--- title: "Comparing Q2 2024 and Q2 2025" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/33302760.md" description: "Q2 2024 (-28%), Q2 2025 (+10%) 1. The momentum of revenue growth has significantly slowed, and the structure has stabilized. In the second quarter of 2025, the company's total revenue was RMB 103.985 billion (approximately USD 14.516 billion), a year-on-year increase of 7% compared to RMB 97.060 billion (approximately USD 13.356 billion) in the same period of 2024. This growth rate represents a significant slowdown compared to the explosive year-on-year growth of 86% in the second quarter of 2024..." datetime: "2025-08-25T11:16:36.000Z" locales: - [en](https://longbridge.com/en/topics/33302760.md) - [zh-CN](https://longbridge.com/zh-CN/topics/33302760.md) - [zh-HK](https://longbridge.com/zh-HK/topics/33302760.md) author: "[奇迹的交易员cola](https://longbridge.com/en/profiles/10743314.md)" --- # Comparing Q2 2024 and Q2 2025 Q2 2024 (-28%), Q2 2025 (+10%) 1\. Revenue growth momentum has significantly slowed, with the structure stabilizing. In Q2 2025, the company's total revenue reached RMB 1,039.85 billion (approximately USD 145.16 billion), up 7% year-over-year compared to RMB 970.60 billion (approximately USD 133.56 billion) in Q2 2024. This growth rate represents a significant slowdown compared to the explosive 86% year-over-year growth in Q2 2024. Revenue breakdown: · Online marketing services revenue was RMB 557.03 billion, up 13% year-over-year, remaining the largest revenue source. · Transaction services revenue was RMB 482.82 billion, flat compared to the same period last year (RMB 479.44 billion). Management attributed the slowdown to "intense competition," indicating that the domestic e-commerce market is becoming increasingly competitive. 2\. Increased strategic investments weigh on short-term profitability To support the "healthy and sustainable" development of the platform ecosystem, the company has increased investments in merchant support initiatives, directly impacting short-term profitability. · Operating profit was RMB 257.93 billion (USD 36.01 billion), down 21% year-over-year (Q2 2024: RMB 325.65 billion). · Net profit (attributable to ordinary shareholders) was RMB 307.54 billion (USD 42.93 billion), down 4% year-over-year (Q2 2024: RMB 320.09 billion). · Non-GAAP operating profit and net profit also declined by approximately 20%. The contraction in margins reflects management's strategic choice to "prioritize long-term impact over short-term results," opting to sacrifice profits for long-term ecosystem health and market share stability. 3\. Significant rise in costs and expenses confirms strategic investment direction To support this strategic shift, the company's costs and expenses have increased significantly: · Operating costs were RMB 458.59 billion (USD 64.02 billion), up 36% year-over-year. The increase was mainly driven by fulfillment expenses, payment processing fees, and higher bandwidth and server costs, directly related to the expansion of the transaction ecosystem. · Total operating expenses were RMB 323.33 billion (USD 45.14 billion), up 5% year-over-year. Among them: · R&D expenses were RMB 35.91 billion (USD 5.01 billion), up 23%, highlighting the company's continued emphasis on technology-driven growth. · Sales and marketing expenses saw slight growth, while general and administrative expenses declined. 4\. Weaker cash flow generation, but strong cash reserves remain In Q2 2025, net cash flow from operating activities was RMB 216.42 billion (USD 30.21 billion), down 51% from RMB 437.93 billion in Q2 2024. This was primarily due to lower net profit and changes in working capital. The company retains permanent cash reserves. As of June 30, 2025, the company's total cash, cash equivalents, and short-term investments amounted to RMB 3,871 billion (approximately USD 540 billion), up from RMB 3,316 billion at the end of 2023. 5\. Earnings per share decline in tandem Changes in profitability were directly reflected in earnings per share: · Diluted earnings per ADS were RMB 20.75 (USD 2.90), down from RMB 21.61 in Q2 2024. · Non-GAAP diluted earnings per ADS were RMB 22.07 (USD 3.08), down from RMB 23.24 in Q2 2024. Conclusion The Q2 2025 financial report indicates that PDD Holdings is in a critical transition period. The company is voluntarily sacrificing some short-term profits to invest in technology R&D, merchant support, and service upgrades to address intensifying market competition and pursue more sustainable, high-quality growth. Investors should shift their focus from "growth speed" to "investment effectiveness"—whether the current strategic investments can successfully transform into a healthier, more competitive platform ecosystem and ultimately drive renewed profitability growth. $PDD(PDD.US) ### Related Stocks - [PDD.US](https://longbridge.com/en/quote/PDD.US.md) ## Comments (11) - **Gavin Luck · 2025-08-25T11:48:28.000Z**: Understood - **乌萨奇official · 2025-08-25T11:25:47.000Z · 👍 3**: Growth is slowing, profits are declining, and costs are increasing, but the market believes that short-term pressure is for long-term development, so the stock price is rising? Sometimes the logic is positive, sometimes it feels reversed. What does Brother think about the market's reaction? - **奇迹的交易员cola** (2025-08-25T11:28:08.000Z): Bull trap - **坤坤的交易员 · 2025-08-25T11:24:01.000Z · 👍 2**: Mainly really don't like Chinese concept stocks - **坤坤的交易员 · 2025-08-25T11:23:29.000Z · 👍 3**: Brother Cola is really awesomeI was hesitating whether to follow or not - **奇迹的交易员cola** (2025-08-25T11:24:32.000Z): Sold, and went for a put when it opened at +5%. - **坤坤的交易员** (2025-08-25T11:26:09.000Z): Hahaha, well, mainly because I was also cut by Alibaba and Pinduoduo until I got appendicitis. It's a headache. In the second half, I saw institutions hyping it up but didn't dare to follow. - **嘿嘿^** (2025-08-25T11:29:17.000Z): Killing two birds with one stone? 🤡🙉 - **长桥挺好的 · 2025-08-25T11:20:11.000Z · 👍 2**: Is this Yuanbao or Tongyi - **奇迹的交易员cola** (2025-08-25T11:21:07.000Z): Wenxin😜