JD.com (JD) Q1 2025 earnings summary

Executive summary

• Net revenues reached RMB 301.1 billion in Q1 2025, up 15.8% year-on-year, with broad-based growth across all major categories and services, and JD Retail as the core driver.

• Non-GAAP net profit rose 43% year-on-year to RMB 12.8 billion, with net margin expanding to 4.2%.

• User engagement and active customer growth were strong, supported by improved consumer sentiment and supply chain enhancements.

• Food delivery business scaled rapidly, nearing 20 million daily orders, and is integrated into the core retail ecosystem.

• New initiatives, including food delivery and a RMB 200 billion export-to-domestic sales program, contributed to ecosystem expansion.

Financial highlights

• Net revenues reached RMB 301.1 billion, up 15.8% year-on-year, with net product revenues up 16.2% and net service revenues up 14.0%.

• Gross profit increased 20% year-on-year to RMB 48 billion; gross margin improved by 60 basis points to 15.9%.

• Non-GAAP net income attributable to shareholders was RMB 12.8 billion, with non-GAAP net margin at 4.2%.

• Free cash flow for the last 12 months was RMB 37.6 billion, with Q1 2025 free cash flow negative RMB 21.6 billion due to seasonal working capital needs.

• Cash and short-term investments totaled RMB 203.4 billion at quarter end.

Outlook and guidance

• Management expects continued strong momentum in electronics, home appliances, and general merchandise, supported by government stimulus, supply chain enhancements, and new business initiatives.

• The supermarket and fashion categories are expected to sustain double-digit growth, with ongoing investments in user experience and operational efficiency.

• Long-term net margin target remains high single digits, with ongoing focus on scale and efficiency.

• Shareholder returns remain a priority, with ongoing dividend payouts and share repurchases.

• Management highlights continued focus on operating efficiency, economies of scale, and growth in marketplace and marketing services.