JD.com (JD) Q2 2025 earnings summary

Executive summary

• Net revenues rose 22.4% year-over-year to RMB 357 billion in Q2 2025, with strong momentum across electronics, home appliances, general merchandise, and services, and robust user growth and shopping frequency.

• Non-GAAP net income attributable to shareholders was RMB 7.4 billion, down from RMB 14.5 billion last year, with a non-GAAP net margin of 2.1%, reflecting higher investments in new business initiatives, especially food delivery.

• JD Retail achieved operating income of RMB 13.9 billion, with an operating margin of 4.5%–5.2%, and maintained resilient profitability.

• Food delivery and new business initiatives drove user growth and engagement, with significant cross-selling benefits and exponential order growth.

• JD Food Delivery onboarded over 1.5 million restaurants and 150,000 full-time riders, supporting long-term strategic goals.

Financial highlights

• Total net revenues increased by 22.4% year-over-year to RMB 357 billion in Q2 2025.

• Product revenues grew 20.7%, electronics and home appliances up 23.4%, general merchandise up 16.4%, and service revenues rose 29.1%.

• Gross profit increased 23% year-over-year to RMB 56.6 billion; gross margin reached 15.9%, marking 13 consecutive quarters of expansion.

• Non-GAAP net margin declined to 2.1% due to strategic investments in food delivery and new businesses.

• Free cash flow (TTM) was RMB 10.1 billion, down from RMB 43.7 billion last year, mainly due to trading program outflows and lower operating income.

Outlook and guidance

• Management remains confident in long-term growth, with new business initiatives expected to accelerate user and shopping frequency growth.

• Long-term goal to serve 1 billion e-commerce users in China, focusing on user experience, cost reduction, and efficiency.

• Profit margin may fluctuate short-term, but high single-digit margin remains the long-term target.

• Continued investment in new businesses, including food delivery, will impact margins in the short term but are expected to become growth drivers and enhance profitability over time.

• Focus on supply chain improvements and marketplace growth to drive future profitability.