Dingdong (Cayman) Limited Announces Second Quarter 2025 Financial Results

, /PRNewswire/ -- Dingdong (Cayman) Limited ("Dingdong" or the "Company") (NYSE: DDL), a leading fresh grocery e-commerce company in China, with advanced supply chain capabilities, today announced its unaudited financial results for the quarter ended June 30, 2025. Second Quarter 2025 Highlights: GMV for the second quarter of 2025 increased by 4.5% year over year to RMB6,499.4 million (US$907.3 million) from RMB6,218.7 million in the same quarter of 2024, positive year-on-year growth for six straight quarters. Total number of orders increased by 5.5% year over year in the second quarter of 2025. Net income for the second quarter of 2025 increased by 59.7% year over year to RMB107.2 million (US$15.0 million) from RMB67.1 million in the same quarter of 2024, the sixth consecutive quarter of profitability. Non-GAAP net income for the second quarter of 2025 increased by 23.9% year over year to RMB127.8 million (US$17.8 million) from RMB103.1 million in the same quarter of 2024, the eleventh consecutive quarter of non-GAAP profitability. Mr. Changlin Liang, Founder and Chief Executive Officer of Dingdong, stated, "As of the second quarter of 2025, Dingdong has achieved eleven straight quarters of non-GAAP profitability and six straight quarters of GAAP profitability, along with six consecutive quarters of positive year-over-year revenue growth. This consistent growth in scale and profitability not only shows that we have overcome the challenge of survival but also proves the resilience and execution capabilities of the Dingdong team, laying a strong foundation for the next phase of higher-quality growth. By the end of the second quarter, Dingdong's 4G strategy—centered on "good users, good products, good service, and good mindshare"—had been in place for six months. While the Company is still transforming, it has achieved steady year-over-year growth. Additionally, through adjustments in production relations and productivity improvements, the 4G strategy has already begun to show results. The Company remains focused on developing high-quality products, aiming to create more offerings that are well-received, commercially successful, and distinctive. Our principle is "Where others fall short, we deliver. Where others deliver, we excel. Where others excel, we redefine." Operational metrics aligned with the 4G strategy continue to improve steadily." Mr. Song Wang, Chief Financial Officer of Dingdong, stated, "In the second quarter of 2025, Dingdong generated revenue of RMB5.98 billion, a 6.7% year-on-year increase, marking six consecutive quarters of positive growth. Non-GAAP net profit reached RMB127.8 million, with a net margin of 2.1%, up 0.3 percentage points year-on-year. GAAP net profit was RMB107.2 million, with a net margin of 1.8%, an increase of 0.6 percentage points. In terms of funds, the second quarter recorded a net cash inflow of RMB101.4 million from operating activities, the eighth straight quarter of positive cash flow. By the end of the second quarter, after deducting short-term borrowings, our actual cash owned increased to RMB2.95 billion. Dingdong has been focused on the instant retail and fresh grocery e-commerce sectors for over eight years. Our ongoing profitability and rising cash flow reinforce our commitment to the value proposition "narrow and deep." Despite external changes, we will remain fully dedicated to the fresh grocery vertical, investing continuously in high-quality products and supply chains, following our unique path." Second Quarter 2025 Financial Results Total revenues were RMB5,975.9 million (US$834.2 million) compared with total revenues of RMB5,599.0 million in the same quarter of 2024, increased by 6.7% year over year, primarily due to the rise of number of orders resulting from rise in the average monthly number of transacting users and higher monthly order frequency, and new opened frontline fulfillment stations with density and market penetration improved in East China. The increase was offset by suspension of operations for a number of stations in the last three quarters of 2024, and the impact of the decline in CPI prices of certain categories in the second quarter of 2025. Product Revenues were RMB5,893.7 million (US$822.7 million) compared with product revenues of RMB5,517.9 million in the same quarter of 2024, increased by 6.8% year over year. Service Revenues were RMB82.1 million (US$11.5 million) compared with service revenues of RMB81.1 million in the same quarter of 2024, increased by 1.3% year over year. Total operating costs and expenses were RMB5,980.1 million (US$834.8 million) compared with RMB5,612.8 million in the same quarter of 2024, with a detailed breakdown as below: Cost of goods sold was RMB4,255.2 million (US$594.0 million), an increase of 8.6% from RMB3,919.4 million in the same quarter of 2024. Cost of goods sold as a percentage of revenues increased to 71.2% from 70.0% in the same quarter of 2024. Gross margin decreased to 28.8% from 30.0% in the same quarter of 2024. The cost implications arising from product listing and delisting due to the implementation of 4G strategy of "good users, good products, good services, and good mindshare". Fulfillment expenses were RMB1,297.3 million (US$181.1 million), an increase of 3.5% from RMB1,252.9 million in the same quarter of 2024. Fulfillment expenses as a percentage of total revenues decreased to 21.7% from 22.4% in the same quarter of 2024. Sales and marketing expenses were RMB102.9 million (US$14.4 million), a decrease of 20.6% from RMB129.7 million in the same quarter of 2024. Sales and marketing expenses as a percentage of total revenues decreased to 1.7% from 2.3% in the same quarter of 2024. The traffic and promotional effects generated by the Good Products Strategy have replaced some of the original marketing campaigns, thereby saving corresponding expenses. General and administrative expenses were RMB122.9 million (US$17.2 million), an increase of 13.6% from RMB108.2 million in the same quarter of 2024, mainly due to the increase of staff cost. Product development expenses were RMB201.8 million (US$28.2 million), a slightly decrease of 0.4% from RMB202.7 million in the same quarter of 2024. While advocating for energy and resource saving, we will continue to invest in our product development capabilities, agricultural technology, data algorithms, and other technology infrastructure such as the AI technical capability, to further enhance our competitiveness. Net income from operations was RMB81.6 million (US$11.4 million), compared with net income from operations of RMB53.6 million in the same quarter of 2024. Non-GAAP income from operations, which is a non-GAAP measure for loss from operations that excludes share-based compensation expenses, was RMB102.2 million (US$14.3 million), increased by 14.1% year over year, compared with Non-GAAP income from operations of RMB89.6 million in the same quarter of 2024. Net income was RMB107.2 million (US$15.0 million), compared with net income of RMB67.1 million in the same quarter of 2024. Non-GAAP net income, which is a non-GAAP measure that excludes share-based compensation expenses, was RMB127.8 million (US$17.8 million), increased by 23.9% year over year, compared with non-GAAP net income of RMB103.1 million in the same quarter of 2024. In addition, non-GAAP net income margin, which is the Company's non-GAAP net income as a percentage of total revenues, was 2.1% compared with 1.8% in the same quarter of 2024. Basic and diluted net income per share were RMB0.32 and RMB0.31 (US$0.04), compared with net income per share of RMB0.20 in the same quarter of 2024. Non-GAAP net income per share, basic and diluted, were RMB0.39 and RMB0.37 (US$0.05), compared with RMB0.31 in the same quarter of 2024. Cash and cash equivalents, restricted cash and short-term investments were RMB3,974.2 million (US$554.8 million) as of June 30, 2025, compared with RMB4,294.5 million as of March 31, 2025. We have been working diligently to optimize our capital usage and financing structure. The cash and cash equivalents, restricted cash, short-term investments and long-term deposits as included in the other non-current assets deducting the balance of short-term borrowings, is RMB2.95 billion, a net increase for the eighth consecutive quarter, compared with RMB2.89 billion as of March 31, 2025. Guidance The Company is looking to maintain scale year-over-year and achieve non-GAAP profits in the third quarter of 2025. Conference Call The Company's management will hold an earnings conference call at 8:00 A.M. Eastern Time on Thursday, August 21, 2025 (8:00 P.M. Beijing Time on the same day) to discuss the financial results. The presentation and question and answer session will be presented in both Mandarin and English. Listeners may access the call by dialing the following numbers: International: 1-412-317-6061 United States Toll Free: 1-888-317-6003 Mainland China Toll Free: 86-4001-206115 Hong Kong Toll Free: 800-963976 Conference ID: 0358096 The replay will be accessible through August 28, 2025 by dialing the following numbers: International: 1-412-317-0088 United States: 1-877-344-7529 Access Code: 5040747 A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.100.me. About Dingdong (Cayman) Limited We are a leading fresh grocery e-commerce company in mainland China, with sustainable long-term growth. We directly provide users and households with fresh groceries, prepared food, and other food products through delivering a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid. Leveraging our deep insights into consumers' evolving needs and our strong food innovation capabilities, we have successfully launched a series of private label products spanning a variety of food categories. Many of our private label products are produced at our Dingdong production plants, allowing us to more efficiently produce and offer safe and high-quality food products. We aim to be the first choice for fresh and food shopping. For more information, please visit: https://ir.100.me. Use of Non-GAAP Financial Measures The Company uses non-GAAP measures, such as non-GAAP net income, non-GAAP net income margin, non-GAAP net income attributable to ordinary shareholders and non-GAAP net income per share, basic and diluted, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges and do not correlate to any operating activity trends. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this announcement. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.1636 to US$1.00, the exchange rate on June 30, 2025 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other things, business outlook and quotations from management in this announcement, as well as Dingdong's strategic and operational plans, contain forward-looking statements. Dingdong may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its interim and annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Dingdong's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Dingdong's goals and strategies; Dingdong's future business development, financial conditions, and results of operations; the expected outlook of the fresh grocery ecommerce market in China; Dingdong's expectations regarding demand for and market acceptance of its products and services; Dingdong's expectations regarding its relationships with its users, clients, business partners, and other stakeholders; competition in Dingdong's industry; and relevant government policies and regulations relating to Dingdong's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law. DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of RMB and US$) As of December 31, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ (Unaudited) ASSETS Current assets: Cash and cash equivalents 887,427 926,209 129,294 Restricted cash 2,788 1,630 228 Short-term investments 3,561,977 3,046,326 425,251 Accounts receivable, net 125,896 136,912 19,112 Inventories, net 553,601 504,934 70,486 Advance to suppliers 62,730 96,275 13,439 Prepayments and other current assets 170,753 193,875 27,064 Total current assets 5,365,172 4,906,161 684,874 Non-current assets: Property and equipment, net 176,290 196,384 27,414 Operating lease right-of-use assets 1,464,791 1,509,628 210,736 Other non-current assets 111,395 145,938 20,372 Total non-current assets 1,752,476 1,851,950 258,522 TOTAL ASSETS 7,117,648 6,758,111 943,396 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 1,660,472 1,782,194 248,784 Customer advances and deferred revenue 279,276 249,154 34,781 Accrued expenses and other current liabilities 767,082 755,559 105,472 Salary and welfare payable 317,152 218,035 30,437 Operating lease liabilities, current 640,245 667,992 93,248 Short-term borrowings 1,606,253 1,061,954 148,243 Total current liabilities 5,270,480 4,734,888 660,965 Non-current liabilities: Operating lease liabilities, non-current 780,036 805,058 112,382 Other non-current liabilities 143,118 145,122 20,258 Total non-current liabilities 923,154 950,180 132,640 TOTAL LIABILITIES 6,193,634 5,685,068 793,605 DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Amounts in thousands of RMB and US$) As of December 31, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ (Unaudited) LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY (CONTINUED) Mezzanine Equity: Redeemable noncontrolling interests 125,403 130,282 18,187 TOTAL MEZZANINE EQUITY 125,403 130,282 18,187 Shareholders' equity: Ordinary shares 4 4 1 Additional paid-in capital 14,181,030 14,224,126 1,985,610 Treasury stock (51,176) (51,176) (7,144) Accumulated deficit (13,384,881) (13,274,555) (1,853,056) Accumulated other comprehensive income 53,634 44,362 6,193 TOTAL SHAREHOLDERS' EQUITY 798,611 942,761 131,604 TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY 7,117,648 6,758,111 943,396 DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (Amounts in thousands of RMB and US$, except for number of shares and per share data) For the three months ended June 30, 2024 2025 2025 RMB RMB US$ (Unaudited) Revenues: Product revenues 5,517,850 5,893,728 822,733 Service revenues 81,103 82,141 11,466 Total revenues 5,598,953 5,975,869 834,199 Operating costs and expenses: Cost of goods sold (3,919,445) (4,255,182) (594,001) Fulfillment expenses (1,252,859) (1,297,277) (181,093) Sales and marketing expenses (129,659) (102,917) (14,367) Product development expenses (202,663) (201,822) (28,173) General and administrative expenses (108,165) (122,906) (17,157) Total operating costs and expenses (5,612,791) (5,980,104) (834,791) Other operating income, net 67,438 85,870 11,987 Income from operations 53,600 81,635 11,395 Interest income 37,807 33,393 4,663 Interest expenses (14,023) (4,820) (673) Other (loss)/income, net (2,844) 783 109 Income before income tax 74,540 110,991 15,494 Income tax expenses (7,414) (3,804) (531) Net income 67,126 107,187 14,963 Accretion of redeemable noncontrolling interests (2,292) (2,476) (346) Net income attributable to ordinary shareholders 64,834 104,711 14,617 DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (CONTINUED) (Amounts in thousands of RMB and US$, except for number of shares and per share data) For the three months ended June 30, 2024 2025 2025 RMB RMB US$ (Unaudited) Net income per Class A and Class B ordinary share: Basic 0.20 0.32 0.04 Diluted 0.20 0.31 0.04 Shares used in net income per Class A and Class B ordinary share computation: Basic 325,430,984 324,632,496 324,632,496 Diluted 329,814,651 335,355,966 335,355,966 Other comprehensive income/(loss), net of tax of nil: Foreign currency translation adjustments 9,441 (6,141) (857) Comprehensive income 76,567 101,046 14,106 Accretion of redeemable noncontrolling interests (2,292) (2,476) (346) Comprehensive income attributable to ordinary shareholders 74,275 98,570 13,760 DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$) For the three months ended June 30, 2024 2025 2025 RMB RMB US$ (Unaudited) Net cash generated from operating activities 245,738 101,401 14,155 Net cash generated from/ (used in) investing activities 278,839 (46,026) (6,425) Net cash used in financing activities (592,905) (344,390) (48,075) Effect of exchange rate changes on cash and cash equivalents and restricted cash (1,479) (140) (19) Net decrease in cash and cash equivalents and restricted cash (69,807) (289,155) (40,364) Cash and cash equivalents and restricted cash at the beginning of the period 1,131,474 1,216,994 169,886 Cash and cash equivalents and restricted cash at the end of the period 1,061,667 927,839 129,522 DINGDONG (CAYMAN) LIMITED UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands of RMB and US$, except for number of shares and per share data) For the three months endedJune 30, 2024 2025 2025 RMB RMB US$ (Unaudited) Income from operations 53,600 81,635 11,395 Add: share-based compensation expenses (1) 36,001 20,583 2,873 Non-GAAP income from operations 89,601 102,218 14,268 Operating margin 1.0 % 1.4 % 1.4 % Add: share-based compensation expenses 0.6 % 0.3 % 0.3 % Non-GAAP operating margin 1.6 % 1.7 % 1.7 % Net income 67,126 107,187 14,963 Add: share-based compensation expenses (1) 36,001 20,583 2,873 Non-GAAP net income 103,127 127,770 17,836 Net income margin 1.2 % 1.8 % 1.8 % Add: share-based compensation expenses 0.6 % 0.3 % 0.3 % Non-GAAP net income margin 1.8 % 2.1 % 2.1 % Net income attributable to ordinary shareholders 64,834 104,711 14,617 Add: share-based compensation expenses (1) 36,001 20,583 2,873 Non-GAAP net income attributable to ordinary shareholders 100,835 125,294 17,490 Net income per Class A and Class B ordinary share: Basic 0.20 0.32 0.04 Diluted 0.20 0.31 0.04 Add: share-based compensation expenses Basic 0.11 0.07 0.01 Diluted 0.11 0.06 0.01 Non-GAAP net income per Class A and Class B ordinary share: Basic 0.31 0.39 0.05 Diluted 0.31 0.37 0.05 (1) Share-based compensation expenses are recognized as follows: For the three months ended June 30, 2024 2025 2025 RMB RMB US$ (Unaudited) Fulfillment expenses 7,825 3,926 548 Sales and marketing expenses 1,844 1,387 194 Product development expenses 15,595 8,590 1,199 General and administrative expenses 10,737 6,680 932 Total 36,001 20,583 2,873 SOURCE Dingdong (Cayman) Limited WANT YOUR COMPANY'S NEWS 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Dingdong (Cayman) Limited Announces Second Quarter 2025 Financial Results

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