Meituan announced its full-year results for the period ending December 31, 2025, revealing steady revenue growth but a significant shift from profit to loss, influenced by intense market competition and substantial investments in new initiatives.

For the full year 2025, Meituan's total revenue reached 364.85 billion yuan, an increase of 8.1% compared to 337.59 billion yuan in 2024. This growth was primarily driven by the resilience of its core local commerce segment and the rapid expansion of new businesses.

Breaking down the performance by segment, core local commerce generated revenue of 260.83 billion yuan, up 4.2% year-on-year. Although annual purchase frequency and transaction volume showed steady growth, heightened competition led to increased user subsidies and marketing efforts, which partially offset reported revenue and slowed the segment's growth rate.

Revenue from new businesses reached 104.03 billion yuan, rising 19.1% compared to the previous year. Notably, this double-digit growth was achieved despite the closure of the "Meituan Youxuan" service, with strong contributions from grocery retail operations such as Xiaoxiang Supermarket. By the end of 2025, Xiaoxiang Supermarket had expanded to 39 cities across China. Overseas operations also contributed significantly, with Keeta accelerating its global presence. After entering Hong Kong, Keeta expanded into major Gulf countries and began operations in Brazil. In Hong Kong, Keeta continued to strengthen its market position and achieved positive unit economics in the fourth quarter. New markets including Saudi Arabia, Qatar, Kuwait, the UAE, and Brazil demonstrated strong growth momentum.

On a quarterly basis, total revenue in the fourth quarter of 2025 was 92.1 billion yuan, down 3.1% sequentially, mainly due to seasonal factors, but up 4.1% compared to the same period in 2024.

In terms of profitability, the company swung from a net profit of 35.81 billion yuan in 2024 to a net loss of 23.35 billion yuan in 2025, reflecting severe competitive pressure on margins.

Gross profit for the year was 111.01 billion yuan, with the gross profit margin declining from 38.4% in 2024 to 30.4% in 2025. This was primarily due to increased subsidies for delivery riders and users, as well as higher investments in overseas operations.

The core local commerce segment reported an operating loss of 6.9 billion yuan in 2025, compared to an operating profit of 52.42 billion yuan in 2024. The operating profit margin fell sharply from 20.9% to -2.6%, mainly due to the lower gross margin and significantly higher spending on user incentives, promotions, and advertising to enhance user engagement and loyalty amid fierce competition.

The operating loss for the new business segment widened from 7.37 billion yuan to 10.08 billion yuan, with the loss margin increasing from 8.3% to 9.7%, largely attributable to continued investment in overseas operations, particularly Keeta.

To provide a clearer view of core operational performance, Meituan disclosed non-IFRS metrics. Adjusted EBITDA for 2025 was -13.78 billion yuan, and the adjusted net loss was -18.65 billion yuan, compared to adjusted figures of 49.12 billion yuan and 43.77 billion yuan, respectively, in 2024. These figures indicate that, even after excluding non-operating factors such as changes in the fair value of investments, the profitability of the company's main businesses faced significant challenges.

In a notable strategic move, on February 5, Meituan entered into an agreement to acquire all issued shares of Dingdong Fresh Holding Limited, a transaction expected to strengthen Meituan's overall operational capabilities in instant retail, particularly in supply chain enhancement and expansion in Eastern China.

In the food delivery sector, Meituan maintained a stable market share of over 60% in Gross Transaction Value. In technology, the company's R&D expenditure reached a new high of 26 billion yuan, an increase of 23% year-on-year, continuing to drive the application of AI technologies in the physical world.

"2025 was a year of both opportunities and challenges for the company. Regardless of external conditions, Meituan's strategic direction remains clear," said Wang Xing, CEO of Meituan. "We are firmly committed to avoiding internal inefficiency, focusing on doing the right things, and leveraging technological innovation, supply upgrades, and ecosystem collaboration to better serve users and merchants, striving to fulfill our mission of helping everyone eat better and live better."