Dingdong (Cayman) Limited Announces Second Quarter 2026 Financial Results

Rhea-AI Summary

Dingdong (NYSE: DDL) reported unaudited second quarter 2026 results with GMV up 11.8% year over year to RMB7,265.3 million and total revenues up 8.6% to RMB6,487.3 million. It achieved its tenth consecutive GAAP-profitable quarter, posting net income of RMB271.7 million, up 153.5%.

Non-GAAP net income rose 120.2% to RMB281.3 million, with non-GAAP net margin improving to 4.3%. Gross margin increased to 29.6%, while fulfillment expenses fell to 18.6% of revenue. Cash, restricted cash and short-term investments reached RMB4,880.9 million as of June 30, 2026.

The China business, classified as discontinued operations and pending divestiture to Meituan, recorded RMB6,414.1 million in revenue and RMB334.9 million net income, boosted by RMB199.1 million from the cessation of depreciation and amortization on held-for-sale assets. Overseas revenue grew 36.2% to RMB73.2 million, but net loss widened to RMB63.2 million. The company also announced the resignation of Senior Finance Director Zhou Chen and the appointment of Senior Director Yikun Zhu to oversee financial affairs.

Positive

• GMV up 11.8% YoY to RMB7,265.3 million in Q2 2026
• Total revenue up 8.6% YoY to RMB6,487.3 million
• Income from operations up 209.6% YoY to RMB252.8 million
• Net income up 153.5% YoY to RMB271.7 million, tenth profitable quarter
• Non-GAAP net income up 120.2% YoY to RMB281.3 million; margin 4.3% vs 2.1%
• Cash, restricted cash and short-term investments rose to RMB4,880.9 million from RMB3,820.0 million QoQ

Negative

• Overseas business net loss widened 166.3% YoY to RMB63.2 million
• Non-GAAP overseas net loss increased 194.8% YoY to RMB60.9 million
• Sales and marketing expenses rose 22.8% YoY to RMB126.4 million
• China business net income includes RMB199.1 million benefit from ceased depreciation/amortization on held-for-sale assets
• Short-term borrowings for discontinued China operations at RMB1,646.8 million as of June 30, 2026
• USD157 million short-term bank loan arranged by Dingdong Hong Kong, maturing end of August 2026

News Explained

The pending divestiture includes a disclosed intercompany cash transfer backed by short-term borrowing, while SAMR approval remains unresolved.

The February 5 definitive agreement to divest the China business to Meituan remains pending, with SAMR anti-monopoly approval among the closing conditions; under the transaction terms, Dingdong Cayman is entitled to receive up to US$280 million from subsidiaries by August 31, 2026.

To set aside funds for that payment, Dingdong Hong Kong arranged a US$157 million short-term bank loan and transferred the proceeds to Dingdong Cayman; the loan matures at the end of August and will be repaid from wealth-product proceeds.

Market reaction after 2Q26 earnings report: DDL +4.37%

+4.37% $2.39

15m delay

+4.37% Vs previous close

$2.39 Last Price

$2.34 $2.40 Day Range

$522.59M Market Cap

0.0x Rel. Volume

Following this news, DDL has gained 4.37%, reflecting a moderate positive market reaction. The stock is currently trading at $2.39.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

Across five tag-matched earnings events, the average recorded move was -2.13%. That record added con...

Analysis

Across five tag-matched earnings events, the average recorded move was -2.13%. That record added context to the quarter's reported growth, while the pending Meituan transaction and overseas losses remained key watch items.

Key Figures

GMV: RMB7,265.3 million (US$1,070.8 million) Net income: RMB271.7 million (US$40.0 million) Non-GAAP net income: RMB281.3 million (US$41.5 million) +5 more

8 metrics

GMV RMB7,265.3 million (US$1,070.8 million) 2Q26; increased 11.8% year over year

Net income RMB271.7 million (US$40.0 million) 2Q26; increased 153.5% year over year

Non-GAAP net income RMB281.3 million (US$41.5 million) 2Q26; increased 120.2% year over year

Total revenues RMB6,487.3 million (US$956.1 million) 2Q26; increased 8.6% year over year

Gross margin 29.6% 2Q26 versus 28.8% in 2Q25

Held-for-sale accounting impact RMB199.1 million (US$29.3 million) Increase to current-quarter net income

Overseas net loss RMB63.2 million (US$9.3 million) 2Q26; increased 166.3% year over year

Cash entitlement Up to US$280 million Cash Dingdong Cayman is entitled to receive by August 31, 2026

Previous Earnings Reports

5 past events · Latest: May 21 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 21	1Q26 earnings	Positive	-0.4%	Reported growth, profitability, and pending Meituan transaction with held-for-sale accounting impact.
Mar 04	4Q25 earnings	Positive	-0.7%	Reported growth and profitability alongside Meituan sale agreement and planned capital returns.
Nov 12	3Q25 earnings	Positive	-2.3%	Reported profitability and modest growth, while gross margin narrowed year over year.
Aug 21	2Q25 earnings	Positive	-4.7%	Reported stronger profitability and revenue growth, though gross margin decreased year over year.
May 16	1Q25 earnings	Positive	-2.5%	Reported revenue, GMV, and profitability growth while implementing the 4G strategy.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Across five tag-matched earnings events, reported growth and profitability were followed by negative 24-hour price reactions.

Key Terms

gmv, non-gaap financial measures, held-for-sale, discontinued operations

4 terms

gmv financial

"total amount of GMV for the second quarter of 2026 increased by 11.8%"

Gross merchandise value (GMV) is the total dollar value of all goods and services sold through a platform or marketplace over a given period, measured before deducting fees, returns, or discounts. Investors watch GMV to gauge the raw size and growth of customer activity—like counting every ticket sold at a concert before subtracting organizer costs—while remembering it is not the same as revenue or profit.

non-gaap financial measures financial

"The Company uses non-GAAP measures, such as non-GAAP net income"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

held-for-sale financial

"the held-for-sale China business upon classification as held-for-sale"

An asset classified as "held-for-sale" is one a company has decided to sell rather than keep using, and expects to complete the sale within a short time frame. Investors care because the asset is removed from normal operations and is reported at the lower of its book value or estimated sale value, which can change the balance sheet, signal a shift in strategy, and affect expected cash proceeds—think of it as marking an item in a garage for immediate sale rather than keeping it in the attic.

discontinued operations financial

"The China business is reported as discontinued operations"

Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SHANGHAI, Aug. 20, 2026 /PRNewswire/ -- Dingdong (Cayman) Limited ("Dingdong" or the "Company") (NYSE: DDL), a leading fresh grocery e-commerce company in China, with advanced supply chain capabilities, today announced its unaudited financial results for the quarter ended June 30, 2026.

Second Quarter 2026 Highlights:^[1]

• GMV: total amount of GMV for the second quarter of 2026 increased by 11.8% year over year to RMB7,265.3 million (US$1,070.8 million) from RMB6,499.4 million in the same quarter of 2025, positive year-on-year growth for tenth straight quarters.
• Net income: total amount of net income for the second quarter of 2026 was RMB271.7 million (US$40.0 million), the tenth consecutive quarter of profitability.
• Non-GAAP net income: total amount of Non-GAAP net income for the second quarter of 2026 was RMB281.3 million (US$41.5 million), the fifteenth consecutive quarter of non-GAAP profitability.

Mr. Song Wang, the Chief Executive Officer of Dingdong, stated, "As of the second quarter of 2026, Dingdong has maintained profitability under non-GAAP standards for fifteenth consecutive quarters and under GAAP standards for tenth consecutive quarters. The Company has also delivered year-over-year revenue growth for the tenth consecutive quarter, and has seen further acceleration in growth since entering the third quarter. Since July, the Company's business has entered peak season, with monthly GMV hitting a record high, during which single‑day GMV exceeded RMB 100 million multiple times and set a new record. Our steady revenue growth and consistent profitability are mainly attributed to the growth in average monthly ordering users among our loyal members and the increase in average monthly order frequency. In addition, on the product supply chain side, we continuously improve product quality and cater to users' diverse scenario‑based needs, better serving our platform users. This excellent performance fully demonstrates Dingdong's strategic resilience and solid execution amid fierce competition, laying robust fundamentals and lasting momentum for sustainable long‑term growth."

On February 5, 2026, the Company entered into a definitive agreement to divest its China business to Meituan (HKEX: 3690). The transaction remains pending as of this release, contingent on standard closing conditions under the Share Purchase Agreement, notably anti-monopoly approval from SAMR. Consistent with prior quarter accounting treatment, no depreciation or amortization was recognized for the held-for-sale China business upon classification as held-for-sale, which resulted in an increase to our net income by RMB199.1 million (US$29.3 million) in the current quarter.

Second Quarter 2026 Financial Results^[1]

Total revenues were RMB6,487.3 million (US$956.1 million), compared with total revenues of RMB5,975.9 million in the same quarter of 2025, representing an increase of 8.6% year over year. Revenues generated from our China business^[2] as included in profit from discontinued operations increased by 8.3% year over year to RMB6,414.1 million (US$945.3 million), primarily due to the rise of number of orders resulting from rise in the average monthly number of transacting users and higher monthly order frequency, and newly opened frontline fulfillment stations with density and market penetration improving in Eastern China. The increase was partially offset by the continued downward pressure on CPI prices for certain key categories, including pork, and by the closure of some inefficient frontline fulfillment stations in Beijing and the Guangzhou‑Shenzhen area during the second quarter of 2026. Revenues generated from our overseas business increased by 36.2% year over year to RMB73.2 million (US$10.8 million), primarily due to the rise in the number of orders resulting from market expansion in overseas markets and customer base growth.

Total operating costs and expenses were RMB6,244.4 million (US$920.3 million), compared with RMB5,980.1 million in the same quarter of 2025, with a detailed breakdown as below. No depreciation or amortization is recorded in the cost and the four categories of expenses for long-lived assets in the China business after being classified as held-for-sale, as assets held for sale are measured at the lower of their carrying amount or fair value less costs to sell according to the relevant standards under US GAAP. This has also impacted the line items below:

• Cost of goods sold was RMB4,568.7 million (US$673.3 million), an increase of 7.4% from RMB4,255.2 million in the same quarter of 2025. Cost of goods sold as a percentage of revenues was 70.4%, compared with 71.2% in the same quarter of 2025. Gross margin was 29.6%, compared with 28.8% in the same quarter of 2025. Since the launch and continued implementation of our 4G Strategy in early 2025, the gross margin for the second quarter of 2026 was generally consistent with that of previous quarters.
• Fulfillment expenses were RMB1,207.0 million (US$177.9 million), a decrease of 7.0% from RMB1,297.3 million in the same quarter of 2025. Fulfillment expenses as a percentage of total revenues decreased to 18.6% from 21.7% in the same quarter of 2025.
• Sales and marketing expenses were RMB126.4 million (US$18.6 million), an increase of 22.8% from RMB102.9 million in the same quarter of 2025. Sales and marketing expenses as a percentage of total revenues slightly increased to 1.9%, compared with 1.7% in the same quarter of 2025. The year-on-year increase in marketing expenses is mainly attributable to the increased spending on sales and marketing activities.
• General and administrative expenses were RMB126.7 million (US$18.7 million), a slight increase of 3.1% from RMB 122.9 million in the same quarter of 2025, mainly driven by staff costs.
• Product development expenses were RMB215.7 million (US$31.8 million), a slight increase of 6.9% from RMB 201.8 million in the same quarter of 2025. While advocating for energy and resource saving, we will continue to invest in our product development capabilities, agricultural technology, data algorithms, and other technology infrastructure such as the AI technical capability, to further enhance our competitiveness.

Income from operations was RMB252.8 million (US$37.3 million), an increase of 209.6% from RMB81.6 million in the same quarter of 2025.

Net income was RMB271.7 million (US$40.0 million), an increase of 153.5% from RMB107.2 million in the same quarter of 2025. Among which, net income for China business increased by 155.8% year over year to RMB334.9 million (US$49.4 million), which was largely due to cease of depreciation or amortization of long-lived assets classified as held-for-sale under US GAAP. This factor has resulted in an increase of our net income by RMB199.1 million (US$29.3 million) in the current quarter, and this impact will continue to affect the quarterly net income every period prior to the completion of the Meituan transaction. Net loss for overseas business increased by 166.3% year over year to RMB63.2 million (US$9.3 million).

Non-GAAP net income, which is a non-GAAP measure that only excludes share-based compensation expenses from net income, was RMB281.3 million (US$41.5 million), an increase of 120.2% from RMB127.8 million in the same quarter of 2025. In addition, non-GAAP net income margin, which is the Company's non-GAAP net income as a percentage of total revenues, was 4.3% compared with 2.1% in the same quarter of 2025. Non-GAAP net income for China business increased by 130.6% year over year to RMB342.3 million (US$50.4 million). Non-GAAP net loss for overseas business increased by 194.8% year over year to RMB60.9 million (US$9.0 million). Similarly, non-GAAP net income was subject to the same factors that affected net income.

Basic and diluted net income per share were RMB0.87 (US$0.13) and RMB0.87 (US$0.13), compared with net income per share of RMB0.33 and RMB0.33 in the same quarter of 2025. Non-GAAP net income per share, basic and diluted, were RMB0.90 (US$0.13) and RMB0.90 (US$0.13), compared with RMB0.39 and RMB0.39 in the same quarter of 2025.

Cash and cash equivalents, restricted cash and short-term investments were RMB4,880.9 million (US$719.4 million) as of June 30, 2026, compared with RMB3,820.0 million as of March 31, 2026. We have been working diligently to optimize our capital usage and financing structure. The cash and cash equivalents, restricted cash, short-term investments and long-term deposits as included in the other non-current assets deducting the balance of short-term borrowings, is RMB3,284.0 million, a net increase for the thirteenth consecutive quarter, compared with RMB3,210.6 million as of March 31, 2026.

Short-term Borrowings for discontinued operations of Dingdong's China business were RMB1,646.8 million (US$242.7 million) as of June 30, 2026. Pursuant to transaction terms with Meituan, Dingdong Cayman is entitled to receive up to USD 280 million in cash from Dingdong BVI and its subsidiaries (including Dingdong Hong Kong) by August 31, 2026. At June 30, 2026, Dingdong Hong Kong's USD funds were held in fixed‑term wealth management products maturing at the end of August. To set aside funds for the payments due to Dingdong Cayman, Dingdong Hong Kong arranged a USD 157 million short‑term bank loan and transferred the proceeds to Dingdong Cayman. The loan matures at the end of August and will be repaid with the proceeds from the wealth products upon their maturity.

Management change

The company announced that Mr. Zhou Chen, Senior Finance Director of the Company, has tendered his resignation to step down from his current position due to personal reasons. Mr. Chen's resignation was not the result of any dispute or disagreement with the Company or any matter relating to the operation, policies or practices of the Company.

The company also announced that Mr. Yikun Zhu, currently the Senior Director of the Company, has assumed Mr. Zhou Chen's role and been in charge of financial affairs of the listed company.

Mr. Yikun Zhu has served as our Senior Director since June 2021. He is primarily responsible for the Group's investment and financing activities, and concurrently holds the position of Financial Controller of the Overseas Business Group. Prior to joining the Company, from July 2018 to June 2021, Mr. Zhu served at Zhejiang Dasouche Software Technology Service Co., Ltd., a subsidiary of DSC Holdings Ltd., where he was primarily responsible for investment and financing. From October 2014 to June 2018, he held positions at several financial institutions, including Shanghai Yingwo Investment Management Co., Ltd., Shanghai International Trust Co., Ltd., and Caitong Securities Asset Management Co., Ltd. Mr. Zhu received his Bachelor of Science in Economics from the University of Southampton, United Kingdom, in June 2012, and his Master of Science in Management and Strategy from the London School of Economics and Political Science, United Kingdom, in November 2013.

On behalf of the Company and the Board, Mr. Song Wang, Director of the Board and CEO of Dingdong, commented: "We extend our sincere gratitude to Mr. Zhou Chen for his outstanding leadership and invaluable dedication during his tenure as Senior Finance Director. We wish him every success in all his upcoming professional pursuits. We are equally delighted to have Mr. Yikun Zhu oversee the financial operations of our listed entity. I am fully confident that Mr. Zhu's extensive professional financial know-how will further strengthen our capable management team."

[1] The Company presents the total amounts of certain line items, which represent the aggregate figures encompassing both continuing operations (overseas business) and discontinued operations (domestic China business).

[2] The Company also discloses figures pertaining to its China business, which are classified within profit generated from discontinued operations. In addition, the Company separately presents data relating to its overseas business.

About Dingdong (Cayman) Limited 

We are a leading fresh grocery e-commerce company in mainland China, with sustainable long-term growth. We directly provide users and households with fresh groceries, prepared food, and other food products through delivering a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid. Leveraging our deep insights into consumers' evolving needs and our strong food innovation capabilities, we have successfully launched a series of private label products spanning a variety of food categories. Many of our private label products are produced at our Dingdong production plants, allowing us to more efficiently produce and offer safe and high-quality food products. We aim to be the first choice for fresh and food shopping.

For more information, please visit: https://ir.100.me. 

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as non-GAAP net income, non-GAAP net income margin, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges and do not correlate to any operating activity trends. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance.

For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.7851 to US$1.00, the exchange rate on June 30, 2026 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement 

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other things, business outlook and quotations from management in this announcement, as well as Dingdong's strategic and operational plans, contain forward-looking statements. Dingdong may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its interim and annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Dingdong's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Dingdong's goals and strategies; Dingdong's future business development, financial conditions, and results of operations; the expected outlook of the fresh grocery ecommerce market in China; Dingdong's expectations regarding demand for and market acceptance of its products and services; Dingdong's expectations regarding its relationships with its users, clients, business partners, and other stakeholders; competition in Dingdong's industry; and relevant government policies and regulations relating to Dingdong's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of RMB and US$)
The China business is reported as discontinued operations in the consolidated statements of comprehensive loss for the current period and the comparative period in accordance with ASC 210-05, Discontinued Operations as the disposal plan of the China business represented a strategic shift that had a major effect on the Group's operations and financial results. Further, the related current and non-current assets and liabilities associated with the China business are reflected as held for sale in the consolidated balance sheets at December 31, 2025 and June 30, 2026.
			As of
			December 31, 2025			June 30, 2026			June 30, 2026
			RMB			RMB			US$
ASSETS
Current assets:
Cash and cash equivalents			45,722			1,421,229			209,463
Short-term investments			-			391,265			57,665
Accounts receivable, net			48,727			24,251			3,574
Inventories, net			39,179			20,357			3,000
Advance to suppliers			63,638			60,753			8,954
Prepayments and other current assets			11,876			18,653			2,749
Assets held for sale			4,830,947			6,178,292			910,569
Total current assets			5,040,089			8,114,800			1,195,974
Non-current assets:
Property and equipment, net			3,883			20,100			2,962
Operating lease right-of-use assets			280			64,089			9,446
Other non-current assets			15,418			9,570			1,410
Assets held for sale			1,956,498			-			-
Total non-current assets			1,976,079			93,759			13,818
TOTAL ASSETS			7,016,168			8,208,559			1,209,792
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable			47,608			50,790			7,486
Customer advances and deferred revenue			1,242			408			60
Accrued expenses and other current liabilities			4,664			13,119			1,934
Salary and welfare payable			3,713			24,485			3,609
Operating lease liabilities, current			-			4,793			706
Liabilities held for sale			4,737,340			6,486,664			956,015
Total current liabilities			4,794,567			6,580,259			969,810
Non-current liabilities:
Operating lease liabilities, non-current			287			63,882			9,415
Liabilities held for sale			1,045,097			-			-
Total non-current liabilities			1,045,384			63,882			9,415
TOTAL LIABILITIES			5,839,951			6,644,141			979,225

 

 

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Amounts in thousands of RMB and US$)
			As of
			December 31, 2025			June 30, 2026			June 30, 2026
			RMB			RMB			US$
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY (CONTINUED)
Mezzanine Equity:
Redeemable noncontrolling interests			135,435			140,704			20,738
TOTAL MEZZANINE EQUITY			135,435			140,704			20,738
Shareholders' equity:
Ordinary shares			4			4			1
Additional paid-in capital			14,260,014			14,276,254			2,104,059
Treasury stock			(59,969)			(59,969)			(8,838)
Accumulated deficit			(13,163,215)			(12,731,351)			(1,876,370)
Accumulated other comprehensive income/(loss)			3,948			(61,224)			(9,023)
TOTAL SHAREHOLDERS' EQUITY			1,040,782			1,423,714			209,829
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY			7,016,168			8,208,559			1,209,792

 

 

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands of RMB and US$, except for number of shares and per share data)
			For the three months ended June 30,
			2025				2026			2026
			RMB				RMB			US$
Revenues:
Product revenues			52,549				72,225			10,645
Service revenues			1,186				971			143
Total revenues			53,735				73,196			10,788
Operating costs and expenses:
Cost of goods sold			(50,184)				(62,024)			(9,141)
Fulfillment expenses			(16,343)				(37,070)			(5,464)
Sales and marketing expenses			(2,209)				(7,955)			(1,172)
Product development expenses			(3,008)				(19,714)			(2,905)
General and administrative expenses			(7,189)				(16,643)			(2,453)
Total operating costs and expenses			(78,933)				(143,406)			(21,135)
Other operating loss, net			(89)				(203)			(31)
Loss from operations			(25,287)				(70,413)			(10,378)
Interest income			615				5,632			830
Other income, net			944				1,589			235
Loss before income tax			(23,728)				(63,192)			(9,313)
Income tax expenses			(5)				(17)			(3)
Net loss from continuing operations			(23,733)				(63,209)			(9,316)
Net income from discontinued operations, net of tax			130,920				334,905			49,359
Net income			107,187				271,696			40,043
Net loss from discontinued operations attributable to redeemable noncontrolling interests			(2,476)				(2,674)			(394)
Net income attributable to ordinary shareholders			104,711				269,022			39,649

 

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)
(Amounts in thousands of RMB and US$, except for number of shares and per share data)
			For the three months ended June 30,
			2025			2026			2026
			RMB			RMB			US$
Net income per Class A and Class B ordinary share:
Basic
Continuing operations			(0.07)			(0.19)			(0.03)
Discontinued operations			0.40			1.06			0.16
Diluted
Continuing operations			(0.07)			(0.19)			(0.03)
Discontinued operations			0.40			1.06			0.16
Basic net income per share attributable to Class A and Class B ordinary shareholders			0.33			0.87			0.13
Diluted net income per share attributable to Class A and Class B ordinary shareholders			0.33			0.87			0.13
Shares used in net income per Class A and Class B ordinary share computation:
Basic			324,632,496			324,989,883			324,989,883
Diluted			324,632,496			324,989,883			324,989,883
Other comprehensive loss, net of tax of nil:
Foreign currency translation adjustments from continuing operations			(7,069)			(38,652)			(5,696)
Foreign currency translation adjustments from discontinued operations			928			5,721			843
Total other comprehensive loss from continuing operations			(30,802)			(101,861)			(15,012)
Total other comprehensive income from discontinued operation			131,848			340,626			50,202
Comprehensive income			101,046			238,765			35,190
Net loss from discontinued operations attributable to redeemable noncontrolling interests			(2,476)			(2,674)			(394)
Comprehensive income attributable to ordinary shareholders			98,570			236,091			34,796

 

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of RMB and US$)
			For the three months ended June 30,
			2025			2026			2026
			RMB			RMB			US$
Net cash used in continuing operating activities			(19,930)			(69,937)			(10,307)
Net cash generated from discontinued operating activities			121,331			196,572			28,971
Net cash generated from operating activities			101,401			126,635			18,664
Net cash generated from/(used in) continuing investing activities			2,930			(239,999)			(35,372)
Net cash (used in)/generated from discontinued investing activities			(48,956)			169,966			25,050
Net cash used in investing activities			(46,026)			(70,033)			(10,322)
Net cash generated from continuing financing activities			-			33			5
Net cash (used in)/generated from discontinued financing activities			(344,390)			972,476			143,325
Net cash (used in)/generated from financing activities			(344,390)			972,509			143,330
Effect of exchange rate changes on cash and cash equivalents and restricted cash			(140)			(3,510)			(517)
Net (decrease)/increase in cash and cash equivalents and restricted cash			(289,155)			1,025,601			151,155
Cash and cash equivalents and restricted cash at the beginning of the period			1,216,994			1,502,769			221,481
Cash and cash equivalents and restricted cash at the end of the period			927,839			2,528,370			372,636
Less: Cash and cash equivalents and restricted cash held for sales at end of the period			888,006			1,107,141			163,173
Cash and cash equivalents and restricted cash from    continuing operations at the end of the period			39,833			1,421,229			209,463

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands of RMB and US$, except for number of shares and per share data)
			For the three months ended June 30,
			2025			2026			2026
			RMB			RMB			US$
Net loss from continuing operations			(23,733)			(63,209)			(9,316)
Add: Share-based compensation expenses of continuing operations			3,062			2,278			336
Non-GAAP net loss from continuing operations			(20,671)			(60,931)			(8,980)
Net income from discontinued operations			130,920			334,905			49,359
Add: Share-based compensation expenses of discontinued operations			17,521			7,375			1,087
Non-GAAP net income from discontinued operations			148,441			342,280			50,446
Total Non-GAAP net income			127,770			281,349			41,466

 

The following schedules set forth the breakdown of assets and liabilities held for sale and income from discontinued operations of Dingdong's China business which were included in the Company's unaudited interim condensed consolidated financial statements:

			As of
			December 31, 2025			June 30, 2026			June 30, 2026
			RMB			RMB			US$
			(in thousands)
Cash and cash equivalents			1,061,073			1,097,028			161,682
Restricted cash			340			10,113			1,490
Short-term investments			2,869,681			1,961,224			289,051
Accounts receivable, net			143,212			138,346			20,390
Inventories, net			531,306			503,410			74,193
Advance to suppliers			50,466			53,371			7,866
Prepayments and other current assets			174,869			152,293			22,445
Property and equipment, net			-			271,362			39,994
Operating lease right-of-use assets			-			1,823,220			268,709
Other non-current assets			-			167,925			24,749
Total current assets classified as held for sale			4,830,947			6,178,292			910,569
Property and equipment, net			228,874			-			-
Operating lease right-of-use assets			1,579,819			-			-
Other non-current assets			147,805			-			-
Total non-current assets classified as held for sale			1,956,498			-			-
Accounts payable			1,872,734			2,030,885			299,315
Customer advances and deferred revenue			272,019			255,574			37,667
Accrued expenses and other current liabilities			751,954			722,614			106,499
Salary and welfare payable			300,818			162,524			23,953
Operating lease liabilities, current			668,295			640,429			94,388
Short-term borrowings			871,520			1,646,820			242,711
Operating lease liabilities, non-current			-			876,778			129,221
Other non-current liabilities			-			151,040			22,261
Total current liabilities classified as held for sale			4,737,340			6,486,664			956,015
Operating lease liabilities, non-current			897,524			-			-
Other non-current liabilities			147,573			-			-
Total non-current liabilities classified as held for sale			1,045,097			-			-

 

 

			For the three months ended June 30,
			2025				2026			2026
			RMB				RMB			US$
			(in thousands)
Total revenues			5,922,134				6,414,133			945,326
Operating costs and expenses:
Cost of goods sold			(4,204,999)				(4,506,667)			(664,201)
Fulfillment expenses			(1,280,933)				(1,169,941)			(172,427)
Sales and marketing expenses			(100,708)				(118,453)			(17,458)
Product development expenses			(198,814)				(195,944)			(28,879)
General and administrative expenses			(115,717)				(110,021)			(16,215)
Total operating costs and expenses			(5,901,171)				(6,101,026)			(899,180)
Other operating income, net			85,959				10,088			1,487
Income from discontinued operations			106,922				323,195			47,633
Interest income			32,778				17,331			2,554
Interest expenses			(4,820)				(3,700)			(545)
Other (expenses)/ income , net			(162)				910			134
Income before income tax			134,718				337,736			49,776
Income tax expenses			(3,798)				(2,831)			(417)
Net income from discontinued operations			130,920				334,905			49,359

 

View original content:https://www.prnewswire.com/news-releases/dingdong-cayman-limited-announces-second-quarter-2026-financial-results-302856261.html

SOURCE Dingdong (Cayman) Limited

FAQ

How did Dingdong (NYSE: DDL) perform financially in Q2 2026?

Dingdong reported Q2 2026 revenue of RMB6,487.3 million, up 8.6% year over year, and net income of RMB271.7 million. According to Dingdong, this marked its tenth consecutive profitable GAAP quarter, supported by higher GMV, improved gross margin, and lower fulfillment expense ratios.

Was Dingdong (DDL) profitable in the second quarter of 2026 and what were its margins?

Yes, Dingdong was profitable, with Q2 2026 net income of RMB271.7 million and non-GAAP net income of RMB281.3 million. According to Dingdong, non-GAAP net margin improved to 4.3%, while gross margin increased to 29.6%, reflecting cost efficiencies and revenue growth.

What were Dingdong’s China and overseas business results in Q2 2026?

Dingdong’s China business generated RMB6,414.1 million revenue and RMB334.9 million net income, aided by suspended depreciation on held-for-sale assets. According to Dingdong, overseas revenue reached RMB73.2 million, up 36.2% year over year, but net loss widened to RMB63.2 million.

What is the status of Dingdong’s divestiture of its China business to Meituan in 2026?

On February 5, 2026, Dingdong signed a definitive agreement to divest its China business to Meituan. According to Dingdong, the transaction remained pending as of this release, subject to standard closing conditions under the Share Purchase Agreement, including anti-monopoly approval from SAMR.

What were Dingdong’s cash and debt positions as of June 30, 2026 (DDL)?

As of June 30, 2026, Dingdong held RMB4,880.9 million in cash, restricted cash and short-term investments. According to Dingdong, short-term borrowings for discontinued China operations were RMB1,646.8 million, and a separate USD157 million short-term bank loan was arranged by Dingdong Hong Kong.

How did Dingdong’s operating costs and margins change in Q2 2026?

Cost of goods sold rose to RMB4,568.7 million, but declined to 70.4% of revenue, lifting gross margin to 29.6%. According to Dingdong, fulfillment expenses fell to 18.6% of revenue, while sales and marketing rose to 1.9% of revenue.

What management changes did Dingdong (DDL) announce with its Q2 2026 results?

Dingdong announced the resignation of Senior Finance Director Zhou Chen for personal reasons, with no disputes reported. According to Dingdong, Senior Director Yikun Zhu, responsible for investment and financing and overseas financial control, has assumed responsibility for the listed company’s financial affairs.