Earnings call transcript: FlashEX Q2 2025 reveals revenue decline, market steady

FlashEX, a prominent player in the Air Freight & Logistics industry, reported its financial results for the second quarter of 2025. According to InvestingPro analysis, the company’s stock is currently showing signs of undervaluation despite facing challenges. The company disclosed a decline in revenue compared to the same period last year, but maintained a strong cash position and improved gross margins. FlashEX’s stock showed a slight increase in premarket trading, indicating a stable market reaction. InvestingPro subscribers have access to 15+ additional exclusive insights about FlashEX’s financial health and market position.

Key Takeaways

• FlashEX’s revenue decreased to RMB 1.024 billion in Q2 2025 from RMB 1.176 billion in Q2 2024.
• Gross margin improved by 1.2 percentage points year-over-year, reaching 12%.
• The company holds $827.8 million in cash and equivalents.
• FlashEX expanded its service offerings and implemented new technologies in Q2.
• The stock price rose 1.59% in premarket trading.

Company Performance

FlashEX reported a year-over-year decline in revenue for the second quarter of 2025, reflecting challenges in a competitive market. The company’s revenue has declined 7.36% over the last twelve months, with analysts forecasting a 15% decrease for fiscal year 2025. Despite this, the company managed to improve its gross margin, which increased by 1.2 percentage points to 12%. This improvement was attributed to a 14.1% decrease in the cost of revenues. FlashEX continues to maintain a robust cash position, with $827.8 million available in cash and equivalents, significantly exceeding its total debt of just $5.46 million. InvestingPro data reveals a strong current ratio of 2.15, indicating solid short-term financial health.

Financial Highlights

• Revenue: RMB 1.024 billion, down from RMB 1.176 billion in Q2 2024
• Gross Margin: 12%, up 1.2 percentage points YoY
• Adjusted Net Profit: $45.59 million
• Gross Profit: $122.7 million
• Operating Expenses: $103.4 million

Outlook & Guidance

FlashEX remains optimistic about the remainder of 2025, expecting a recovery in order volume. The company plans to refine its operational management, explore innovative brand promotion strategies, and deepen collaborations with merchants. FlashEX aims for sustainable, long-term growth by expanding its delivery team and service coverage.

Executive Commentary

CEO Adam Xue emphasized the company’s commitment to quality, stating, "Through this unwavering commitment to product and service quality, FlashEX has stood out in a highly competitive market." CFO Luke Tang highlighted the focus on customer loyalty, noting, "Our focus on delivering differentiated, high-quality, on-demand service continues to foster strong customer loyalty."

Risks and Challenges

• Intense Market Competition: The instant delivery industry remains highly competitive, with pressures on pricing and service differentiation.
• Revenue Decline: The decrease in revenue compared to the previous year may impact investor confidence and future growth prospects.
• Market Saturation: As the market stabilizes, finding new growth avenues could become challenging.
• Economic Conditions: Broader economic factors could influence consumer spending and demand for delivery services.
• Operational Costs: Managing costs effectively while expanding service offerings and maintaining quality will be crucial.

FlashEX continues to navigate a challenging landscape with strategic initiatives aimed at sustaining growth and enhancing service quality. While the company’s stock has experienced significant volatility, with a 66.88% decline over the past six months, InvestingPro analysis suggests potential upside, with analysts maintaining a strong buy consensus and projecting profitability for the current fiscal year. For comprehensive insights into FlashEX’s financial health and detailed valuation analysis, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.

Full transcript - BingEx Inc (FLX) Q2 2025:

Conference Operator: Good day, and welcome to BingEX’s twenty twenty five Second Quarter Financial Results Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Helen Wu from Piacenza Financial Communications. Please go ahead.

Helen Wu, Investor Relations, Piacenza Financial Communications: Thank you, operator. During this call, we will discuss our business outlook and then make forward looking statements. These comments are based on our predictions and expectations as of today. Actual events or results may differ materially from those mentioned in today’s news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC. The non GAAP financial measures will provide for comparison purpose only.

The definition of these measures and our consolidation table are available in the news release we issued earlier today. As a reminder, this conference is being recorded. In addition, a webcast or replay of this conference call will be available on the Flush EX Company’s IR website at ir.isansong.com. Furthermore, throughout the call, we will consistently use the company brand name Flush EX to refer to its publicly listed entity, BEN EX Limited. Joining us today from Flush EX Senior Management are Mr.

Adam Xue, Founder, Chairman of the Board and Chief Executive Officer Mr. Hong Jiangu, Co Founder, Director, and Executive President and Mr. Luk Tang, Chief Financial Officer. I will now turn the call over to Mr. Adam Xue.

Adam Xue, Founder, Chairman of the Board and Chief Executive Officer, FlashEX: Thank you, Helen. Hello, everyone, and welcome to Flash eX’s second quarter twenty twenty five earnings call. In the second quarter, the industry saw rapid shifts with new competitive dynamics and challenges emerging in quick succession. Amid this changing landscape, Flash eX stay true to its mission, focusing our core efforts on enhancing and elevating product and service quality. Flash eX executes a tiered and refined operation strategy, conducting in-depth analysis of different user groups, characteristics, and the news of various business scenarios.

This allows us to deliver tailored, personalized services, ensuring that every request receives the most attentive and efficient response. Through this unwavering commitment to product and service quality, Flash eX has stood out in a highly competitive market and maintained a strong reputation. Growing brand recognition and loyalty have further strengthened our position in customers’ minds, laying a solid foundation for the company’s long term growth. In the 2025, Flash EX recorded total revenue of RMB1.02 billion with gross margin riding 1.2 percentage points year over year to 25%. Adjusted net profit reached $45,590,000 Despite the industry competition, FlashEX business demonstrated strong resilience.

In the 2025, market competition intensified as the instant delivery industry continued to show steady growth among all categories. Flowers and cakes maintained a significant share driven by their unique market demand. With tailored, efficient services designed specifically for the flower and cake categories, Flash eX has effectively met market demand and secured a strong position in this niche, maintaining a stable market share. At the same time, we have actively expanded partnerships with merchants, broadening our reach to cover more types of merchants with deepening collaboration to achieve mutual benefits and growth. For example, during holidays, demand for flowers, cakes, and similar categories often surged within a short period.

To address this challenge, we deployed On-site support teams to certain core merchants locations to assist with order sorting and distribution, ensuring smooth, efficient deliveries. This proactive approach not only demonstrates our keen sensitivity to users’ needs and rapid response capabilities, but also enhanced merchant satisfaction and resilience, laying the groundwork for strengthening and expanding future partnerships. For 3C digital products, which are vulnerable to issues such as damage and delays during delivery, our team conducted on-site research at our client stores and worked closely with them to review the entire delivery process from packaging to handover. Based on these insights, we implemented targeted improvements including optimizing packaging materials and strengthening delivering personalized personnel training. These efforts have further strengthened high value clients trust and confidence in the FreshDx brand.

In addition, we have sharpened our focus on high frequency clients in housing after sales support. By streamlining service processes and improving response times, we ensure that every, customers receive timely and effective solutions whenever issue arrives. Significantly boosting satisfaction, the implementation of this MIRROR has not only improved client retention, but also notably increased engagement, providing strong momentum for Flash eX continued growth. To deliver high quality, more personalized service and fully meet users diverse needs across different scenarios, we continue to expand our service offerings in quarter two. We analyzed user behavior and demand patterns to identify key everyday needs, such as luggage delivery, hotel storage, clothing shipping and package pickup, unlocking new service areas with strong potential and unique value.

Throughout this process, we have maintained a rigorous and responsible approach using small scale tests and feedback collection to continuously refine and optimize service details aiming to deliver smoother and more satisfying user experience. Currently, the application of these specialized services is steadily expanding and has received positive user feedback. By continuously exploring new scenarios, we are not only broadening Flash eX service portfolio into more aspects of daily life, but also embedding the brand’s value more naturally and meaningfully into users’ everyday routines. While the contribution of this newly expanded services to order volume and revenue may be limited in short term, we firmly believe that they represent a critical step in Flash eX’s path towards refined operations. These initiatives allow us to accurately identify and deeply address their needs, users’ needs, enrich product usage scenarios, and strengthen our engagement, users engagement from a long term perspective.

Those efforts will drive continuously improvement and serve at cost cornerstone for FlashX sustainable growth, ensuring we maintain a leading position in highly competitive market. In quarter two, competitive management emerged at a key level for enhancing service quality and strengthening our market competitiveness. We focused on refining operations on the supply side, taking precise actions across multiple dimensions to optimize the entire delivery process to provide users with a higher quality and more efficient service experience. At the delivery planning level, we leverage advanced algorithms and big data analytics to optimize routing. By incorporating real time traffic, order distribution, and weather conditions, we provide riders with the most efficient delivery routes, enhancing overall efficiency.

At the same time, we developed an intelligent rider allocation system that precisely adjusts resources based on order fluctuation across different areas and time periods. We recognize that the riders are the heart of Flash eX service with their stability and professional rhythm directly affecting service quality and company growth. To support them, we constantly strengthen our comprehensive rider support system encompassing subsidies, trainings and rewards. Subsidies are structured based on clear standards to ensure fair compensation and boost the motivation and income. Regular professional training helps riders enhance their skills and service quality, enabling them to handle complex delivery scenarios and customer needs.

Through rewards such as the monthly Outstanding Rider Award, they provide both material and recognition based incentives fostering that dedication and a healthy competitive spirit. This holistic approach ensures riders are well supported, engaged and empowered to deliver the best possible service. It is FlashX long standing comprehensive support and care for riders that has enabled us to maintain a stable, professional and efficient delivery team. Even amidst intense market competition in quarter two, this team not only strengthens our reputation and market standing, but also provides a solid foundation for the company’s sustainable growth. Looking ahead to the 2025, we will continue to embed the principles of refined management across every aspect of our operations and business lines.

Through this approach, we aim to achieve optimal results allocation, maximize efficiency and maintain effective cost control supporting the company’s high quality growth. At the same time, we will actively explore innovative brand promotion strategies to strengthen the Flash eX brand value in more creative and engaging ways. By executing a series of scenario based and event driven marketing initiative that closely align with users daily lives and training topics, we aim to integrate the FlashEX brand naturally into everyday routines. Additionally, we will continue to deepen collaborations with high value merchants, extending from order delivery to tailored logistic solutions that help enhance end users satisfaction and drive repeat purchases. Through these initiatives, we aim to strengthen the emotional connection between users and our brand, enhance user loyalty and engagement, and elevate brand value.

By reinforcing FlashArrayX as a top of mind choice in on demand dedicated courier services, We are driving the company toward long term stable and sustainable growth. That concludes my remarks. Now I will hand the call off to our CFO, Luke Tang. Thank you.

Luke Tang, Chief Financial Officer, FlashEX: Thank you, Ivan. Hello, everyone. This is Luke. Let me walk you through our second quarter financials. Before I begin, please note that all numbers are in renminbi and all percentage changes are on a year over year basis, unless otherwise noted.

In the 2025, we successfully navigated a competitive market environment by executing our refined operation strategy and focusing on service quality. Our unique on demand dedicated courier model continued to demonstrate strong resilience, supported by stable user growth and the targeted initiatives to optimize efficiency and resource allocation. This strategic focus is clearly visible in our gross profit margin, which rose to 12% from 10.8% in the same period last year, directly reflecting our success in operational efficiency and the cost management. Our revenues for the second quarter reached 1,024,600,000.0, compared to 1,176,700,000.0 in the same period of 2024. The year over year decline was primarily driven by lower order volumes as competitive dynamics in the market remained active throughout the quarter.

Our cost of revenues for the quarter decreased by 14.1% to 901,900,000.0. This was primarily in line with the decline in revenues, along with our ongoing focus on improving operating efficiency. Our gross profit was $122,700,000 for the second quarter compared with $127,000,000 in the same period last year. Gross profit margin grew by 1.2 percentage points to 12% for the second quarter. Turning to operating expenses.

Our total operating expenses for the second quarter were $103,400,000 consisting of selling and marketing expenses of $48,200,000 general and administrative expenses of $36,000,000 and the research and development expenses of 19,200,000.0 Excluding share based compensation expenses, our non GAAP income from operations was 31.9% for the second quarter compared with $42,300,000 in the same period of 2024. Other income was $1,300,000 for the second quarter compared with 9,500,000.0 in the same period of 2024. The year over year decrease was primarily due to a lower amount of government grants. Our non GAAP net income for the second quarter was $45,600,000 compared with $59,100,000 in the same period of 2024. Our cash position remains healthy, with cash and cash equivalents, restricted cash, and short term investments totaling $827,800,000 as of the second quarter end.

In summary, despite the intense competition in the food delivery market, our second quarter performance underscores the durability of our business model. Supported by targeted initiatives and the stable user growth, our focus on delivering differentiated, high quality, on demand service continues to foster strong customer loyalty. Looking ahead, we remain committed to optimizing resource allocation and capturing emerging opportunities to drive sustainable and long term growth. That concludes our prepared remarks. We would now like to open the floor to your questions.

Operator, please go ahead.

Conference Operator: Thank We will take our first question. And the question comes from the line of Sifan Zhang from CICC. Please go ahead. Your line is open.

Helen Wu, Investor Relations, Piacenza Financial Communications: Thank you, the management team for taking my questions. I’ve got two questions here today. My first question is, could you please share the company’s order volume and ASP for this quarter broken down by 2B and 2C business? How do you project the trend for order volume and ASP in the second half of the year? And my second question is, due to platform competition this year, we heard there have been pressure on rider supply across the industry.

How would you assess rider’s thickness and retention metrics? What trajectory should we anticipate for rider incentive budget this year? Thank you.

Luke Tang, Chief Financial Officer, FlashEX: Thank you, Stephane. And I think maybe Adam will answer the first questions and I will take the second. Thank you

Adam Xue, Founder, Chairman of the Board and Chief Executive Officer, FlashEX: for your question. In the first half of this year, we fulfilled 123,000,000 orders. Despite a complex market and industry environment, we stayed true to our strategy, prioritizing our operational efficiency. We pursue growth cautiously and steadily, ensuring operational profits remain at healthy levels. Our first half data shows that ASP held steady compared with last year, while the share of CN orders saw a slight but positive increase.

Current industry trends indicate that the competition is gradually stabilizing and retaining to a more normal state. In this environment, Flash EX is strengthening its service system and improving operational efficiency. At the same time, we are exploring new service scenarios to better integrate into our users’ daily life, expanding offerings and boost engagement. Additionally, we have a clear expansion plan to grow the Flash eX team and broaden service coverage. This will allow us to better meet users’ needs and improve overall service quality and experience.

With these strategies in place, we are optimistic about the 2025 and expect a recovery in overall order volume. Thank you.

Luke Tang, Chief Financial Officer, FlashEX: Yeah. Thank you, Ivan. I will take the second question. In the 2025, competition in the food delivery market remain fierce and creating some pressure on the on demand dedicated courier industry, especially for our riders. Nevertheless, we continue to center our strategy on our rider team regardless of short term market fluctuations or isolated changes challenges.

Our registered and new rider numbers remain strong and given the differentiated business model and the distinct rider profiles, there has been no notable impact. On the operational efficiency front, we have continued to make significant improvements. We have optimized our intelligent dispatch system and delivery rules, enabling precise allocation of delivery resources and significantly boosting rider productivity. The system dynamically adjusts the older assignments in real time, ensuring riders earnings remain stable. Meanwhile, we have developed a comprehensive rider development and incentive system covering subsidies, training, and reward mechanisms.

This framework provides riders with a clear career progression path, allowing each of them to see opportunities for growth and a defined future with the FlashArt platform. In managing the rider incentive budget, adhere strictly to the principle of recession and efficiency, implementing dynamic adjustment mechanism to ensure resources are allocated optimally. From a medium to long term perspective, we are actively leveraging technological innovation to gradually reduce resilience, reliance on traditional subsidy model or a newly upgraded intelligent dispatch system enable us more efficient order allocation while optimized navigation on the Rider app has significantly improved delivery efficiency. In addition, we have deepened collaboration with key merchants to enhance delivery planning during peak periods, such as holidays, further optimizing overall resource allocation and making our delivery services more precise and efficient. BRAC’s long standing comprehensive support and thoughtful care for our riders is precisely what has enabled us to maintain a stable, professional, and highly efficient delivery team to meet the intense market competition in this Q2, this term serves as a solid backbone for navigating market challenges.

Overall, compared with the competitive dynamics in the current food delivery and e commerce sectors, FlashArc’s unique on demand dedicated query model offers users a more personalized and differentiated premium service experience, which is our core competitive advantage. We are already seeing riders return to our platform demonstrating that our business model is both competitive and sustainable. At the same time, we firmly believe that for the industry to achieve long term sustainable and healthy growth, fire and reasonable competition should be actively encouraged. Based on this, we view the current market competition as having only a short term and limited impact on FLASH X. Looking ahead to the 2025, we are seeing signs that the industry competition is beginning to ease.

At the same time, we have clear plans to further expand our business and our delivery team, strengthening our operational capacity to support the company’s continued growth. That’s all. Thank you.

Conference Operator: Thank you. And this concludes the question and answer session. I will now turn the call over to Helen Wu for closing remarks.

Helen Wu, Investor Relations, Piacenza Financial Communications: Thank you once again for joining FlushGF’s twenty twenty five second quarter financial results and business update conference call today. If you have any further questions, please contact the IR team at FluxGF or PS and T Financial Communications. Thank you, and have a great day.

Conference Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

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