Phoenix New Media Reports Q3 2026 Revenue Growth Driven by Digital Reading Services
Phoenix New Media (FENG) reported a third-quarter total revenue of RMB 217.6 million, an 8.3% year-over-year increase. This growth was primarily fueled by a massive 64.4% surge in paid services revenues, specifically within the digital reading segment which grew 71.8%. The company's gross margin improved significantly to 57.6%, up from 47.6% last year, as the revenue mix shifted toward higher-margin digital content. Despite the top-line growth, advertising revenues fell by 6.3% due to cautious spending in the automotive, e-commerce, and home appliance sectors. While operating losses narrowed significantly compared to the previous year, net loss per ADS widened to RMB 2.02, largely due to a RMB 16.5 million loss from fair value changes in investments. Management provided optimistic Q4 guidance, projecting revenue between RMB 236.7 million and RMB 251.7 million.
Topics: advertising revenue decline digital reading services operating loss narrowing revenue growth