Didi 1Q26 First Take: headline results were weak, with adj. EBITA under RMB 200 mn amid heavy investment.However, vs. expectations the print was better — domestic profit release far exceeded forecasts, and Intl growth was strong while losses came in slightly lower than expected (still sizable in absolute terms).

Breakdown:

1) Domestic GTV rose 10% YoY, with growth easing QoQ but slightly above Bloomberg consensus; order growth showed a similar ~1ppt QoQ deceleration, indicating steady momentum.The standout was profit release, with domestic adj. EBITA near RMB 4 bn, well above the market's ~RMB 3.5 bn.Adj. EBITA margin was 4.6% on GTV, up 60bps YoY.

Domestic platform sales grew ~22% YoY, far outpacing GTV and revenue growth of ~10%.This implies a meaningful uplift in net take rate after driver revenue share and other direct costs, rising from 20.6% to 22.8%.

2) Intl was the highlight on growth, with GTV up 59% YoY; ex-FX, +49%, accelerating by over 10ppt QoQ.Orders rose 27% YoY, with only ~2ppt acceleration and well below GTV growth.Mix shifted toward higher-ticket food delivery, lifting GTV more than orders.

Beyond solid growth, Intl adj. EBITA loss was ~RMB 2.9 bn, still large but better than the market's ~RMB 3.1 bn loss estimate and Q4's RMB 3.4 bn.In other words, loss margin narrowed alongside strong growth.

3) Overall, domestic growth was steady while Intl growth was strong; domestic profit release expanded, and Intl losses narrowed.Company revenue maintained ~10% growth.Absolute profit was still under RMB 200 mn, but vs. the market's expected RMB 500 mn loss, this was a clear beat. $DiDi(DIDIY.US)