Earnings release
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Baidu Announces Third Quarter 2025 Results November 18, 2025 at 4:00 AM EST BEIJING, Nov. 18, 2025 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced itsunaudited financial results for the third quarter ended September 30, 2025. "In the third quarter, we demonstrated AI's transformative value across our portfolio. AI Cloud maintained solid growth momentum, driven by broadening enterprise adoption of our AI products and solutions. Apollo Go significantly accelerated thescaling of its fully driverless operations and kept advancing global expansion, including entry into Switzerland, all while maintaining industry-leading safety standards. In our Mobile Ecosystem, AI-native monetization products such as agents anddigital humans delivered rapid revenue growth, showing strong long-term potential," said Robin Li, Co-founder and CEO of Baidu. "We will continue pioneering AI innovations that create substantial value for users, enterprises, and society,cementing our leadership in the AI era." "AI Cloud achieved healthy expansion in the third quarter, cushioning the impact from softness in our online marketing business," said Haijian He, CFO of Baidu. "Our strategic AI investments are yielding strong returns. Revenue fromAI-powered businesses grew over 50% year-over-year to roughly RMB 10 billion in the third quarter of 2025, laying a solid foundation for sustainable long-term growth." Third Quarter 2025 Financial Highlights [1] Baidu, Inc. (In millions except per ADS, unaudited) Q3 Q2 Q3 2024 2025 2025 YOY QOQ RMB RMB RMB US$ Total revenues 33,557 32,713 31,1744,379 (7 %) (5 %) Operating income (loss) 5,925 3,277 (15,091)(2,120) - - Operating income (non-GAAP) [2] 7,014 4,445 2,205 310 (69 %) (50 %) Net income (loss) to Baidu 7,632 7,322 (11,232)(1,578) - - Net income to Baidu (non-GAAP) [2] 5,886 4,795 3,770 530 (36 %) (21 %) Diluted earnings (loss) per ADS 21.60 20.35 (33.88)(4.76) - - Diluted earnings per ADS (non-GAAP) [2] 16.60 13.58 11.12 1.56 (33 %) (18 %) Adjusted EBITDA [2] 8,733 6,492 4,429 622 (49 %) (32 %) Adjusted EBITDA margin 26 % 20 % 14 % 14 % Baidu Core Q3 Q2 Q3 (In millions, unaudited) 2024 2025 2025 YOY QOQ RMB RMB RMB US$ Total revenues 26,524 26,251 24,6593,464 (7 %) (6 %) Operating income (loss) 5,694 3,322 (14,971)(2,103) - - Operating income (non-GAAP) [2] 6,652 4,385 2,225 313 (67 %) (49 %) Net income (loss) to Baidu Core 7,536 7,382 (11,121)(1,562) - - Net income to Baidu Core (non-GAAP) [2] 5,676 4,792 3,836 539 (32 %) (20 %) Adjusted EBITDA[2] 8,336 6,397 4,398 618 (47 %) (31 %) Adjusted EBITDA margin 31 % 24 % 18 % 18 % [1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.1190 as of September 30, 2025, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations areprovided solely for the convenience of the reader. [2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details). Operational Highlights Corporate Baidu unveiled ERNIE 5.0, a native omni-modal foundation model, at Baidu World in November 2025. ERNIE 5.0 delivers strong performance across omni-modal understanding, creative writing, and instruction following. Baidu received improved ESG evaluations from MSCI, S&P CSA, and Sustainalytics during the third quarter of 2025, reflecting continued progress in sustainability practices. Baidu was named to Fortune's Change the World 2025 list, recognized for Apollo Go's safety record and positive social impact. AI Cloud Qianfan, Baidu's MaaS platform, was upgraded to be agent-centric, enhancing its model services and agent development capabilities to accelerate AI-native application development for enterprises. In August 2025, Baidu Wenku and Baidu Drive jointly launched GenFlow, a general-purpose agent platform enabling users to complete productivity tasks through multi-agent collaboration and natural language interactions. Intelligent Driving Apollo Go, Baidu's autonomous ride-hailing service, provided 3.1 million fully driverless operational rides in the third quarter of 2025, with year-over-year growth accelerating to 212% from 148% last quarter. In October 2025, Apollo Go's weekly average fully driverless operational rides exceeded 250,000. As of November 2025, the cumulative rides provided to the public by Apollo Go surpassed 17 million. Apollo Go continued to advance its global expansion. In Switzerland, Apollo Go established a strategic partnership with PostBus, the leading public transport operator to launch an on-demand autonomous mobility service. In Abu Dhabi, Apollo Go deepened local partnership and received fully driverless commercial operation permits. In Hong Kong, Apollo Go expanded its open-road testing zone to include Kowloon and Kwun Tong District. As of October 2025, Apollo Go's global footprint covered 22 cities. In Chinese mainland, Apollo Go has achieved 100% fully driverless operations in all cities where it operates, including Beijing, Shanghai, Shenzhen, Wuhan, Chengdu, Chongqing, Haikou, Sanya, etc. To date, Apollo Go fleets have accumulated 240 million autonomous kilometers, including 140 million fully driverless autonomous kilometers, with an outstanding safety record. Mobile Ecosystem Baidu continued to advance the AI transformation of Baidu Search in the third quarter. In October 2025, roughly 70% of mobile search result pages contained AI-generated content. In September 2025, Baidu App's MAUs reached 708 million, up 1% year over year. AI-powered Businesses (A new AI-native view to provide investors greater visibility into Baidu's AI portfolio) Based on investor feedback, Baidu is introducing a new AI-native view this quarter that cuts across traditional business groups to better reflect valuation drivers within Baidu's current product portfolio. This view organizes Baidu's businessaccording to the nature of its products and services, revealing a rich array of AI-powered assets company-wide. Going forward, Baidu will provide business updates through this AI-native view on an ongoing basis, while continuing to discloseresults under the existing reporting methods. In the third quarter of 2025, Baidu is disclosing three categories that demonstrated significant revenue contribution: AI Cloud Infra – AI infrastructure and platform services within AI Cloud serving enterprises and the public sector. In the third quarter of 2025, revenue from AI Cloud Infra reached RMB 4.2 billion, up 33% year over year, with subscription-based revenue from AI accelerator infrastructure growing 128% year over year. AI Applications – AI-native or AI-powered product offerings addressing specific use cases for individuals and enterprises, including our flagship software products such as Baidu Wenku, Baidu Drive, and Digital Employee. Most of Baidu's AI applications are based on sticky subscription models, delivering high-quality revenue. In the third quarter of 2025, revenue from AI Applications reached RMB 2.6 billion, increasing 6% year over year.
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AI-native Marketing Services – AI-native online marketing products and services, including agents and digital humans. AI-native Marketing Services represent a second growth curve beyond Baidu's legacy business, gaining strong traction with customers seeking performance-driven AI-native solutions and willing to pay a premium for cutting-edge AI technologies that enhance productivity and marketing returns. In the third quarter of 2025, revenue from AI-native marketing services reached RMB 2.8 billion, increasing 262% year over year. Third Quarter 2025 Financial Results Total revenues were RMB31.2 billion ($4.38 billion), decreasing 7% year over year. Revenue from Baidu Core was RMB24.7 billion ($3.46 billion), decreasing 7% year over year; online marketing revenue was RMB15.3 billion ($2.16 billion), decreasing 18% year over year, and non-online marketing revenue was RMB9.3 billion ($1.31 billion), up 21% year over year, primarily driven by the boost of AI Cloud business. Revenue from iQIYI was RMB6.7 billion ($939 million), decreasing 8% year over year. Cost of revenues was RMB18.3 billion ($2.57 billion), increasing 12% year over year, primarily due to an increase in costs related to AI Cloud business and content costs. Selling, general and administrative expenses were RMB6.6 billion ($924 million), increasing 12% year over year, primarily due to an increase in expected credit losses and channel spending expenses. Research and development expenses were RMB5.2 billion ($728 million), decreasing 3% year over year. Impairment of long-lived assets was RMB16.2 billion ($2.27 billion), attributable to an impairment loss of Core asset group. Operating loss was RMB15.1 billion ($2.12 billion). Baidu Core operating loss was RMB15.0 billion ($2.10 billion), and Baidu Core operating loss margin was 61%. Excluding impairment of long-lived assets, operating income wasRMB1.1 billion ($154 million), and Baidu Core operating income was RMB1.2 billion ($171 million). Non-GAAP operating income was RMB2.2 billion ($310 million). Non-GAAP Baidu Core operating income was RMB2.2 billion ($313million), and non-GAAP Baidu Core operating margin was 9%. Total other income, net was RMB1.9 billion ($273 million), compared to RMB2.7 billion in the same period last year. Income tax benefit was RMB1.8 billion ($257 million), compared to income tax expense of RMB814 million in the same period last year. Net loss attributable to Baidu was RMB11.2 billion ($1.58 billion), and diluted loss per ADS was RMB33.88 ($4.76). Net loss attributable to Baidu Core was RMB11.1 billion ($1.56 billion), and net loss margin for Baidu Core was 45%.Excluding the impact of impairment of long-lived assets, net income attributable to Baidu was RMB2.6 billion ($359 million), and net income attributable to Baidu Core was RMB2.7 billion ($375 million). Non-GAAP net income attributableto Baidu was RMB3.8 billion ($530 million). Non-GAAP diluted earnings per ADS was RMB11.12 ($1.56). Non-GAAP net income attributable to Baidu Core was RMB3.8 billion ($539 million), and non-GAAP net margin for Baidu Corewas 16%. Adjusted EBITDA was RMB4.4 billion ($622 million) and adjusted EBITDA margin was 14%. Adjusted EBITDA for Baidu Core was RMB4.4 billion ($618 million) and adjusted EBITDA margin for Baidu Core was 18%. We define total cash and investments as cash, cash equivalents, restricted cash, short-term investments, net, long-term time deposits and held-to-maturity investments, and adjusted long-term investments. As of September 30, 2025, total cashand investments were RMB296.4 billion ($41.64 billion), and total cash and investments excluding iQIYI were RMB290.4 billion ($40.79 billion). Operating cash flow was RMB1.3 billion ($176 million), and operating cash flow excludingiQIYI was RMB1.5 billion ($214 million). Conference Call Information Baidu's management will hold an earnings conference call at 7:30 AM on Nov 18, 2025, U.S. Eastern Time (8:30 PM on Nov 18, 2025, Beijing Time). Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of "Baidu Inc. Q3 2025 Earnings Conference Call". Please follow the steps to enter your registration details,then click "Register". Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite. For pre-registration, please click:https://s1.c-conf.com/diamondpass/10050558-g87y6t.html In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following yourpre-registration. Additionally, a live and archived webcast of this conference call will be available at https://ir.baidu.com. About Baidu Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADSrepresents eight Class A ordinary shares. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified byterminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, Baidu's and other parties' strategic and operational plans, contain forward-lookingstatements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the"Hong Kong Stock Exchange"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts,including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differmaterially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract andretain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues;the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadbandusers in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company'sannual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as requiredunder applicable law. Non-GAAP Financial Measures To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable toBaidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin, adjusted long-term investments and free cash flow. The presentation of these non-GAAP financial measures is not intended to beconsidered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results,such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance andwhen planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. The Company believes these non-GAAP financial measuresare useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that thesenon-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not becomparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, and impairment of long-lived assets. Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, impairment oflong-lived assets, disposal gain or loss, impairment of long-term investments, and fair value gain or loss of long-term investments and exchangeable bonds, adjusted for related income tax effects. Baidu's share of equity method investments forthese non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by theinvestees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded. Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA representsnon-GAAP operating income excluding depreciation of fixed assets, and amortization of intangible assets excluding those resulting from business combinations. Adjusted long-term investments represent long-term investments, net, with publiclylisted equity method investments adjusted to fair value based on quoted market prices. For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measure." Baidu, Inc. Condensed Consolidated Statements of Income (In millions except for per share (or ADS) information, unaudited) Three Months Ended September 30, June 30, September 30, September 30, 2024 2025 2025 2025 RMB RMB RMB US$ (2) Revenues: Online marketing services 20,108 17,485 16,566 2,327 Others 13,449 15,228 14,608 2,052 Total revenues 33,557 32,713 31,174 4,379 Costs and expenses: Cost of revenues(1) 16,399 18,357 18,315 2,573 Selling, general and administrative(1) 5,867 5,960 6,581 924 Research and development(1) 5,366 5,119 5,179 728
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Impairment of long-lived assets - - 16,190 2,274 Total costs and expenses 27,632 29,436 46,265 6,499 Operating income (loss) 5,925 3,277 (15,091) (2,120) Other income: Interest income 1,877 1,957 1,930 271 Interest expense (673) (701) (631) (89) Foreign exchange loss, net (1,096) (621) (357) (50) Share of earnings from equity method investments32 694 735 103 Others, net 2,535 3,534 269 38 Total other income, net 2,675 4,863 1,946 273 Income (loss) before income taxes 8,600 8,140 (13,145) (1,847) Income tax expense (benefit) 814 881 (1,828) (257) Net income (loss) 7,786 7,259 (11,317) (1,590) Net income (loss) attributable to noncontrolling interests154 (63) (85) (12) Net income (loss) attributable to Baidu 7,632 7,322 (11,232) (1,578) Earnings (loss) per ADS (1 ADS representing 8 Class A ordinary shares): -Basic 21.93 20.90 (33.88) (4.76) -Diluted 21.60 20.35 (33.88) (4.76) Earnings (loss) per share for Class A and Class B ordinary shares: -Basic 2.74 2.61 (4.23) (0.59) -Diluted 2.70 2.54 (4.23) (0.59) Weighted average number of Class A and Class B ordinary shares outstanding (in millions): -Basic 2,785 2,720 2,713 2,713 -Diluted 2,789 2,730 2,713 2,713 (1) Includes share-based compensation expenses as follows: Cost of revenues 104 120 113 16 Selling, general and administrative 328 276 340 48 Research and development 612 685 591 83 Total share-based compensation expenses 1,044 1,081 1,044 147 (2) All translations from RMB to U.S. dollars are made at a rate of RMB7.1190 to US$1.00, the exchange rate in effect as of September30, 2025 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. Baidu, Inc. Condensed Consolidated Balance Sheets (In millions, unaudited) December 31, September 30, September 30, 2024 2025 2025 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 24,832 38,620 5,425 Restricted cash 11,697 369 52 Short-term investments, net 102,608 86,195 12,108 Accounts receivable, net 10,104 11,784 1,655 Amounts due from related parties 790 738 104 Other current assets, net 18,818 20,588 2,892 Total current assets 168,849 158,294 22,236 Non-current assets: Fixed assets, net 30,102 25,474 3,578 Licensed copyrights, net 6,930 6,287 883 Produced content, net 14,695 14,298 2,008 Intangible assets, net 772 3,261 458 Goodwill 22,586 37,637 5,287 Long-term investments, net 41,721 46,596 6,545 Long-term time deposits and held-to-maturity investments98,535 111,857 15,712 Amounts due from related parties 137 126 18 Deferred tax assets, net 2,193 5,260 739 Operating lease right-of-use assets 10,898 8,348 1,173 Receivables related to the proposed acquisition of YY Live, net13,547 - - Other non-current assets 16,815 26,634 3,741 Total non-current assets 258,931 285,778 40,142 Total assets 427,780 444,072 62,378 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY Current liabilities: Short-term loans 10,669 6,695 940 Accounts payable and accrued liabilities 41,443 36,662 5,150 Customer deposits and deferred revenue 14,624 13,218 1,857 Deferred income 684 508 71 Long-term loans, current portion 168 14,847 2,086 Convertible senior notes, current portion 242 1,477 207 Notes payable, current portion 8,026 4,626 650 Amounts due to related parties 1,794 1,653 232 Operating lease liabilities 3,303 3,326 467 Total current liabilities 80,953 83,012 11,660 Non-current liabilities: Deferred income 231 199 28 Deferred revenue 585 658 92 Amounts due to related parties 56 41 6 Long-term loans 15,596 3,224 453 Notes payable 27,996 52,134 7,323 Convertible senior notes 8,351 6,755 949 Deferred tax liabilities 3,870 4,071 572 Operating lease liabilities 4,973 4,153 583 Other non-current liabilities 1,557 2,226 313 Total non-current liabilities 63,215 73,461 10,319
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Total liabilities 144,168 156,473 21,979 Redeemable noncontrolling interests 9,870 12,908 1,813 Equity Total Baidu shareholders' equity 263,620 264,528 37,158 Noncontrolling interests 10,122 10,163 1,428 Total equity 273,742 274,691 38,586 Total liabilities, redeemable noncontrolling interests, and equity 427,780 444,072 62,378 Baidu, Inc. Selected Information (In millions, unaudited) Three months ended Three months ended Three months ended Three months ended September 30, 2024 (RMB) June 30, 2025 (RMB) September 30, 2025 (RMB) September 30, 2025 (US$) BaiduCore iQIYI Elim & adj(2) Baidu, Inc. BaiduCore iQIYI Elim & adj(2) Baidu, Inc. BaiduCore iQIYI Elim & adj(2) Baidu, Inc. Baidu Core iQIYI Elim & adj(2) Baidu, Inc. Total revenues 26,524 7,246 (213) 33,557 26,251 6,628 (166) 32,713 24,659 6,682 (167) 31,174 3,464 939 (24) 4,379 YOY (7 %) (8 %) (7 %) QOQ (6 %) 1 % (5 %) Costs and expenses: Cost of revenues(1) 10,9235,650(174) 16,399 13,2145,292 (149) 18,357 12,9965,467 (148) 18,315 1,826 768 (21) 2,573 Selling, general and administrative(1) 4,990 908 (31) 5,867 5,018 960 (18) 5,960 5,677 925 (21) 6,581 797 130 (3) 924 Research and development(1) 4,917 449 - 5,366 4,697 422 - 5,119 4,767 412 - 5,179 670 58 - 728 Impairment of long-lived assets - - - - - - - - 16,190 - - 16,190 2,274 - - 2,274 Total costs and expenses 20,830 7,007 (205) 27,632 22,929 6,674 (167) 29,436 39,630 6,804 (169) 46,265 5,567 956 (24) 6,499 YOY Cost of revenues 19 % (3 %) 12 % Selling, general and administrative 14 % 2 % 12 % Research and development (3 %) (8 %) (3 %) Impairment of long-lived assets - - - Costs and expenses 90 % (3 %) 67 % Operating income (loss) 5,694 239 (8) 5,925 3,322 (46) 1 3,277 (14,971) (122) 2 (15,091) (2,103) (17) - (2,120) YOY - - - QOQ - 165 % - Operating margin 21 % 3 % 18 % 13 % (1 %) 10 % (61 %) (2 %) (48 %) Add: total other income (loss), net 2,667 8 - 2,675 4,925 (62) - 4,863 2,031 (85) - 1,946 285 (12) - 273 Less: income tax expense (benefit) 803 11 - 814 854 27 - 881 (1,868) 40 - (1,828) (263) 6 - (257) Less: net income (loss) attributable to NCI22 7 125(3) 154 11 (1)(73)(3) (63) 49 2 (136)(3) (85) 7 - (19)(3) (12) Net income (loss) attributable to Baidu 7,536 229 (133) 7,632 7,382 (134) 74 7,322 (11,121) (249) 138 (11,232) (1,562) (35) 19 (1,578) YOY - - - QOQ - 86 % - Net margin 28 % 3 % 23 % 28 % (2 %) 22 % (45 %) (4 %) (36 %) Non-GAAP financial measures: Operating income (loss) (non-GAAP) 6,652 370 7,014 4,385 59 4,445 2,225 (22) 2,205 313 (3) 310 YOY (67 %) - (69 %) QOQ (49 %) - (50 %) Operating margin (non-GAAP) 25 % 5 % 21 % 17 % 1 % 14 % 9 % (0 %) 7 % Net income (loss) attributable to Baidu (non-GAAP) 5,676 480 5,886 4,792 15 4,795 3,836 (148) 3,770 539 (21) 530 YOY (32 %) - (36 %) QOQ (20 %) - (21 %) Net margin (non-GAAP) 21 % 7 % 18 % 18 % 0 % 15 % 16 % (2 %) 12 % Adjusted EBITDA 8,336 405 8,733 6,397 94 6,492 4,398 30 4,429 618 4 622 YOY (47 %) (93 %) (49 %) QOQ (31 %) (68 %) (32 %) Adjusted EBITDA margin 31 % 6 % 26 % 24 % 1 % 20 % 18 % 0 % 14 % (1) Includes share-based compensation as follows: Cost of revenues 73 31 104 88 32 120 83 30 113 12 4 16 Selling, general and administrative 268 60 328 238 38 276 304 36 340 43 5 48 Research and development 574 38 612 652 33 685 559 32 591 78 5 83 Total share-based compensation 915 129 1,044 978 103 1,081 946 98 1,044 133 14 147 (2) Relates to intersegment eliminations and adjustments (3) Relates to the net income attributable to iQIYI noncontrolling interests Baidu, Inc. Condensed Consolidated Statements of Cash Flows (In millions,unaudited) Three months ended Three months ended Three months ended Three months ended September 30, 2024 (RMB) June 30, 2025 (RMB) September 30, 2025 (RMB) September 30, 2025 (US$) Baidu excl. iQIYI iQIYI Baidu, Inc. Baidu excl. iQIYI iQIYI Baidu, Inc. Baidu excl. iQIYI iQIYI Baidu, Inc. Baidu excl. iQIYI iQIYI Baidu, Inc. Net cash provided by (used in) operating activities 4,036 243 4,279 (864) (13) (877) 1,523 (267) 1,256 214 (38) 176 Net cash (used in) provided by investing activities (12,300)(1,663)(13,963)(8,428)(113) (8,541) 2,233 763 2,996 314 107 421 Net cash (used in) provided by financing activities(2,787)(2,612)(5,399) (8,688)(465) (9,153) 4,532 151 4,683 637 21 658 Effect of exchange rate changes on cash, cashequivalents and restricted cash (721) (84) (805) (210) (28) (238) (186) (16) (202) (26) (2) (28) Net (decrease) increase in cash, cash equivalents and restricted cash (11,772) (4,116) (15,888) (18,190) (619) (18,809) 8,102 631 8,733 1,139 88 1,227 Cash, cash equivalents and restricted cash At beginning of period 48,8787,907 56,785 45,1184,758 49,876 26,9284,139 31,067 3,783 581 4,364 At end of period 37,1063,791 40,897 26,9284,139 31,067 35,0304,770 39,800 4,922 669 5,591 Net cash provided by (used in) operating activities 4,036 243 4,279 (864) (13) (877) 1,523 (267) 1,256 214 (38) 176 Less: Capital expenditures (1,637) (8) (1,645) (3,779)(21) (3,800) (3,378) (23) (3,401) (475) (3) (478)
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Free cash flow 2,399 235 2,634 (4,643) (34) (4,677) (1,855) (290) (2,145) (261) (41) (302) Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI's consolidated cash flows. Baidu, Inc. Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAPMeasures (In millions except for per ADS information, unaudited) Three months ended Three months ended Three months ended Three months ended September 30, 2024 (RMB) June 30, 2025 (RMB) September 30, 2025 (RMB) September 30, 2025 (US$) Baidu Core iQIYI Baidu, Inc. Baidu Core iQIYI Baidu, Inc. Baidu Core iQIYI Baidu, Inc. Baidu Core iQIYI Baidu, Inc. Operating income (loss) 5,694 239 5,925 3,322 (46) 3,277 (14,971) (122) (15,091) (2,103) (17) (2,120) Add: Share-based compensation expenses 915 129 1,044 978 103 1,081 946 98 1,044 133 14 147 Add: Amortization and impairment of intangible assets resulting from businesscombinations 43 2 45 85 2 87 60 2 62 9 - 9 Add: Impairment of long-lived assets - - - - - - 16,190 - 16,190 2,274 - 2,274 Operating income (loss) (non-GAAP) 6,652 370 7,014 4,385 59 4,445 2,225 (22) 2,205 313 (3) 310 Add: Depreciation of fixed assets and amortization of intangible assets(1) 1,684 35 1,719 2,012 35 2,047 2,173 52 2,224 305 7 312 Adjusted EBITDA 8,336 405 8,733 6,397 94 6,492 4,398 30 4,429 618 4 622 Net income (loss) attributable to Baidu 7,536 229 7,632 7,382 (134) 7,322 (11,121) (249) (11,232) (1,562) (35) (1,578) Add: Share-based compensation expenses 914 129 972 977 103 1,024 945 98 989 133 14 140 Add: Amortization and impairment of intangible assets resulting from businesscombinations 41 2 42 83 2 84 58 2 59 8 - 8 Add: Impairment of long-lived assets - - - - - - 16,190 - 16,190 2,274 - 2,274 Add: Disposal (gain) loss (1,501) 22 (1,491) (262) - (267) (101) - (101) (14) - (14) Add: Impairment of long-term investments 26 91 68 101 26 113 97 - 97 14 - 14 Add: Fair value (gain) loss of long-term investments and exchangeable bonds(1,361) 7 (1,358) (3,317) 18 (3,309) 279 1 279 39 - 39 Add: Reconciling items on equity method investments(2) 8 - 8 (121) - (121) 15 - 15 2 - 2 Add: Tax effects on non-GAAP adjustments(3) 13 - 13 (51) - (51) (2,526) - (2,526) (355) - (355) Net income (loss) attributable to Baidu (non-GAAP) 5,676 480 5,886 4,792 15 4,795 3,836 (148) 3,770 539 (21) 530 Diluted earnings (loss) per ADS 21.60 20.35 (33.88) (4.76) Add: Accretion of the redeemable noncontrolling interests 0.01 0.64 0.75 0.11 Add: Non-GAAP adjustments to earnings per ADS (5.01) (7.41) 44.25 6.21 Diluted earnings per ADS (non-GAAP) 16.60 13.58 11.12 1.56 (1) This represents amortization of intangible assets excluding those resulting from business combinations. (2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee's books, accretion of their redeemable noncontrolling interests, andthe gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share. (3) This represents tax impact of all non-GAAP adjustments. View original content:https://www.prnewswire.com/news-releases/baidu-announces-third-quarter-2025-results-302618226.html SOURCE Baidu, Inc. Investors Relations, Baidu, Inc., Tel: +86-10-5992-8888, Email: ir@baidu.com