Phoenix New Media (FENG) investor relations material

Executive summary

• Focused on strengthening core capabilities and leveraging major events to boost brand influence and user engagement.

• Achieved revenue growth and narrowed operating losses, with improved year-over-year performance.

• Enhanced international news coverage and content competitiveness, especially during major global events.

• Total revenues for Q1 2026 rose 21.6% year-over-year to RMB188.8 million (US$27.4 million), driven by strong growth in paid services revenues.

• Gross margin improved significantly to 53.5% from 40.4% in Q1 2025, reflecting higher-margin digital reading services.

Financial highlights

• Total revenues reached CNY 108.8 million, up 21.6% year-over-year from CNY 89.5 million.

• Net advertising revenues increased 4.0% year-over-year to RMB125.3 million (US$18.2 million).

• Paid services revenues surged 83.0% year-over-year to RMB63.5 million (US$9.2 million), with digital reading services up 92.0%.

• Cost of revenues decreased by 5.1% to CNY 87.8 million, improving gross margin to 53.5% from 40.4% year-over-year.

• Net loss attributable to shareholders narrowed to RMB16.8 million (US$2.4 million) from RMB29.7 million a year ago.

Outlook and guidance

• Q2 2026 total revenues forecasted between RMB195.7 million and RMB210.7 million.

• Net advertising revenues projected at RMB141.8–151.8 million; paid service revenues at RMB53.9–58.9 million.

• Management expects macro headwinds and budget pressures to persist but aims for steady progress through 2026.