Meituan’s overseas push steadies investor confidence despite losses
Meituan reported full-year revenue of RMB 364.9 billion (USD 53.3 billion), an 8% increase YoY, but posted a net loss of RMB 23.4 billion (USD 3.4 billion) and an operating loss of RMB 17 billion (USD 2.5 billion) — its second consecutive operating loss. Fourth-quarter revenue reached RMB 92 billion (USD 13.4 billion), while adjusted net loss widened to RMB 15.1 billion (USD 2.2 billion) from an adjusted net profit a year earlier. Management points to stronger performance in new initiatives — notably grocery retail and the international arm Keeta, whose Gulf coverage and Brazil launch helped lift that segment to RMB 104 billion (USD 15.2 billion), up 19% YoY. Executives expect per-order losses in food delivery to narrow and forecast Keeta in Saudi Arabia to reach positive monthly unit economics by end-2026, supporting investor patience despite weaknesses in core local commerce.
What happened
Meituan reported full-year revenue of RMB 364.9 billion (USD 53.3 billion), up 8% YoY, but recorded a net loss of RMB 23.4 billion (USD 3.4 billion) and an operating loss of RMB 17 billion (USD 2.5 billion) — its second consecutive operating loss. Fourth-quarter revenue was RMB 92 billion (USD 13.4 billion), with an adjusted net loss of RMB 15.1 billion (USD 2.2 billion) versus an adjusted net profit of RMB 9.8 billion (USD 1.4 billion) a year earlier. Investors are focusing on the company’s international expansion, particularly Keeta, and growth in retail initiatives.
Technical details
The financials show pressure in core local commerce, which posted an operating loss of RMB 6.9 billion (USD 1 billion). The company’s new initiatives segment — led by grocery retail expansion and overseas operations — generated RMB 104 billion (USD 15.2 billion), up 19% YoY. Management signalled operational improvements in food-delivery unit economics and highlighted geographic rollouts for Keeta (Gulf coverage, Hong Kong, Brazil). Key operational points:
- •Keeta achieved positive monthly unit economics in Hong Kong after 29 months and is expected to reach positive monthly unit economics in Saudi Arabia by end-2026.
- •Management expects per-order losses in food delivery to narrow in the coming quarter.
- •International expansions and grocery/retail investments are primary drivers behind the revenue mix shift.
Context and significance
Meituan’s results illustrate a familiar digital platform trade-off: sustaining growth and market share in low-margin local commerce while investing for mid-term profitability in higher-margin retail and international operations. The ramp in Keeta deployments signals a strategic pivot toward geography and product diversification that can materially change unit economics if positive run-rates hold. For practitioners, the relevant signals are: the pace at which Keeta attains positive unit economics across markets, the trajectory of per-order losses in food delivery, and how investments (including AI-enabled logistics or retail optimizations cited by management) convert into margin expansion.
> “Keeta in Saudi Arabia is expected to achieve positive monthly unit economics by the end of 2026,” Wang said.
What to watch
Monitor quarterly unit-economics disclosures for Keeta markets and per-order loss trends in food delivery; those metrics will determine whether revenue growth translates into sustainable profits. Also watch execution in Brazil and Gulf countries, and any disclosed ROI from retail/AI investments.
Scoring Rationale
Meituan’s results matter to practitioners because they show a major platform shifting investment to international expansion and retail, with measurable unit-economics milestones. The story affects competitive dynamics in food delivery and platform economics but is not an industry-defining technical breakthrough.
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