Summary
Meituan (3690.HK) reported Q4 2025 results that beat consensus expectations on both revenue and profitability. Total revenue reached RMB 88.2 billion, up 20.1% year-over-year, while operating profit expanded meaningfully as the company continued to benefit from scale efficiencies across its core local commerce and new initiatives segments.
Key Financials
| Metric | Q4 2025 | Q4 2024 | YoY Change |
|---|---|---|---|
| Total Revenue | RMB 88.2B | RMB 73.4B | +20.1% |
| Core Local Commerce Revenue | RMB 63.7B | RMB 54.8B | +16.2% |
| New Initiatives Revenue | RMB 24.5B | RMB 18.6B | +31.7% |
| Operating Profit | RMB 10.6B | RMB 5.9B | +79.7% |
| Adjusted Net Profit | RMB 11.3B | RMB 6.8B | +66.2% |
Core Local Commerce
Food Delivery
Food delivery remained the backbone of Meituan's business, with order volume growing 15% year-over-year in Q4. Average order value ticked up modestly as consumers showed willingness to spend on higher-quality meal options. The company noted improving unit economics driven by route optimization and increased rider efficiency.
Meituan's instant delivery network processed over 62 million daily peak orders during the quarter, underscoring the platform's unrivaled logistics infrastructure in China's on-demand delivery market.
In-Store, Hotel & Travel
In-store services posted robust growth of approximately 22% year-over-year as offline consumption continued to recover. The hotel and travel segment benefited from strong domestic travel demand during the holiday period. GTV for in-store services reached new highs, and advertising revenue from local merchants grew in tandem.
New Initiatives
New initiatives revenue surged 31.7% to RMB 24.5 billion. Key highlights include:
- Meituan Select (community group buying): Losses narrowed significantly as the company rationalized its subsidy strategy and focused on higher-density markets with better unit economics.
- Meituan Grocery (Maicai): Continued strong growth in tier-1 cities, with improving gross margins driven by better sourcing and warehouse utilization.
- Keeta (overseas expansion): Meituan's international food delivery brand expanded its presence in the Middle East and Southeast Asia. While still early-stage and loss-making, management expressed confidence in the long-term opportunity.
Total losses from new initiatives narrowed to RMB 3.8 billion from RMB 5.2 billion in Q4 2024, reflecting improved discipline and path toward breakeven.
Margins & Profitability
Operating margin expanded to 12.0% from 8.0% a year ago, a significant improvement driven by operating leverage and cost discipline. Core local commerce operating margin reached 20.5%, demonstrating the segment's strong profit engine. The company generated free cash flow of RMB 13.1 billion in the quarter.
Strategic Highlights
- AI & Automation: Meituan continued investing in autonomous delivery, with its drone delivery service completing over 300,000 orders during the quarter across Shenzhen and other pilot cities. AI-powered demand forecasting improved inventory management in the grocery business.
- Shareholder Returns: The company announced a new US$2 billion share buyback program, signaling confidence in its valuation and cash generation ability.
- Regulatory Environment: Management noted a more stable and constructive regulatory environment, with policies increasingly supportive of platform economy growth.
Outlook
Management guided for continued double-digit revenue growth in 2026, supported by:
- Expanding food delivery penetration in lower-tier cities
- Growing instant retail (delivery of non-food items within 30 minutes)
- Selective international expansion with a focus on market-by-market profitability
- Ongoing efficiency gains from AI and automation investments
Bottom Line
Meituan's Q4 2025 results demonstrate that the company has successfully transitioned from a growth-at-all-costs model to one that balances expansion with profitability. With its dominant position in China's local services market, rapidly improving new initiative economics, and disciplined capital allocation, Meituan is well-positioned for sustainable shareholder value creation in 2026 and beyond.