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    JD
    Earnings call· Sep 2025(Q3 FY25)

    JD.com, Inc. JD

    Nov 13, 2025 Source

    Executive summary

    JD.com Q3 FY25 — Strong User Growth and Accelerating Marketplace Revenue

    JD.com delivered solid Q3 FY25 results, driven by robust user growth and engagement, accelerating general merchandise sales, and strong marketplace and advertising revenue. The company is strategically investing in new businesses like food delivery and international expansion, while navigating challenges in electronics and home appliances, aiming for long-term sustainable growth and margin expansion through ecosystem synergies and supply chain advantages.

    Highlights

    6

    • Total revenues increased by 15% year-on-year to RMB 299 billion.

    • Quarterly active customer number grew over 40% year-on-year, with annual active customers exceeding 700 million.

    • User shopping frequency increased by over 40% year-on-year for the second consecutive quarter.

    • General merchandise category revenue accelerated to 19% year-on-year growth.

    • Marketplace and marketing revenues grew 24% year-on-year, with advertising revenues exceeding 20% year-on-year.

    • Non-GAAP net profit came in at RMB 5.8 billion.

    Concerns

    3

    • Electronics and home appliances category growth decelerated to 5% year-on-year due to a high base effect, which is expected to linger.

    • Consolidated non-GAAP net income attributable to ordinary shareholders was down year-on-year, primarily reflecting investments in food delivery.

    • Last 12 months free cash flow was RMB 13 billion, down from RMB 34 billion in the prior year, due to cash outflows from the trading program and a decline in operating income.

    Guidance & targets

    4
    CategoryTargetConfidence
    Marketplace and marketing revenues growth
    continue solid growth
    medium materiality
    High
    Long-term margin target
    high single-digit margin
    high materiality
    High
    7Fresh Kitchen expansion
    more semi-fresh kitchen in the region of Beijing
    low materiality
    High
    AI ecosystem investment
    sustained investment to foster a trading RMB scale AI ecosystem
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    JD Retail
    Core retail business built multiple growth drivers, with general merchandise and value-added services as important pillars for long-term growth. Sustained year-on-year gross margin expansion for 14 quarters in a row.
    Gross margin: 19.3%Gross margin change: up 1.3 percentage pointsNon-GAAP operating income: RMB 14.8 billionNon-GAAP operating income growth: up 28% year-on-yearOperating margin change: up 76 bps
    		RMB 251 billion11%—non-GAAP operating margin 5.9%
    JD Logistics
    Continued investment in customer experience, service capabilities, and technology to enhance efficiency and strengthen market position.
    Non-GAAP operating income: RMB 1.3 billionNon-GAAP operating income change: compressed 39% year-on-year
    		—24%——
    New Business
    Driven by food delivery, Jingxi, and international business. Food delivery saw a sequential reduction in investment, while Jingxi and international business increased investments. The stated operating loss of RMB 15.7 billion, which is higher than the segment's revenue of RMB 15.6 billion and described as 'slightly widened sequentially', appears to be a transcription error or misstatement in the transcript.
    Non-GAAP operating loss: RMB 15.7 billion
    		RMB 15.6 billionsteady growth compared to last quarter——

    Operational metrics

    23
    Total net revenues
    RMB 299 billionup 15% year-on-year
    Q3 FY25

    Outpacing the growth of MBS total retail sales.

    Product revenues growth
    10%year-on-year
    Q3 FY25

    Component of total net revenues.

    Electronics and home appliances revenue growth
    5%year-on-year
    Q3 FY25

    Decelerating from last quarter due to high base effect from the trading program.

    General merchandise revenue growth
    19%year-on-year
    Q3 FY25

    Sustained double-digit growth for 4 consecutive quarters and further accelerated from the previous quarter.

    Supermarket and fashion categories growth
    surpassing mid-teens
    Q3 FY25

    Within general merchandising.

    Service revenues growth
    31%year-on-year
    Q3 FY25

    Solid acceleration compared to previous quarters.

    Logistics and other service revenues growth
    35%year-on-year
    Q3 FY25

    Mainly driven by incremental delivery revenues from food delivery business.

    Consolidated gross profit
    RMB 50 billionup 12% year-on-year
    Q3 FY25

    Consolidated profit performance.

    Consolidated gross margin
    17%reduced by 0.4 percentage points
    Q3 FY25

    Primarily due to margin dilution from food delivery business and JD Logistics, offsetting JD Retail's expansion.

    Consolidated non-GAAP net income attributable to ordinary shareholders
    RMB 5.8 billiondown year-on-year
    Q3 FY25

    Near-term headwinds in profit mainly reflect investments in food delivery.

    Consolidated non-GAAP net margin
    1.9%down year-on-year
    Q3 FY25

    Near-term headwinds in profit mainly reflect investments in food delivery.

    Cash and investments balance
    RMB 211 billion
    Q3 FY25

    Total cash and cash equivalents, restricted cash, and short-term investments as of the end of Q3.

    Food delivery GMV growth
    double-digitquarter-on-quarter
    Q3 FY25

    Driven by both order volume growth and a healthier order mix with high-value orders.

    Food delivery operating loss
    narrowed sequentiallysequentially
    Q3 FY25

    Thanks to improving unit economics performance.

    Active merchant number (3P)
    over 200%year-on-year
    Q3 FY25

    Reflects solid progress in developing the platform ecosystem.

    Users shopped 3P offerings growth
    over 50%year-on-year
    Q3 FY25

    Outpacing the growth of total users.

    AI customer service inquiries handled
    4.2 billion
    11.11 Grand Promotion

    Provided 24/7 nonstop AI customer service.

    JoyStreamer served brands
    over 40,000
    Q3 FY25

    New digital human technology for e-commerce live streaming and short video production solutions.

    New food delivery users conversion to core retail
    close to 50%
    Q3 FY25

    Conversion rate of new users acquired by JD Food Delivery has been trending up month by month.

    Quarterly active customer number growth
    over 40%year-on-year
    Q3 FY25

    Sustaining momentum built in previous quarters.

    Annual active customers
    exceeding 700 million
    October

    Achieved a new milestone in user expansion.

    User shopping frequency growth
    over 40%year-on-year
    Q3 FY25

    Sustained for 2 consecutive quarters across all user groups.

    JD app DAU growth
    maintained a rapid growth
    Q3 FY25

    Growth rates leading the industry.

    Industry KPIs

    5
    MetricValueDetails
    Segment revenue mix11%%
    Regional market performancetest phase
    Advertising revenue take rate24%%
    Subscription membership programhealthy growth
    Operating income EBIT and adjusted EBITDARMB 14.8 billionRMB

    Product announcements

    4
    ProductTypeDetails
    TaTaTalaunch
    JoyInsidelaunch
    JD Streamerupdate
    7Fresh Kitchen modellaunch

    Deals & partnerships

    1
    CECONOMYTransaction for overseas development.

    The transaction is still subject to regulatory approval. Further updates will be provided when appropriate.

    Risks & headwinds

    4
    High base effect for electronics and home appliancesnear term

    Growth decelerated to 5% year-on-year in Q3

    Mitigation: Leveraging market and user insights to support brands in developing new products, lowering costs for brands, securing best prices for customers, and strengthening supply chain capabilities.

    Consolidated non-GAAP net income declineQ3 FY25

    Down year-on-year

    Mitigation: Primarily due to investments in food delivery and margin dilution from food delivery and JD Logistics. Committed to improving UE performance and driving healthy and sustainable bottom line growth in the long run.

    Free cash flow reductionLTM Q3 FY25

    RMB 13 billion (LTM Q3 FY25) vs RMB 34 billion (LTM Q3 FY24)

    Mitigation: Primarily due to cash outflows associated with the trading program and decline in operating income. Committed to driving sustainable growth while maintaining profitability and cash flow sufficiency at the group level.

    Intensified competition in food deliveryQ3 FY25

    Industry competition intensified

    Mitigation: Remaining rational, optimizing operational efficiency, improving unit economics, establishing better user mind share and market share in quality food delivery, and deepening supply chain efforts (e.g., 7Fresh Kitchen).

    What to watch in Q4 FY25

    5

    Marketplace and marketing revenues growth

    Q4 FY25
    Current24% YoY in Q3
    TargetContinued solid growth

    Why it matters

    This is a key driver for both top-line growth and margin performance, indicating the health of the platform ecosystem.

    As we move into Q4, we expect marketplace and marketing revenues to continue the healthy growth, contributing to both our top line growth and margin performance.

    Q&A highlights

    4

    What is the growth outlook for electronics and home appliances in Q4 given the high base, and what is the margin impact on JD Retail? Can management share the overseas strategy, including the scale and pace of investment for Joybuy and CECONOMY?

    Acknowledged the high base effect for electronics and home appliances but expressed confidence in market position through supply chain advantages, product innovation, price optimization, and omnichannel service. Highlighted diversified growth drivers from general merchandise and advertising. International expansion is a long-term, gradual, and prudent strategy, with Joybuy in test phase in Europe and CECONOMY awaiting regulatory approval. Investment scale will not be substantial.

    “Although the trading program has caused short-term fluctuation in the consumer demand, its more substantial impact is driving industry upgrade and promoting products that are innovative, intelligent and green and ultimately, leading to high-quality growth of the industry.”

    asked by Kenneth Fong · answered by Sean Shibiao Zhang

    2 min read6 chapters

    Detailed Narrative

    01

    Strong User Growth and Engagement

    JD.com reported robust user momentum in Q3 FY25, with quarterly active customer numbers increasing over 40% year-on-year. This growth, combined with contributions from new businesses like JD Food Delivery and Jingxi, led to annual active customers exceeding 700 million in October. User shopping frequency also increased by over 40% year-on-year for the second consecutive quarter, indicating enhanced engagement across all user groups, including new users, existing users, and JD Plus members.

    02

    Core Retail Performance and Category Mix Shift

    Retail revenues grew 11% year-on-year to RMB 251 billion. While the electronics and home appliances category faced a high base effect, its growth decelerated to 5% year-on-year. In contrast, the general merchandise category saw impressive acceleration, growing 19% year-on-year, with supermarket, fashion, and health categories maintaining double-digit growth. This shift towards general merchandise is expected to be a significant long-term growth driver for JD Retail.

    03

    Accelerating Marketplace and Advertising Revenues

    Marketplace and marketing revenues at the group level increased 24% year-on-year, marking a double-digit growth trajectory for four consecutive quarters. Advertising revenues, in particular, accelerated sequentially each quarter this year, exceeding 20% year-on-year in Q3. This strong momentum is attributed to an improved ecosystem for both 1P and 3P merchants, enhanced AI-powered ad tools, and improved traffic allocation efficiency.

    04

    Progress in New Businesses and Synergies

    JD Food Delivery achieved double-digit quarter-on-quarter GMV growth, driven by increased order volume and a healthier order mix. Its operating loss narrowed sequentially due to improved unit economics and operating efficiencies. Jingxi continued to penetrate lower-tier markets, and the international retail business (Joybuy) is establishing capabilities in Europe. These new initiatives are generating strong synergies with the core retail business, particularly in user growth, cross-selling, and overall ecosystem development.

    05

    Advancements in AI Strategy and Applications

    JD.com unveiled its AI roadmap, launching new AI products like TaTaTa (a digital human assistant app) and JoyInside (an AI agent for devices). The company also introduced industry-specific AI applications across retail, healthcare, logistics, and industrial sectors. Upgrades to retail technology infrastructure, such as JD Streamer for e-commerce live streaming, and 24/7 AI customer service (handling over 4.2 billion inquiries during 11.11), highlight the extensive integration of AI to enhance efficiency and user experience.

    06

    Platform Ecosystem Development

    The platform ecosystem showed solid progress, with the active merchant number growing over 200% year-on-year in Q3. The number of users shopping 3P offerings also grew over 50% year-on-year. JD.com plans to further explore industrial belts to onboard more merchants and expand its food delivery merchant base, while strengthening platform infrastructure and providing tech tools to enhance merchant operating efficiency and create a fair ecosystem.

    AI-generated summary of the company’s earnings call. Not investment advice.