Dingdong (Cayman) Limited Announces Fourth Quarter 2025 Financial Results

Dingdong (Cayman) Limited (“Dingdong” or the “Company”) (NYSE: DDL), a leading fresh grocery e-commerce company in China, with advanced supply chain capabilities, today announced its unaudited financial results for the quarter ended December 31, 2025.

Fourth
Quarter 2025 Highlights:

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GMV for the fourth quarter of 2025 increased by 2.4% year over year to RMB6,703.2 million (US$943.0 million) from RMB6,546.6 million in the same quarter of 2024, positive year-on-year growth for eight straight quarters.

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Revenue for the fourth quarter of 2025 increased by 5.7% year over year to RMB6,242.6 million (US$892.7 million) from RMB5,905.0 million in the same quarter of 2024, positive year-on-year growth for eight straight quarters.

—
Total number of orders increased by 3.4% year over year in the fourth quarter of 2025.

—
N
et income for the fourth quarter of 2025 was RMB33.6 million (US$4.8 million), the eighth consecutive quarter of profitability.

—
Non-GAAP net income for the fourth quarter of 2025 was RMB50.8 million (US$7.3 million), the thirteenth consecutive quarter of non-GAAP profitability.

Mr. Changlin Liang, Founder and Chief Executive Officer of Dingdong, stated, “As of the fourth quarter of 2025, Dingdong has maintained profitability under non-GAAP standards for thirteen consecutive quarters and under GAAP standards for eight consecutive quarters. Also the Company has delivered year-over-year revenue growth for the eighth consecutive quarter. This consistent top-line expansion, together with the steady delivery of profitability objectives, fully underscores Dingdong's strategic resilience and strong execution capabilities amid the complex and competitive market environment. It also provides solid fundamentals and strong momentum to advance our long-term strategic initiatives.”

Mr. Song Wang, Chief Financial Officer of Dingdong, stated, “In the fourth quarter of 2025, Dingdong reported revenue of RMB6.24 billion, marking a 5.7% year-on-year growth and maintaining positive growth for eight straight quarters. Non-GAAP net profit reached RMB50.8 million with a 0.8% net profit margin, while GAAP net profit was RMB33.6 million with a 0.5% margin. We had net operating cash inflow of RMB0.20 billion in the fourth quarter of 2025, the tenth consecutive quarter of positive cash flow. By the end of the fourth quarter, after deducting short-term borrowings, our actual cash owned increased to RMB3.14 billion, the tenth consecutive quarter of sustained growth.”

Fourth
Quarter 2025 Financial Results

Total revenues were RMB6,242.6 million (US$892.7 million) compared with total revenues of RMB5,905.0 million in the same quarter of 2024, increased by 5.7% year over year, primarily due to the rise of number of orders resulting from rise in the average monthly number of transacting users and higher monthly order frequency, and new opened frontline fulfillment stations with density and market penetration improved in East China. Additionally, our B2B revenue achieved year-over-year growth, with the revenue contribution from overseas B2B operations continuing to increase and posting rapid quarter-over-quarter growth. The increase was offset by the impact of the price decline in CPI for certain major categories in our business, such as pork, in the fourth quarter of 2025.

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Product Revenues were RMB6,164.6 million (US$881.5 million) compared with product revenues of RMB5,822.5 million in the same quarter of 2024, increased by 5.9% year over year.

—
Service Revenues were RMB78.0 million (US$11.2 million) compared with service revenues of RMB82.5 million in the same quarter of 2024, decreased by 5.4% year over year.

Total operating costs and expenses were RMB6,252.5 million (US$894.1 million) compared with RMB5,848.0 million in the same quarter of 2024, with a detailed breakdown as below:

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Cost of goods sold was RMB4,415.9 million (US$631.5 million), an increase of 7.2% from RMB4,120.8 million in the same quarter of 2024. Cost of goods sold as a percentage of revenues increased to 70.7% from 69.8% in the same quarter of 2024. Gross margin decreased to 29.3% from 30.2% in the same quarter of 2024. Since the launch and continued implementation of the 4G Strategy in early 2025, the gross margin for the fourth quarter of 2025 was generally consistent with that of previous quarters, but decreased compared with the same period of the prior year.

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Fulfillment expenses were RMB1,350.9 million (US$193.2 million), an increase of 5.6% from RMB1,278.9 million in the same quarter of 2024. Fulfillment expenses as a percentage of total revenues slightly decreased to 21.6% from 21.7% in the same quarter of 2024.

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Sales and marketing expenses were RMB136.7 million (US$19.5 million), a decrease of 0.6% from RMB137.5 million in the same quarter of 2024. Sales and marketing expenses as a percentage of total revenues decreased to 2.2% from 2.3% in the same quarter of 2024. The year-on-year decrease in marketing expenses is attributable to the positive results achieved by the 4G strategy rolled out in the first three quarters. The company has further focused on the operation strategy of leveraging the organic traffic of high-quality products, reduced investment in inefficient marketing activities, and thus improved the input-output efficiency of marketing expenses.

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General and administrative expenses were RMB130.3 million (US$18.6 million), an increase of 19.3% from RMB109.2 million in the same quarter of 2024, mainly driven by staff costs, specifically from the new “Dong Li Sheng” management trainees.

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Product development expenses were RMB218.7 million (US$31.3 million), an increase of 8.5% from RMB201.6 million in the same quarter of 2024. While advocating for energy and resource saving, we will continue to invest in our product development capabilities, agricultural technology, data algorithms, and other technology infrastructure such as the AI technical capability, to further enhance our competitiveness.

Net income
from operations was RMB12.0 million (US$1.7 million), compared with net income from operations of RMB61.5 million in the same quarter of 2024.

Non-GAAP
income
from operations, which is a non-GAAP measure for loss from operations that excludes share-based compensation expenses, was RMB29.1 million (US$4.2 million), compared with Non-GAAP income from operations of RMB86.6 million in the same quarter of 2024.

Net
income was RMB33.6 million (US$4.8 million), compared with net income of RMB91.6 million in the same quarter of 2024.

Non-GAAP net income, which is a non-GAAP measure that excludes share-based compensation expenses, was RMB50.8 million (US$7.3 million), compared with non-GAAP net income of RMB116.7 million in the same quarter of 2024. In addition, non-GAAP net income margin, which is the Company's non-GAAP net income as a percentage of total revenues, was 0.8% compared with 2.0% in the same quarter of 2024.

Basic and diluted net
income
per share were RMB0.10 (US$0.01) and RMB0.09 (US$0.01), compared with net income per share of RMB0.27 and RMB0.26 in the same quarter of 2024. Non-GAAP net income per share, basic and diluted, were RMB0.15 (US$0.02) and RMB0.14 (US$0.02), compared with RMB0.35 and RMB0.33 in the same quarter of 2024.

Cash and cash equivalents
, restricted cash
and short-term investments were RMB3,976.8 million (US$568.7 million) as of December 31, 2025, compared with RMB3,908.2 million as of September 30, 2025. We have been working diligently to optimize our capital usage and financing structure. The cash and cash equivalents, restricted cash, short-term investments and long-term deposits as included in the other non-current assets deducting the balance of short-term borrowings, is RMB3.14 billion, a net increase for the tenth consecutive quarter, compared with RMB3.03 billion as of September 30, 2025.

The Definitive Agreement with Meituan

On February 5, 2026, the Company announced the entry into a definitive agreement to sell its China business to Meituan. On February 10, 2026, the Company further announced its intention to utilize a substantial majority of the proceeds from the sale of its China operations for share repurchase plans and/or dividends upon the closing of the transaction, as well as other material terms of the transaction. For details, please refer to the Company's previous press releases.

About Dingdong (Cayman) Limited

We are a leading fresh grocery e-commerce company in mainland China, with sustainable long-term growth. We directly provide users and households with fresh groceries, prepared food, and other food products through delivering a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid. Leveraging our deep insights into consumers' evolving needs and our strong food innovation capabilities, we have successfully launched a series of private label products spanning a variety of food categories. Many of our private label products are produced at our Dingdong production plants, allowing us to more efficiently produce and offer safe and high-quality food products. We aim to be the first choice for fresh and food shopping.

For more information, please visit: https://ir.100.me.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as non-GAAP net income, non-GAAP net income margin, non-GAAP net income attributable to ordinary shareholders and non-GAAP net income per share, basic and diluted, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges and do not correlate to any operating activity trends. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.9931 to US$1.00, the exchange rate on December 31, 2025 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue,” or other similar expressions. Among other things, business outlook and quotations from management in this announcement, as well as Dingdong's strategic and operational plans, contain forward-looking statements. Dingdong may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its interim and annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Dingdong's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Dingdong's goals and strategies; Dingdong's future business development, financial conditions, and results of operations; the expected outlook of the fresh grocery ecommerce market in China; Dingdong's expectations regarding demand for and market acceptance of its products and services; Dingdong's expectations regarding its relationships with its users, clients, business partners, and other stakeholders; competition in Dingdong's industry; and relevant government policies and regulations relating to Dingdong's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.

DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of RMB and US$) As of December 31, December 31, December 31, 2024 2025 2025 RMB RMB US$ (Unaudited) ASSETS Current assets: Cash and cash equivalents 887,427 1,106,795 158,270 Restricted cash 2,788 340 49 Short-term investments 3,561,977 2,869,681 410,359 Accounts receivable, net 125,896 191,939 27,447 Inventories, net 553,601 570,485 81,578 Advance to suppliers 62,730 114,105 16,317 Prepayments and other current assets 170,753 186,744 26,704 Total current assets 5,365,172 5,040,089 720,724 Non-current assets: Property and equipment, net 176,290 232,757 33,284 Operating lease right-of-use assets 1,464,791 1,580,099 225,951 Other non-current assets 111,395 163,223 23,341 Total non-current assets 1,752,476 1,976,079 282,576 TOTAL ASSETS 7,117,648 7,016,168 1,003,300 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 1,660,472 1,920,341 274,605 Customer advances and deferred revenue 279,276 273,260 39,076 Accrued expenses and other current 767,080 760,613 108,766 liabilities Salary and welfare payable 317,152 304,531 43,547 Operating lease liabilities, current 640,245 664,304 94,994 Short-term borrowings 1,606,253 871,520 124,626 Total current liabilities 5,270,478 4,794,569 685,614 Non-current liabilities: Operating lease liabilities, non-current 780,036 897,811 128,385 Other non-current liabilities 143,118 147,573 21,103 Total non-current liabilities 923,154 1,045,384 149,488 TOTAL LIABILITIES 6,193,632 5,839,953 835,102 DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Amounts in thousands of RMB and US$) As of December 31, December December 31, 31, 2024 2025 2025 RMB RMB US$ (Unaudited) LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY (CONTINUED) Mezzanine Equity: Redeemable noncontrolling interests 125,405 135,435 19,367 TOTAL MEZZANINE EQUITY 125,405 135,435 19,367 Shareholders' equity : Ordinary shares 4 4 1 Additional paid-in capital 14,181,030 14,260,014 2,039,155 Treasury stock (51,176) (59,969) (8,575) Accumulated deficit (13,384,881) (13,163,217) (1,882,315) Accumulated other comprehensive income 53,634 3,948 565 TOTAL SHAREHOLDERS' EQUITY 798,611 1,040,780 148,831 TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY 7,117,648 7,016,168 1,003,300 DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands of RMB and US$, except for number of shares and per share data) For the three months ended December 31, 2024 2025 2025 RMB RMB US$ (Unaudited) Revenues: Product revenues 5,822,527 6,164,574 881,522 Service revenues 82,495 78,010 11,155 Total revenues 5,905,022 6,242,584 892,677 Operating costs and expenses: Cost of goods sold (4,120,793) (4,415,876) (631,462) Fulfillment expenses (1,278,904) (1,350,900) (193,176) Sales and marketing expenses (137,513) (136,662) (19,542) Product development expenses (201,632) (218,731) (31,278) General and administrative expenses (109,195) (130,303) (18,633) T otal operating costs and expenses (5,848,037) (6,252,472) (894,091) Other operating income, net 4,534 21,873 3,128 Income from operations 61,519 11,985 1,714 Interest income 37,879 27,345 3,910 Interest expenses (6,852) (2,836) (406) Other income/(expenses), net 2,875 (913) (131) Income before income tax 95,421 35,581 5,087 Income tax expenses (3,830) (1,980) (283) Net income 91,591 33,601 4,804 Accretion of redeemable noncontrolling interests (2,409) (2,602) (372) Net income attributable to ordinary shareholders 89,182 30,999 4,432 DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED) (Amounts in thousands of RMB and US$, except for number of shares and per share data) For the three months ended December 31, 2024 2025 2025 RMB RMB US$ (Unaudited) Net income per Class A and Class B ordinary share: Basic 0.27 0.10 0.01 Diluted 0.26 0.09 0.01 Shares used in net income per Class A and Class B ordinary share computation: Basic 324,500,919 324,832,508 324,832,508 Diluted 337,933,639 336,937,358 336,937,358 Other comprehensive loss, net of tax of nil: Foreign currency translation adjustments 55,517 (23,784) (3,401) Comprehensive income 147,108 9,817 1,403 Accretion of redeemable noncontrolling interests (2,409) (2,602) (372) Comprehensive income attributable to ordinary 144,699 7,215 1,031 shareholders DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$) For the three months ended December 31, 2024 2025 2025 RMB RMB US$ (Unaudited) Net cash generated from operating activities 190,878 204,469 29,239 Net cash (used in)/generated from investing activities (158,850) 125,524 17,950 Net cash used in financing activities (49,678) (53,242) (7,614) Effect of exchange rate changes on cash and cash 3,425 (2,535) (362) equivalents and restricted cash Net ( decrease )/increase in cash and cash equivalents (14,225) 274,216 39,213 and restricted cash Cash and cash equivalents and restricted cash at the 904,440 832,919 119,106 beginning of the period Cash and cash equivalents and restricted cash at the 890,215 1,107,135 158,319 end of the period DINGDONG (CAYMAN) LIMITED UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands of RMB and US$, except for number of shares and per share data) For the three months ended December 31, 2024 2025 2025 RMB RMB US$ (Unaudited) Income from operations 61,519 11,985 1,714 Add: share-based compensation expenses (1) 25,073 17,157 2,454 Non-GAAP income from operations 86,592 29,142 4,168 Operating margin 1.1 % 0.2 % 0.2 % Add: share-based compensation expenses 0.4 % 0.3 % 0.3 % Non-GAAP o perating margin 1.5 % 0.5 % 0.5 % Net income 91,591 33,601 4,804 Add: share-based compensation expenses (1) 25,073 17,157 2,454 Non-GAAP net income 116,664 50,758 7,258 Net income margin 1.6 % 0.5 % 0.5 % Add: share-based compensation expenses 0.4 % 0.3 % 0.3 % Non-GAAP net income margin 2.0 % 0.8 % 0.8 % Net income attributable to ordinary shareholders 89,182 30,999 4,432 Add: share-based compensation expenses (1) 25,073 17,157 2,454 Non-GAAP net income attributable to ordinary 114,255 48,156 6,886 shareholders Net income per Class A and Class B ordinary share: Basic 0.27 0.10 0.01 Diluted 0.26 0.09 0.01 Add: share-based compensation expenses Basic 0.08 0.05 0.01 Diluted 0.07 0.05 0.01 Non-GAAP net income per Class A and Class B ordinary share: Basic 0.35 0.15 0.02 Diluted 0.33 0.14 0.02 (1) Share-based compensation expenses are recognized as follows: For the three months ended December 31, 2024 2025 2025 RMB RMB US$ (Unaudited) Fulfillment expenses 4,148 2,416 345 Sales and marketing expenses 1,520 2,376 340 Product development expenses 12,468 5,746 822 General and administrative expenses 6,937 6,619 947 Total 25,073 17,157 2,454

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