Meituan (3690) Q2 2026 earnings summary

Executive summary

• Total revenue grew 14.4% year-over-year to RMB 104.6 billion in Q2 2026, with net profit turning positive at RMB 2.2 billion, marking a significant turnaround from prior quarters.

• Adjusted EBITDA and adjusted net profit increased 47.3% and 69.0% year-over-year, respectively, reflecting improved operational efficiency and profitability.

• Both core local commerce and new initiatives delivered solid results, driven by improved business quality, operational efficiency, and AI advancements enhancing consumer and merchant experiences.

• Expansion continued in grocery, retail, and overseas markets, with notable efficiency gains and ecosystem investments.

• Operating profit for Q2 2026 was RMB 2.7 billion (2.6% margin), up from RMB 226 million (0.2% margin) in Q2 2025.

Financial highlights

• Revenue increased 14.4% year-over-year to RMB 104.6 billion; net profit reached RMB 2.2 billion (+490% YoY).

• Adjusted EBITDA: RMB 4.1 billion (+47.3% YoY); adjusted net profit: RMB 2.5 billion (+69.0% YoY).

• Gross profit: RMB 35.1 billion (+16.7% YoY); gross margin improved due to operating leverage and retail business efficiency.

• Cash, cash equivalents, and short-term treasury investments totaled RMB 168.3 billion as of June 30.

• Investment portfolio valued at nearly RMB 77.3 billion, with RMB 22.2 billion gain in other comprehensive income.

Outlook and guidance

• Management expects continued high-quality growth, focusing on product innovation, AI integration, and ecosystem empowerment.

• Food delivery unit economics expected to improve year-over-year in Q3, though seasonality and higher subsidies will impact sequential results.

• New initiative segment losses in 2026 expected not to exceed 2025 levels, with focus on operational optimization.

• Plans to expand digital transformation initiatives to 400 county-level regions, supporting over 500,000 merchants.

• Long-term investments in technology, fulfillment, and international expansion to drive future value.