Tongcheng Travel (780) Q4 2025 earnings summary

Executive summary

• Achieved record highs in user base, accumulated travelers served (2.03 billion, +5.5% YoY), APUs, and ARPU, driven by strong domestic and outbound travel demand and enhanced user experience.

• Strategic focus on high-quality development, product diversification, and AI-driven innovation to meet evolving consumer needs.

• Seamless integration and acquisition of Wanda Hotels & Resorts strengthened hotel management business and brand portfolio, expanding presence in upper-upscale and luxury segments.

• Maintained leadership in China's OTA industry, leveraging technology, partnerships, and a user-centric approach.

• Achieved MSCI ESG AAA rating and S&P Global Sustainability Yearbook China inclusion.

Financial highlights

• FY2025 net revenue: RMB 19.4B, up 11.9% YoY; Q4 2025 net revenue: RMB 4.8B, up 14.2% YoY.

• Adjusted net profit for FY2025: RMB 3.4B, up 22.2% YoY; Q4 adjusted net profit: RMB 779.8M, up 18.1% YoY.

• Adjusted EBITDA for FY2025: RMB 5.1B, up 26.9% YoY; adjusted EBITDA margin: 26.5%, up 3.1pp YoY.

• Board proposed final cash dividend of HKD 0.25/share, a 38.9% increase YoY, with a non-GAAP payout ratio of 15.5%.

• Gross profit for 2025: RMB 12.9B, up 15.7% YoY; cost of revenue increased 5.0% but decreased as a percentage of revenue.

Outlook and guidance

• Focus on high-quality, sustainable growth in 2026, balancing scale expansion with operational efficiency and global market expansion.

• Accommodation business expected to outpace transportation, driven by volume and ADR growth.

• Outbound segment revenue contribution targeted to rise to 10%-15% over next 2-3 years.

• Continued investment in AI and technology to drive margin improvement and user experience.

• Plans to expand OTA product offerings, optimize service experiences, and accelerate hotel management business.