Dingdong (Cayman) Limited Reports Strong Financial Performance for Q2 2025

Dingdong (Cayman) Limited: Q2 2025 Financial Results Overview

On August 21, 2025, Dingdong (Cayman) Limited, a prominent player in China's fresh grocery e-commerce sector, released its financial results for the second quarter of 2025. This report highlights the impressive growth of the company, reinforcing its position as a leading fresh grocery platform in the country with exceptional operational capabilities.

Key Highlights of Q2 2025

Dingdong achieved a noteworthy performance during the second quarter, marked by a year-over-year growth in Gross Merchandise Volume (GMV). The GMV rose by 4.5%, reaching RMB 6,499.4 million (approximately US$907.3 million), compared to RMB 6,218.7 million in Q2 2024. This achievement marks six consecutive quarters of positive growth for the company, signaling a stable upward trajectory.

The total number of orders increased by 5.5% year over year, reflecting a growing customer base and enhanced order frequency. Moreover, Dingdong's net income soared by 59.7% year over year, climbing to RMB 107.2 million (US$15.0 million) from RMB 67.1 million during the same period last year, highlighting the company's sustained profitability.

Dingdong's non-GAAP net income also experienced significant growth, increasing by 23.9% to RMB 127.8 million (US$17.8 million), indicating a strong operational performance. The consistent profitability over the past six quarters speaks volumes about Dingdong's ability to navigate challenges and capitalize on growth opportunities in the market.

Insights from Leadership

Mr. Changlin Liang, the company’s CEO and Founder, expressed confidence in Dingdong's strategic direction. He remarked, "Dingdong has not only survived but thrived over the past few quarters, achieving a remarkable six quarters of consecutive profitability. Our 4G strategy, focused on good users, products, service, and mindshare, has set the foundation for quality growth as our company continues to evolve."

He added that despite the market challenges, the operational metrics aligned with their strategic initiatives are steadily improving, further strengthening their competitive edge.

Financial Breakdown

In terms of revenue, Dingdong generated RMB 5.98 billion in Q2 2025, a 6.7% increase from RMB 5.6 billion in Q2 2024. This growth can be attributed to an upsurge in the average number of transacting users and improved market penetration due to new fulfillment stations in East China.

The breakdown of revenues reveals that product revenues reached RMB 5.89 billion (US$822.7 million), accounting for a 6.8% year-over-year increase. Service revenues also inched up marginally, reaching RMB 82.1 million (US$11.5 million).

Operating costs totaled RMB 5.98 billion, reflecting an increase from RMB 5.61 billion in the previous year. Notably, costs of goods sold rose by 8.6%, corresponding to the product activities’ expansion and strategies implemented. Moreover, the gross margin saw a decline to 28.8% from 30.0% year over year, primarily due to product listing adjustments driven by the company’s 4G strategy.

While Dingdong faced increased fulfillment expenses, it experienced a decline in sales and marketing costs by 20.6%, showcasing the effectiveness of their new strategies which enhanced traffic without incurring additional marketing expenses. General and administrative expenses rose due to heightened staffing costs; however, overall, Dingdong's operational efficiency led to a positive net income.

Future Outlook

Looking ahead, Dingdong aims to maintain its growth trajectory and achieve non-GAAP profits in Q3 2025. The company’s management remains optimistic, emphasizing their commitment to the fresh grocery vertical, continual investment in high-quality products, and supply chain enhancements. Mr. Song Wang, CFO of Dingdong, underscored the importance of their long-term strategy, stating that their ongoing profitability and cash flow reinforce their unique positioning within the market.

As Dingdong forges into the future, its leadership’s focus on sustaining long-term growth, alongside market responsiveness, lays a robust foundation for further success in the thriving e-commerce industry.