Revenue growth has slowed to 12.0% in 2025Q4 while gross margins have contracted to 55.5% from a 2024Q2 peak of 65.3% due to rising logistics costs.
| Sales/Revenue | 431.85B | 393.84B | 247.64B | 130.56B | 93.95B | 59.49B | 30.14B | 13.12B | 1.74B | 504.86M |
| Revenue Growth % | 9.65% | 59.04% | 89.68% | 38.97% | 57.92% | 97.37% | 129.74% | 652.26% | 245.45% | - |
| Cost of Goods Sold | 188.8B | 153.9B | 91.72B | 31.46B | 31.72B | 19.28B | 6.34B | 2.91B | 722.83M | 577.87M |
| COGS % of Revenue | 43.72% | 39.08% | 37.04% | 24.1% | 33.76% | 32.41% | 21.03% | 22.14% | 41.44% | 114.46% |
| Gross Profit | 243.04B | 239.94B | 155.92B | 99.1B | 62.23B | 40.21B | 23.8B | 10.21B | 1.02B | -73.01M |
| Gross Margin % | 56.28% | 60.92% | 62.96% | 75.9% | 66.24% | 67.59% | 78.97% | 77.86% | 58.56% | -14.46% |
| Gross Profit Growth % | 1.3% | 53.89% | 57.34% | 59.24% | 54.75% | 68.94% | 133.03% | 900.22% | 1498.85% | - |
| Operating Expenses | 149.94B | 131.51B | 97.22B | 68.69B | 55.34B | 49.59B | 32.34B | 21.01B | 1.62B | 213.2M |
| OpEx % of Revenue | 34.72% | 33.39% | 39.26% | 52.62% | 58.9% | 83.36% | 107.3% | 160.17% | 92.71% | 42.23% |
| Selling, General & Admin | 133.45B | 118.85B | 86.26B | 58.31B | 46.34B | 42.7B | 28.47B | 19.9B | 1.48B | 183.78M |
| SG&A % of Revenue | 30.9% | 30.18% | 34.83% | 44.66% | 49.33% | 71.78% | 94.46% | 151.66% | 84.73% | 36.4% |
| Research & Development | 16.5B | 12.66B | 10.95B | 10.38B | 8.99B | 6.89B | 3.87B | 1.12B | 129.18M | 29.42M |
| R&D % of Revenue | 3.82% | 3.21% | 4.42% | 7.95% | 9.57% | 11.58% | 12.84% | 8.51% | 7.41% | 5.83% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10M | 0 |
| Operating Income | 93.1B | 108.42B | 58.7B | 30.4B | 6.9B | -9.38B | -8.54B | -10.8B | -595.72M | -286.21M |
| Operating Margin % | 21.56% | 27.53% | 23.7% | 23.29% | 7.34% | -15.77% | -28.33% | -82.32% | -34.16% | -56.69% |
| Operating Income Growth % | -14.13% | 84.71% | 93.08% | 340.81% | 173.52% | -9.86% | 20.94% | -1712.88% | -108.14% | - |
| EBITDA | 96.1B | 109.13B | 59.48B | 32.63B | 8.39B | -8.73B | -7.9B | -10.3B | -593.46M | -285.45M |
| EBITDA Margin % | 22.25% | 27.71% | 24.02% | 24.99% | 8.93% | -14.67% | -26.21% | -78.53% | -34.03% | -56.54% |
| EBITDA Growth % | -11.94% | 83.46% | 82.32% | 288.77% | 196.14% | -10.49% | 23.32% | -1636.05% | -107.9% | - |
| D&A (Non-Cash Add-back) | 3B | 708.76M | 786.24M | 2.22B | 1.5B | 651.52M | 637.83M | 497M | 2.27M | 756K |
| EBIT | 119.45B | 132.7B | 71.92B | 36.32B | 10.93B | -9.38B | -8.54B | -4.85B | -585.72M | -286.21M |
| Net Interest Income | 25.58B | 20.55B | 10.19B | 3.95B | 1.83B | 1.7B | 1.4B | 584.94M | 80.78M | 4.46M |
| Interest Income | 25.58B | 20.55B | 10.24B | 4B | 3.06B | 2.46B | 1.54B | 584.94M | 80.78M | 4.46M |
| Interest Expense | 0 | 0 | 43.99M | 51.66M | 1.23B | 757.34M | 145.86M | 0 | 0 | 0 |
| Other Income/Expense | 26.47B | 24.28B | 13.18B | 5.86B | 2.81B | 2.2B | 1.57B | 582.62M | 70.61M | -5.77M |
| Pretax Income | 119.58B | 132.7B | 71.88B | 36.26B | 9.7B | -7.18B | -6.97B | -10.22B | -525.12M | -291.98M |
| Pretax Margin % | 27.69% | 33.69% | 29.02% | 27.78% | 10.33% | -12.07% | -23.12% | -77.87% | -30.11% | -57.83% |
| Income Tax | 21.73B | 20.27B | 11.85B | 4.73B | 1.93B | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 18.17% | 15.27% | 16.49% | 13.03% | 19.93% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 97.84B | 112.43B | 60.03B | 31.54B | 7.77B | -7.18B | -6.97B | -10.22B | -525.12M | -291.98M |
| Net Margin % | 22.66% | 28.55% | 24.24% | 24.16% | 8.27% | -12.07% | -23.12% | -77.87% | -30.11% | -57.83% |
| Net Income Growth % | -12.98% | 87.31% | 90.33% | 305.96% | 208.2% | -3.04% | 31.8% | -1845.69% | -79.85% | - |
| Net Income (Continuing) | 97.84B | 112.43B | 60.03B | 31.54B | 7.77B | -7.18B | -6.97B | -10.22B | -525.12M | -291.98M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 65.24 | 76.00 | 41.12 | 21.92 | 5.44 | -6.04 | -6.04 | -13.88 | -0.60 | -0.34 |
| EPS Growth % | -14.16% | 84.82% | 87.59% | 302.94% | 190.07% | 0% | 56.48% | -2213.33% | -76.47% | - |
| EPS (Basic) | 69.16 | 81.24 | 44.32 | 24.96 | 6.20 | -6.04 | -6.04 | -13.88 | -0.60 | -0.34 |
| Diluted Shares Outstanding | 1.48B | 1.48B | 1.46B | 1.44B | 1.43B | 1.19B | 1.16B | 742.08M | 860.58M | 860.58M |
| Basic Shares Outstanding | 1.4B | 1.38B | 1.35B | 1.26B | 1.25B | 1.19B | 1.15B | 741.9M | 860.58M | 860.58M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Cross-border regulatory policy shifts
As indicated by recent financial disclosures, PDD's revenue growth has decelerated sharply from a peak of 130.7% in 2024Q1 to 12.0% by 2025Q4, suggesting that the initial hyper-growth phase of the Temu international expansion is encountering significant market saturation and competitive friction in core operating regions.
The transition from triple-digit growth to low double-digits implies that the platform's ability to capture new incremental GMV is becoming increasingly expensive. Investors should monitor whether this deceleration reflects a deliberate pivot toward sustainable unit economics or a fundamental loss of momentum in the international segment.
Based on reported income statements, PDD's gross margin has contracted from a high of 65.3% in 2024Q2 to 55.5% in 2025Q4, which appears to correlate with the scaling of the 'Fully Managed' international model and the associated increase in logistics and fulfillment-related expenditures.
This structural shift suggests that the company is trading higher margin profile for broader global reach, potentially exposing the bottom line to trans-Pacific freight volatility. The narrowing spread between revenue and COGS warrants further investigation into whether the company can achieve operating leverage as these logistics networks mature.
According to the latest quarterly data, operating margins have compressed to 21.1% in 2025Q4 from a peak of 33.6% in 2024Q2, indicating that SG&A expenses are scaling at a rate that currently outpaces the company's ability to extract incremental operating profit from its core platform.
The inability to maintain operating leverage during a period of slowing revenue growth suggests that customer acquisition costs remain elevated. This trend may indicate that the platform is forced to subsidize user engagement more aggressively than in previous periods to maintain its competitive positioning.
As reported in recent filings, the 10.8% year-over-year decline in EPS for 2025Q4, coupled with persistent stock-based compensation expenses of $1.8B, raises questions regarding the quality of earnings and the long-term sustainability of the company's current profitability levels amidst intensifying global regulatory scrutiny.
Short-term earnings volatility appears to be masked by the company's massive cash position, yet the underlying operational performance shows signs of strain. Investors should consider whether the current earnings trajectory is sustainable if regulatory changes force a fundamental restructuring of the cross-border supply chain.
Quick answers to the most common questions about buying PDD stock.
For fiscal year 2025, PDD Holdings Inc. (PDD) reported total revenue of $431.85B. This represents a 85437.0% increase compared to $504.9M in 2016.
PDD Holdings Inc. (PDD) is profitable, generating $97.84B in net income for the fiscal year ending 2025 with a net profit margin of 22.7%.
PDD Holdings Inc. (PDD) reported an operating income of $93.10B, resulting in an operating profit margin of 21.6%. This margin reflects the operational efficiency of the business before interest and taxes.
PDD Holdings Inc. (PDD) generated $243.04B in gross profit for the year, representing a gross profit margin of 56.3%. This demonstrates the company's core pricing power and production efficiency.