iQIYI, Inc. (NASDAQ: IQ) has opened a repurchase right for holders of its 6.50% Convertible Senior Notes due 2028, giving them the option to tender any integral multiple of US$200,000 of principal for cash at 100% of the principal plus accrued interest. The repurchase window runs from 9:00 a.m. New York time on February 10 to 5:00 p.m. on March 12, with the actual repurchase scheduled for March 16.
The total outstanding principal as of February 9 was US$208,059,000, meaning a full tender would require the company to pay that amount in cash. iQIYI will file a tender offer statement with the SEC and will provide detailed terms through the Depository Trust Company and Citibank, N.A. The repurchase price of 100% of principal plus accrued interest is consistent with the terms of the original note issuance.
iQIYI’s debt profile is a key backdrop to this move. The company’s total debt stands at approximately US$2.07 billion, and its current ratio was 0.44 as of February 2026, indicating that short‑term obligations exceed liquid assets. The debt‑to‑equity ratio was about 107% at the end of June 2025, well above industry peers. In addition, the company recently appointed Ying Zeng as interim CFO following the resignation of Jun Wang, a change that may influence the timing and communication of debt‑management actions.
The repurchase right is likely a proactive step to reduce long‑term interest expense and to improve the capital structure ahead of the company’s upcoming fourth‑quarter and full‑year 2025 earnings release on February 26. By offering holders a clear exit, iQIYI can potentially retire a significant portion of its high‑cost debt, thereby lowering its leverage and freeing cash that could be used for content investment or to shore up liquidity. The timing also aligns with the company’s broader strategy of investing in AI‑driven content production and expanding its international presence, which requires disciplined capital allocation.
The repurchase right does not alter the terms of the notes themselves; holders who choose not to tender will continue to receive the 6.50% coupon and retain the option to convert into common stock under the original conversion terms. The decision to exercise the right will ultimately depend on market conditions, the company’s cash position, and the perceived value of the notes relative to the company’s equity valuation.
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