PDD profit sinks 12% in 2025 despite strong revenue

It was dragged by a significant surge in operating expenses and cost of revenues.

PDD Holdings Inc. reported a net profit drop of 12% year on year to $14.21b in 2025, despite a 20% increase in revenue to $67.14b.

In the fourth quarter alone, PDD Holdings' net profit declined 11% year on year even as it recorded a 12% year-on-year increase in revenue to $17.72b.

The company attributed the decline primarily to a significant surge in operating expenses and the cost of revenues. Management attributed these rising costs to higher fulfilment expenses and processing fees. 

Whilst transaction services revenue grew 19% year on year to $9.14b in the fourth quarter, the company emphasised that sustaining this growth required heavier reinvestment into its ecosystem to support merchant transition and consumer trust.