Meituan (3690) Q4 2025 earnings summary

Executive summary

• Achieved double-digit growth in platform GTV and transaction volume for 2025, with new transacting users, transaction frequency, and ARPU reaching record highs.

• Revenues for 2025 rose 8.1% year-over-year to RMB364.9 billion, but the company swung to a net loss of RMB23.4 billion from a profit of RMB35.8 billion in 2024.

• Upgraded membership program and launched AI assistants Xiao Mei and Xiao Tuan to enhance user experience and cross-selling.

• Overseas business KeeTa showed strong growth, achieving profitability in Hong Kong and nearing breakeven in Saudi Arabia.

• Significant investment in AI and digital transformation to maintain competitive edge.

Financial highlights

• Q4 total revenue reached RMB92.1 billion, up 4.1% year-over-year.

• Gross profit fell to RMB111.0 billion from RMB129.8 billion, as cost of revenues increased to 69.6% of revenues.

• Selling and marketing expenses surged 60.9% to RMB102.9 billion, now 28.2% of revenues.

• Q4 segment operating loss and adjusted net loss narrowed sequentially to RMB14.7 billion and RMB15.1 billion, respectively.

• Cash and equivalents plus short-term investments totaled RMB166.8 billion as of December 31, 2025.

Outlook and guidance

• Focus remains on quality growth, operational efficiency, and sustainable ecosystem development.

• Strategic focus on grocery retail and overseas expansion, especially through KeeTa, with disciplined investment.

• Expect continued improvement in food delivery per order loss in Q1 2026 versus Q4 2025.

• Overseas segment losses in 2026 will remain significant due to new market entries, but overall new initiatives loss will not exceed 2025 levels.

• Continued commitment to AI integration and ecosystem development to drive long-term growth.