Meituan (3690) Q1 2026 earnings summary

Executive summary

• Revenues rose 5.6% year-over-year to CNY 91 billion in Q1 2026, with a swing to a net loss of CNY 6.8 billion from a profit of CNY 10.1 billion a year earlier, mainly due to intensified competition and increased spending on incentives and marketing.

• Achieved resilient growth by focusing on retail plus technology strategy, operational efficiency, and accelerated AI integration across platforms.

• Adjusted EBITDA and adjusted net profit both turned negative, at CNY -3.0 billion and CNY -5.0 billion, respectively.

• Cash and cash equivalents plus short-term treasury investments totaled CNY 180 billion as of March 2026.

Financial highlights

• Total revenue reached CNY 91 billion, up 5.6% year-over-year.

• Gross profit fell 19% year-over-year to CNY 26 billion, with gross margin dropping to 28.5% from 37.2%.

• Cost of revenue ratio increased by 8.7 percentage points to 71.5%, mainly due to higher consumer and rider incentives.

• Selling and marketing expenses ratio rose to 25.2%, and R&D expenses ratio increased to 7.7% due to AI investments.

• Adjusted net loss narrowed to CNY 5 billion, with total segment operating loss at CNY 4.1 billion, a sequential reduction of over CNY 10 billion.

Outlook and guidance

• Expect meaningful unit economics improvement in food delivery for Q2, supported by seasonal tailwinds and rationalized competition.

• Net GTV growth projected to be more resilient than order volume growth, driven by leadership in mid-to-high AOV segments.

• Long-term focus on sustainable, high-quality growth, further AI investment, and global expansion, especially in grocery retail and overseas markets.

• Strategic investments will continue in supply chain, technology, and ecosystem development to reinforce long-term competitive advantages.