PDD Holdings (NASDAQ:PDD) reported its unaudited financial results for the fourth quarter and full year ended December 31, 2025, on Wednesday, revealing a narrative of steady top-line expansion tempered by the rising costs of its global ambitions.
The multinational commerce group posted total revenue of RMB123,912.2 million for the fourth quarter, a 12% increase compared to the same period in 2024.
For the full fiscal year 2025, revenues reached RMB431,845.7 million, up 10% year-over-year.
The growth was primarily attributed to sustained momentum in online marketing services and transaction services, as the company’s domestic and international platforms—including the cross-border marketplace Temu—continued to capture market share.
However, the cost of maintaining this growth trajectory was reflected in the company’s narrowing margins.
Full-year operating profit fell 13% to RMB94,624.1 million.
Management cited significant and continued investments in its global supply chain, research and development, and merchant support initiatives as the primary drivers behind the increased expenditure.
These strategic outlays are part of a broader effort to bolster the "high-quality development" of its ecosystem amid intensifying competition in the e-commerce sector.
Despite the dip in annual operating income, PDD Holdings maintains a formidable capital cushion.
The company reported that its reserves of cash, cash equivalents, and short-term investments climbed to RMB422.3 billion as of December 31, 2025.