AI product momentum meets widening losses as revenue falls
H1 2026 revenue fell 7% and losses widened Wondershare's first-half revenue dropped 7.09% to 706 million yuan, and net loss widened to 68.98 million yuan from 52.81 million a year earlier. Operating cash flow was negative 88.92 million yuan. This weak financial result pressures the stock because it shows the core business is shrinking and cash is draining.
This is the most direct negative driver of the stock price this period.
AI-native revenue and users growing fast AI-native application revenue reached 130 million yuan in 2025, up over 90% year-on-year, with paying users up more than 100%. AI server calls exceeded 900 million in H1 2026, up over 80%, and daily token use topped 100 billion. This growth supports the stock by showing AI products are gaining real paying customers.
It shows the AI business is scaling and could offset core revenue weakness.
New AI platforms target short-drama and ad markets Wondershare launched Wanxing Theater, an AI platform that can produce an ad short drama in one hour for tens of yuan, and Filmora.TV for cultural tourism content. These products open new revenue streams in the fast-growing AI video market, which is projected to reach $42 billion by 2030.
New products are a key growth driver that could improve future revenue.
Industry profitability still weak despite AI cost cuts Founder Wu Taibing said only about 5% of short dramas are profitable and 90% don't cover costs. AI lowers creative barriers but the industry isn't stably profitable yet. This is a reality check: even with new AI tools, making money in AI film and TV remains uncertain, which could cap stock gains.
It provides a fair counterweight to the optimistic AI product news.