FMP

FMP

Dingdong (Cayman) Limited's Q3 2025 Earnings Overview

  • Earnings per Share (EPS) of $0.03 missed the estimated $0.06.
  • Gross Merchandise Value (GMV) increased by 0.1% year-over-year, marking the seventh consecutive quarter of growth.
  • Financial Ratios indicate a mixed financial health with a notable debt-to-equity ratio of 2.69.

Dingdong (Cayman) Limited (NYSE:DDL), a leading fresh grocery e-commerce company in China, recently reported its Q3 2025 earnings. The company revealed an earnings per share (EPS) of $0.03, which fell short of the estimated $0.06. Revenue was approximately $935.6 million, slightly below the expected $939.3 million.

Despite missing earnings estimates, Dingdong's Gross Merchandise Value (GMV) increased by 0.1% year-over-year, reaching around $1.02 billion. This marks the seventh consecutive quarter of positive year-on-year growth, as highlighted by the company's CEO, Mr. Changlin Liang. The company has maintained profitability under non-GAAP standards for twelve consecutive quarters and under GAAP standards for seven quarters.

DDL's financial metrics provide further insights into its market position. The company has a price-to-earnings (P/E) ratio of 8.06, indicating how the market values its earnings. The price-to-sales ratio is 0.11, suggesting the stock is trading at a low price relative to its sales. The enterprise value to sales ratio is 0.18, reflecting the company's total valuation compared to its sales.

The enterprise value to operating cash flow ratio stands at 5.51, showing efficient conversion of operating cash flow into enterprise value. The earnings yield is 12.41%, offering a measure of return on investment for shareholders. However, the debt-to-equity ratio is 2.69, indicating a higher level of debt compared to equity, which could be a concern for investors.

Lastly, Dingdong's current ratio is 1.04, suggesting a slightly higher level of current assets compared to current liabilities. This indicates good short-term financial health, allowing the company to meet its obligations. Despite challenges, Dingdong's consistent growth and strategic resilience position it well for long-term goals.