Phoenix New Media Limited Q2 FY2026 earnings call

• Leadership Update

  • Li Qi, the new CEO of Phoenix New Media, joined the earnings call for the first time, stating he will focus on leveraging the company's core strengths (professional content capabilities, brand influence, and commercial capabilities), improve operational efficiency, strengthen the business foundation, and deliver long-term shareholder value.

• Core Content Strategy & Differentiation

  • Management maintains a strategy of driving business value through high-quality content, which has become increasingly valuable as user attention becomes more fragmented.
  • The company demonstrated strong premium content production and rapid response capabilities through coverage of multiple major events this quarter: President Trump's visit to China (coverage video gained over 40 million views on Douyin and WeChat, unlocked new brand client opportunities), the Iran conflict, the 2026 North American World Cup (original sports IP generated over 75 million impressions, attracted 10+ leading brands, delivered significant commercial growth), and the Shanxi Xingyuan mine accident (multiple exclusive investigative reports were republished by mainstream media).

• Original Content IP Performance

  • Long-running original content IPs retain strong long-term commercial value: flagship interview program Wisdom Talk has maintained 8 consecutive years of brand partnerships, with its advertiser base expanding from traditional liquor brands to automotive and technology, proving strong content IP is a repeatable, long-term monetizable commercial asset. Other IPs like Journey and Analyst Conversations also built strong audience engagement and brand influence.

• Vertical Segment Growth

  • The tech vertical achieved over 100% year-over-year quarterly revenue growth after shifting to more in-depth original vertical content on WeChat Channels.
  • ifeng Car Research Lab built differentiated expertise through professional vehicle testing (including Xiaomi EV airbag testing) and delivered strong revenue growth via event marketing around the Beijing Auto Show.
  • Large-scale event IPs performed well: the Her Power Weibo topic reached nearly 200 million reads, and the Greater Bay Area Finance Forum gained over 100 million impressions and was republished by industry organizations.

• Operational Improvements

  • AI has been integrated into the full content workflow (preparation, production, post-production) to maintain content quality, improve efficiency, and optimize costs. The company is also enhancing content distribution, user reach, and operational precision to maximize content value and commercial conversion.

Phoenix New Media reported total revenue of RMB 216.7 million in Q2 2026, a 15.8% year-over-year increase from RMB 187.1 million in Q2 2025. 1. Net advertising: Generated RMB 146.9 million in revenue, a slight decrease from RMB 153.3 million in the prior year period, contributing 67.8% of total Q2 2026 revenue. 2. Paid services: Generated RMB 69.8 million in revenue, representing a 106.5% year-over-year increase from RMB 33.8 million in Q2 2025, contributing 32.2% of total Q2 2026 revenue. Revenue growth in this segment was driven primarily by digital reading services offered through third-party mini programs.

• For the third quarter of 2026, management forecasts total revenue to fall in the range of RMB 220.9 million to RMB 235.9 million.
• Net advertising revenue is projected to be between RMB 151.9 million and RMB 161.9 million.
• Paid service revenue is projected to be between RMB 69 million and RMB 74 million.
• All projections are preliminary and subject to change due to existing potential uncertainties. No upward or downward revision from prior guidance was discussed in the transcript.

No explicit discussion of business risks or operational failures was provided in the earnings call transcript. Management only noted that forward-looking guidance is preliminary and subject to uncertainty.

Q: The overall advertising environment appears nuanced even as the company hit year-on-year total revenue growth this quarter. What dynamics are creating pressure on advertising, what gives management confidence, and what is the near-to-medium term trajectory for the business?

A: Mixed results this quarter came from temporary timing issues: contract renewals for some categories like Chinese liquor fell outside Q2 2026, but there is no fundamental change in underlying demand for the company's services. Growth is coming from structural shifts: deeper vertical content, event-based brand campaigns, and long-term client relationships built on branded content IP, which are working across technology, automotive, finance, and consumer brand categories. Management will continue expanding these successful content-driven monetization models, positioning Phoenix as a content partner rather than just a media channel, and expanding into new advertiser segments where the company's lightweight fast-turn campaigns have already proven effective.