FENG · Phoenix New Media Limited

Phoenix New Media's first quarter 2026 results reflect a strategic pivot toward higher-margin digital reading services, which drove a 92% surge in paid content revenues. Total revenues grew 21.6% year-over-year to RMB188.8 million, with paid services contributing 33.6% of total revenue versus 22.4% a year ago. Gross margin expanded sharply from 40.4% to 53.5%, as the company benefited from the scalability of mini-program-based digital reading. Operating expenses rose 29.5% due to increased sales and marketing for these services, but operating loss narrowed to RMB29.9 million from RMB38.4 million. Net loss attributable to the company improved to RMB16.8 million from RMB29.7 million. Management highlighted a focus on content quality, IP portfolio strengthening, and operational efficiency. For Q2 2026, the company guided total revenues between RMB195.7 million and RMB210.7 million, implying continued sequential growth. The balance sheet remains strong with RMB955.8 million in cash and investments, providing flexibility for strategic initiatives.