Dingdong(US:DDL) Prnewswireยท2025-11-12 09:30Core Insights - Dingdong (Cayman) Limited has reported its financial results for the third quarter of 2025, highlighting sustained profitability and revenue growth despite market challenges [3][4]. Financial Performance - Revenue for Q3 2025 was RMB 6.66 billion (approximately US$ 935.9 million), representing a year-over-year increase of 1.9% [4][6]. - Non-GAAP net profit reached RMB 0.1 billion (US$ 14.2 million), with a net profit margin of 1.5%, while GAAP net profit was RMB 0.08 billion (US$ 11.6 million) with a margin of 1.2% [3][11]. - The company achieved a net operating cash inflow of RMB 0.14 billion (US$ 20 million) for the ninth consecutive quarter, with actual cash reserves increasing to RMB 3.03 billion (US$ 426 million) by the end of Q3 2025 [3][13]. Operational Highlights - The total number of orders increased by 2.2% year-over-year, contributing to the revenue growth [6]. - Gross merchandise volume (GMV) for Q3 2025 was RMB 7.27 billion (US$ 1.02 billion), marking a 0.1% increase from the same quarter in 2024 [6]. - Product revenues were RMB 6.57 billion (US$ 923.3 million), up 1.8% year-over-year, while service revenues increased by 11.9% to RMB 89.3 million (US$ 12.5 million) [7]. Cost Structure - Total operating costs and expenses were RMB 6.62 billion (US$ 930.1 million), an increase from RMB 6.44 billion in Q3 2024 [5]. - Cost of goods sold rose by 3.2% to RMB 4.74 billion (US$ 665.8 million), while fulfillment expenses increased by 2.3% to RMB 1.43 billion (US$ 201 million) [5][15]. - Sales and marketing expenses decreased by 11.9% to RMB 127.7 million (US$ 17.9 million), reflecting a shift in marketing strategy [15]. Strategic Outlook - The company aims to maintain its scale and achieve non-GAAP profitability in Q4 2025, leveraging its supply chain and product development strengths [3][14]. - Dingdong's management expressed confidence in navigating the competitive landscape and executing its long-term strategy effectively [3].