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Meituan (SEHK:3690) Quarterly Net Loss Challenges Profitability Narrative Despite Revenue Growth

Simply Wall St · 11/30/2025 07:21

Meituan (SEHK:3690) reported Q3 2025 revenue of ¥95.5 billion. Net income (excluding extraordinary items) slipped to a loss of ¥18.6 billion. Over the past year, the company saw total revenue rise from ¥322.8 billion in Q3 2024 to ¥362.4 billion in Q3 2025. Earnings swung from a profit of ¥31.8 billion to a loss of ¥2.0 billion on a trailing twelve-month basis. Margins compressed this quarter, putting the focus on the company’s path to profitability and future growth drivers.

See our full analysis for Meituan.

Now, let’s compare these results to the popular narratives and see where market expectations find support or face a reality check.

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SEHK:3690 Revenue & Expenses Breakdown as at Nov 2025
SEHK:3690 Revenue & Expenses Breakdown as at Nov 2025

Loss Reduction Pace Accelerates: Annualized 50.8% Decline

  • Meituan managed to halve its annual loss rate by 50.8% over the past five years, a steep pace even though trailing twelve-month net income slipped to a loss of $2.0 billion in Q3 2025.
  • Analysts' consensus view notes that shrinking losses, paired with 11.2% revenue growth (outpacing the Hong Kong market), have helped support forecasts for a return to profitability in the next three years.
    • With earnings projected to grow by 60.93% annually, the narrative highlights Meituan’s path to sustainable profits rather than just top-line expansion.
    • Despite the improvement, bulls point to the robust margin recovery potential, while others flag lingering uncertainty from continued operating losses.

Consensus expects recent advancements toward profitability to shape the next phase for Meituan. However, everyone is watching whether these trends can sustain as new investments ramp up.
📊 Read the full Meituan Consensus Narrative.

Valuation Disconnect: Shares Trade 57.8% Below DCF Fair Value

  • The current share price of 102.5 HKD stands a significant 57.8% beneath the DCF fair value of 242.62 HKD, even as revenue reached $362.4 billion over the past twelve months.
  • Analysts' consensus narrative underscores how this discount aligns with the view that Meituan’s projected margin expansion and growth could justify a price closer to the 128.47 HKD consensus target in the future.
    • Consensus calculations show that achieving forecasted profits and trading at a sector-premium PE multiple would be required for the price to close this gap.
    • Bearish voices still caution that profit margin improvement has not appeared in the latest results, tempering enthusiasm for a quick rerating.

Strategic Expansion Drives Top-Line Momentum

  • Trailing twelve-month revenue climbed from $322.8 billion to $362.4 billion, a $39.6 billion gain, amid expansion into on-demand grocery, new retail formats, and international markets.
  • Consensus narrative highlights that moves beyond food delivery, combined with investments in platform logistics and AI, are credited with boosting both revenue durability and future margin upside.
    • Consensus points to diversified revenue streams and elevated average transaction frequency as foundations for sustained growth.
    • The long-term bull case depends on these new business lines reducing reliance on the still-competitive core segment.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Meituan on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Meituan.

See What Else Is Out There

Meituan’s repeated operating losses and compressed margins highlight the risks associated with relying on future growth instead of focusing on consistent profitability in the present.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.