media company best known for operating the ifeng.com online media platform. Its services include news and information, business and finance coverage, opinion and lifestyle content, video, audio, and other entertainment programming delivered through websites, mobile applications, and related digital channels. The company generates revenue primarily through online advertising and paid digital services. It also distributes content produced by or associated with Phoenix TV, as well as material from third-party sources, and has developed mobile and video products to reach audiences across multiple devices.
