Dingdong (Cayman) (DDL) Q3 2025 earnings summary

Executive summary

• Achieved profitability for 12 consecutive quarters on a non-GAAP basis and 7 consecutive quarters on a GAAP basis, with revenue and GMV reaching record highs in Q3 2025.

• Revenue and GMV grew year-over-year for the seventh straight quarter, demonstrating resilience and execution in a competitive market.

• Introduced the "One Big One Small One World" strategy, focusing on top-selling products, expansion into smaller cities, and international markets.

• Expanded into new cities and core markets, with progress in product strategy and user engagement.

• Management expressed confidence in maintaining scale and non-GAAP profitability in the next quarter.

Financial highlights

• Q3 2025 revenue was RMB 6.66 billion, up 1.9% year-over-year; GMV reached RMB 7.27 billion, a record high.

• Non-GAAP net profit was RMB 101.3 million (1.5% margin); GAAP net profit was RMB 82.9 million (1.2% margin).

• Gross profit margin was 28.9%, down from 29.8% year-over-year.

• Net operating cash inflow of RMB 144.4 million, marking the ninth consecutive quarter of positive cash flow.

• Cash, equivalents, and investments totaled RMB 3.94 billion; net equity funds reached a record RMB 3.03 billion.

Outlook and guidance

• Confident in maintaining last year's scale and non-GAAP profitability in Q4 2025 despite intensifying competition.

• Expects continued non-GAAP and GAAP net profitability and year-over-year GMV growth for Q4 and full year 2025.

• Will continue to leverage supply chain, product development, and IT strengths to pursue quality, efficiency, and resilience.