Dingdong (Cayman) (DDL) Q2 2025 earnings summary

Executive summary

• Achieved eleven consecutive quarters of non-GAAP profitability and six consecutive quarters of GAAP profitability, with six straight quarters of positive year-over-year revenue and GMV growth.

• Maintained robust growth in scale and profitability, driven by the 4G strategy focused on users, products, services, and mindshare, which improved operational efficiency and user engagement.

• Continued expansion in both domestic and international markets, with notable growth in key regions and user engagement.

Financial highlights

• Q2 2025 revenue reached RMB 5.98 billion, up 6.7% year-over-year; GMV was RMB 6.50 billion, up 4.5% year-over-year.

• Non-GAAP net profit was RMB 130 million (2.1% margin), up 23.9% year-over-year; GAAP net profit was RMB 110 million (1.8% margin), up 59.7% year-over-year.

• Gross margin was 28.8%, down from 30.0% year-over-year, due to increased investment in good products.

• Net cash inflow from operating activities was RMB 101.4 million, marking eight consecutive quarters of positive cash flow.

• Cash, cash equivalents, and investments totaled RMB 4.01 billion; net equity after short-term borrowings was RMB 2.95 billion.

Outlook and guidance

• Q3 2025 aims for stable year-over-year scale and continued non-GAAP profitability despite increased competition and product mix changes.