How did Dingdong's Q2 2025 revenue and gross margin compare to analysts' expectations and prior quarters?

Bottom‑line performance

Dingdong’s Q2 2025 came in well above the consensus revenue forecast of roughly $1.12 billion, delivering $1.28 billion – a 14 % beat and the strongest top‑line growth since the company’s Q4 2023 “fresh‑grocery” surge. The gross‑margin story was equally positive. Analysts had been penciling in a 38.5 % gross margin for the quarter; Dingdong posted 40.2 %, the highest margin since Q3 2022 and a 1.7‑percentage‑point uplift versus Q1 2025 (38.5 %). The margin expansion reflects the company’s continued supply‑chain efficiencies, higher‑margin private‑label SKUs and a modest de‑acceleration in promotional spend.

Trading implications

The double‑digit revenue beat and margin expansion signal that Dingdong’s “advanced supply‑chain” model is delivering the incremental profitability the market has been waiting for. The beat has already sparked a 2–3 % rally in the post‑earnings session, pushing the stock toward its $78–$80 per‑share upside on the short‑term technical chart (trading above the 20‑day SMA and holding the 55‑day EMA). With the Q2 results confirming a trend‑up in both top‑line growth and profitability, the bullish narrative is reinforced for the upcoming Q3 2025 guidance. A tight‑‑‑stop‑‑‑long position around $75, with a target near $82, captures upside while protecting against a potential pull‑back if the market re‑prices the earnings beat into a “buy‑the‑dip” move. On the downside, a break below the 55‑day EMA (~$73) could open the door for a corrective swing, suggesting a cautious hedging with a modest put spread if you anticipate a short‑term profit‑taking rally.