Meituan

Total revenue increased 2% year over year to RMB 95.5 billion. Cost of revenue ratio rose 12.9 percentage points year over year to 73.6%, selling and marketing expense ratio rose 16.7 percentage points to 35.9%, R&D expense ratio increased to 7.3%, and G&A stayed flat at 3.1%. Total segment operating loss was RMB 15.3 billion and adjusted net loss was RMB 16 billion. Cash and cash equivalents plus short-term treasury investments were RMB 141.3 billion as of September 30, 2025, and cash generated from operating activities was negative RMB 22.1 billion. New initiatives revenue grew 15.9% year over year to RMB 28 billion, with segment operating loss narrowing quarter over quarter to RMB 1.3 billion and an operating loss ratio of 4.6%. Management said food-delivery losses likely peaked in Q3, but Q4 would still see a substantial loss; Instashopping Q4 loss may slightly widen versus Q3; and the company does not expect new-initiatives losses in 2026 to exceed 2025.

Xing Wang framed the quarter as a response to a tougher competitive environment, arguing Meituan is focused on service quality, courier welfare, merchant support, and healthier industry development rather than participating in a price war. He repeatedly emphasized Meituan’s leadership in food delivery and local services, citing record app engagement, stronger user stickiness, and high-AOV market share. His tone was confident and combative on the industry outlook, saying irrational competition should eventually give way to a more rational, efficiency-driven phase.

Shaohui Chen said the quarter’s margin pressure came mainly from higher courier incentives, higher overseas costs, and heavy promotion to defend brand awareness and user engagement. He cited the 73.6% cost of revenue ratio, 35.9% selling and marketing ratio, and 7.3% R&D ratio, and noted the company ended the quarter with RMB 141.3 billion in cash and short-term investments. He also pointed to RMB 28 billion of new-initiatives revenue, lower Q/Q loss in that segment, and said investments in overseas business drove the Y/Y increase in new-initiatives operating loss.

Analysts focused on food-delivery competition, quick commerce, in-store competition, AI plans, and the losses/profitability path for new initiatives. Management said subsidy levels eased after the summer peak and Double 11, that food-delivery order share had begun to rebound, and that core users remained sticky despite multiple apps on phones. On Instashopping, Meituan said it would keep investing in supply and user education in Q4, with loss likely to widen slightly, while on new initiatives it said Keeta Hong Kong turned profitable in October and overall next-year losses should not exceed 2025.