Temu parent PDD Holdings Inc (NASDAQ:PDD) reported fiscal fourth-quarter 2025 results on Wednesday that missed the Street’s expectations.

Revenue grew 12% year-on-year (Y/Y) to $17.72 billion (123.92 billion Chinese yuan), missing the analyst consensus estimate of $17.93 billion.

Revenues from online marketing services and others rose 5% Y/Y to $8.58 billion, and revenues from transaction services grew 19% Y/Y to $9.14 billion.

Total costs of revenues rose 15% Y/Y to $7.89 billion, mainly due to higher fulfilment fees, bandwidth and server costs, and payment processing fees. Total operating expenses rose 10% Y/Y to $5.87 billion.

Profits And Margins

The Chinese online retailer reported:

Adjusted operating profit rose 5.3% Y/Y to $4.21 billion. The adjusted operating margin declined from 25.3% to 23.8% Y/Y.

The net income declined 11% Y/Y to $3.51 billion.

The adjusted net income fell 12% to $3.76.

Adjusted earnings per ...