Dingdong (Cayman) Limited Announces Third Quarter 2025 Financial Results

Rhea-AI Summary

Dingdong (NYSE:DDL) reported third quarter 2025 unaudited results: GMV RMB7,273.2M (+0.1% YoY) and revenue RMB6,662.4M (+1.9% YoY). The company recorded GAAP net income RMB82.9M (seventh consecutive GAAP profit) and non-GAAP net income RMB101.3M (twelfth consecutive non-GAAP profit).

Gross margin narrowed to 28.9% from 29.8% as cost of goods sold rose to 71.1% of revenue. Operating cash inflow was RMB140M for the quarter; net cash after deducting short-term borrowings rose to RMB3.03B. The company expects to maintain scale and non-GAAP profitability in Q4 2025.

Positive

• Revenue +1.9% year-over-year to RMB6,662.4M
• Non-GAAP net income RMB101.3M (12 consecutive profitable quarters)
• GAAP net income RMB82.9M (7 consecutive profitable quarters)
• Net operating cash inflow RMB140M (9 consecutive quarters)
• Net cash after short-term borrowings RMB3.03B (quarterly increase)

Negative

• Gross margin down to 28.9% from 29.8% (−0.9 ppt)
• Cost of goods sold increased to 71.1% of revenues
• Non-GAAP net income margin fell to 1.5% from 2.5% YoY
• Basic net income per share decreased to RMB0.25 from RMB0.40 YoY

Insights

Equity Financial Analyst

Dingdong reports marginal y/y revenue growth, continued profitability, but compressed margins and modest GMV gains signal cautious outlook.

Dingdong sustains operational scale with third quarter revenue of RMB6,662.4 million and GMV of RMB7,273.2 million, marking seven consecutive quarters of y/y revenue growth and the seventh straight GAAP-profit quarter. The company generated net income of RMB82.9 million and non-GAAP net income of RMB101.3 million, while reporting net operating cash inflow and a net cash position reported as RMB3.03 billion.

The financial mechanics show demand resilience but margin pressure. Gross margin fell to 28.9% from 29.8%, cost of goods sold rose to 71.1% of revenues, and non-GAAP net margin narrowed to 1.5% from 2.5%. Revenue rose only 1.9% y/y and GMV 0.1%, so scale improved little while unit economics weakened. Management cites product mix, CPI-driven price declines in key categories, and strategic SKU changes as drivers of cost movement.

Watch the company's execution on its "One Big, One Small, One World" framework, inventory and SKU optimization from the 4G strategy, and whether cost trends reverse in the next quarter. Key near-term markers are fourth-quarter ability to "maintain scale year-over-year" and deliver non-GAAP profitability in Q4 2025. Expect the most informative updates in the upcoming earnings call and the four-week window after the quarter when Q4 guidance and early trends surface.

SHANGHAI, Nov. 12, 2025 /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 September 30, 2025.

Third  Quarter 2025 Highlights:

• GMV for the third quarter of 2025 increased by 0.1% year over year to RMB7,273.2 million (US$1,021.7 million) from RMB7,267.0 million in the same quarter of 2024, positive year-on-year growth for seven straight quarters.
• Revenue for the third quarter of 2025 increased by 1.9% year over year to RMB6,662.4 million (US$935.9 million) from RMB6,538.2 million in the same quarter of 2024, positive year-on-year growth for seven straight quarters.
• Total number of orders increased by 2.2% year over year in the third quarter of 2025.
• N et income for the third quarter of 2025 was RMB82.9 million (US$11.6 million), the seventh consecutive quarter of profitability.
• Non-GAAP net income for the third quarter of 2025 was RMB101.3 million (US$14.2 million), the twelfth consecutive quarter of non-GAAP profitability.

Mr. Changlin Liang, Founder and Chief Executive Officer of Dingdong, stated, "As of the third quarter of 2025, Dingdong has maintained profitability under non-GAAP standards for twelve consecutive quarters and under GAAP standards for seven consecutive quarters. Despite a higher baseline compared to the same period last year, revenue has achieved year-over-year growth, which marks the seventh straight quarters. This sustained expansion and steady achievement of profit targets fully demonstrate Dingdong's strategic resilience and execution excellence amid the current complex market and competitive landscape, providing strong momentum for advancing our long-term strategy. Building on the "One Big, One Small, One World" framework introduced in the third quarter, and leveraging our strengths in supply chain, product development, and IT systems bolstered by sustained profitability and solid cash reserves, Dingdong is confident in forging a unique, quality-focused, efficient, and resilient growth path through intense competition—and in maintaining last year's scale and non-GAAP profitability in the fourth quarter."

Mr. Song Wang, Chief Financial Officer of Dingdong, stated, "In the third quarter of 2025, Dingdong reported revenue of RMB6.66 billion, marking a 1.9% year-on-year growth and maintaining positive growth for seven straight quarters. Non-GAAP net profit reached RMB0.1 billion with a 1.5% net profit margin, while GAAP net profit was RMB0.08 billion with a 1.2% margin. We had net operating cash inflow of RMB0.14 billion in the third quarter of 2025, the ninth consecutive quarter of positive cash flow. By the end of the third quarter, after deducting short-term borrowings, our actual cash owned increased to RMB3.03 billion."

Third  Quarter 2025 Financial Results

Total revenues were RMB6,662.4 million (US$935.9 million) compared with total revenues of RMB6,538.2 million in the same quarter of 2024, increased by 1.9% year over year, 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 new opened frontline fulfillment stations with density and market penetration improved in East China. The increase was offset by the impact of the price decline in CPI for certain major categories in our business, such as pork, eggs and vegetables, in the third quarter of 2025 and suspension of operations for a number of stations in the third quarter of 2024.

• Product Revenues were RMB6,573.1 million (US$923.3 million) compared with product revenues of RMB6,458.4 million in the same quarter of 2024, increased by 1.8% year over year.
• Service Revenues were RMB89.3 million (US$12.5 million) compared with service revenues of RMB79.8 million in the same quarter of 2024, increased by 11.9% year over year.

Total operating costs and expenses were RMB6,621.6 million (US$930.1 million) compared with RMB6,438.5 million in the same quarter of 2024, with a detailed breakdown as below:

• Cost of goods sold was RMB4,739.8 million (US$665.8 million), an increase of 3.2% from RMB4,591.4 million in the same quarter of 2024. Cost of goods sold as a percentage of revenues increased to 71.1% from 70.2% in the same quarter of 2024. Gross margin decreased to 28.9% from 29.8% in the same quarter of 2024. The cost implications arising from product listing and delisting due to the implementation of 4G strategy of "good users, good products, good services, and good mindshare".
• Fulfillment expenses were RMB1,430.6 million (US$201.0 million), an increase of 2.3% from RMB1,397.8 million in the same quarter of 2024. Fulfillment expenses as a percentage of total revenues slightly increased to 21.5% from 21.4% in the same quarter of 2024.
• Sales and marketing expenses were RMB127.7 million (US$17.9 million), a decrease of 11.9% from RMB144.9 million in the same quarter of 2024. Sales and marketing expenses as a percentage of total revenues decreased to 1.9% from 2.2% in the same quarter of 2024. The traffic and promotional effects generated by the "Good Products" and "Hero Products" Strategy have replaced some of the original marketing campaigns, thereby saving corresponding expenses.
• General and administrative expenses were RMB120.1 million (US$16.9 million), an increase of 17.7% from RMB102.0 million in the same quarter of 2024, mainly driven by staff costs, specifically from the new "Dong Li Sheng" management trainees.
• Product development expenses were RMB203.4 million (US$28.6 million), a slight increase of 0.5% from RMB202.4 million in the same quarter of 2024. 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.

Net income  from operations was RMB59.3 million (US$8.3 million), compared with net income from operations of RMB110.5 million in the same quarter of 2024.

Non-GAAP  income from operations, which is a non-GAAP measure for income from operations that excludes share-based compensation expenses, was RMB77.7 million (US$10.9 million), compared with Non-GAAP income from operations of RMB138.8 million in the same quarter of 2024.

Net income was RMB82.9 million (US$11.6 million), compared with net income of RMB133.4 million in the same quarter of 2024.

Non-GAAP net income, which is a non-GAAP measure that excludes share-based compensation expenses, was RMB101.3 million (US$14.2 million), compared with non-GAAP net income of RMB161.6 million in the same quarter of 2024. In addition, non-GAAP net income margin, which is the Company's non-GAAP net income as a percentage of total revenues, was 1.5% compared with 2.5% in the same quarter of 2024.

Basic and diluted net income per share were RMB0.25 (US$0.04) and RMB0.24 (US$0.03), compared with net income per share of RMB0.40 in the same quarter of 2024. Non-GAAP net income per share, basic and diluted, were RMB0.31 (US$0.05) and RMB0.29 (US$0.04), compared with RMB0.49 in the same quarter of 2024.

Cash and cash equivalents , restricted cash  and short-term investments were RMB3,908.2 million (US$549.0 million) as of September 30, 2025, compared with RMB3,974.2 million as of June 30, 2025. 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 RMB3.03 billion, a net increase for the ninth consecutive quarter, compared with RMB2.95 billion as of June 30, 2025.

Guidance

The Company is looking to maintain scale year-over-year and achieve non-GAAP profits in the fourth quarter of 2025.

Conference Call

The Company's management will hold an earnings conference call at 7:00 A.M. Eastern Time on Wednesday, November 12, 2025 (8:00 P.M. Beijing Time on the same day) to discuss the financial results. The presentation and question and answer session will be presented in both Mandarin and English. Listeners may access the call by dialing the following numbers:

International:				1-412-317-6061
United States Toll Free:				1-888-317-6003
Mainland China Toll Free:				86-4001-206115
Hong Kong Toll Free:				800-963976
Conference ID:				0792686

The replay will be accessible through November 19, 2025 by dialing the following numbers:

International:				1-412-317-0088
United States:				1-855-669-9658
Access Code:				5791678

A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.100.me.

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, non-GAAP net income attributable to ordinary shareholders and non-GAAP net income per share, basic and diluted, 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 RMB7.1190 to US$1.00, the exchange rate on September 30, 2025 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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$)
			As of
			December 31 , 2024			September 30, 2025			September 30, 2025
			RMB			RMB			US$
						(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents			887,427			832,307			116,913
Restricted cash			2,788			612			86
Short-term investments			3,561,977			3,075,305			431,986
Accounts receivable, net			125,896			177,976			25,000
Inventories, net			553,601			590,974			83,014
Advance to suppliers			62,730			143,999			20,227
Prepayments and other current assets			170,753			156,453			21,977
Total current assets			5,365,172			4,977,626			699,203
Non-current assets:
Property and equipment, net			176,290			220,367			30,955
Operating lease right-of-use assets			1,464,791			1,598,004			224,470
Other non-current assets			111,395			150,397			21,126
Total non-current assets			1,752,476			1,968,768			276,551
TOTAL ASSETS			7,117,648			6,946,394			975,754
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable			1,660,472			1,884,339			264,691
Customer advances and deferred revenue			279,276			272,048			38,214
Accrued expenses and other current     liabilities			767,080			759,988			106,755
Salary and welfare payable			317,152			250,560			35,196
Operating lease liabilities, current			640,245			651,863			91,567
Short-term borrowings			1,606,253			916,154			128,691
Total current liabilities			5,270,478			4,734,952			665,114
Non-current liabilities:
Operating lease liabilities, non-current			780,036			907,421			127,465
Other non-current liabilities			143,118			146,347			20,557
Total non-current liabilities			923,154			1,053,768			148,022
TOTAL LIABILITIES			6,193,632			5,788,720			813,136

 

 

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Amounts in thousands of RMB and US$)
			As of
			December 31, 2024			September 30, 2025			September 30, 2025
			RMB			RMB			US$
						(Unaudited)
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY (CONTINUED)
Mezzanine Equity:
Redeemable noncontrolling interests			125,405			132,834			18,659
TOTAL MEZZANINE EQUITY			125,405			132,834			18,659
Shareholders' equity :
Ordinary shares			4			4			1
Additional paid-in capital			14,181,030			14,242,496			2,000,632
Treasury stock			(51,176)			(51,176)			(7,189)
Accumulated deficit			(13,384,881)			(13,194,215)			(1,853,380)
Accumulated other comprehensive income			53,634			27,731			3,895
TOTAL SHAREHOLDERS' EQUITY			798,611			1,024,840			143,959
TOTAL LIABILITIES, MEZZANINE EQUITY     AND SHAREHOLDERS' EQUITY			7,117,648			6,946,394			975,754

 

 

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands of RMB and US$, except for number of shares and per share data)
			For the three  months ended September  3 0 ,
			2024				2025			2025
			RMB				RMB			US$
			(Unaudited)
Revenues:
Product revenues			6,458,447				6,573,085			923,316
Service revenues			79,788				89,311			12,545
Total revenues			6,538,235				6,662,396			935,861
Operating costs and expenses:
Cost of goods sold			(4,591,429)				(4,739,839)			(665,801)
Fulfillment expenses			(1,397,785)				(1,430,605)			(200,956)
Sales and marketing expenses			(144,868)				(127,669)			(17,934)
Product development expenses			(202,412)				(203,447)			(28,578)
General and administrative expenses			(101,988)				(120,074)			(16,867)
T otal operating costs and expenses			(6,438,482)				(6,621,634)			(930,136)
Other operating income, net			10,796				18,540			2,605
Income  from operations			110,549				59,302			8,330
Interest income			38,446				29,694			4,171
Interest expenses			(9,650)				(3,168)			(445)
Other loss, net			(2,865)				(1,119)			(157)
Income before income tax			136,480				84,709			11,899
Income tax expenses			(3,074)				(1,816)			(255)
Net income			133,406				82,893			11,644
Accretion of redeemable noncontrolling interests			(2,363)				(2,552)			(358)
Net income attributable to ordinary shareholders			131,043				80,341			11,286

 

 

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)
(Amounts in thousands of RMB and US$, except for number of shares and per share data)
			For the three  months ended September  3 0 ,
			2024			2025			2025
			RMB			RMB			US$
			(Unaudited)
Net income per Class A and Class B ordinary share:
Basic			0.40			0.25			0.04
Diluted			0.40			0.24			0.03
Shares used in net income per Class A and Class B     ordinary share computation:
Basic			324,194,950			325,019,667			325,019,667
Diluted			330,928,010			339,885,461			339,885,461
Other comprehensive loss, net of tax of nil:
Foreign currency translation adjustments			(36,009)			(16,631)			(2,336)
Comprehensive income			97,397			66,262			9,308
Accretion of redeemable noncontrolling interests			(2,363)			(2,552)			(358)
Comprehensive income attributable to ordinary     shareholders			95,034			63,710			8,950

 

 

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of RMB and US$)
			For the three  months ended September  3 0 ,
			2024			2025			2025
			RMB			RMB			US$
			(Unaudited)
Net cash generated from operating activities			397,639			144,411			20,284
Net cash used in investing activities			(352,490)			(91,582)			(12,864)
Net cash used in financing activities			(200,107)			(145,799)			(20,480)
Effect of exchange rate changes on cash and cash     equivalents and restricted cash			(2,267)			(1,949)			(274)
Net decrease in cash and cash equivalents and     restricted cash			(157,225)			(94,919)			(13,334)
Cash and cash equivalents and restricted cash at the     beginning of the period			1,061,667			927,838			130,333
Cash and  cash equivalents and restricted cash at the     end of the period			904,442			832,919			116,999

 

 

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands of RMB and US$, except for number of shares and per share data)
				For the three  months ended September  3 0 ,
				2024			2025			2025
				RMB			RMB			US$
				(Unaudited)
Income from operations				110,549			59,302			8,330
Add: share-based compensation expenses (1)				28,210			18,369			2,580
Non-GAAP income  from operations				138,759			77,671			10,910
Operating margin				1.6 %			0.9 %			0.9 %
Add: share-based compensation expenses				0.5 %			0.3 %			0.3 %
Non-GAAP o perating margin				2.1 %			1.2 %			1.2 %
Net income				133,406			82,893			11,644
Add: share-based compensation expenses (1)				28,210			18,369			2,580
Non-GAAP net income				161,616			101,262			14,224
Net income margin				2.0 %			1.2 %			1.2 %
Add: share-based compensation expenses				0.5 %			0.3 %			0.3 %
Non-GAAP net income margin				2.5 %			1.5 %			1.5 %
Net income attributable to ordinary shareholders				131,043			80,341			11,286
Add: share-based compensation expenses (1)				28,210			18,369			2,580
Non-GAAP net income attributable to ordinary     shareholders				159,253			98,710			13,866
Net income per Class A and Class B ordinary share:
Basic				0.40			0.25			0.04
Diluted				0.40			0.24			0.03
Add: share-based compensation expenses
Basic				0.09			0.06			0.01
Diluted				0.09			0.05			0.01
Non-GAAP net income per Class A and Class B ordinary     share:
Basic				0.49			0.31			0.05
Diluted				0.49			0.29			0.04
(1) Share-based compensation expenses are recognized as follows:
				For the three months ended
				September 30,
				2024			2025			2025
				RMB			RMB			US$
				(Unaudited)
Fulfillment expenses				4,707			1,763			248
Sales and marketing expenses				1,057			2,199			309
Product development expenses				13,288			7,724			1,084
General and administrative expenses				9,158			6,683			939
Total				28,210			18,369			2,580

 

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SOURCE Dingdong (Cayman) Limited

FAQ

What were Dingdong (DDL) Q3 2025 revenue and GMV?

Q3 2025 revenue was RMB6,662.4M (+1.9% YoY) and GMV was RMB7,273.2M (+0.1% YoY).

Did Dingdong (DDL) report profit in Q3 2025 and how much?

Yes; GAAP net income was RMB82.9M and non-GAAP net income was RMB101.3M.

What margin trends did Dingdong (DDL) report for Q3 2025?

Gross margin declined to 28.9% from 29.8%, while non-GAAP net margin fell to 1.5% from 2.5% YoY.

How strong was Dingdong's cash position at September 30, 2025?

After deducting short-term borrowings, net cash was RMB3.03B; total cash and equivalents were RMB3,908.2M.

What guidance did Dingdong (DDL) provide for Q4 2025?

The company aims to maintain scale year-over-year and achieve non-GAAP profitability in Q4 2025.

How did Dingdong (DDL) control costs in Q3 2025?

Sales and marketing expenses fell 11.9% YoY to RMB127.7M, aided by product and hero-product strategies reducing promotions.