Meituan's 2025 revenue increased by 8.1%, with a loss of 23.4 billion yuan. Food delivery still accounts for over 60% of the market share. Fully embracing AI transformation.

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Source: E-commerce Observer

Meituan’s 2025 revenue growth was 8.1%, dragged down by competition, turning the full year from profit to loss

On March 26, Meituan released its annual results announcement for the year ended December 31, 2025. The company achieved steady growth on the revenue front, but due to intense industry competition and investments in new businesses, it turned from profit to loss for the full year. The financial report data reveals Meituan’s strategic adjustments and future plans for its local life services platform amid a complex market environment.

According to a report from China Business News, in 2025, Meituan’s total revenue reached RMB 364.85 billion, up 8.1% year over year from RMB 337.59 billion in 2024. This growth was mainly driven by the resilience of its core local commerce business and the rapid expansion of new businesses.

Looking at each major business segment, Meituan’s core local commerce revenue was RMB 260.83 billion, up 4.2% year over year. Although the annual number of purchases and transaction volumes continued to grow steadily, due to intensifying market competition, the company increased user subsidies and marketing promotion efforts. Some of this revenue was offset in the financial report, leading to a slowdown in this segment’s revenue growth rate.

New business revenue reached RMB 104.03 billion, up 19.1% year over year. It is worth noting that even with the impact of shutting down “Meituan Select,” new businesses still achieved double-digit growth. This was mainly due to the grocery and convenience retail business, such as Xiaoxiang Supermarket. By continuously deepening its supply chain, Xiaoxiang Supermarket has been improving fresh produce quality and strengthening product capabilities that are leading the industry. As of the end of 2025, Xiaoxiang Supermarket had entered 39 cities nationwide. In addition, there has been expansion in overseas operations. For example, Keeta accelerated its global rollout. After covering major countries in the Gulf Sea area following its entry into China’s Hong Kong region, Keeta has also expanded into Brazil. In China’s Hong Kong, Keeta continues to consolidate its market position and turned UE profitable in the fourth quarter. In new markets such as Saudi Arabia, Qatar, Kuwait, the UAE, and Brazil, Keeta has demonstrated strong growth momentum.

By single quarter, in the fourth quarter of 2025, total revenue was RMB 92.1 billion, down 3.1% quarter over quarter. The financial report’s explanation primarily attributes this to seasonal factors, with a year-over-year increase of 4.1% versus 2024.

On the profitability front, the company turned from profit to loss. The financial report shows that in 2025, the company swung from a profit of RMB 35.81 billion in 2024 to a loss of RMB 23.35 billion. This sharp change reflects the squeeze on profits caused by market competition.

On gross margin, full-year gross profit was RMB 111.01 billion, and the gross margin fell from 38.4% in 2024 to 30.4%. This was mainly due to increases in rider subsidies, user subsidies, and greater investment in overseas businesses.

On operating profit, the core local commerce segment swung from operating profit of RMB 52.42 billion in 2024 to an operating loss of RMB 6.9 billion in 2025, with the operating profit margin dropping sharply from 20.9% to -2.6%. The financial report explains that this was mainly due to the decline in gross margin, and—amid fierce competition—to improve user activity and stickiness, resulting in a significant increase in user incentives, promotion, and advertising-related expenses.

Operating loss for the new business segment widened from RMB 7.37 billion to RMB 10.08 billion. The operating loss rate increased from 8.3% to 9.7%, mainly due to continued investment in overseas business (Keeta).

To reflect core operating performance more clearly, Meituan disclosed non-IFRS metrics: in 2025, adjusted EBITDA was RMB -13.78 billion, and adjusted net loss was RMB -18.65 billion. For the same period in 2024, the figures were RMB 49.12 billion and RMB 43.77 billion, respectively. This indicates that after excluding non-operating factors such as changes in the fair value of investments, the profitability of the company’s main business still faces serious challenges.

What is worth paying attention to is that on February 5 of this year, Meituan signed an agreement to acquire all issued shares of Dingdong Fresh Holding Limited (Dingdong Fresh). This strengthens Meituan’s overall operational capability in instant retail, especially with supply-chain reinforcement and its layout in East China.

Meanwhile, in the food delivery sector, Meituan has remained stable with a GTV market share of above 60%. In the technology field, Meituan’s R&D investment set a new high again, increasing 23% year over year to RMB 26 billion, continuing to drive the deployment of AI technology in the physical world.

“2025 is a year when opportunities and challenges coexist. No matter how the external environment changes, Meituan’s strategic direction will always remain clear.” Meituan CEO Wang Xing said, “We are firmly committed to ‘anti-overcrowding,’ focusing on doing the right things. Through technological innovation, supply upgrades, and ecosystem co-building, we will better serve users and merchants, and work hard to fulfill our corporate mission of ‘helping everyone eat better and live better.’”

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