Tuniu Corporation (NASDAQ: TOUR) reported its unaudited financial results for the third quarter ended September 30, 2025, showing a 8.6% year‑over‑year increase in net revenues to RMB 202.1 million, while net income attributable to ordinary shareholders fell to RMB 19.8 million from RMB 44.4 million in the same period a year earlier.
The revenue growth was driven largely by a 12.4% rise in packaged‑tour product sales, which accounted for the bulk of the top‑line expansion. In contrast, other segments lagged, and the company’s cost of revenues surged 44% year‑over‑year, eroding gross profit to RMB 109.6 million—a 10% decline from the prior year’s figure.
Operating expenses increased 3% to RMB 95.8 million, reflecting higher marketing and technology investments aimed at expanding the dual‑product strategy and AI‑powered customer experience. The combination of a sharp rise in cost of revenues and modest expense growth compressed operating margins, underscoring the pricing pressure Tuniu faces in a highly competitive online travel market.
For the fourth quarter, Tuniu revised its revenue guidance to a range of RMB 106.1 million to RMB 111.0 million, representing an 8% to 13% year‑over‑year increase. The guidance reflects management’s confidence in sustained demand for packaged tours while acknowledging the ongoing cost‑inflation headwinds that will temper margin expansion.
Market reaction to the earnings was mixed: investors noted the solid revenue growth but tempered enthusiasm with concerns over margin compression and the sharp rise in cost of revenues. Analysts issued a neutral rating, citing the company’s continued focus on AI and multi‑channel sales as potential long‑term growth drivers, while highlighting the need for tighter cost control to preserve profitability.
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