Temu parent PDD Holdings (NASDAQ:PDD) stock slid on Tuesday after the company reported fiscal third-quarter 2025 results.
Revenue grew 9% year-on-year (Y/Y) to $15.21 billion (108.28 billion Chinese yuan), in line with the analyst consensus estimate.
Revenues from online marketing services and others rose 8% Y/Y to $7.49 billion, and revenues from transaction services grew 10% Y/Y to $7.72 billion.
Also Read: Temu Parent PDD Warns Current Profits Not Sustainable As Competition Heats Up In China
Total costs of revenues rose 18% Y/Y to $6.58 billion, mainly due to higher fulfilment fees, bandwidth and server costs, and payment processing fees. Total operating expenses rose 3% Y/Y to $5.11 billion.
Adjusted operating profit rose 1.2% Y/Y to $3.80 billion. The adjusted operating margin declined from 26.9% to 25.0% Y/Y.
The Chinese online retailer’s adjusted earnings per ADS of $2.96 (21.08 Chinese yuan) decreased from 18.59 Chinese yuan Y/Y, topping the analyst consensus estimate of $1.99.
PDD Holdings held $59.5 billion in cash and equivalents as of September 30, 2025. The company generated $6.41 billion in operating cash flow during the quarter.
Vice President of Finance Jun Liu said, “In the third quarter, revenues growth continued to moderate, reflecting the ongoing evolution of the competitive landscape and external uncertainties.”
Liu added that increased merchant support and ecosystem investments may result in financial fluctuations from quarter to quarter.
Price Action: PDD stock was trading lower by 3.93% to $123.97 premarket at last check Tuesday.
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