Meituan (9MD) Q2 2026 Earnings Report

The call emphasized clear operational and financial progress: revenue rose 14.4% to RMB 104.6 billion, unit economics turned positive, segments improved to profitability (core commerce) and new initiatives showed revenue growth with narrowing losses. Strong cash and investment positions, rapid grocery and overseas expansion, and significant AI progress were highlighted. Near-term challenges include elevated industry subsidies, Q3 seasonality and cost headwinds (including nationwide courier insurance rollout), continued scale losses in some new initiatives, and intense competition in certain markets. Overall, the positives—accelerating revenue, return to profitability, improved margins and strong strategic investments—outweigh the highlighted near-term pressures.

Management guided that Meituan expects continued focus on quality growth and efficiency, noting Q2 results of total revenue up 14.4% YoY to RMB 104.6 billion, cost of revenue ratio at 66.5%, S&M ratio 23.6%, R&D ratio 7.3% and G&A 3.1%; the company turned profitable with total segment operating profit of RMB 3.9 billion and adjusted net profit of RMB 2.5 billion (core segment operating profit reported at RMB 5.7 billion), while cash and short-term Treasury investments stood at RMB 168.3 billion and the investment portfolio near RMB 77.3 billion (RMB 22.2 billion FV gain in OCI). Management expects food‑delivery unit economics (UE) to improve meaningfully YoY and to remain positive in Q3 despite seasonal headwinds (Q3 delivery cost per order to be higher than Q2) and said industry subsidy normalization will take a few quarters; new initiatives revenue grew 25% to RMB 33.1 billion with segment loss narrowing to RMB 1.7 billion and management reiterated that 2026 new‑initiative losses should not exceed 2025 levels. They signaled continued AI and grocery retail investment (Xiaoxiang in 68 cities, Happy Monkey 40 stores), targeted expansion (nearly 400 counties and >0.5 million SMBs to be supported in H2), disciplined capital allocation including ongoing buybacks and potential monetization of parts of the ~RMB 70+ billion stake portfolio, and a medium‑to‑long‑term path to margin recovery after near‑term reinvestment.