Pinduoduo’s third-quarter 2025 results delivered a mixed message. On one hand, profit beat expectations; on the other, revenue growth slowed, competition intensified, and the external environment remained uncertain. As a result, investors now face a landscape where opportunities and risks coexist.
According to the earnings report, the company generated revenue of roughly RMB 108.28 billion in the third quarter, up about 9% year-on-year. Net profit came in at around RMB 29.33 billion, an increase of about 17% year-on-year. Adjusted earnings per ADS were RMB 21.08, slightly above market expectations.
From a return perspective, although revenue growth can no longer sustain the double-digit pace seen in previous years, the company’s profitability remains solid. This suggests that for long-term investors, Pinduoduo currently combines improving earnings with a clear slowdown in top-line growth.
For investors who are primarily return-focused, Pinduoduo’s fundamentals are still sufficient to support a certain level of confidence. However, from the standpoint of valuation and future growth expectations, the market has begun to price in the risks associated with a slower growth trajectory.
In terms of market and competitive dynamics, the Chinese e-commerce ecosystem in which Pinduoduo operates is under dual pressure. Domestically, consumer spending remains sluggish, and headwinds in employment and the property market have yet to fully ease. Internationally, Temu — Pinduoduo’s overseas expansion platform — is facing rising tariffs, higher local logistics costs and increased compliance burdens.
Traditional e-commerce giants such as Alibaba Group and JD.com are also ramping up promotions and price wars to capture user growth, further intensifying competition.
Market commentary:
Looking ahead, Pinduoduo has made it clear that merchant support programs and ecosystem building will be strategic priorities in the next stage. The company is increasing investment in merchant operations, logistics and supply chains, and platform technology. While these investments should bolster the platform’s long-term competitiveness, they may weigh on profit growth in the short term and lead to greater quarter-to-quarter volatility in results.
