Autohome (NYSE:ATHM), China’s leading online destination for automobile consumers, reported a decline in fourth-quarter and full-year earnings for 2025, even as its nascent online marketplace showed signs of long-term momentum.
In a move to bolster investor confidence, the company’s board authorized a new $200 million share repurchase program.
For the fiscal year ended Dec. 31, 2025, Autohome posted total net revenues of RMB6,452 million ($922.6 million), down from RMB7,184 million in the prior year.
The fourth quarter saw a sharper year-over-year contraction, with revenue falling 18% to RMB1,462.0 million ($209.1 million).
The downturn was primarily driven by a pullback in advertising spend from internal combustion engine (ICE) automakers, which weighed heavily on the company's traditional media services and lead generation businesses.
Profitability metrics reflected the challenging environment and increased investment in new initiatives.
Adjusted net income for the fourth quarter fell to RMB303.7 million ($43.4 million) from RMB486.5 million in the prior-year period.
However, the company maintains one of the strongest balance sheets in the sector, ending the year with RMB21.36 billion ($3.05 billion) in cash and short-term investments.
This liquidity supports the newly announced 18-month buyback program, which follows the nearly complete execution of a previous $200 million authorization.