In a disappointing fourth quarter, JD.com reported a revenue increase of 1.5% year-over-year, totaling RMB352.28 billion. However, this figure was below the analyst expectations of RMB352.89 billion. The company”s earnings per share (EPS) also fell short, coming in at RMB0.57 compared to the anticipated RMB0.67.
The net loss for JD.com was a significant RMB2.7 billion for the quarter, a stark contrast to the RMB9.9 billion profit recorded in the same quarter of the previous year. Additionally, the adjusted EBITDA plummeted to negative RMB0.8 billion, a sharp decline from the positive RMB12.5 billion reported a year earlier. This resulted in a non-GAAP EBITDA margin dropping to negative 0.2%, down from 3.6%.
Despite the disappointing headline numbers, CEO Sandy Xu attempted to frame the results positively, stating, “We were pleased to close out 2025 with fourth quarter results in line with expectations, capping another solid full-year performance.”
The core retail business of JD.com showed some resilience, with operating income at RMB9.8 billion, slightly down from RMB10.0 billion a year prior. The operating margin was reported at 3.2%, a minor decrease from 3.3% in Q4 2024. Notably, full-year performance for the retail segment demonstrated stronger growth, achieving double-digit increases in both revenue and operating profit for 2025.
In response to market pressures, JD.com has been diversifying its revenue streams to mitigate the impact on its core business. The company has positioned its advertising segment and instant retail operations as higher-margin growth opportunities. CFO Ian Su Shan highlighted this strategy, noting the increasing diversification within their revenue mix and expressing confidence in the strengthening profitability from higher-margin sectors.
The competitive landscape within Chinese e-commerce remains challenging as rivals like Alibaba and PDD Holdings have intensified discounting strategies, impacting pricing and margins across the industry. Furthermore, government subsidies that had previously bolstered JD.com, particularly in the home appliance segment, are diminishing, complicating year-over-year comparisons.
Consumer spending in China has faced ongoing pressures, influenced by a sluggish property market and employment uncertainties, affecting discretionary purchases. Following the release of its earnings report, JD”s U.S.-listed stock saw a slight decline in premarket trading.
On a more positive note, JD.com”s board has approved an annual cash dividend of $1.0 per American Depositary Share (ADS) for 2025, with the record date set for April 9, 2026. The total dividend payout is expected to reach around $1.4 billion.
