PDD (PDD) Q2 2025 earnings summary

Executive summary

• Total revenues for Q2 2025 reached RMB 104 billion (US$14,515.7 million), up 7% year-over-year, driven by growth in online marketing and transaction services.

• Operating profit declined 21% year-over-year to RMB 25.8 billion (US$3,600.6 million) due to increased costs and investments in the 100 Billion Support Program and ecosystem health.

• Net income attributable to shareholders was RMB 30.8 billion (US$4,293.0 million), a 4% decrease year-over-year.

• Management emphasized ongoing investments in merchant support and platform sustainability, prioritizing long-term value over short-term profitability.

• Merchant support initiatives, including fee reductions and logistics improvements, drove order growth in remote regions and supported both SMEs and branded merchants.

Financial highlights

• Revenues from online marketing services rose 13% year-over-year to RMB 55.7 billion (US$7,775.9 million); transaction services revenue was RMB 48.3 billion (US$6,739.9 million), nearly flat year-over-year.

• Total costs of revenues increased 36% to RMB 45.9 billion (US$6,401.7 million), mainly from higher fulfillment, bandwidth, and payment processing fees.

• GAAP operating profit was RMB 25.8 billion, down from RMB 32.6 billion; non-GAAP operating profit was RMB 27.7 billion, down from RMB 35 billion.

• Net cash from operating activities was RMB 21.6 billion (US$3,021.1 million), compared to RMB 43.8 billion a year ago.

• Sales and marketing expenses rose to RMB 27.2 billion (US$3,798.4 million), while R&D expenses increased to RMB 3.6 billion (US$501.3 million).

Outlook and guidance

• Management expects continued fluctuations in profitability as investments in merchant support and ecosystem health persist.

• The company will continue to ramp up investments in supply chain, service, and compliance capabilities, especially for global business expansion.

• No specific quantitative guidance provided, but long-term value creation remains the strategic focus.