Dingdong (NYSE:DDL) reported a strong finish to 2025 on Wednesday, posting its eighth consecutive quarter of GAAP profitability as the grocery e-commerce pioneer prepares to exit the hyper-competitive Chinese market through a landmark sale to Meituan.
The Shanghai-based company reported fourth-quarter revenue of RMB6.24 billion ($863.5 million), a 5.7% increase year-over-year.
Gross Merchandise Value (GMV), a key metric for e-commerce performance, grew 2.4% to RMB6.70 billion.
The company’s focus on high-margin private label products and supply chain efficiency drove a GAAP net income of RMB33.6 million, while non-GAAP net income reached RMB50.8 million.
The earnings release serves as a final health check for Dingdong’s core assets before they are absorbed by Meituan.
Under a definitive agreement signed in February, Meituan will acquire Dingdong’s China operations for an initial cash consideration of $717 million.
When including pre-closing dividends and cash adjustments, the total value realized by Dingdong is expected to reach approximately $997 million.
The divestiture marks a major consolidation in China’s "instant commerce" sector, which has seen several smaller players collapse under the weight of price wars with giants like Alibaba and JD.com.
By joining Meituan, Dingdong’s network of over 1,000 "front warehouses" will be integrated into a larger ecosystem of food delivery and local services.
Dingdong’s board has already signaled a shareholder-friendly exit.
The company intends to utilize at least 90% of the net cash proceeds from the sale—and its existing cash pile, which rose to RMB3.14 billion ($434 million) this quarter—to fund a massive share repurchase program or a special dividend.