Revenue Performance
For the fourth quarter of 2025, Dingdong (Cayman) Limited generated total revenue of RMB 6.24 billion ($892.7 million), representing a 5.7% year-over-year increase from RMB 5.91 billion in the same period last year. The top-line expansion was primarily driven by a 3.4% year-over-year rise in the total number of orders, alongside increased overall transaction volume and the strategic deployment of new frontline fulfillment stations to deepen market penetration. The quarter marked the company’s eighth consecutive period of positive year-over-year revenue growth.
Profitability and Margins
The company maintained its streak of profitability, though bottom-line metrics contracted compared to the prior year. Fourth-quarter GAAP net income stood at RMB 33.6 million ($4.8 million), declining from RMB 91.6 million in the fourth quarter of 2024. Adjusted non-GAAP net income was RMB 50.8 million, down from RMB 116.7 million in the prior-year period. The contraction in profitability was largely driven by a decrease in gross margin, which compressed to 29.3% from 30.2% a year ago. Management attributed this 90-basis-point margin pressure to pricing adjustments in major food categories, including pork, and the ongoing implementation of its broader operational strategies.
Operational Highlights
Dingdong reported a net operating cash inflow of RMB 204.5 million during the fourth quarter, marking its tenth consecutive quarter of positive operating cash flow. The company concluded the 2025 fiscal year with a robust liquidity position, holding RMB 3.14 billion in cash and cash equivalents after deducting short-term borrowings. In a major strategic development announced shortly after the quarter’s close, Dingdong entered into a definitive agreement to sell its mainland China business operations to Meituan. Management has indicated that a substantial majority of the proceeds from this transaction will be utilized to fund share repurchases and shareholder dividends, effectively reshaping the company’s capital return profile.