Alibaba reports mixed Q2 results amid strategic investments

Alibaba Group Holding Limited reported a 2% year-over-year revenue increase, reaching RMB247,652 million for the quarter ended June 30, 2025. Excluding disposed businesses, revenue grew 10% on a like-for-like basis. However, income from operations decreased by 3% to RMB34,988 million, and adjusted EBITA saw a 14% decline to RMB38,844 million, primarily due to significant investments in "Taobao Instant Commerce" and user acquisition.

Net income attributable to ordinary shareholders surged by 78% to RMB43,116 million, driven by mark-to-market changes from equity investments and a gain from the disposal of Trendyol's local consumer service business. Diluted earnings per ADS increased by 82% to RMB17.98. Non-GAAP net income, however, decreased by 18% to RMB33,510 million.

Net cash provided by operating activities fell 39% to RMB20,672 million, resulting in a free cash flow outflow of RMB18,815 million, mainly due to increased cloud infrastructure expenditure and Taobao Instant Commerce investments. As of June 30, 2025, the company's cash and other liquid investments stood at RMB585,663 million.