Earnings call transcript: Phoenix New Media swings to profit in Q2 2026

Phoenix New Media reported a 15.8% increase in second-quarter revenue, reaching RMB 216.7 million, or approximately $30.2 million. The company also returned to profitability, with net income attributable to shareholders reaching RMB 6.5 million. Despite weaker advertising sales, the shift towards paid services played a significant role in boosting total revenue.

The company's revenue growth and profitability improvements suggest an operational enhancement compared to recent trends of weakened advertising and uneven earnings. Phoenix New Media's shares experienced a slight decline in regular trading, followed by a 3.25% rise after hours, indicating investor caution followed by positive reaction to the results.

The company's valuation metrics, including a P/E ratio of 10.6 and a price-to-book ratio of 0.11, suggest significant upside potential. Phoenix New Media's emphasis on premium journalism, original content, and event coverage is helping it secure business in various sectors such as technology, automotive, finance, and consumer brands.

Management remains focused on deepening AI use across content production and expanding monetization in technology, automotive, finance, and consumer brands, signaling a move towards a more sustainable growth model.