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GUIYANG, China - On Thursday, Full Truck Alliance Co. Ltd. (NYSE:YMM) warned of significant declines in its freight brokerage service volume starting in the third quarter, despite reporting strong second quarter results that beat analyst expectations.
The digital freight platform’s shares fell 4.45% in pre-market trading after the release.
The company posted second quarter adjusted earnings of $1.27 per ADS, exceeding the analyst estimate of $1.18. Revenue climbed 17.2% YoY to RMB3.24 billion ($452.2 million), surpassing the consensus estimate of RMB3.09 billion. Transaction (JO:NTUJ) service revenue was particularly strong, jumping 39.4% YoY to RMB1.33 billion ($185.3 million).
Net income surged 50.5% YoY to RMB1.26 billion ($176.6 million), while non-GAAP adjusted net income increased 39.3% to RMB1.35 billion ($188.7 million). The company reported 60.8 million fulfilled orders, up 23.8% from the same period last year.
However, investors focused on the company’s decision to increase service fee rates for its freight brokerage service, which management warned would "significantly decline" transaction volume starting in Q3. The company also cautioned this change may "adversely affect the Company’s profit to a certain extent."
"In the second quarter of 2025, FTA demonstrated strong resilience in navigating both opportunities and challenges in the external environment," said Peter Hui Zhang, Founder, Chairman, and CEO. "By leveraging digitalization and intelligent technologies, we further helped shippers reduce logistic costs and improved operational efficiency across the road freight industry."
For the third quarter, Full Truck Alliance expects total net revenues between RMB3.07 billion and RMB3.17 billion, representing YoY growth of approximately 1.3% to 4.6%. Excluding freight brokerage service, net revenues are expected to range from RMB2.16 billion to RMB2.26 billion, reflecting an estimated YoY growth rate of 23.4% to 29.1%.
The board also approved a semi-annual cash dividend of $0.0960 per ADS, payable around October 27, 2025.
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