PDD Holdings Announces Third Quarter 2025 Unaudited Financial Results

Core Insights - PDD Holdings reported a 9% increase in total revenues for Q3 2025, reaching RMB 108,276.5 million (US$ 15,209.5 million) compared to RMB 99,354.4 million in Q3 2024, driven by growth in online marketing and transaction services [5][8] - The company experienced an 18% rise in total costs of revenues, amounting to RMB 46,840.2 million (US$ 6,579.6 million), primarily due to increased fulfillment fees and server costs [6][9] - Net income attributable to ordinary shareholders increased by 17% to RMB 29,328.2 million (US$ 4,119.7 million) from RMB 24,980.7 million in the same quarter of the previous year [11][27] Financial Performance - Total revenues for Q3 2025 were RMB 108,276.5 million (US$ 15,209.5 million), a 9% increase from RMB 99,354.4 million in Q3 2024 [5][26] - Operating profit for the quarter was RMB 25,025.9 million (US$ 3,515.4 million), slightly up from RMB 24,292.5 million in Q3 2024 [10][26] - Non-GAAP operating profit was RMB 27,079.4 million (US$ 3,803.8 million), compared to RMB 26,770.5 million in the same quarter of 2024 [10][31] Revenue Breakdown - Revenues from online marketing services and others reached RMB 53,347.6 million (US$ 7,493.7 million), an 8% increase from RMB 49,351.0 million in Q3 2024 [8][29] - Revenues from transaction services were RMB 54,928.9 million (US$ 7,715.8 million), marking a 10% increase compared to RMB 50,003.4 million in the same quarter of 2024 [8][29] Cost and Expenses - Total costs of revenues increased to RMB 46,840.2 million (US$ 6,579.6 million), up 18% from RMB 39,709.2 million in Q3 2024 [6][9] - Total operating expenses were RMB 36,410.4 million (US$ 5,114.5 million), compared to RMB 35,352.7 million in the same quarter of 2024 [9][26] - Research and development expenses surged by 41% to RMB 4,332.2 million (US$ 608.5 million) from RMB 3,063.4 million in Q3 2024, primarily due to increased staff-related costs [17][29] Cash Flow and Assets - Net cash generated from operating activities was RMB 45,660.5 million (US$ 6,413.9 million), significantly higher than RMB 27,522.3 million in Q3 2024 [13][30] - Cash, cash equivalents, and short-term investments totaled RMB 423.8 billion (US$ 59.5 billion) as of September 30, 2025, up from RMB 331.6 billion as of December 31, 2024 [13][30]