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Quhuo Limited Reports Financial Results for the First Half of 2025

On September 26, 2025, Quhuo Limited (NASDAQ: QH), a prominent player in the gig economy focusing on local life services across China, announced its unaudited financial results for the six-month period ending June 30, 2025. Despite facing a tough market landscape and stiff competition, the company has made significant strides in enhancing its operations and profitability through its dual-track strategy.

Financial Overview

In the first half of 2025, Quhuo reported total revenues of RMB 1,131.4 million. The second quarter witnessed intensified competition in China's food delivery sector, which led to increased service costs being passed down to providers. However, Quhuo's management concentrated on optimizing its workforce and operational efficiency to navigate these pressures. This proactive approach not only helped maintain its client base but also facilitated new business acquisitions, particularly as market conditions shifted in their favor beginning in May 2025.

To enhance operational quality, Quhuo streamlined its management framework, scaling back operations in less productive locales while focusing on areas that show greater revenue potential. As a result, the company is optimistic that improvements in economies of scale will start becoming evident as the year progresses.

Housekeeping and Accommodation Solutions

One of the most striking aspects of Quhuo's performance has been its housekeeping and accommodation segments. Revenue in these areas experienced a remarkable growth of 70.8% compared to the same period last year, with gross profit rising by a staggering 63.4%. This segment has emerged as a significant component of the company’s overall earnings.

Chengtu Homestay Business

Chengtu saw an impressive revenue boost of 83.6% year over year, with gross profit climbing by an unprecedented 390.8%, yielding a gross margin of 55.2%. The proprietary mini program developed for Chengtu enables a seamless transition from property search to payment, enhancing user experience dramatically. Going forward, Chengtu plans to broaden its service offerings to include more property owners, and evolve from a pure property management service into a robust platform operator.

Lailai Home Services

Quhuo's Lailai home service division has also thrived, posting a revenue increase of 63.6% compared to the previous year. The growth can be largely attributed to a successful partnership with Ke Holdings Inc., a major player in housing transactions and services in China. Lailai aims to consolidate various property services—from maintenance to housekeeping—on a single platform, ensuring high quality and efficient service management across cities like Chengdu, Beijing, and Shanghai, with future expansion plans to include Shenzhen and Guangzhou.

New Business Ventures

As part of its ongoing evolution, Quhuo is not only optimizing existing business lines but also exploring new initiatives. A recent partnership with JD.com aims to enhance on-demand delivery services in selected urban areas, opening avenues for additional revenue streams in the highly competitive food delivery sector. Moreover, Quhuo's collaboration with NIU World for enhancing the beef supply chain, which began in May 2025, has already generated about RMB 14.4 million in revenue.

Looking Ahead

Quhuo remains committed to executing its comprehensive strategy which not only focuses on reinforcing core operations but also actively pursues new opportunities. The company is set on fostering innovation and aiming for structural optimization to deliver long-term, sustainable returns to its shareholders.

About Quhuo Limited

Quhuo Limited stands out as a leading content provider in the Chinese gig economy, dedicated to connecting workers with local service needs through advanced technology solutions. Its vision encompasses a broad commitment to job creation and income stability, reflecting Quhuo’s core values of safeguarding worker rights and promoting entrepreneurship across various service scenarios. Quhuo thus continues to strive for the realization of self-worth and empowerment within laid-off and freelance sectors.

Finally, forward-looking statements in this report underscore the potential for future growth, dependent on strategic maneuvering in response to an ever-evolving industry landscape. The management encourages stakeholders to maintain a cautious outlook as the company navigates its growth trajectory in a competitive marketplace.