Meituan profit plummets 96.8% in Q2 2025 amid intense competition

Meituan announced a substantial decrease in profit for the second quarter ended June 30, 2025, with profit for the period plummeting 96.8% year-over-year to RMB365,296 thousand, from RMB11,352,338 thousand in Q2 2024. Operating profit also saw a sharp decline of 98.0%, reaching RMB226,350 thousand, compared to RMB11,256,889 thousand in the prior year period. Total revenues, however, increased by 11.7% to RMB91,840,480 thousand.

The core local commerce segment experienced a significant 75.6% year-over-year drop in operating profit to RMB3,721,130 thousand, with its operating margin falling to 5.7%. This decline was primarily attributed to intensified competition in the food delivery sector, leading to increased courier incentives and promotional expenses. New initiatives also saw an expanded operating loss of RMB1,881,318 thousand, due to overseas expansion costs.

For the six months ended June 30, 2025, profit for the period decreased by 37.7% to RMB10,422,176 thousand. Adjusted EBITDA for the quarter was RMB2,781,961 thousand, down 81.5% year-over-year, and adjusted net profit was RMB1,493,035 thousand, an 89.0% decrease.