Dingdong's Q4 revenue falls short of expectations

LootboxPhobia · 2026-03-04T16:52:50+00:00

Dingdong Company announced its Q4 earnings, with revenue of 6.24 billion yuan, below expectations, but it has been profitable for the eighth consecutive quarter. Net profit declined year-over-year, and gross profit margin dropped to 29.3%. The founder emphasized the company's resilience in competition, with order growth of 3.4%. Operating cash flow is positive, and the company has reached a sale agreement with Meituan.

LootboxPhobia

2026-03-04 16:52:50

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Shanghai - On Wednesday, Dingdong (Cayman) Limited (NYSE: DDL) announced its fourth-quarter earnings, which fell short of analyst revenue expectations, but the company maintained profitability for the eighth consecutive quarter.

The company’s stock rose 0.05% in after-hours trading following the earnings release.

This fresh produce e-commerce company’s revenue for the quarter ending December 31, 2025, was RMB 6.24 billion ($892.7 million), below the consensus analyst estimate of RMB 6.29 billion.

Revenue increased 5.7% year-over-year from RMB 5.91 billion in the same period of 2024. Adjusted earnings per share were RMB 0.14 ($0.02).

The company reported an adjusted net profit of RMB 50.8 million ($7.3 million), marking the 13th consecutive quarter of adjusted profitability, though down from RMB 116.7 million in the same period last year.

Net profit calculated under U.S. Generally Accepted Accounting Principles (GAAP) was RMB 33.6 million ($4.8 million), compared to RMB 91.6 million in Q4 2024.

Founder and CEO Liang Changlin stated, “In a complex and highly competitive market environment, this sustained revenue growth and stable achievement of profit targets fully demonstrate Dingdong’s strategic resilience and strong execution capabilities.”

Gross margin decreased from 30.2% last year to 29.3%, which the company attributed to the implementation of its 4G strategy and price declines in key categories such as pork.

Total orders for the quarter increased by 3.4% year-over-year.

Operating cash flow remained positive at RMB 204.5 million, marking the tenth consecutive quarter of positive cash flow. After deducting short-term borrowings, the company’s cash position increased to RMB 3.14 billion.

On February 5, 2026, Dingdong announced it had reached a final agreement to sell its China operations to Meituan.

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