Full Truck Alliance Co. Q2 FY26 earnings call YMM

Full Truck Alliance demonstrated strong operational improvements, with the fulfillment rate reaching a record 47%, a 6.3 percentage point increase year-over-year. This was supported by a 12.8% year-over-year growth in average shipper MAUs to 3.57 million and a significant reduction in medium freight matching time to just 5 minutes. The company focused on enhancing transaction protection and ecosystem governance, which improved the authenticity of freight demand and reliability of fulfillment, strengthening both shipper and trucker satisfaction.

The company continued to advance its strategic initiatives, including the strong momentum of Qmove overseas with rapid growth in fulfilled orders and fulfillment rate. Domestically, FTA achieved nationwide coverage for its less-than-truckload (LTL) offerings through dedicated line carriers and expanded autonomous delivery vehicle pilots to multiple cities. AI integration deepened with the broader rollout of the shipper AI assistant and full deployment of AI-powered customer service, aiming to further enhance transaction efficiency and ecosystem strength.

FTA is actively transforming its freight brokerage business from a traditional self-operated model to a dual-track structure, combining self-operated and aggregator operations. This phased approach aims to reduce exposure to VAT refund risks while meeting customer needs for compliant VAT invoicing. Invoicing-only customers declined to a single-digit percentage of total transaction volume, and the asset-light aggregator model, which charges a low single-digit channel service fee, continued to grow steadily, improving the business's revenue mix and earning quality.

Electric trucks now account for over 20% of fulfilled orders on the platform, primarily competitive in short-to-medium haul and local freight operations due to lower energy costs and fixed routes. However, they are not expected to materially impact the long-haul full truckload market, where average shipping distances exceed 500 kilometers and physical/infrastructure hurdles remain. FTA believes its diverse energy mix across the truck fleet will benefit the platform by matching different powertrain types with suitable shipping distances and use cases, creating long-term value.

The company reported robust cash generation, with net cash provided by operating activities reaching RMB 2.15 billion and free cash flow totaling RMB 2.04 billion. This strong performance was attributed to improved profitability in the core platform business, the release of capital previously tied up in the credit business due to a transition to an asset-light distribution model, and efficient working capital management. The asset-light nature of the platform model supports rapid business expansion without a corresponding increase in capital deployment.