Dingdong (Cayman) Limited reported unaudited results for the quarter ended September 30 2025, posting total revenue of RMB 6,662.4 million (US$ 935.9 million). The figure fell short of analysts’ consensus of RMB 6.8 billion, a miss of roughly 1.4 billion yuan, reflecting a slowdown in fresh‑grocery demand and intensified price competition in China’s crowded e‑commerce market.
The company’s net income for the quarter was RMB 82.9 million (US$ 11.6 million), down from RMB 133.4 million in Q3 2024, while non‑GAAP net income fell to RMB 101.3 million (US$ 14.2 million) from RMB 161.6 million a year earlier. The decline in earnings is largely attributable to a 71.2% cost‑of‑goods‑sold ratio, up from 70.0%–70.2% in the same quarter of 2024, and higher fulfillment costs driven by expanding frontline stations in East China.
Revenue growth accelerated only 1.9% year‑over‑year, a sharp deceleration from the 27.2% rise seen in Q3 2024. The modest increase was supported by a 2.2% rise in total orders, not the 5.5% figure previously reported. The lower order growth reflects a shift in consumer spending toward lower‑margin staples and a temporary dip in discretionary grocery purchases.
Despite the margin compression, Dingdong has preserved a 12‑quarter streak of non‑GAAP profitability and a seven‑quarter streak of GAAP profitability. CFO Song Wang noted that the company’s “efficiency first” strategy continues to deliver cost discipline, while CEO Changlin Liang emphasized the importance of scaling the frontline fulfillment grid to capture market share in high‑growth regions.
The company guided that it will maintain year‑over‑year scale and achieve non‑GAAP profitability in Q4 2025. It also reported a net operating cash inflow of RMB 140 million and an actual cash balance of RMB 3.03 billion, underscoring a solid liquidity position that will support ongoing investments in supply‑chain and technology.
In pre‑market trading, Dingdong’s shares rose 1.69%, a reaction driven by the company’s continued profitability streak and strong cash position, even as revenue fell short of expectations and margins contracted. Analysts highlighted the company’s ability to sustain profitability amid a competitive environment, but cautioned that margin pressure could intensify if cost inflation persists.
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