Dingdong (Cayman) Limited

Dingdong reported Q3 2025 revenue of RMB 6.66 billion, up 1.9% year over year, and GMV of RMB 7.27 billion, up 0.1% year over year. Gross margin was 28.9%, down 0.9 percentage points year over year. Non-GAAP net profit was RMB 0.1 billion with a 1.5% margin, and GAAP net profit was RMB 0.08 billion with a 1.2% margin. Net operating cash inflow was RMB 0.14 billion, and actual cash owned after deducting short-term borrowings increased to RMB 3.03 billion. For Q4, management said it expects to maintain last year’s scale and non-GAAP profitability.

The CEO framed the quarter as proof that Dingdong can keep growing and staying profitable in a difficult competitive environment. He highlighted the company’s product strategy, saying good products are improving retention, repurchase, order conversion, and monthly order frequency, while the new “One Big, One Small, One World” framework is meant to guide the next phase of growth. He also pointed to small-city expansion and overseas partnerships as longer-term opportunities, while noting that competition in instant retail is intensifying.

The CFO said revenue grew 1.9% year over year to RMB 6.66 billion, supported by a 2.2% increase in order volume, while GMV was RMB 7.27 billion. Gross margin was 28.9%, down 0.9 percentage points, but the decline narrowed sequentially; fulfillment cost ratio was 21.5%, up 0.1 percentage points, sales and marketing expense ratio was 1.9%, down 0.3 percentage points, and combined G&A plus R&D was 4.9% of revenue, flat year over year. He also highlighted RMB 0.14 billion in operating cash inflow, RMB 3.94 billion in total cash and investments, and RMB 3.03 billion in net equity funds after short-term borrowings.

Analysts focused on competition in instant retail and on how Dingdong’s top-selling product strategy works in practice. Management said the market is still being driven by price competition and subsidies, but Dingdong is deliberately avoiding that path and instead investing in differentiated products, supply-chain depth, and efficiency. On top-selling products, management said the summer campaign validated the strategy and cited examples of products reaching nearly RMB 15 million in GMV and RMB 9 million in GMV, with higher repurchase rates and low complaint rates.