PDD Holdings Announces Second Quarter 2025 Unaudited Financial Results

DUBLIN and SHANGHAI, Aug. 25, 2025 (GLOBE NEWSWIRE) -- PDD Holdings Inc. ("PDD Holdings" or the "Company") (NASDAQ:PDD), today announced its unaudited financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights

• Total revenues in the quarter were RMB103,984.8 million (US$¹14,515.7 million), an increase of 7% from RMB97,059.5 million in the same quarter of 2024.
  
  
  
  
• Operating profit in the quarter was RMB25,792.9 million (US$3,600.6 million), a decrease of 21% from RMB32,564.5 million in the same quarter of 2024. Non-GAAP² operating profit in the quarter was RMB27,747.8 million (US$3,873.4 million), a decrease of 21% from RMB34,987.3 million in the same quarter of 2024.
  
  
  
  
• Net income attributable to ordinary shareholders in the quarter was RMB30,753.5 million (US$4,293.0 million), a decrease of 4% from RMB32,009.4 million in the same quarter of 2024. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB32,708.4 million (US$4,565.9 million), a decrease of 5% from RMB34,432.1 million in the same quarter of 2024.
  
  

"In the past quarter, we continued to invest in merchant support initiatives, and are encouraged by the progress made towards a healthier and more sustainable platform ecosystem," said Mr. Lei Chen, Chairman and Co-Chief Executive Officer of PDD Holdings. "We remain steadfast in our commitment to supporting the vitality of the ecosystem, prioritizing long-term impact over short-term results."

"In Q2, we invested significant resources in rolling out a comprehensive suite of merchant support measures," said Mr. Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings. "We are excited about the opportunities ahead as we focus intensely on driving efficiencies for the merchants."

"Revenues growth further moderated this quarter amid intense competition," said Ms. Jun Liu, VP of Finance of PDD Holdings. "As we remain focused on long-term value creation, the sustained investments may continue to weigh on short-term profitability."

<sup>____________________________

1</sup> This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.1636 to US$1.00, the noon buying rate in effect on June 30, 2025 as set forth in the H.10 Statistical Release of the Federal Reserve Board.

² The Company's non-GAAP financial measures exclude share-based compensation expenses and fair value change of certain investments. See "Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures" set forth at the end of this press release.



Second Quarter 2025 Unaudited Financial Results

Total revenues were RMB103,984.8 million (US$14,515.7 million), an increase of 7% from RMB97,059.5 million in the same quarter of 2024. The increase was primarily due to the increase in revenues from online marketing services and transaction services.

• Revenues from online marketing services and others were RMB55,703.2 million (US$7,775.9 million), an increase of 13% from RMB49,115.9 million in the same quarter of 2024.
  
  
  
  
• Revenues from transaction services were RMB48,281.6 million (US$6,739.9 million), compared with RMB47,943.7 million in the same quarter of 2024.
  
  

Total costs of revenues were RMB45,858.9 million (US$6,401.7 million), an increase of 36% from RMB33,698.1 million in the same quarter of 2024. The increase mainly came from the increased fulfilment fees, bandwidth and server costs, and payment processing fees.

Total operating expenses were RMB32,333.0 million (US$4,513.5 million), an increase of 5% from RMB30,796.9 million in the same quarter of 2024. The increase was primarily due to the increase in sales and marketing expenses.

• Sales and marketing expenses were RMB27,209.9 million (US$3,798.4 million), compared with RMB26,049.1 million in the same quarter of 2024.
  
  
  
  
• General and administrative expenses were RMB1,531.8 million (US$213.8 million), compared with RMB1,838.6 million in the same quarter of 2024.
  
  
  
  
• Research and development expenses were RMB3,591.3 million (US$501.3 million), compared with RMB2,909.2 million in the same quarter of 2024.
  
  

Operating profit in the quarter was RMB25,792.9 million (US$3,600.6 million), a decrease of 21% from RMB32,564.5 million in the same quarter of 2024. Non-GAAP operating profit in the quarter was RMB27,747.8 million (US$3,873.4 million), a decrease of 21% from RMB34,987.3 million in the same quarter of 2024.

Net income attributable to ordinary shareholders in the quarter was RMB30,753.5 million (US$4,293.0 million), a decrease of 4% from RMB32,009.4 million in the same quarter of 2024. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB32,708.4 million (US$4,565.9 million), a decrease of 5% from RMB34,432.1 million in the same quarter of 2024.

Basic earnings per ADS was RMB22.01 (US$3.07) and diluted earnings per ADS was RMB20.75 (US$2.90), compared with basic earnings per ADS of RMB23.14 and diluted earnings per ADS of RMB21.61 in the same quarter of 2024. Non-GAAP diluted earnings per ADS was RMB22.07 (US$3.08), compared with RMB23.24 in the same quarter of 2024.

Net cash generated from operating activities was RMB21,641.7 million (US$3,021.1 million), compared with RMB43,792.6 million in the same quarter of 2024, mainly due to the decrease in net income and the changes in working capitals.

Cash, cash equivalents and short-term investments were RMB387.1 billion (US$54.0 billion) as of June 30, 2025, compared with RMB331.6 billion as of December 31, 2024.

Other non-current assets were RMB85.0 billion (US$11.9 billion) as of June 30, 2025, compared with RMB83.4 billion as of December 31, 2024, which mainly included time deposits, held-to-maturity debt securities, and available-for-sale debt securities.

Conference Call

The Company's management will hold an earnings conference call at 7:30 AM ET on August 25, 2025 (12:30 PM IST and 7:30 PM HKT on the same day).

The conference call will be webcast live at https://investor.pddholdings.com/investor-events. The webcast will be available for replay at the same website following the conclusion of the call.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating profit, non-GAAP net income attributable to ordinary shareholders, non-GAAP diluted earnings per ordinary share, and non-GAAP diluted earnings per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Company's non-GAAP financial measures exclude the impact of share-based compensation expenses and fair value change of certain investments.

The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses and fair value change of certain investments, which are non-cash charges. The Company also believes that the non-GAAP financial measures may provide further information about the Company's results of operations, and enhance the overall understanding of the Company's past performance and future prospects.

The Company's non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. These non-GAAP financial measures do not reflect all items of income and expenses that affect the Company's operations and do not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company's financial information in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measures, please see the table captioned "Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures" set forth at the end of this press release.



Safe Harbor Statements

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue" or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in the e-commerce markets globally and in the countries or regions where the Company has operations; changes in its revenues and certain cost or expense items; the expected growth of e-commerce markets globally and in the countries or regions where the Company has operations; developments in the relevant governmental policies and regulations relating to the Company's industry; and general economic and business conditions globally and in the countries or regions where the Company has operations; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

About PDD Holdings

PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities.

PDD HOLDINGS INC.  CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"))
		As of
		December 31, 2024		June 30, 2025
		RMB		RMB		US$
				(Unaudited)		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents		57,768,053		63,222,442		8,825,513
Restricted cash		68,426,368		66,677,640		9,307,840
Receivables from online payment platforms		3,679,309		6,007,506		838,616
Short-term investments		273,791,856		323,908,642		45,215,903
Amounts due from related parties		7,569,180		8,685,737		1,212,482
Prepayments and other current assets		4,413,466		7,540,578		1,052,623
Total current assets		415,648,232		476,042,545		66,452,977
Non-current assets
Property, equipment and software, net		879,327		843,211		117,708
Intangible assets		19,170		17,301		2,415
Right-of-use assets		5,064,351		5,208,930		727,139
Deferred tax assets		15,998		73,303		10,233
Other non-current assets		83,407,238		84,971,006		11,861,495
Total non-current assets		89,386,084		91,113,751		12,718,990
Total Assets		505,034,316		567,156,296		79,171,967

PDD HOLDINGS INC.  CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"))
		As of
		December 31, 2024		June 30, 2025
		RMB		RMB		US$
				(Unaudited)		(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Amounts due to related parties		801,859		1,160,511		162,001
Customer advances and deferred revenues		2,947,041		3,601,464		502,745
Payable to merchants		91,655,947		95,521,629		13,334,305
Accrued expenses and other liabilities		69,141,831		76,838,168		10,726,197
Merchant deposits		16,460,600		17,137,378		2,392,286
Convertible bonds, current portion		5,309,597		5,287,585		738,118
Lease liabilities		2,105,978		2,415,762		337,227
Total current liabilities		188,422,853		201,962,497		28,192,879
Non-current liabilities
Lease liabilities		3,191,565		3,259,973		455,075
Deferred tax liabilities		106,774		70,170		9,795
Total non-current liabilities		3,298,339		3,330,143		464,870
Total Liabilities		191,721,192		205,292,640		28,657,749
Shareholders' equity
Ordinary shares		180		181		25
Additional paid-in capital		117,829,308		121,958,952		17,024,813
Statutory reserves		237,680		237,680		33,179
Accumulated other comprehensive income		7,824,545		6,750,146		942,284
Retained earnings		187,421,411		232,916,697		32,513,917
Total Shareholders' Equity		313,313,124		361,863,656		50,514,218
Total Liabilities and Shareholders' Equity		505,034,316		567,156,296		79,171,967

PDD HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME   (Amounts in thousands of RMB and US$)
		For the three months ended June 30,									For the six months ended June 30,
		2024			2025						2024			2025
		RMB			RMB			US$			RMB			RMB			US$
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenues		97,059,531			103,984,832			14,515,723			183,871,590			199,657,007			27,871,043
Costs of revenues		(33,698,098	)		(45,858,933	)		(6,401,660	)		(66,392,784	)		(86,806,033	)		(12,117,655	)
Sales and marketing expenses		(26,049,137	)		(27,209,896	)		(3,798,355	)		(49,459,792	)		(60,612,637	)		(8,461,198	)
General and administrative expenses		(1,838,550	)		(1,531,825	)		(213,835	)		(3,661,995	)		(3,190,768	)		(445,414	)
Research and development expenses		(2,909,210	)		(3,591,279	)		(501,323	)		(5,818,830	)		(7,169,107	)		(1,000,769	)
Total operating expenses		(30,796,897	)		(32,333,000	)		(4,513,513	)		(58,940,617	)		(70,972,512	)		(9,907,381	)
Operating profit		32,564,536			25,792,899			3,600,550			58,538,189			41,878,462			5,846,007
Interest and investment income, net		4,855,592			10,422,628			1,454,943			9,904,181			10,645,753			1,486,090
Foreign exchange gain/(loss), net		60,165			(799,350	)		(111,585	)		274,683			(1,041,490	)		(145,386	)
Other income, net		493,258			119,106			16,627			2,374,506			3,380,398			471,885
Profit before income tax and share of results of equity investees		37,973,551			35,535,283			4,960,535			71,091,559			54,863,123			7,658,596
Share of results of equity investees		(49,583	)		37,097			5,179			(102,013	)		(68,083	)		(9,504	)
Income tax expenses		(5,914,613	)		(4,818,923	)		(672,696	)		(10,982,365	)		(9,299,754	)		(1,298,196	)
Net income		32,009,355			30,753,457			4,293,018			60,007,181			45,495,286			6,350,896

PDD HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands of RMB and US$, except for per share data)
		For the three months ended June 30,						For the six months ended June 30,
		2024		2025				2024		2025
		RMB		RMB		US$		RMB		RMB		US$
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Net income		32,009,355		30,753,457		4,293,018		60,007,181		45,495,286		6,350,896
Net income attributable to ordinary shareholders		32,009,355		30,753,457		4,293,018		60,007,181		45,495,286		6,350,896
Earnings per ordinary share:
-Basic		5.78		5.50		0.77		10.87		8.16		1.14
-Diluted		5.40		5.19		0.72		10.14		7.67		1.07
Earnings per ADS (4 ordinary shares equals 1 ADS):
-Basic		23.14		22.01		3.07		43.47		32.63		4.55
-Diluted		21.61		20.75		2.90		40.57		30.69		4.28
Weighted-average number of ordinary shares outstanding (in thousands):
-Basic		5,533,796		5,587,797		5,587,797		5,521,739		5,577,856		5,577,856
-Diluted		5,925,659		5,927,800		5,927,800		5,916,670		5,929,895		5,929,895

PDD HOLDINGS INC. NOTES TO FINANCIAL INFORMATION (Amounts in thousands of RMB and US$)
		For the three months ended June 30,						For the six months ended June 30,
		2024		2025				2024		2025
		RMB		RMB		US$		RMB		RMB		US$
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenues
- Online marketing services and others		49,115,866		55,703,222		7,775,870		91,572,109		104,425,393		14,577,222
- Transaction services		47,943,665		48,281,610		6,739,853		92,299,481		95,231,614		13,293,821
Total		97,059,531		103,984,832		14,515,723		183,871,590		199,657,007		27,871,043

PDD HOLDINGS INC. NOTES TO FINANCIAL INFORMATION (Amounts in thousands of RMB and US$)
		For the three months ended June 30,						For the six months ended June 30,
		2024		2025				2024		2025
		RMB		RMB		US$		RMB		RMB		US$
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Share-based compensation expenses included in:
Costs of revenues		37,706		64,617		9,020		55,220		121,311		16,934
Sales and marketing expenses		637,997		484,639		67,653		1,310,372		1,121,923		156,614
General and administrative expenses		1,244,961		865,292		120,791		2,496,729		1,789,235		249,768
Research and development expenses		502,098		540,346		75,429		1,138,983		1,096,558		153,074
Total		2,422,762		1,954,894		272,893		5,001,304		4,129,027		576,390

PDD HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$)
		For the three months ended June 30,									For the six months ended June 30,
		2024			2025						2024			2025
		RMB			RMB			US$			RMB			RMB			US$
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net cash generated from operating activities		43,792,640			21,641,656			3,021,059			64,859,819			37,158,599			5,187,140
Net cash used in investing activities		(42,622,100	)		(27,021,892	)		(3,772,111	)		(70,912,221	)		(33,405,868	)		(4,663,280	)
Net cash generated from financing activities		728			353			49			758			572			80
Effect of exchange rate changes on cash, cash equivalents and restricted cash		240,744			21,876			3,055			388,668			(47,642	)		(6,649	)
Increase/(decrease) in cash, cash equivalents and restricted cash		1,412,012			(5,358,007	)		(747,948	)		(5,662,976	)		3,705,661			517,291
Cash, cash equivalents and restricted cash at beginning of period		114,704,917			135,258,089			18,881,301			121,779,905			126,194,421			17,616,062
Cash, cash equivalents and restricted cash at end of period		116,116,929			129,900,082			18,133,353			116,116,929			129,900,082			18,133,353

PDD HOLDINGS INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES (Amounts in thousands of RMB and US$, except for per share data)
		For the three months ended June 30,						For the six months ended June 30,
		2024		2025				2024		2025
		RMB		RMB		US$		RMB		RMB		US$
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Operating profit		32,564,536		25,792,899		3,600,550		58,538,189		41,878,462		5,846,007
Add: Share-based compensation expenses		2,422,762		1,954,894		272,893		5,001,304		4,129,027		576,390
Non-GAAP operating profit		34,987,298		27,747,793		3,873,443		63,539,493		46,007,489		6,422,397
Net income attributable to ordinary shareholders		32,009,355		30,753,457		4,293,018		60,007,181		45,495,286		6,350,896
Add: Share-based compensation expenses		2,422,762		1,954,894		272,893		5,001,304		4,129,027		576,390
Add: Loss from fair value change of certain investments		17		-		-		25,454		-		-
Non-GAAP net income attributable to ordinary shareholders		34,432,134		32,708,351		4,565,911		65,033,939		49,624,313		6,927,286
Non-GAAP diluted weighted-average number of ordinary shares outstanding (in thousands)		5,925,659		5,927,800		5,927,800		5,916,670		5,929,895		5,929,895
Diluted earnings per ordinary share		5.40		5.19		0.72		10.14		7.67		1.07
Add: Non-GAAP adjustments to earnings per ordinary share		0.41		0.33		0.05		0.85		0.70		0.10
Non-GAAP diluted earnings per ordinary share		5.81		5.52		0.77		10.99		8.37		1.17
Non-GAAP diluted earnings per ADS		23.24		22.07		3.08		43.97		33.47		4.68

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