PDD Holdings Inc. (NASDAQ:PDD) saw its shares slide 3.97% in pre-market trading Tuesday after the company released third-quarter results that came in below Wall Street expectations, underscoring slowing revenue growth and intensifying competition in China’s e-commerce sector.
For the three months ending September 30, 2025, Pinduoduo reported adjusted earnings of RMB21.08 ($2.96) per share, missing analyst projections of RMB23.50. Quarterly revenue reached RMB108.28 billion ($15.21 billion) — up 9% from a year earlier but well short of the RMB145.2 billion consensus estimate.
Management attributed the softer top-line performance to a more challenging operating backdrop. The company pointed to an “increasingly competitive environment” and growing “external uncertainties” that weighed on growth.
Transaction services revenue increased 10% to RMB54.93 billion, while online marketing services rose 8% to RMB53.35 billion.
“In the third quarter, revenues growth continued to moderate, reflecting the ongoing evolution of the competitive landscape and external uncertainties,” said Ms. Jun Liu, VP of Finance of PDD Holdings. “As we roll out greater merchant support initiatives and ecosystem investments, financial results may continue to fluctuate from quarter to quarter.”
Operating profit moved slightly higher year over year to RMB25.03 billion ($3.52 billion). Non-GAAP net profit attributable to ordinary shareholders climbed 14% to RMB31.38 billion ($4.41 billion).
Marking its tenth anniversary, the company reiterated its focus on sustainable expansion and broader platform development.
“Ten years ago, we set out to create a platform that benefits all. Looking ahead, as we grow in scale, we are prepared to take on greater social responsibility,” said Mr. Lei Chen, Chairman and Co-Chief Executive Officer.
PDD Holdings closed the quarter with a robust liquidity position: RMB423.8 billion ($59.5 billion) in cash, cash equivalents and short-term investments, up from RMB331.6 billion at the end of 2024.