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.