JD.com, Inc. (NASDAQ:JD) reported fourth-quarter financial results before the market open on Thursday. The transcript from the company’s earnings call has been provided below.
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Operator
Hello and thank you for standing by for JD.com’s fourth quarter and full year 2025 earnings conference call. At this time all participants are in listen only mode. After management’s prepared remarks, there will be a question and answer session. Today’s conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today’s conference, Sean Zhong, Head of Investor Relations. Please go ahead. Thank you.
Sean Zhang (Head of Investor Relations)
Good day everyone. Welcome to JD.com’s fourth quarter and full year 2025 earnings conference call. With us today are CEO of JD.com, Ms. Sandy Xu and CFO Mr. Ian Shen. Sandy will kick off the call with her opening remarks and Ian will discuss the financial results. Then we open the call to questions from analysts. Please note, unless otherwise stated, all comparison in this call will be against our results from the comparable period of 2024. Before turning the call over to Sandy, let me quickly cover the safe harbor. Please be reminded that during this call our comments and responses to your questions reflect management’s view as of today only and will include forward looking statements. Please refer to our latest Safe harbor statement in the earnings press release on the IR website which applies to this call. We’ll discuss certain non GAAP financial measures. Please refer to the reconciliation of non GAAP measures to the comparable GAAP measure in the earnings press release. Please also note all figures mentioned in this call are in RMB unless otherwise stated. Now let me turn the call over to our CEO Sandy.
Sandy Xu (Chief Executive Officer)
Thank you Sean hello everyone. Thank you for joining our fourth quarter and full year 2025 earnings conference call. We closed Q4 with results in line with expectations as we navigated short term challenges while delivering a solid overall full year performance for 2025 during Q4. Despite a high year on year comparison base in electronics and home appliances, our top line remains resilient thanks to the continued strong momentum in both our general merchandise categories and marketplace and marketing revenues. Our Profitability our core business JT Retail achieved a notable growth margin expansion in Q4 as we further leveraged our supply chain advantages. We strategically invested some of these gains into our price competitiveness particularly in electronics and home appliances categories as well as in R and D capabilities and talents to secure a long term edge. This slightly tempered retail’s margin expansion in the quarter, but the impact was well absorbed by our increasingly diversified profit streams including high margin marketplace and marketing services and margin improvement in categories such as supermarket and health care. Beyond core retail, our new businesses continued to report steady efficiency gains and a sequential decline in total investments. Beyond the quarterly fluctuation, 2025 remained a year of solid execution where we delivered on our full year expectations. We have made encouraging strides across our key long term growth drivers. User base and engagement gained significant momentum and our core retail segment accelerated back to double digit top line growth. We achieved this while expanding JD Retail operating margin for the sixth consecutive year despite a highly competitive landscape and we are expanding our time with several promising new business initiatives. This solid progress is rooted in our deepening supply chain capabilities which remain the engine for delivering superior user experience, optimized cost and enhanced operating efficiency. This is the backbone of our business model, not only supporting our core retail business but also fueling our expansion into the new markets. Our Strategic Initiatives we are confident that these strategic pillars position us for more sustainable and profitable growth Moving into our Operational Highlights I’d like to share three highlights from Q4 and full year 2025 as well as our thoughts for 2026. First, our user base expanded in both scale and depth of 2025. Our active customers grew by 30% year on year in Q4, capping a year where we exceeded 700 million annual active customers. This growth was powered by the organic user growth of our core retail business and further accelerated by new strategic initiatives including JD Food Delivery and dnc. High value users also hit a new Milestone. Our active JD member base sustained double digits surpassing 40 million marks by year end. What’s even more encouraging is the quality of user growth. User shopping frequency surged by over 40% year on year for the full year with broad based gains across all user groups including new and existing users as well as plus members. In addition to user acquisition, JD Food Delivery also played an important role in this frequency lift. We view the expansion of user base and engagement as a long term strategic driver for our business and expect it will further amplify in 2026 and beyond. Second, our core retail business demonstrated remarkable resiliency in Q4, maintaining stable margin in the quarter despite short term top line headwinds. On a full year basis, JD Retail delivered strong double digit growth in both revenue and operating profit with operating margin expanding by 52bps to 4.6%. Viewed through a long term lens, this consistent trajectory of daily retail’s growth and margin expansion over multiple years stands as a powerful testament to the resilience of our supply chain driven model. While Q4 revenue edged down to 1.7% year on year due to softness of electronics and home appliance categories, we have proactively strengthened our supply chain capabilities and deepened user man share. These efforts are already paying off with improved year to date in 2026. Furthermore, we expect to be benefiting from environment and high base comparisons, we remained steady fast in sharpening our supply chain edge and fortifying our foundation for the future. As we enter 2026, we are already seeing a consistent upward trend. Our user momentum remains robust and the growth trajectory of our general merchandise and the marketplace and marketing services has carried over seamlessly into the new year. In the meantime, we have continued to strengthen our competitiveness advantages across product supply, price competitiveness and fulfillment experience. This operational strength combined with our technological advances has disciplined ROI focused approach to new businesses gives us great confidence in our 2026 outlook. We remain fully committed to driving sustainable profitable growth and creating long term value for our shareholders. With this, I’ll turn the call over to Ian
Ian Shan (Chief Financial Officer)
thank you Sandy hello everyone and thanks for joining the call today. In Q4 our total revenues grow by 2% year on year and non GAAP net profit came in at RMB 1.1 billion. While we face short term headwinds in electronics and home appliances categories, our overall performance remained resilient. This stability was driven by our strategic focus on diversified growth drivers and profit streams alongside disciplined investment in our new business. On a full year basis, we achieved meaningful progress across our core retail segment, new businesses and user growth and engagement reinforcing our long term sustainable development. As we drive business development, we remain firmly committed to delivering shareholder returns. Our board has approved a total annual cash dividend of approximately 1.4 billion for 2025, representing 0.5 US cents per ordinary share or US$1 per ADF. Furthermore, we remained active in terms of share buybacks. In 2025 we repurchased about 6.3% of our outstanding shares for a total of US3 billion. All of the repurchased shares have been canceled. These efforts underscore our confidence in long term development. Now let’s go through our Q4 and full year 2025 financial performance. Total net revenues for Q4 increased by 2% year on year to RMB 352 billion. On a full year basis. Total net revenues increased by 13% to RMB 1.3 trillion in 2025. Breaking down the mix, product revenues faced a 3% dip in Q4 mainly due to a high trading base, but grow by 10% for the full year. By category, revenues of electronics and home appliances was down 12% in Q4 but up 7% for the full year. We have navigated this high base challenge in close collaboration with our partners and are encouraged by the improved momentum year to date in 2026. On the other hand, general merchandise delivered robust results with revenues up 12% in Q4 and 15% for the full year, led by sustained momentum in our supermarket, fashion and health care categories throughout 2025. We believe this momentum will continue in 2026 as we further build our strength in these high potential sectors. Service revenues grow by 20% year on year in Q4 and 24% for the full year. Notably, marketplace and marketing revenues were up 15% and 19% for the quarter and full year respectively. A key driver of this was advertising revenues which achieved double digit growth across every quarter of 2025. We have enhanced advertising efficiency our platform through leveraging technology as well as our surging user traffic and engagement. Looking into 2026, we expect Marketplace and marketing revenues to maintain solid growth momentum, contributing to both top line growth and profitability. Additionally, logistics and other service revenues grow by 24% in Q4 and 27% for the full year, mainly driven by the incremental delivery returns Revenues from Food Delivery Business now let’s turn to our segment performance. JD Retail revenues down 2% year on year in Q4 but up 11% for the full year of 2025. The quarterly decline was primarily due to the …