PDD (PDD) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached RMB108.3 billion (US$15.2 billion), up 9% year-over-year, driven by online marketing and transaction services.

• Net income attributable to ordinary shareholders rose 17% year-over-year to RMB29.3 billion (US$4.1 billion).

• Non-GAAP net income increased 14% year-over-year to RMB31.4 billion (US$4.4 billion).

• Management emphasized a long-term focus, ongoing merchant support, and ecosystem investments amid a competitive environment.

• Celebrated 10th anniversary, reaffirming commitment to social responsibility, value creation, and ecosystem development.

Financial highlights

• Total revenues increased 9% year-over-year to RMB108.3 billion, with online marketing services revenue up 8% to RMB53.3 billion and transaction services revenue up 10% to RMB54.9 billion.

• GAAP operating profit was RMB25 billion (US$3.5 billion), up from RMB24.3 billion; non-GAAP operating profit was RMB27.1 billion (US$3.8 billion), down from RMB28 billion.

• Net cash from operating activities was RMB45.7 billion (US$6.4 billion), up from RMB27.5 billion; cash and equivalents stood at RMB423.8 billion (US$59.5 billion) as of September 30, 2025.

• Cost of revenues increased 18% to RMB46.8 billion, mainly from higher fulfillment, bandwidth, and payment processing fees.

• Basic earnings per ADS were RMB20.96 (US$2.94); diluted earnings per ADS were RMB19.70 (US$2.77), both higher year-over-year.

Outlook and guidance

• Management expects continued financial fluctuations due to sustained investments in merchant support and ecosystem initiatives.

• No forward guidance provided; current quarter's profitability should not be used as an indicator for future quarters.

• Forward-looking statements highlight risks from competition, regulatory changes, and evolving e-commerce trends.

• Long-term focus remains on high-quality growth and intrinsic value, even at the expense of short-term profits.