Meituan (3690) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 grew 18.1% year-over-year to RMB 86.6 billion, with record highs in annual transacting users and active merchants.

• Profit for the period rose 87.3% to RMB 10.1 billion, and adjusted net profit increased 46.2% to RMB 10.9 billion.

• Adjusted EBITDA increased 52.4% year-over-year to RMB 12.3 billion.

• Continued investment in ecosystem development, product innovation, and support for small and medium-sized merchants.

• Overseas business, especially in Saudi Arabia and Hong Kong, showed strong growth and market share gains.

Financial highlights

• Total revenue reached RMB 86.6 billion, up 18.1% year-over-year.

• Operating profit for Q1 2025 was RMB 10.6 billion, up 102.8% year-over-year; operating margin improved to 12.2% from 7.1%.

• Gross profit increased to RMB 32.4 billion from RMB 25.7 billion year-over-year.

• Cost of revenue ratio decreased by 2.3 percentage points to 62.6%.

• Cash and equivalents plus short-term investments totaled RMB 180.4 billion as of March 31, 2025.

Outlook and guidance

• Expect Q2 core local commerce revenue growth to decelerate and operating profits to decrease significantly year-over-year due to intensified competition and increased investment.

• No specific financial guidance for Q2 or the rest of the year due to market volatility.

• Plans to invest RMB 100 billion over three years to support high-quality industry growth.

• Long-term confidence in market leadership and margin improvement post-competition phase.

• Focus on expanding membership benefits, supporting merchants, and leveraging AI to enhance user and merchant experience.