This article first appeared on GuruFocus .
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Total Revenue:Increased by 2% year over year to RMB95.5 billion.
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Cost of Revenue Ratio:Increased by 12.9 percentage points year over year to 73.6%.
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Selling and Marketing Expenses Ratio:Increased by 16.7 percentage points year over year to 35.9%.
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R&D Expense Ratio:Slightly increased to 7.3% due to increased investment in AI.
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G&A Expenses Ratio:Maintained stable year over year at 3.1%.
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Total Segment Loss:RMB15.3 billion.
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Adjusted Net Loss:RMB16 billion.
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Cash and Cash Equivalents:RMB141.3 billion as of September 30, 2025.
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Cash Generated from Operating Activities:Negative RMB22.1 billion.
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New Initiative Segment Revenue:Grew by 15.9% year over year to RMB28 billion.
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New Initiative Segment Operating Loss:Narrowed to RMB1.3 billion with an operating loss ratio of 4.6%.
Release Date: November 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Meituan ( MPNGF ) reported a 2% year-over-year increase in total revenue, reaching RMB95.5 billion for the third quarter of 2025.
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The company's food delivery business achieved all-time highs in daily active users (DAU) and monthly transacting users (MTU), reinforcing its leadership in the sector.
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Meituan ( MPNGF ) expanded its courier welfare programs, including pension insurance subsidies and occupational injury insurance, to enhance courier protection and welfare.
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The company launched branded flagship Instamart stores, providing retail brands with full quick commerce infrastructure, which resulted in significant sales growth during promotional events.
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Meituan ( MPNGF ) achieved profitability in its Hong Kong operations within 29 months, ahead of its original three-year plan, demonstrating strong operational efficiency.
Negative Points
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The cost of revenue ratio increased by 12.9 percentage points year-over-year to 73.6%, driven by higher incentives for couriers and increased costs in overseas operations.
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Selling and marketing expenses rose by 16.7 percentage points year-over-year to 35.9%, due to increased investments in promotion and advertising.
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The company reported a total segment loss of RMB15.3 billion and an adjusted net loss of RMB16 billion, primarily due to strategic investments amid intensified competition.
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Cash generated from operating activities turned negative at RMB22.1 billion, reflecting the impact of investments in response to competitive pressures.
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Meituan ( MPNGF ) anticipates continued substantial losses in its food delivery business in the fourth quarter, despite expectations that losses have peaked in the third quarter.
Q & A Highlights
Q: Can management comment on any notable changes in the competitive landscape of the food delivery sector, particularly as we head into the 4th quarter? Have we seen any industry subsidies starting to scale back? Also, how should we expect 4th quarter performance for the food delivery, and has there been any change in the long-term outlook for growth and profitability of the business? A: Xing Wang, CEO, stated that the food delivery price war is unsustainable and does not create real value. The company is focusing on courier rights and supporting small and mid-sized merchants. In October and November, industry subsidies temporarily decreased, and Meituan saw a rebound in market share. The company remains confident in maintaining leadership and expects food delivery profits to return to a reasonable level in the long term.
Q: How does management feel about the competitive edge in instant shopping, and could you share the instant shopping strategy going forward? Will you scale up investment in the 4th quarter? A: Shaohui Chen, CFO, highlighted Meituan's strong competitive advantage in quick commerce, emphasizing the importance of no stockpiling and immediate consumer needs. The company is expanding partnerships with brands and enhancing infrastructure. Investments in user education and supply-side operations will continue, with a focus on maintaining leadership and restoring profitability in the mid to long-term.
Q: How do management view the impact of competitors' new initiatives on the competitive landscape for Meituan's in-store business? What specific measures will the company implement to address these challenges? A: Shaohui Chen explained that Meituan's in-store business model is distinct, with a focus on authentic POI data and a comprehensive user review ecosystem. The company is enhancing its ecosystem with quality merchant lists and refining rating criteria. Meituan aims to provide seamless consumer experiences and empower merchants through digital solutions, maintaining its leading market position.
Q: What is the current progress and future plan for Meituan's AI initiatives, and will the Meituan app integrate AI agents directly in the future? A: Xing Wang stated that Meituan is iterating its AI capabilities across three dimensions: in-house LRM training, AI in products, and AI at work. The company is integrating AI tools into core applications and testing AI agents in both standalone and integrated formats within the Meituan app. The focus is on providing intelligent, personalized services and enhancing operational efficiency.
Q: How is the performance shaping up in the Middle East market following expansion, and what is the strategy for entering Brazil? A: Xing Wang shared that Meituan's Kita in Hong Kong has become profitable, and the company is following a similar path in other markets like Saudi Arabia and GCC countries. In Brazil, Meituan sees potential for online penetration despite existing competition. The company is confident in its operational capabilities and plans to bring better service experiences to these markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
