Temu parent PDD Holdings achieves strong Q3 results

Temu parent, PDD Holdings Inc. reported a solid third quarter for 2025, posting increased revenues and earnings despite what executives described as a more competitive and uncertain operating environment.

Total revenues rose 9 percent year-on-year to 108.28 billion yuan (15.21 billion dollars), driven by continued growth in online marketing services, which generated 53.35 billion yuan, up 8 percent, and transaction services, which climbed 10 percent to 54.93 billion yuan.

Operating profit for the quarter reached 25.03 billion yuan, slightly higher than last year, while non-GAAP operating profit increased to 27.08 billion uan. Net income attributable to ordinary shareholders grew 17 percent to 29.33 billion yuan, with non-GAAP net income rising 14 percent to 31.38 billion yuan.

Marking the company’s tenth anniversary, chairman and Co-CEO Lei Chen said the milestone underscores PDD Holdings’ mission “to create a platform that benefits all,” adding that the company is prepared to take on greater social responsibility as it scales.

Co-CEO Jiazhen Zhao noted that PDD is maintaining a long-term strategic view amid elevated competition, emphasizing ongoing investments in merchant support and industry upgrades to strengthen the platform’s future development.

Vice president of finance Jun Liu highlighted that revenue growth has moderated as the competitive landscape evolves, cautioning that financial results may fluctuate as the company ramps up ecosystem investments.

Total costs of revenues increased 18 percent to 46.84 billion yuan due to higher fulfilment, server and payment processing expenses. Basic earnings per ADS were 20.96 yuan, while diluted earnings per ADS were 19.70 yuan; on a non-GAAP basis, diluted earnings per ADS reached 21.08 yuan.