Dingdong (NYSE:DDL), a leading Chinese fresh grocery e-commerce platform, reported a 59.7% year-on-year increase in net income for the second quarter on Thursday, as revenue exceeded analysts’ forecasts. The company marked its sixth consecutive profitable quarter amid steady growth in order volumes.
Following the announcement, Dingdong shares rose 1.24% in after-hours trading.
For the quarter ending June 30, 2025, the Shanghai-based company reported adjusted earnings per share of RMB0.37, while revenue climbed 6.7% year-on-year to RMB5.97 billion, surpassing the consensus estimate of RMB5.87 billion.
Net income reached RMB107.2 million (US$15.0 million), up from RMB67.1 million a year earlier, representing the sixth straight quarter of profitability. On a non-GAAP basis, net income grew 23.9% to RMB127.8 million (US$17.8 million), marking the eleventh consecutive quarter of non-GAAP profitability.
Dingdong’s gross margin fell slightly to 28.8% from 30.0% in the same quarter of 2024, reflecting costs related to listing and delisting products as part of its “4G strategy,” which focuses on users, products, services, and mindshare.
“This consistent growth in scale and profitability not only shows that we have overcome the challenge of survival but also proves the resilience and execution capabilities of the Dingdong team, laying a strong foundation for the next phase of higher-quality growth,” said Changlin Liang, Founder and CEO of Dingdong.
Total orders rose 5.5% year-on-year, while gross merchandise value (GMV) increased 4.5% to RMB6.5 billion (US$907.3 million). The company recorded a net cash inflow of RMB101.4 million from operating activities, marking the eighth consecutive quarter of positive cash flow.
Looking ahead, Dingdong expects to maintain year-on-year scale and continue generating non-GAAP profits in the third quarter of 2025.
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