Meituan's Q2 revenue increased by 11.7% year-on-year, while adjusted net profit fell by 89% to 1.49 billion yuan, significantly below expectations | Financial Report Insights

On August 27th, Wednesday, Meituan released its performance report for the second quarter and the first half of 2025. Specifically:

• Second quarter revenue was RMB 91.84 billion, a year-on-year increase of 11.7%, estimated at RMB 93.69 billion.
• Second quarter operating profit plummeted 98% to RMB 230 million, with the operating profit margin dropping from 13.7% to 0.2%.
• Adjusted EBITDA decreased by 81.5% year-on-year to RMB 2.8 billion.
• Second quarter adjusted net profit was RMB 1.49 billion, estimated at RMB 9.85 billion.
• Second quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was RMB 2.78 billion, estimated at RMB 12.22 billion.
• Second quarter operating profit was RMB 226.4 million, estimated at RMB 8 billion.

By business segment:

• Second quarter core local business revenue was RMB 65.35 billion, a year-on-year increase of 7.7%, estimated at RMB 67.55 billion. However, the core local business operating profit margin plummeted from 25.1% to 5.7%, a decline of 19.4 percentage points.
• Second quarter new business revenue grew by 22.8% to RMB 26.5 billion, estimated at RMB 25.96 billion. However, operating losses widened by 43.1% to RMB 1.9 billion.
• Second quarter delivery service revenue was RMB 23.66 billion, estimated at RMB 26.18 billion.
• Second quarter commission revenue was RMB 26.47 billion, estimated at RMB 25.91 billion.
• Second quarter online marketing service revenue was RMB 13.65 billion, estimated at RMB 14.32 billion.
• Second quarter other revenue was RMB 28.06 billion, estimated at RMB 27.14 billion.

In the second quarter of this year, Meituan achieved revenue of RMB 91.8 billion, a year-on-year increase of 11.7%, demonstrating a robust development trend and further consolidating its market leadership.

In this quarter, Meituan continued to provide consumers with a more convenient and efficient instant consumption experience, with the monthly active users of the Meituan App surpassing 500 million. At the same time, the average annual transaction frequency of users reached a new historical high. In July, the peak daily order volume for Meituan's instant retail exceeded 150 million orders, setting a new record. The average delivery time for all orders was 34 minutes, further enhancing the stickiness of the core user group.

Meituan CEO Wang Xing stated: “The competition in the food delivery and instant retail industry has intensified, and the company’s various businesses continue to achieve healthy growth. We will continue to focus on our mission of ‘helping everyone eat better and live better,’ increasing our investment in technological innovation and ecosystem development, creating more value for partners across the industry chain, and promoting sustainable development in the industry.”

Core Local Business Steady, New Business Continues to Breakthrough

In the second quarter, Meituan's core local business segment achieved revenue of RMB 65 billion, a year-on-year increase of 7.7%. In July, the peak daily order volume for Meituan's instant retail exceeded 150 million orders, with the average delivery time for all orders being 34 minutes, further enhancing the stickiness of the core user group Meituan continues to collaborate with merchants to explore supply-side innovations. As of July, Meituan has partnered with over 800 leading chain restaurant brands to open more than 5,500 brand satellite stores, helping merchants optimize operational costs and improve operational efficiency through multi-faceted empowerment. The plan is to open over 10,000 satellite stores by the end of this year.

The in-store business has also continued to grow this quarter, with order volume increasing by over 40% year-on-year, and the number of annual active merchants reaching a new high. During the "May Day" Golden Week, Meituan's hotel and travel transaction scale also hit a historical peak.

Revenue from new business segments reached 26.5 billion yuan, a year-on-year increase of 22.8%, with losses narrowing to 1.9 billion yuan quarter-on-quarter. Meituan's internationalization continues to make new breakthroughs, with Keeta's order volume and GTV continuing to grow strongly this quarter. In the Hong Kong market, Keeta has further consolidated its leading position, aiding the overall expansion of the industry; in the Middle East market, Keeta expanded its coverage to 20 cities in Saudi Arabia by the end of July and recently officially launched services in Qatar.

Implementing "anti-involution" measures to promote healthy ecological development

In terms of rider protection, starting from July 1, Meituan has fully paid for "work injury insurance" for all riders in 17 provinces and cities. Following successful pilot programs in Quanzhou and Nantong, the rider pension insurance subsidy will cover the entire country by the end of this year, benefiting over one million riders. Meituan's special rider protection is also continuously upgraded, with a special subsidy of 1.6 billion yuan for summer rider protection; expanding the reimbursement scope of the "Rider Major Illness Care Program" to cover the minor children of part-time crowd-sourced riders.

On the merchant side, Meituan continues to implement "anti-involution" measures, supporting healthy merchant development through direct cash subsidies and ongoing model innovations. As of July this year, Meituan's support fund has covered over 300,000 catering merchants. Nearly half of the merchants reported a "significant increase in small store order volume," and 40% of merchants saw a noticeable increase in income. It is expected that by the end of this year, the Meituan support fund will add coverage for over 100,000 small catering stores, with a maximum support fund of 50,000 yuan per store.

At the same time, Meituan continues to explore using technology to support the development of the retail industry. This quarter, R&D investment reached 6.3 billion yuan, a year-on-year increase of 17.2%. By the end of June 2025, Meituan's drones have opened 64 flight routes in cities such as Shenzhen, Beijing, Shanghai, Guangzhou, Hong Kong, and Dubai, completing over 600,000 orders in total.

"Meituan always adheres to the concept of multi-party win-win and opposes involution," said Meituan CFO Chen Shaohui. "Meituan's core local business has demonstrated strong resilience through multiple cycles, and new businesses continue to achieve breakthroughs. We are confident in the long-term growth potential of all our businesses."