Dingdong (NYSE:DDL), one of China’s leading fresh grocery e-commerce platforms, reported third-quarter results on Wednesday that reflected sustained profitability even as revenue came in slightly below market forecasts.
The company’s shares rose 1.69% in pre-market trading following the announcement.
Dingdong reported revenue of RMB6.66 billion ($935.9 million) for the quarter, up 1.9% year-over-year, but just shy of analyst expectations of RMB6.8 billion. Adjusted earnings per share stood at RMB0.29 ($0.04), marking the firm’s twelfth consecutive quarter of non-GAAP profitability and its seventh straight quarter of GAAP profitability. Total orders increased 2.2% compared with the same period a year earlier.
“Despite a higher baseline compared to the same period last year, revenue has achieved year-over-year growth, which marks the seventh straight quarters,” said Mr. Changlin Liang, Founder and Chief Executive Officer of Dingdong. “This sustained expansion and steady achievement of profit targets fully demonstrate Dingdong’s strategic resilience and execution excellence amid the current complex market and competitive landscape.”
The company’s non-GAAP net income reached RMB101.3 million ($14.2 million), reflecting a 1.5% net profit margin, down from 2.5% in the same quarter of 2024. Dingdong also maintained positive operating cash flow for the ninth consecutive quarter.
Chief Financial Officer Mr. Song Wang added that by the end of the third quarter, “our actual cash owned increased to RMB3.03 billion” after deducting short-term borrowings.
Looking ahead, Dingdong expects to maintain scale year-over-year in the fourth quarter of 2025 and continue generating non-GAAP profits, reaffirming its commitment to sustainable growth in China’s highly competitive grocery e-commerce market.