Meituan (3690) Q2 2026 earnings summary

Executive summary

• Total revenue for Q2 2026 grew 14.4% year-over-year to RMB104.6 billion, with net profit reaching RMB2.2 billion, marking a significant turnaround from prior quarters.

• Core Local Commerce revenue increased 10.1% and New Initiatives revenue rose 25.0%, both contributing to improved business quality and operational efficiency.

• Adjusted EBITDA grew 47.3% year-over-year to RMB4.1 billion; adjusted net profit rose 69.0% to RMB2.5 billion.

• AI advancements and digital transformation enhanced consumer and merchant experiences, supporting growth in grocery, retail, and overseas markets.

• Sequential rebound from a Q1 2026 net loss of RMB6.8 billion to a Q2 profit, reflecting improved operational efficiency.

Financial highlights

• Q2 2026 revenues: RMB104.6 billion (+14.4% YoY); net profit: RMB2.2 billion (+490% YoY); adjusted net profit: RMB2.5 billion (+69.0% YoY).

• Operating profit: RMB2.7 billion (2.6% margin), up from RMB226 million (0.2% margin) YoY.

• Adjusted EBITDA: RMB4.1 billion (+47.3% YoY); gross profit: RMB35.1 billion (+16.7% YoY); gross margin: 33.6%.

• Cash and cash equivalents at June 30, 2026: RMB104.7 billion; short-term treasury investments: RMB63.6 billion.

• Investment portfolio valued at nearly RMB77.3 billion, with RMB22.2 billion gain in other comprehensive income.

Outlook and guidance

• Management expects continued high-quality growth, focusing on product innovation, AI integration, and ecosystem empowerment.

• Food delivery unit economics expected to improve year-over-year in Q3, though seasonality and higher subsidies will impact sequential results.

• New Initiatives segment losses in 2026 expected not to exceed 2025 levels, with focus on operational optimization.

• No interim dividend declared for H1 2026; focus remains on reinvestment and prudent capital management.

• Plans to expand digital transformation initiatives to 400 county-level regions, supporting over 500,000 merchants.