Meituan Returns to Profit in Q2 2026 as Core Local Commerce Margin Rebounds

Bulletin Express08-28 16:48

Hong Kong – 28 August 2026 – Meituan, the Hong-Kong-listed technology platform for local services, reported a sharp turnaround in the three months ended 30 June 2026, driven by a rebound in its Core Local Commerce segment and a narrower loss in New Initiatives.

Financial Performance (Q2 2026 vs. Q2 2025) • Revenue rose 14.4 % year-on-year (YoY) to RMB 104.64 billion. • Operating profit surged to RMB 2.69 billion from RMB 0.23 billion, lifting the operating margin to 2.6 % from 0.2 %. • Net profit climbed to RMB 2.16 billion, a 490 % increase over the prior-year quarter. • Adjusted EBITDA advanced 47.3 % to RMB 4.10 billion. • Adjusted net profit expanded 69.0 % to RMB 2.52 billion. • Net operating cash inflow reached RMB 9.73 billion.

Segment Highlights Core Local Commerce – Revenue: up 10.1 % YoY to RMB 71.53 billion. – Operating profit: RMB 5.67 billion, with margin improving to 7.9 % (5.7 % in Q2 2025). – Delivery services revenue increased 13.1 % to RMB 26.78 billion, supported by disciplined incentive spending and stronger order mix. – Product sales within the segment almost doubled to RMB 3.59 billion, aided by growth in medicine and alcohol categories. – Initiatives such as Meituan Instashopping and Branded Satellite Stores drove higher user engagement and merchant revenue.

New Initiatives – Revenue: up 25.0 % YoY to RMB 33.11 billion. – Operating loss narrowed 7.6 % YoY to RMB 1.74 billion; loss margin improved to –5.3 %. – Grocery retail (Xiaoxiang Supermarket) and international delivery brand Keeta continued rapid expansion, bolstered by private-label penetration and geographic rollout.

First-Half 2026 Snapshot • Revenue grew 10.1 % YoY to RMB 195.68 billion. • The group recorded a net loss of RMB 4.67 billion, reversing a RMB 10.42 billion profit in the prior-year period, primarily due to a weak first quarter and higher investment in AI and overseas operations. • Adjusted EBITDA declined 93.0 % YoY to RMB 1.05 billion.

Cash & Liquidity • Cash and cash equivalents stood at RMB 104.72 billion, complemented by RMB 63.60 billion in short-term treasury investments as of 30 June 2026. • Net cash from operating activities was RMB 9.73 billion in Q2; half-year operating cash flow totaled RMB 2.72 billion. • Net cash used in investing activities reached RMB 3.17 billion in Q2, largely reflecting capital expenditure and investments. • Net cash outflows of RMB 18.20 billion in financing during Q2 primarily reflected debt repayments and convertible-bond redemption.

Balance Sheet Developments • Total assets rose to RMB 384.68 billion, supported by a marked increase in other financial investments at fair value through other comprehensive income to RMB 36.39 billion. • Equity attributable to shareholders increased to RMB 169.21 billion, enhanced by a RMB 22.47 billion fair-value gain on investments recorded in other comprehensive income. • Net debt remains low relative to liquidity, with borrowings of RMB 42.14 billion against substantial cash reserves.

Capital Management • Between January and June 2026, Meituan repurchased 2.92 million Class B shares for HK$199.76 million, with shares pending cancellation as of period-end.

Outlook and Strategy Management highlighted ongoing investments in artificial intelligence, merchant digitalisation and international expansion. The company reiterated its commitment to “high-quality growth through disciplined execution” while continuing to support merchants and delivery partners with technology and welfare programs.

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