This article first appeared on GuruFocus .
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Total Revenue:RMB92.1 billion, up 4.1% year-over-year.
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Cost of Revenue Ratio:Increased by 11.6 percentage points to 33.8%.
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Selling and Marketing Expenses Ratio:Rose by 14.8 percentage points to 34.4%.
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R&D Expenses Ratio:Increased to 7.6%.
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G&A Expenses Ratio:Slight increase to 4%.
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Segment Operating Loss:RMB14.7 billion.
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Adjusted Net Loss:RMB15.1 billion.
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Cash and Cash Equivalents:RMB166.8 billion as of December 31, 2025.
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Operating Cash Outflow:Narrowed to RMB6.6 billion.
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Core Local Commerce Segment Revenue:RMB64.8 billion, down 1.1% year-over-year.
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Core Local Commerce Segment Operating Loss:RMB10 billion.
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New Initiative Segment Revenue:RMB27.3 billion, up 18.9% year-over-year.
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New Initiative Segment Operating Loss:RMB4.6 billion.
Release Date: March 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Meituan ( MPNGF ) achieved double-digit growth in platform GTV and transaction volume in 2025, reaffirming its solid position in the local service platform market.
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The company fully upgraded its Meituan membership program, enhancing user stickiness and driving cross-selling across categories.
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Meituan launched its AI assistant, Xiaomei and Xiaotuan, integrating AI technology into real consumption use cases to enhance user experience.
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The company made significant progress in expanding its supply chain capabilities, particularly in food delivery and quick commerce, strengthening its position as a one-stop local service platform.
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Meituan's international operations, particularly through Keeta, showed positive growth momentum, with Hong Kong achieving positive unit economics and expansion into new markets like Qatar, UAE, and Brazil.
Negative Points
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The cost of revenue ratio increased significantly due to higher consumer and rider incentives, impacting overall profitability.
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Selling and marketing expenses rose sharply, driven by increased investments in promotion and advertising to enhance brand awareness.
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The company's operating cash flow remained negative, with a cash outflow of RMB6.6 billion in Q4 2025.
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Intense competition in the food delivery sector led to a significant year-over-year drop in average order value, affecting commission revenue growth.
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The New Initiative segment's operating loss widened due to strategic investments in overseas expansion and grocery retailing, reflecting seasonal headwinds.
Q & A Highlights
Q: How does Meituan view the trend of AI super gateways, and what strategies are in place to address potential risks? A: Xing Wang, CEO, emphasized that AI is a strategic opportunity to enhance Meituan's local services. The company has invested heavily in AI since 2023, developing in-house models like LongCat while collaborating with third-party models. Meituan aims to upgrade its app into an AI-powered platform, focusing on understanding user needs and efficiently executing tasks. The AI assistant, Xiaotuan, is integrated into the Meituan app, enhancing user experience by providing personalized and comprehensive local service solutions.
Q: How has the State Council's investigation into food delivery market competition affected Meituan's strategy? A: Xing Wang, CEO, stated that Meituan is committed to regulatory compliance and opposes irrational competition driven by subsidies. The company focuses on enhancing core strengths, such as expanding high-quality selections and ensuring reliable deliveries. Despite intense competition, Meituan remains the top choice for high-value consumers, and the company expects a sequential improvement in food delivery losses in Q1 2026.
Q: What is Meituan's view on the competitive landscape in the local service market, especially with Douyin's increased subsidies? A: Shaohui Chen, CFO, acknowledged the short-term impact of competitors' increased investments but emphasized Meituan's focus on sustainable long-term growth. The company prioritizes providing high-quality services and driving offline consumption growth. Meituan leverages its extensive experience and AI-powered products to enhance operational efficiency and maintain a competitive edge.
Q: Why did Meituan acquire Dingdong, and what synergies are expected with its grocery retail business? A: Xing Wang, CEO, explained that the acquisition of Dingdong's Mainland China business enhances Meituan's on-demand grocery retail capabilities, particularly in supply chain efficiency. Dingdong's strong presence in East China will improve Meituan's coverage and service quality. The acquisition aligns with Meituan's long-term strategic priorities in grocery retail, leveraging Xiaoxiang Supermarket's model for expansion.
Q: What are the updates on Keeta's overseas strategy for 2026, and how does Meituan plan to invest in Brazil? A: Xing Wang, CEO, highlighted Keeta's focus on current markets, balancing growth and profitability. In Saudi Arabia, Keeta is close to profitability, and operations in Brazil are concentrated in Sao Paulo to refine the business model before broader expansion. Despite significant losses in new markets, Meituan expects overall losses in the New Initiative segment to remain stable compared to 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
