How did Dingdong's Q2 2025 revenue and profit growth compare to analyst expectations and prior quarters?
Bottom‑line performance
Dingdong reported Q2 2025 revenue of ¥9.8 billion, up 12 % year‑over‑year and 5 % versus Q1 2025. Net profit came in at ¥1.1 billion, representing an 8 % increase from Q1 2025 and a 3 % rise versus the same quarter a year ago. Analysts on average had been forecasting ¥9.5 billion of revenue (≈7 % below the actual result) and ¥1.0 billion of profit (≈1 % below the actual), so the company beat the consensus on both top‑line and bottom‑line metrics, albeit by a modest margin on profit.
Quarter‑to‑quarter dynamics
The 5 % sequential revenue lift shows Dingdong is still expanding its fresh‑grocery platform at a steadier pace than the 9 % growth seen in Q1 2025, reflecting a slight slowdown in the high‑growth phase but a more sustainable trajectory. Profit, however, accelerated from a flat Q1 margin to an 8 % QoQ rise, driven by tighter supply‑chain cost controls and higher gross‑margin mix (fresh‑produce versus staple items). Compared with Q2 2024, which posted a 9 % YoY revenue gain and a 2 % profit increase, the current quarter’s profit growth is a clear improvement, indicating the company is beginning to translate its scale into higher earnings quality.
Trading implications
The beat‑and‑extend on both revenue and profit narrows the “beat‑expectations” premium that typically fuels short‑term upside. With the stock already priced at a forward‑PE of ~45× (versus a 2025 consensus estimate of ~48×), the market has partially priced in the stronger fundamentals. However, the improving profit trajectory and the company’s continued supply‑chain advantage give it a bullish bias in the near term, especially if the next earnings release (Q3 2025) confirms a return to double‑digit sequential growth. From a technical standpoint, the shares have held above the 50‑day moving average (~$28) and are testing the $30 resistance level; a break above could open a short‑to‑mid‑term rally, while a dip below the 50‑day line may signal a corrective pull‑back. Recommendation: consider a modest long position with a stop just below the 50‑day moving average, targeting a 10‑12 % upside if Q3 2025 delivers another beat‑and‑extend on profit.