Key Takeaways:
- Revenue rose 5.6% to 91 billion yuan, in line with consensus estimates
- Adjusted net loss narrowed to 4.97 billion yuan from 15.1 billion in Q4
- R&D spending jumped 22% to 7 billion yuan as AI deployment accelerated
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Meituan narrows Q1 loss to 4.97b yuan as delivery competition eases
Meituan reported a narrower Q1 adjusted net loss of 4.97 billion yuan as China's food delivery price war showed signs of abating.
"The significant narrowing of operating losses reflects our disciplined cost management and the stabilizing competitive environment," the company said in its earnings release.
Revenue reached 91 billion yuan, up 5.6% from a year earlier and in line with the 90.76 billion yuan consensus estimate compiled by FactSet. Core local commerce operating loss shrank to 2 billion yuan from 10 billion yuan in the prior quarter, while new business losses narrowed to 2.1 billion yuan from 4.6 billion yuan. The company swung from a 10.9 billion yuan profit a year earlier.
The results mark Meituan's third consecutive quarterly loss, though the pace of deterioration has slowed sharply after Chinese regulators criticized the instant retail sector's "race to the bottom" pricing. The stock has fallen 26% over the past year, weighed by margin concerns.
Operating loss improved to 6.5 billion yuan from 16.1 billion yuan in the fourth quarter of 2025, the company said. R&D expenditure rose 22% year over year to 7 billion yuan, representing 7.7% of revenue, as Meituan accelerated AI deployment in physical-world scenarios including autonomous delivery and smart logistics.
In April, China's market regulator fined seven e-commerce platforms including Meituan a combined 3.6 billion yuan over food delivery safety violations. Last week, the State Administration for Market Regulation ordered a special inspection campaign through December targeting sectors from live-streaming to food delivery to prevent "involution-style" price wars, according to Reuters.
The narrowing losses signal that Meituan's profitability recovery is underway, though the path remains uneven amid regulatory scrutiny. Investors will watch the company's Q2 performance for further margin improvement as the competitive landscape stabilizes.
This article is for informational purposes only and does not constitute investment advice.
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