Dingdong reports Q2 profit jump as revenue beats estimates

Published 21/08/2025, 10:46
 Dingdong reports Q2 profit jump as revenue beats estimates

SHANGHAI - On Thursday, Dingdong (NYSE: DDL), a leading fresh grocery e-commerce company in China, reported a 59.7% YoY increase in second-quarter net income as revenue exceeded analyst expectations. The company posted its sixth consecutive quarter of profitability amid steady growth in order volume.

Shares of Dingdong rose 1.24% in after hours trading following the announcement.

The Shanghai-based company reported adjusted earnings per share of RMB0.37 for the quarter ended June 30, 2025, while revenue rose 6.7% YoY to RMB5.97 billion, beating the consensus estimate of RMB5.87 billion. 

Net income for the second quarter increased to RMB107.2 million (US$15.0 million) from RMB67.1 million in the same period last year, marking the sixth straight quarter of profitability. Non-GAAP net income grew 23.9% to RMB127.8 million (US$17.8 million), representing the eleventh consecutive quarter of non-GAAP profitability.

The company’s gross margin decreased to 28.8% from 30.0% in the same quarter of 2024, which the company attributed to product listing and delisting costs associated with implementing its "4G strategy" focused on good users, products, services, and mindshare.

"This consistent growth in scale and profitability not only shows that we have overcome the challenge of survival but also proves the resilience and execution capabilities of the Dingdong team, laying a strong foundation for the next phase of higher-quality growth," said Mr. Changlin Liang, Founder and CEO of Dingdong.

Total (EPA:TTEF) orders increased by 5.5% YoY, while GMV (gross merchandise value) rose 4.5% to RMB6.5 billion (US$907.3 million). The company recorded a net cash inflow of RMB101.4 million from operating activities, marking the eighth consecutive quarter of positive cash flow.

For the third quarter of 2025, Dingdong expects to maintain year-over-year scale and achieve non-GAAP profits.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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