Dingdong (Cayman) Limited Announces Third Quarter 2026 Financial Results

SHANGHAI, Nov. 12, 2026 /PRNewswire/ -- Dingdong (Cayman) Limited ("Dingdong" or the "Company") (NYSE: DDL), a leading fresh grocery e-commerce company in China, with advanced supply chain capabilities, today announced its unaudited financial results for the quarter ended September 30, 2026.

Third Quarter 2026 Highlights:^[1]

• GMV: total amount of GMV for the third quarter of 2026 increased by 14.3% year over year to RMB8,311.1 million (US$1,239.6 million) from RMB7,273.2 million in the same quarter of 2025, positive year-on-year growth for eleventh straight quarters.
• Net income: total amount of net income for the third quarter of 2026 was RMB298.1 million (US$44.5 million), the eleventh consecutive quarter of profitability.
• Non-GAAP net income: total amount of Non-GAAP net income for the third quarter of 2026 was RMB307.6 million (US$45.9 million), the sixteenth consecutive quarter of non-GAAP profitability.

Mr. Song Wang, the Chief Executive Officer of Dingdong, stated, "As of the third quarter of 2026, Dingdong has maintained profitability on a non-GAAP basis for the sixteenth consecutive quarters and on a GAAP basis for the eleventh consecutive quarters. The Company has also delivered year-over-year revenue growth for the eleventh consecutive quarters. During the quarter, the Company's GMV increased by 14.3% year over year, with Eastern China region delivering particularly strong performance as GMV grew by 17.6% year over year, demonstrating robust growth momentum in our core markets. In addition, cash flow performance provides further evidence of our operating quality. Net cash inflow from operating activities was RMB351 million for the quarter on a consolidated basis, which included RMB384 million from our China business. 

We continued to advance our strategic transformation from an on-demand fresh grocery platform into a modern retailer centered on differentiated product capabilities, oriented toward household consumption occasions and underpinned by an efficient supply chain. In May 2026, we elevated Dingdong V5, our private label brand launched in 2023, to a company-level strategic priority, strengthening our product development and differentiation. At the same time, we continued to optimize our frontline fulfillment network by concentrating new openings in Eastern China, enhancing density and growth potential in our core markets. Our sustained profitability, accelerating core-market growth and continued progress in our product capability strategy fully demonstrate Dingdong's strategic resolve and solid execution amid fierce competition, laying robust fundamentals for long-term competitive advantage and high-quality, sustainable growth."

On February 5, 2026, the Company entered into a definitive agreement to divest its China business to Meituan. The transaction remains pending as of the date of this release, contingent on standard closing conditions under the Share Purchase Agreement, notably anti-monopoly approval from SAMR. Consistent with prior quarter accounting treatment, no depreciation or amortization was recognized for the held-for-sale China business upon classification as held-for-sale, which resulted in an increase to our net income by RMB195.7 million (US$29.2 million) in the current quarter.

Third Quarter 2026 Financial Results^[1]

Total revenues were RMB7,380.4 million (US$1,100.8 million), compared with total revenues of RMB6,662.4 million in the same quarter of 2025, representing an increase of 10.8% year over year. Revenues generated from our China business^[2] as included in profit from discontinued operations increased by 11.0% year over year to RMB 7,307.2  million (US$1,089.9 million), primarily due to the rise in the number of orders resulting from an increase in the average monthly number of transacting users and higher monthly order frequency, as well as the continued densification of frontline fulfillment stations in Eastern China (including new openings in Huai'an, Hefei, and Suqian during the third quarter). The increase was partially offset by the continued downward pressure on CPI prices for certain key categories, including pork, and by the ongoing closure of some inefficient frontline fulfillment stations in Beijing and the Guangzhou-Shenzhen area throughout the third quarter of 2026. Revenues generated from our overseas business decreased by 6.9% year over year to RMB73.2 million (US$10.9 million), primarily due to the overseas business was managed with a focus on selected regions.

Total operating costs and expenses were RMB7,093.5 million (US$1,058.0 million), compared with RMB6,621.6 million in the same quarter of 2025, with a detailed breakdown as below. No depreciation or amortization is recorded in the cost and the four categories of expenses for long-lived assets in the China business after being classified as held-for-sale, as assets held for sale are measured at the lower of their carrying amount or fair value less costs to sell according to the relevant standards under US GAAP. This has also impacted the line items below:

• Cost of goods sold was RMB5,187.4 million (US$773.7 million), an increase of 9.4% from RMB4,739.8 million in the same quarter of 2025. Cost of goods sold as a percentage of revenues was 70.3%, compared with 71.1% in the same quarter of 2025. Gross margin was 29.7%, compared with 28.9% in the same quarter of 2025. Since we began implementing our 4G Strategy in early 2025, gross margin has improved on a year-over-year basis, while remaining generally consistent with prior quarters.
• Fulfillment expenses were RMB1,436.0 million (US$214.2 million), an increase of 0.4% from RMB1,430.6 million in the same quarter of 2025. Fulfillment expenses as a percentage of total revenues decreased to 19.5% from 21.5% in the same quarter of 2025.
• Sales and marketing expenses were RMB156.7 million (US$23.4 million), an increase of 22.8% from RMB127.7 million in the same quarter of 2025. Sales and marketing expenses as a percentage of total revenues slightly increased to 2.1%, compared with 1.9% in the same quarter of 2025. The year-on-year increase in marketing expenses is mainly attributable to the increased spending on sales and marketing activities.
• General and administrative expenses were RMB123.2 million (US$18.4 million), a slight increase of 2.6% from RMB120.1 million in the same quarter of 2025, mainly due to the increase of professional service fee.
• Product development expenses were RMB190.3 million (US$28.4 million), a slight decrease of 6.5% from RMB203.4 million in the same quarter of 2025. While advocating for energy and resource saving, we will continue to invest in our product development capabilities, agricultural technology, data algorithms, and other technology infrastructure such as the AI technical capability, to further enhance our competitiveness.

Income from operations was RMB280.1 million (US$41.8 million), an increase of 372.4% from RMB59.3 million in the same quarter of 2025.

Net income was RMB298.1 million (US$44.5 million), an increase of 259.6% from RMB82.9 million in the same quarter of 2025. Among which, net income for the China business increased by year over year to RMB330.6 million (US$49.3 million), which was largely due to the cessation of depreciation or amortization of long-lived assets classified as held-for-sale under US GAAP. This factor has resulted in an increase of our net income by RMB195.7 million (US$29.2 million) in the current quarter, and this impact will continue to affect the quarterly net income every period prior to the completion of the Meituan transaction. Net loss for overseas business increased by 84.8% year over year to RMB32.5 million (US$4.9 million).

Non-GAAP net income, which is a non-GAAP measure that only excludes share-based compensation expenses from net income, was RMB307.6 million (US$45.9 million), an increase of 203.8% from RMB101.3 million in the same quarter of 2025. In addition, non-GAAP net income margin, which is the Company's non-GAAP net income as a percentage of total revenues, was 4.2% compared with 1.5% in the same quarter of 2025. Non-GAAP net income for China business increased by 210.3% year over year to RMB341.0 million (US$50.9 million). Non-GAAP net loss for overseas business increased by 287.0% year over year to RMB33.4 million (US$5.0 million). Similarly, non-GAAP net income was subject to the same factors that affected net income.

Basic and diluted net income per share were RMB0.91 (US$0.14) and RMB0.91 (US$0.14), compared with net income per share of RMB0.25 and RMB0.25 in the same quarter of 2025. Non-GAAP net income per share, basic and diluted, were RMB0.94 (US$0.14) and RMB0.94 (US$0.14), compared with RMB0.31 and RMB0.31 in the same quarter of 2025.

Cash and cash equivalents, restricted cash and short-term investments were RMB4,361.9 million (US$650.6 million) as of September 30, 2026, compared with RMB4,880.9 million as of June 30, 2026. We have been working diligently to optimize our capital usage and financing structure. The cash and cash equivalents, restricted cash, short-term investments and long-term deposits as included in the other non-current assets deducting the balance of short-term borrowings, is RMB3,576.0 million, a net increase for the fourteenth consecutive quarter, compared with RMB3,284.0 million as of June 30, 2026.

About Dingdong (Cayman) Limited 

We are a leading fresh grocery e-commerce company in mainland China, with sustainable long-term growth. We directly provide users and households with fresh groceries, prepared food, and other food products through delivering a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid. Leveraging our deep insights into consumers' evolving needs and our strong food innovation capabilities, we have successfully launched a series of private label products spanning a variety of food categories. Many of our private label products are produced at our Dingdong production plants, allowing us to more efficiently produce and offer safe and high-quality food products. We aim to be the first choice for fresh and food shopping.

For more information, please visit: https://ir.100.me. 

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as non-GAAP net income, non-GAAP net income margin, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges and do not correlate to any operating activity trends. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance.

For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.7045 to US$1.00, the exchange rate on September 30, 2026 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement 

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other things, business outlook and quotations from management in this announcement, as well as Dingdong's strategic and operational plans, contain forward-looking statements. Dingdong may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its interim and annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Dingdong's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Dingdong's goals and strategies; Dingdong's future business development, financial conditions, and results of operations; the expected outlook of the fresh grocery ecommerce market in China; Dingdong's expectations regarding demand for and market acceptance of its products and services; Dingdong's expectations regarding its relationships with its users, clients, business partners, and other stakeholders; competition in Dingdong's industry; and relevant government policies and regulations relating to Dingdong's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.

The following schedules set forth the breakdown of assets and liabilities held for sale and

income from discontinued operations of Dingdong's China business which were included in

the Company's unaudited condensed consolidated financial statements:

SOURCE Dingdong (Cayman) Limited