Tuniu Corporation (NASDAQ:TOUR) reported higher second-quarter revenue on Tuesday and extended its run of adjusted profitability, although a cautious third-quarter outlook weighed on investor sentiment.
Shares slipped 1.01% following the results.
Revenue for the quarter reached RMB138.9 million ($20.5 million), representing an increase of 3.0% from RMB134.9 million in the same period last year. Adjusted earnings per ADS came in at RMB0.07 ($0.01).
Third-Quarter Guidance Signals Limited Revenue Growth
For the third quarter, Tuniu expects revenue of between RMB202.1 million and RMB212.2 million, representing year-on-year growth of between 0% and 5%.
The midpoint of the guidance range, at approximately RMB207.2 million, would nevertheless represent a notable sequential improvement from the second quarter.
“In the second quarter, we continued to advance our diversified product and sales channel strategy,” said Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer. “We further expanded our product offerings and strengthened our channel presence to better meet customers’ diverse and evolving needs and support the continued healthy growth of our business.”
Packaged Tours Drive Revenue Improvement
Packaged tour revenue increased 6.8% year-on-year to RMB121.1 million ($17.8 million), supported by stronger organised tour activity.
Other revenue moved in the opposite direction, falling 16.9% to RMB17.8 million ($2.6 million). Tuniu attributed the decline mainly to lower advertising service fees received from tourism boards.
Despite the overall increase in revenue, gross profit declined 11.1% from the previous year to RMB76.4 million ($11.3 million). Cost of revenue climbed 27.9% to RMB62.5 million ($9.2 million), putting pressure on margins.
Higher Costs Push Tuniu to Operating Loss
Operating expenses increased 4.6% year-on-year to RMB82.5 million ($12.2 million), contributing to an operating loss of RMB6.1 million ($0.9 million).
That compared with operating income of RMB7.1 million in the second quarter of the previous year.
On an adjusted basis, however, Tuniu remained profitable. Adjusted net income reached RMB1.9 million ($0.3 million), marking the company’s sixth consecutive quarter of adjusted profitability.
Tuniu Maintains Strong Liquidity Position
Tuniu ended the quarter with substantial liquidity. As of June 30, 2026, the company held RMB1.0 billion ($151.5 million) across cash, cash equivalents, restricted cash, short-term investments and long-term deposits.
The results showed continued growth in Tuniu’s core packaged tour business and another quarter of adjusted profitability, although rising costs, weaker gross profit and relatively subdued third-quarter growth guidance tempered the overall picture.
Tuniu Corporation stock price
