Dingdong (Cayman) Limited Announces First Quarter 2026 Financial Results

SHANGHAI, May 21, 2026 /PRNewswire/ -- Dingdong (Cayman) Limited ("Dingdong" or the "Company") (NYSE: DDL), a leading fresh grocery e-commerce company in China, with advanced supply chain capabilities, today announced its unaudited financial results for the quarter ended March 31, 2026.

First Quarter 2026 Highlights: [1]

Mr. Song Wang, the Chief Executive Officer of Dingdong, stated, "As of the first quarter of 2026, Dingdong has maintained profitability under non-GAAP standards for fourteen consecutive quarters and under GAAP standards for nine consecutive quarters. The Company has also delivered year-over-year revenue growth for the ninth consecutive quarter, and sees faster growth momentum entering the second quarter. This sustained top-line expansion, together with the consistent achievement of profitability targets, is largely driven by the Company's continued pursuit of product supply chain excellence and efficiency, user mindshare, and system capabilities. Together, these efforts underscore Dingdong's strategic resilience and strong execution in a competitive market, while building a solid foundation and momentum for long-term growth."

On February 5, 2026, the Company announced the entry into a definitive agreement to sell its China business to Meituan. On February 10, 2026, the Company further announced its intention to utilize a substantial majority of the proceeds from the sale of its China operations for share repurchase plans and/or dividends upon the closing of the transaction, as well as other material terms of the transaction. As of the date of this release, the transaction has not been completed, and is subject to the satisfaction or waiver of various customary conditions set forth in the Share Purchase Agreement, including the receipt of anti-monopoly clearance from the SAMR (State Administration for Market Regulation). However, under the requirements of standards under US GAAP, the Company needs to separately classify the China business sold to Meituan as discontinued operations and the related assets and liabilities as held-for-sale in the financial statements. Therefore, in the accompanying financial statements, we will distinguish between the overseas business as continuing operations, and the China business as discontinued operations and held-for-sale assets and liabilities. No depreciation or amortization is recorded in the cost and the four categories of expenses for long-lived assets in the China business after being classified as the held-for-sale assets, as assets held for sale are measured at the lower of their carrying amount or fair value less costs to sell according to the relevant standards under US GAAP. This factor has resulted in an increase of our net income by approximately RMB138 million (US$20.0 million) in the current quarter, and this impact will continue to affect the quarterly net income every period prior to the completion of the Meituan transaction.

First Quarter 2026 Financial Results

Total revenues were RMB5,892.7 million (US$854.3 million), compared with total revenues of RMB5,479.0 million in the same quarter of 2025, representing an increase of 7.5% year over year. Revenue for China business [2] as included in profit from discontinued operations increased by 5.9% year over year to RMB5,753.3 million (US$834.1 million), primarily due to the rise of number of orders resulting from rise in the average monthly number of transacting users and higher monthly order frequency, and newly opened frontline fulfillment stations with density and market penetration improving in Eastern China. The increase was offset by the impact of the price decline in CPI for certain major categories in our business, such as pork, in the first quarter of 2026. Revenue for overseas business increased by 195.2% year over year to RMB139.4 million (US$20.2 million), primarily due to the rise of number of orders resulting from market expansion across various regions and customer base development.

Total operating costs and expenses were RMB5,799.2 million (US$840.7 million), compared with RMB5,519.0 million in the same quarter of 2025, with a detailed breakdown as below. No depreciation or amortization is recorded in the cost and the four categories of expenses for long-lived assets in the China business after being classified as the held-for-sale assets, as assets held for sale are measured at the lower of its carrying amount or fair value less costs to sell according to the relevant standards under US GAAP. This has also impacted the line items below.

Income from operations was RMB145.4 million (US$21.1 million), compared with loss from operations of RMB21.2 million in the same quarter of 2025.

Net income was RMB165.4 million (US$24.0 million), compared to RMB8.0 million in the same quarter of 2025. Among which, net income for China business increased by 643.5% year over year to RMB236.9 million (US$34.3 million), which was largely due to cease of depreciation or amortization of long-lived assets classified as held-for-sale under US GAAP. This factor has resulted in an increase of our net income by approximately RMB138 million (US$20.0 million) in the current quarter, and this impact will continue to affect the quarterly net income every period prior to the completion of the Meituan transaction. Net loss for overseas business increased by 199.6% year over year to RMB71.4 million (US$10.4 million).

Non-GAAP net income, which is a non-GAAP measure that only excludes share-based compensation expenses from net income, was RMB172.0 million (US$24.9 million), an increase of 466.7% from RMB30.3 million in the same quarter of 2025. In addition, non-GAAP net income margin, which is the Company's non-GAAP net income as a percentage of total revenues, was 2.9% compared with 0.6% in the same quarter of 2025. Non-GAAP net income for China business increased by 376.3% year over year to RMB242.1 million (US$35.1 million). Non-GAAP net loss for overseas business increased by 242.4% year over year to RMB70.2 million (US$10.2 million). Similarly, non-GAAP net income was subject to the same factors that affected net income.

Basic and diluted net income per share were RMB0.50 (US$0.07) and RMB0.50 (US$0.07), compared with net income per share of RMB0.02 and RMB0.02 in the same quarter of 2025. Non-GAAP net income per share, basic and diluted, were RMB0.52 (US$0.07) and RMB0.52 (US$0.07), compared with RMB0.09 and RMB0.09 in the same quarter of 2025.

Cash and cash equivalents, restricted cash and short-term investments were RMB3,820.0 million (US$553.8 million) as of March 31, 2026, compared with RMB3,976.8 million as of December 31, 2025. We have been working diligently to optimize our capital usage and financing structure. The cash and cash equivalents, restricted cash, short-term investments and long-term deposits as included in the other non-current assets deducting the balance of short-term borrowings, is RMB3,210.6 million, a net increase for the twelfth consecutive quarter, compared with RMB3,140.3 million as of December 31, 2025.

[1] The Company presents the total amounts of certain line items, which represent the aggregate figures encompassing both continuing operations (overseas business) and discontinued operations (domestic China business).

[2] The Company also discloses figures pertaining to its China business, which are classified within profit generated from discontinued operations. In addition, the Company separately presents data relating to its overseas business.

About Dingdong (Cayman) Limited

We are a leading fresh grocery e-commerce company in mainland China, with sustainable long-term growth. We directly provide users and households with fresh groceries, prepared food, and other food products through delivering a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid. Leveraging our deep insights into consumers' evolving needs and our strong food innovation capabilities, we have successfully launched a series of private label products spanning a variety of food categories. Many of our private label products are produced at our Dingdong production plants, allowing us to more efficiently produce and offer safe and high-quality food products. We aim to be the first choice for fresh and food shopping.

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

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as non-GAAP net income, non-GAAP net income margin, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges and do not correlate to any operating activity trends. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance.

For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.8980 to US$1.00, the exchange rate on March 31, 2026 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other things, business outlook and quotations from management in this announcement, as well as Dingdong's strategic and operational plans, contain forward-looking statements. Dingdong may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its interim and annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Dingdong's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Dingdong's goals and strategies; Dingdong's future business development, financial conditions, and results of operations; the expected outlook of the fresh grocery ecommerce market in China; Dingdong's expectations regarding demand for and market acceptance of its products and services; Dingdong's expectations regarding its relationships with its users, clients, business partners, and other stakeholders; competition in Dingdong's industry; and relevant government policies and regulations relating to Dingdong's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.

For investor inquiries, please contact:

Dingdong Fresh

[email protected]

DINGDONG (CAYMAN) LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of RMB and US$)

The China business is reported as discontinued operations in the consolidated statements of comprehensive loss for

the current period and the comparative period in accordance with ASC 210-05, Discontinued Operations as the

disposal plan of the China business represented a strategic shift that had a major effect on the Group's operations and

financial results. Further, the related current and non-current assets and liabilities associated with the China business

are reflected as held for sale in the consolidated balance sheets at December 31, 2025 and March 31, 2026.

As of

December 31,

2025

March 31,

2026

March 31,

2026

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

45,722

212,045

30,740

Short-term investments

159,146

23,071

Accounts receivable, net

48,727

41,655

6,039

Inventories, net

39,179

24,369

3,533

Advance to suppliers

63,638

65,414

9,483

Prepayments and other current assets

11,876

14,221

2,062

Assets held for sale

4,830,947

6,368,856

923,290

Total current assets

5,040,089

6,885,706

998,218

Non-current assets:

Property and equipment, net

3,883

17,564

2,546

Operating lease right-of-use assets

280

126

Other non-current assets

15,418

9,419

1,366

Assets held for sale

1,956,498

Total non-current assets

1,976,079

27,109

3,930

TOTAL ASSETS

7,016,168

6,912,815

1,002,148

LIABILITIES, MEZZANINE EQUITY AND

SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

47,608

76,930

11,153

Customer advances and deferred revenue

1,242

3,942

571

Accrued expenses and other current liabilities

4,664

12,279

1,780

Salary and welfare payable

3,713

30,957

4,488

Operating lease liabilities, current

125

Liabilities held for sale

4,737,340

5,472,607

793,361

Total current liabilities

4,794,567

5,596,840

811,371

Non-current liabilities:

Operating lease liabilities, non-current

287

Liabilities held for sale

1,045,097

Total non-current liabilities

1,045,384

TOTAL LIABILITIES

5,839,951

5,596,840

811,371

DINGDONG (CAYMAN) LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Amounts in thousands of RMB and US$)

As of

December 31,

2025

March 31,

2026

March 31,

2026

RMB

US$

LIABILITIES, MEZZANINE EQUITY AND

SHAREHOLDERS' EQUITY (CONTINUED)

Mezzanine Equity:

Redeemable noncontrolling interests

135,435

138,030

20,010

TOTAL MEZZANINE EQUITY

135,435

138,030

20,010

Shareholders' equity:

Ordinary shares

Additional paid-in capital

14,260,014

14,266,576

2,068,219

Treasury stock

(59,969)

(8,694)

Accumulated deficit

(13,163,215)

(13,000,373)

(1,884,657)

Accumulated other comprehensive

income/(loss)

3,948

(28,293)

(4,102)

TOTAL SHAREHOLDERS' EQUITY

1,040,782

1,177,945

170,767

TOTAL LIABILITIES, MEZZANINE EQUITY

AND SHAREHOLDERS' EQUITY

7,016,168

6,912,815

1,002,148

DINGDONG (CAYMAN) LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands of RMB and US$, except for number of shares and per share data)

For the three months ended

March 31,

2025

2026

RMB

US$

Revenues:

Product revenues

47,220

139,048

20,157

Service revenues

343

Total revenues

47,223

139,391

20,207

Operating costs and expenses:

Cost of goods sold

(43,552)

(129,263)

(18,739)

Fulfillment expenses

(18,272)

(41,191)

(5,971)

Sales and marketing expenses

(1,119)

(10,310)

(1,495)

Product development expenses

(2,146)

(12,022)

(1,743)

General and administrative expenses

(6,221)

(15,212)

(2,205)

Total operating costs and expenses

(71,310)

(207,998)

(30,153)

Other operating loss, net

(440)

(4,059)

(588)

Income from operations

(24,527)

(72,666)

(10,534)

Interest income

568

581

Other income, net

137

659

Income before income tax

(23,822)

(71,426)

(10,355)

Income tax expenses

(20)

(2)

Net loss from continuing operations

(23,842)

(71,428)

(10,355)

Net income from discontinued operations, net of tax

31,859

236,865

34,338

Net income

8,017

165,437

23,983

Net loss from discontinued operations attributable to

redeemable noncontrolling interests

(2,402)

(2,595)

(376)

Net income attributable to ordinary shareholders

5,615

162,842

23,607

DINGDONG (CAYMAN) LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)

(Amounts in thousands of RMB and US$, except for number of shares and per share data)

For the three months ended

March 31,

2025

2026

RMB

US$

Net income per Class A and Class B ordinary share:

Basic

Continuing operations

(0.07)

(0.22)

(0.03)

Discontinued operations

0.09

0.72

0.10

Diluted

Continuing operations

(0.07)

(0.22)

(0.03)

Discontinued operations

0.09

0.72

0.10

Basic net income per share attributable to Class A and

Class B ordinary shareholders

0.02

0.50

0.07

Diluted net income per share attributable to Class A

and Class B ordinary shareholders

0.02

0.50

0.07

Shares used in net income per Class A and Class B

ordinary share computation:

Basic

324,576,757

324,883,084

Diluted

324,576,757

324,883,084

Other comprehensive loss, net of tax of nil:

Foreign currency translation adjustments from

continuing operations

(3,933)

(37,782)

(5,477)

Foreign currency translation adjustments from

discontinued operations

802

5,543

804

Total other comprehensive loss from continuing

operations

(27,775)

(109,210)

(15,832)

Total other comprehensive income from discontinued

operation

32,661

242,408

35,142

Comprehensive income

4,886

133,198

19,310

Net loss from discontinued operations attributable to

redeemable noncontrolling interests

(2,402)

(2,595)

(376)

Comprehensive income attributable to ordinary

shareholders

2,484

130,603

18,934

DINGDONG (CAYMAN) LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of RMB and US$)

For the three months ended

March 31,

2025

2026

RMB

US$

Net cash (used in)/generated from continuing operating

activities

(9,555)

15,758

2,284

Net cash generated from discontinued operating activities

94,789

130,952

18,984

Net cash generated from operating activities

85,234

146,710

21,268

Net cash generated from/(used in) continuing investing

activities

1,897

(168,317)

(24,401)

Net cash generated from discontinued investing activities

439,789

619,329

89,784

Net cash generated from investing activities

441,686

451,012

65,383

Net cash used in continuing financing activities

Net cash used in discontinued financing activities

(199,911)

(196,814)

(28,532)

Net cash used in financing activities

(199,911)

(196,814)

(28,532)

Effect of exchange rate changes on cash and cash

equivalents and restricted cash

(231)

(5,275)

(764)

Net increase in cash and cash equivalents and

restricted cash

326,778

395,633

57,355

Cash and cash equivalents and restricted cash at the

beginning of the period

890,215

1,107,136

160,501

Cash and cash equivalents and restricted cash at the

end of the period

1,216,993

1,502,769

217,856

Less: Cash and cash equivalents and restricted cash held

for sales at end of the period

1,158,834

1,290,724

187,116

Cash and cash equivalents and restricted cash from

continuing operations at the end of the period

58,159

212,045

30,740

DINGDONG (CAYMAN) LIMITED

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(Amounts in thousands of RMB and US$, except for number of shares and per share data)

For the three months ended

March 31,

2025

2026

RMB

US$

Net loss from continuing operations

(23,842)

(71,428)

(10,355)

Add: Share-based compensation expenses of continuing operations

3,353

1,274

185

Non-GAAP net loss from continuing operations

(20,489)

(70,154)

(10,170)

Net income from discontinued operations

31,859

236,865

34,338

Add: Share-based compensation expenses of discontinued operations

18,976

5,255

762

Non-GAAP net income from discontinued operations

50,835

242,120

35,100

Total Non-GAAP net income

30,346

171,966

24,930

The following schedules set forth the breakdown of assets and liabilities held for sale and

income from discontinued operations of Dingdong's China business which were included in

the Company's unaudited interim condensed consolidated financial statements:

As of

December 31,

2025

March 31,

2026

March 31,

2026

RMB

US$

(in thousands)

Cash and cash equivalents

1,061,073

1,290,264

187,049

Restricted cash

340

460

Short-term investments

2,869,681

2,157,988

312,843

Accounts receivable, net

143,212

146,511

21,240

Inventories, net

531,306

453,713

65,775

Advance to suppliers

50,466

42,646

6,182

Prepayments and other current assets

174,869

174,475

25,292

Property and equipment, net

241,252

34,974

Operating lease right-of-use assets

1,678,026

243,263

Other non-current assets

183,521

26,605

Total current assets classified as held for sale

4,830,947

6,368,856

923,290

Property and equipment, net

228,874

Operating lease right-of-use assets

1,579,819

Other non-current assets

147,805

Total non-current assets classified as held for sale

1,956,498

Accounts payable

1,872,734

1,766,724

256,121

Customer advances and deferred revenue

272,019

265,327

38,464

Accrued expenses and other current liabilities

751,954

753,144

109,184

Salary and welfare payable

300,818

314,572

45,603

Operating lease liabilities, current

668,295

665,511

96,479

Short-term borrowings

871,520

674,344

97,759

Operating lease liabilities, non-current

884,227

128,186

Other non-current liabilities

148,758

21,565

Total current liabilities classified as held for sale

4,737,340

5,472,607

793,361

Operating lease liabilities, non-current

897,524

Other non-current liabilities

147,573

Total non-current liabilities classified as held for sale

1,045,097

For the three months ended

March 31,

2025

2026

RMB

US$

(in thousands)

Revenues:

Product revenues

5,339,280

5,661,663

820,769

Service revenues

92,536

91,650

13,286

Total revenues

5,431,816

5,753,313

834,055

Operating costs and expenses:

Cost of goods sold

(3,798,554)

(4,004,233)

(580,492)

Fulfillment expenses

(1,237,822)

(1,173,653)

(170,143)

Sales and marketing expenses

(108,834)

(113,542)

(16,460)

Product development expenses

(195,823)

(184,864)

(26,800)

General and administrative expenses

(106,660)

(114,938)

(16,663)

Total operating costs and expenses

(5,447,693)

(5,591,230)

(810,558)

Other operating income, net

19,163

55,948

8,111

Income from discontinued operations

3,286

218,031

31,608

Interest income

34,555

23,685

3,434

Interest expenses

(5,964)

(2,381)

(345)

Other income/(expenses), net

1,520

(225)

(33)

Income before income tax

33,397

239,110

34,664

Income tax expenses

(1,538)

(2,245)

(326)

Net income from discontinued operations

31,859

236,865

34,338

SOURCE Dingdong (Cayman) Limited