Meituan swings to significant loss in Q3 2025 amid intense competition

Meituan announced a total revenue increase of 2.0% year-over-year to RMB95.5 bn for the third quarter of 2025, up from RMB93.6 bn in the same period of 2024. However, the company swung to an operating loss of RMB19.8 bn from an operating profit of RMB13.7 bn in Q3 2024. This resulted in an adjusted net loss of RMB16.0 bn, a substantial decrease from an adjusted net profit of RMB12.8 bn in the prior year.

The core local commerce segment's operating profit turned to a loss of RMB14.1 bn, a stark contrast to the RMB14.6 bn profit in Q3 2024, attributed to intensified competition and increased incentives. New initiatives also saw an expanded operating loss of RMB1.3 bn, up from RMB1.0 bn year-over-year, primarily due to overseas expansion costs.

Overall cost of revenues surged by 23.7% to RMB70.3 bn, accounting for 73.6% of revenues, driven by higher courier incentives and grocery retail/overseas business expansion. Selling and marketing expenses nearly doubled to RMB34.3 bn, rising to 35.9% of revenues due to promotions and user incentives in a competitive food delivery sector.