From Huge Profit to Massive Loss! Meituan Reports an Adjusted Net Loss of RMB 15.08 Billion in Q4, with Revenue Increasing by 4.1% Year-on-Year, Slightly Above Expectations.

Futu News reported on March 26 that$MEITUAN-W (03690.HK)$The company announced its Q4 2025 financial results after the Hong Kong stock market closed today. The earnings report shows:

• Q4 revenue was RMB 92.096 billion, representing a year-over-year increase of 4.1%, slightly above the market expectation of RMB 92.076 billion.

• The operating loss amounted to RMB 16.074 billion, compared to an operating profit of RMB 6.693 billion in the same period last year.

• The adjusted net loss was RMB 15.080 billion, compared to an adjusted net profit of RMB 9.849 billion in the same period last year, with market expectations for a loss of RMB 12.957 billion.

• The adjusted EBITDA loss was RMB 14.025 billion, compared to an adjusted EBITDA of RMB 11.523 billion in the same period last year.

By segment:

• Core Local Commerce

Revenue from the Core Local Commerce segment decreased by 1.1% from RMB 65.6 billion in Q4 2024 to RMB 64.8 billion in the same period of 2025. The robust growth in transaction volume and transaction value was driven by the continuous increase in annual purchase frequency and cross-selling across different businesses. The slight decline in revenue was primarily due to an increase in subsidies deducted from revenue, as a result of intensified marketing and promotional efforts to enhance brand influence and price competitiveness, thereby continuously improving user transaction activity and stickiness in response to fierce competition.

By 2025, the company will strengthen its comprehensive and cost-effective supply system through in-depth cultivation of the supply chain and continuous innovation on the supply side. This will not only precisely meet consumers' integrated demands in food delivery, instant retail, and service retail but also further consolidate its position as a one-stop local services platform. Meituan is expanding its cooperation with food and beverage merchants, promoting all-round innovation in products, store formats, and channels. For instance, the 'Brand Satellite Store' has partnered with over 1,000 brands, becoming a core growth engine for brand merchants to achieve efficient expansion.

Meanwhile, Meituan is scaling up the 'Raccoon Canteen,' which now covers more than 500 brands and stores, establishing a fully traceable and reliable food delivery model. It continues to work closely with merchants by launching high-quality, cost-effective hit products through models like 'Group Buying Meals' and 'Super Grabbers,' serving a broader consumer base. It is deepening its layout in the instant retail supply chain and solidifying its role as a strategic partner for top brands in multiple categories such as sports, alcoholic beverages, and 3C home appliances, supporting their omnichannel development.

• New Businesses

Despite the impact of shutting down “Meituan Preferred,” revenue from the New Businesses segment increased by 18.9% from RMB 22.9 billion in Q4 2024 to RMB 27.3 billion in the same period of 2025.

On the international front, Keeta accelerated its global expansion in 2025, demonstrating strong growth momentum. In Hong Kong, Keeta continued to consolidate its market position and achieved positive unit economics in Q4. Meanwhile, in Saudi Arabia, Keeta experienced rapid order growth throughout the year, becoming one of the most favored platforms among consumers due to its high-quality services. In the second half of 2025, the company successively entered Qatar, Kuwait, the UAE, and Brazil, all of which exhibited robust growth trends.

By 2025, Meituan is committed to driving AI transformation in the physical world by integrating the strengths of its self-developed multimodal LongCat series large language models and open-source models, leveraging its unique digital assets including rich merchant information, high-quality and diverse offerings, real consumer behavior, and user reviews. It will first launch 'Xiao Mei,' an independent App acting as a smart life assistant, and make 'Xiao Tuan,' the AI assistant embedded within the Meituan App, available to all users. AI technology will be comprehensively integrated into Meituan’s consumption scenarios, covering the full range of local lifestyle services on the platform. Xiao Tuan will significantly change how consumers interact with mobile apps, shifting from search-based interactions to demand-based ones, providing consumers with a new, practical, and high-quality user experience.

• Outlook and Strategy for 2026

Facing a complex external environment and intense industry competition, the company remains steadfast in enhancing its long-term core competitiveness and promoting the healthy and sustainable development of the industry. Looking ahead, Meituan will further unlock growth potential and consolidate the competitive advantages of its Core Local Commerce segment, continuing to deepen its supply chain layout, improve service quality, optimize the “Meituan Membership” system, and make strategic investments in its ecosystem. The goal is to further solidify its position as the preferred local lifestyle service platform for consumers, driving high-quality and efficient industry growth.

At the same time, grocery retail and internationalization hold clear strategic value and long-term growth potential. The company will actively invest in these areas while adhering to the principle of prudent investment. Keeta will continue to leverage its strengths in product development, technological innovation, and operations to create value for merchants and consumers worldwide.

Meituan will steadfastly implement its corporate strategy of 'Retail + Technology,' fully embracing AI by integrating the advantages of its self-developed multimodal 'LongCat' series large language models and open-source models. It will rely on its vast database of local lifestyle merchant information, real consumption data, and user reviews to build an all-around local lifestyle AI assistant. Throughout this process, it will remain committed to its mission of 'helping everyone eat better and live better' and strive to create substantial value for ecosystem participants.

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Editor/Melody