Dingdong (Cayman) Limited (“Dingdong” or “the Company”) ( NYSE : DDL ) today announced its unaudited financial results for the third quarter ending September 30, 2026. Dingdong is a leading fresh food e-commerce company in China, possessing advanced supply chain capabilities.

Key Points of the Third Quarter of 2026:

• GMV: In the third quarter of 2026, GMV totalled 8.3111 billion yuan (1.2396 billion US dollars), a year-on-year increase of 14.3%. In the same period last year, it was 7.2732 billion yuan, marking the 11th consecutive quarter of year-on-year growth.
• Net Profit: In the third quarter of 2026, the net profit was 298.1 million RMB (44.5 million US dollars), marking the 11th consecutive quarter of profitability.
• Non-GAAP Net Profit: In the third quarter of 2026, the non-GAAP net profit amounted to RMB 307.6 million (US$ 45.9 million), marking the 16th consecutive quarter of non-GAAP profitability.

Dingdong's CEO, Wang Song, stated that as of the third quarter of 2026, the company has achieved non-GAAP metric profitability for 16 consecutive quarters, GAAP metric profitability for 11 consecutive quarters, and also experienced year-on-year revenue growth for 11 consecutive quarters. In that quarter, the company's GMV grew by 14.3% year-on-year, with the East China region performing particularly strongly, showing a year-on-year growth of 17.6%, which indicates the growth momentum in its core markets. In addition, the cash flow performance further demonstrates the company's operational quality. The net cash inflow from consolidated operating activities for that quarter was 351 million RMB, of which the Chinese business contributed 384 million RMB.

The company continues to pursue its transformation from a fresh food delivery platform to a modern retailer that focuses on differentiated product capabilities, targets household consumption scenarios, and is supported by an efficient supply chain. In May 2026, the company will elevate its own brand "Dingdong V5," which was launched in 2023, to a strategic priority at the corporate level, with the aim of strengthening product development and differentiation capabilities. At the same time, the company continues to optimize its delivery network, concentrating new stores in the East China region to increase density and growth potential in key markets. The company's sustained profitability, accelerated growth in core markets, and the continuous advancement of its product capability strategy fully demonstrate Dingdong's strategic focus and solid execution in the face of fierce competition, laying a solid foundation for long-term competitive advantages and high-quality, sustainable growth.

On February 5, 2026, the company signed a final agreement with Meituan to sell its business in China. As of the date of this press release, the transaction has not yet been completed and must meet the regular delivery conditions stipulated in the Share Purchase Agreement, particularly obtaining anti-monopoly approval from the State Administration for Market Regulation. Consistent with the accounting treatment in previous quarters, the business in China is classified as held for sale, and the company has not recognized any depreciation or amortization for this business, which resulted in an increase of RMB 195.7 million (US$29.2 million) in net profit for this quarter.

Financial Performance for the Third Quarter of 2026

Total revenue amounted to RMB 7.3804 billion (US$ 1.1008 billion), representing a 10.8% increase from RMB 6.6624 billion in the same period of 2025. China business revenue, which includes profits from terminated operations, also increased by 11.0% to RMB 7.3072 billion (US$ 1.0899 billion), mainly due to an increase in the average number of monthly trading users, a higher frequency of orders per month, and the continuous expansion of fulfillment centers in the East China region (including new centers opened in Huai'an, Hefei, and Suqian during the third quarter), which led to an increase in the number of orders. This growth was partially offset by the ongoing decline in prices for certain key products (including pork) CPI, as well as the continuous closure of some inefficient fulfillment centers in Beijing and the Guangzhou-Shenzhen region during the third quarter of 2026. Overseas business revenue decreased by 6.9% to RMB 73.2 million (US$ 10.9 million), mainly because overseas operations were focused on selected regions.

The total operating costs and expenses amounted to RMB 7.0935 billion (US$ 1.0580 billion), which is an increase from RMB 6.6216 billion in the same period of 2025. According to relevant US GAAP standards, the business in China is classified as held for sale, and therefore no further depreciation or amortization is provided for its long-term assets; assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell, which also affects the following items:

• The cost of goods sold amounted to RMB 5.1874 billion (US$ 773.7 million), representing a 9.4% increase from RMB 4.7398 billion in the same period of 2025. The cost of goods sold as a percentage of revenue was 70.3%, which is lower than 71.1% in the same period of 2025. The gross profit margin was 29.7%, higher than 28.9% in the same period of 2025. Since the implementation of the 4G strategy at the beginning of 2025, the gross profit margin has improved year-on-year and has remained consistent with the previous quarters overall.
• The performance fee amounted to RMB 1.436 billion (US$ 214.2 million), representing a 0.4% increase from RMB 1.4306 billion in the same period of 2025. The proportion of the performance fee in total revenue decreased from 21.5% in the same period of 2025 to 19.5%.
• Sales and marketing expenses amounted to RMB 156.7 million (US$ 23.4 million), representing a 22.8% increase from RMB 127.7 million in the same period of 2025. The proportion of sales and marketing expenses to total revenue rose slightly from 1.9% to 2.1%. The year-on-year increase in marketing expenses was mainly due to increased expenditures on sales and marketing activities.
• General and administrative expenses amounted to RMB 123.2 million (US$ 18.4 million), a slight increase of 2.6% compared to RMB 120.1 million in the same period of 2025, mainly due to an increase in professional service fees.
• The product development cost amounted to 190.3 million yuan (28.4 million US dollars), a slight decrease of 6.5% compared to 2025's 203.4 million yuan for the same period. The company stated that while advocating for energy conservation and resource saving, it will continue to invest in product development capabilities, agricultural technology, data algorithms, and other technical infrastructure, including AI technical capabilities, in order to further enhance its competitiveness.

Operating revenue amounted to RMB 280.1 million (US$ 41.8 million), representing a growth of 372.4% compared to RMB 59.3 million in the same period of 2025.

Net profit amounted to RMB 298.1 million (US$ 44.5 million), a 259.6% increase compared to RMB 82.9 million in the same period of 2025. Among this, the net profit from China's operations increased year-on-year to RMB 330.6 million (US$ 49.3 million), mainly due to the classification of long-term assets as held for sale with subsequent cessation of depreciation or amortization in accordance with US GAAP. This factor contributed to an increase of RMB 195.7 million (US$ 29.2 million) in net profit for this quarter and will continue to affect quarterly net profit in each quarter before the completion of the Meituan transaction. Overseas operations recorded a net loss that expanded year-on-year by 84.8% to RMB 32.5 million (US$ 4.9 million).

Non-GAAP net profit (i.e., net profit after excluding equity incentive expenses) amounted to RMB 307.6 million (US$ 45.9 million), representing a growth of 203.8% compared to RMB 101.3 million in the same period of 2025. The non-GAAP net profit margin was 4.2%, higher than 1.5% in the same period of 2025. The non-GAAP net profit of the Chinese business increased by 210.3% year-on-year to RMB 341.0 million (US$ 50.9 million). The non-GAAP net loss of the overseas business expanded by 287.0% year-on-year to RMB 33.4 million (US$ 5 million). Similarly, the non-GAAP net profit was also affected by the same factors that impacted net profit.

The basic and diluted earnings per share were both RMB 0.91 (US$0.14), whereas in the same period of 2025, they were both RMB 0.25. The basic and diluted earnings per share excluding GAAP were both RMB 0.94 (US$0.14), while in the same period of 2025, they were both RMB 0.31.

As of September 30, 2026, cash and cash equivalents, restricted cash, and short-term investments amounted to RMB 4.3619 billion (US$ 650.6 million), compared to RMB 4.8809 billion as of June 30, 2026. The company has been making efforts to optimize the use of capital and its financing structure. Excluding short-term loans, the total of cash and cash equivalents, restricted cash, short-term investments, and long-term deposits classified as other non-current assets amounted to RMB 3.5760 billion, representing a net increase for the 14th consecutive quarter compared to RMB 3.2840 billion as of June 30, 2026.

About Dingdong (Cayman) Limited

We are a leading fresh food e-commerce company in mainland China, committed to achieving sustainable long-term growth. By maintaining a extensive network of our own fulfillment centers, we directly supply fresh ingredients, prepared foods, and other groceries to consumers and households, providing them with a convenient and high-quality shopping experience. Leveraging our deep understanding of consumers' ever-changing needs and our strong innovation capabilities in the food industry, we have successfully launched a range of proprietary brand products covering various food categories. Many of our proprietary brand products are produced at our Dingdong manufacturing facilities, which enables us to produce and deliver safe, high-quality food more efficiently. Our goal is to become the first choice for fresh food and grocery shopping.

For more information, please visit: https :// ir.100.me.

Use of non-GAAP financial indicators

When evaluating business performance and making financial and operational decisions, the company uses indicators other than GAAP, such as non-GAAP net profit and non-GAAP net profit margin. The company believes that non-GAAP financial indicators, by excluding the impact of equity incentive expenses, help to identify potential trends in the business; equity incentive expenses are non-cash expenditures and are not directly related to any trends in operational activities. The company also believes that non-GAAP financial indicators provide useful information regarding the company's operating results, enhance the overall understanding of the company's past performance and future prospects, and make the key indicators used by management in financial and operational decisions clearer.

Non-GAAP financial indicators are not defined in accordance with U.S. GAAP nor prepared in accordance with U.S. GAAP. Non-GAAP financial indicators have their limitations as analytical tools; investors should not rely on them alone when evaluating a company's operational performance, cash flow, or liquidity, nor should they be used as a substitute for net losses prepared in accordance with U.S. GAAP, cash flow from operating activities, or other data from the consolidated income statement and cash flow statement. The definition of a company's non-GAAP financial indicators may differ from that of other companies in the same industry, and therefore, it may not be possible to compare them with the non-GAAP financial indicators of those companies.

The company adjusts non-GAAP financial indicators to the most comparable US GAAP performance indicators in order to mitigate these limitations; when evaluating the company's performance, these indicators should also be taken into consideration.

For more information on non-GAAP financial indicators, please refer to the table explanation at the end of this announcement titled "Unaudited GAAP and Non-GAAP Performance Adjustment Table."

Exchange Rate Information

Some of the amounts in Renminbi (CNY) mentioned in this announcement are converted into US dollars (“US $”) using a specified exchange rate for the convenience of readers. Unless otherwise stated, all conversions from CNY to USD are calculated based on the exchange rate of September 30, 2026, which is 6.7045 CNY per 1.00 USD. This exchange rate is listed in the Federal Reserve’s H.10 statistical announcement. The company does not imply that the amounts mentioned in CNY or USD can be exchanged into USD or CNY at any other specific exchange rate.

Safe Harbor Statement

This announcement contains forward-looking statements. Such statements are made under the ‘Safe Harbor’ provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as ‘will’, ‘expect’, ‘anticipate’, ‘intend’, ‘future’, ‘plan’, ‘believe’, ‘estimate’, ‘confident’, ‘potential’, ‘continue’, and other similar expressions. The business outlooks, management’s quotes, and Dingdong’s strategic and operational plans mentioned in this announcement all include forward-looking statements. Dingdong may also make forward-looking statements in periodic reports submitted to the U.S. Securities and Exchange Commission (SEC), interim and annual reports submitted to shareholders, press releases, and other written materials, as well as in oral statements made by the company’s executives, directors, or employees to third parties. Statements other than historical facts, including but not limited to those regarding Dingdong’s beliefs and expectations, are considered forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and factors that could cause actual results to differ significantly from those contained in any forward-looking statements include, but are not limited to: Dingdong’s objectives and strategies; Dingdong’s future business development, financial condition, and operating results; the expected prospects of China’s fresh food e-commerce market; Dingdong’s expectations regarding demand for its products and services and market acceptance; Dingdong’s expectations regarding relationships with users, customers, business partners, and other stakeholders; competition in the industry in which Dingdong operates; government policies and regulations related to Dingdong’s industry, as well as the global and overall economic and business conditions in China, and assumptions related to any of the above factors. For more information regarding these and other risks, please refer to the documents submitted by the company to SEC. All information in this announcement and its attachments is as of the date of issuance of this announcement, and except as required by applicable laws, the company assumes no obligation to update such information.

The following attached table details the assets and liabilities held for sale, as well as the profits from discontinued operations of Dingdong China's business, which have been included in the company's unaudited condensed consolidated financial statements:

Source: Dingdong (Cayman) Limited