PDD Holdings Inc. PDD
NasdaqInternet platformsFinancials to Jun 30, 2026 · Updated Oct 5, 2026
Moat ranks
Balance sheet
| CN¥B | Dec 31 | Jun 30 |
|---|---|---|
| Cash | 108.9 | 128.9 |
| Securities | 313.4 | 327.5 |
| Debt | 0.0 | 0.0 |
| Net cash | 422.3 | 456.4 |
| Equity | 413.4 | 447.8 |
- Debt / EBITDA · 12/31/25
- 0.00×
- Debt / equity
- 0.00×
- Leases (6/30/26)
- CN¥4.8B
- Diluted shares
- 5,894M
- Book value / share
- CN¥75.97
- Price / book
- 1.7×
- Net cash / share
- CN¥77.44
- Market cap
- CN¥741.0B
- Enterprise value
- CN¥284.6B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 8.1% | +0.9 pts | |
| Operating margin | 24.7% | -0.1 pts | |
| FCF margin | – | – | – |
| Capex / revenue | – | – | – |
| Transaction services | CN¥54.7B | +13% | |
| Online marketing services and others | CN¥57.6B | +3% | |
| Sales and marketing expenses | CN¥29.7B | +9% | |
| Customer advances and deferred revenues | CN¥3.6B | +1% | |
| Payable to merchants | CN¥109.9B | +15% |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About PDD
PDD Holdings connects shoppers and merchants through Pinduoduo in China and Temu internationally. Merchants pay for marketing and transaction services; the group reports one e-commerce segment and does not disclose platform profits.
- Two Sided Network
Pinduoduo has a real but contested buyer and merchant network: broader selection attracts buyers and buyer demand attracts merchants.
- Float Prepayment
Merchants generally pay for marketing before the service is delivered.
- Jun 30, 2018 · One-off charge −CN¥6.0B
Shares granted to a founder-controlled company in April 2018 created a one-time compensation charge in administration expenses. This explains much of the 2018 loss; normal employee share compensation remains a business cost.
- Mar 31, 2017 · One-off charge −CN¥103M
Founder-related shares were bought above their fair value in February 2017. The excess cash consideration was a compensation charge in administration expenses; the fair-value portion was an equity repurchase.
Ownership
Go deeper on PDD
- Compare stock research toolsFundamentals, valuation and screening platforms for PDD.19 tools
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- Read PDD's earnings callsTranscripts and audio of results calls, with management's own words.15 tools
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On this page
Financial record
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2016–25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share (CN¥) | |||||||||||||
| Revenue | 0.28 | 0.99 | 4.42 | 6.51 | 12.48 | 16.44 | 22.66 | 42.41 | 66.56 | 72.83 | 76.48 | +85.6%/yr | |
| Cash flow | 0.48 | 5.49 | 2.62 | 3.20 | 5.91 | 5.04 | 8.42 | 16.12 | 20.61 | 18.03 | 18.98 | +49.5%/yr | |
| Earnings | -0.16 | -0.30 | -3.44 | -1.51 | -1.51 | 1.36 | 5.47 | 10.28 | 19.00 | 16.50 | 15.62 | – | |
| Free cash flow | 0.48 | 5.48 | 2.61 | 3.20 | 5.90 | 4.46 | 8.31 | 16.02 | 20.44 | 17.84 | – | +49.3%/yr | |
| Capex | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.58 | 0.11 | 0.10 | 0.16 | 0.19 | – | +74.8%/yr | |
| Dividends | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | – | |
| Book value | -0.23 | -0.56 | 6.34 | 5.33 | 12.62 | 13.15 | 20.44 | 32.06 | 52.95 | 69.72 | 75.97 | – | |
| Diluted shares (M) | 1,815 | 1,765 | 2,968 | 4,627 | 4,768 | 5,714 | 5,761 | 5,840 | 5,917 | 5,930 | 5,894 | +14.1%/yr | |
| Totals (CN¥B) | |||||||||||||
| Revenue | 0.5 | 1.7 | 13.1 | 30.1 | 59.5 | 93.9 | 130.6 | 247.6 | 393.8 | 431.8 | 450.8 | +111.7%/yr | |
| Operating income | -0.3 | -0.6 | -10.8 | -8.5 | -9.4 | 6.9 | 30.4 | 58.7 | 108.4 | 93.1 | 98.6 | – | |
| Net income | -0.3 | -0.5 | -10.2 | -7.0 | -7.2 | 7.8 | 31.5 | 60.0 | 112.4 | 97.8 | 92.1 | – | |
| Free cash flow | 0.9 | 9.7 | 7.7 | 14.8 | 28.2 | 25.5 | 47.9 | 93.6 | 121.0 | 105.8 | – | +70.3%/yr | |
| Buybacks | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | – | – | |
| Dividends | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | – | |
| Net cash | 1.6 | 3.1 | 21.8 | 35.0 | 70.7 | 81.2 | 134.0 | 211.3 | 326.3 | 422.3 | 456.4 | +CN¥420.7B | |
| Margins & returns (%) | |||||||||||||
| Gross margin | -14.5 | 58.6 | 77.9 | 79.0 | 67.6 | 66.2 | 75.9 | 63.0 | 60.9 | 56.3 | 56.3 | +70.7 pts | |
| Operating margin | -56.7 | -34.2 | -82.3 | -28.3 | -15.8 | 7.3 | 23.3 | 23.7 | 27.5 | 21.6 | 21.9 | +78.2 pts | |
| Net margin | -57.8 | -30.1 | -77.9 | -23.1 | -12.1 | 8.3 | 24.2 | 24.2 | 28.5 | 22.7 | 20.4 | +80.5 pts | |
| FCF margin | 173.8 | 554.9 | 59.0 | 49.1 | 47.3 | 27.1 | 36.7 | 37.8 | 30.7 | 24.5 | – | -149.3 pts | |
| Return on equity | – | – | -54.3 | -28.3 | -11.9 | 10.3 | 26.8 | 32.1 | 35.9 | 23.7 | 20.6 | – | |
| R&D % of revenue | 5.8 | 7.4 | 8.5 | 12.8 | 11.6 | 9.6 | 8.0 | 4.4 | 3.2 | 3.8 | 4.1 | -2.0 pts | |
| Stock pay % of revenue | 0.8 | 0.8 | 52.1 | 8.5 | 6.1 | 5.1 | 5.9 | 2.9 | 2.5 | 1.8 | 1.5 | +1.0 pts | |
| Capex % of revenue | 0.5 | 0.5 | 0.2 | 0.1 | 0.1 | 3.5 | 0.5 | 0.2 | 0.2 | 0.3 | – | -0.2 pts | |
Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Competitive
- Durability
- medium
- Trajectory
- stable
- Pricing power
- weak
- E-commerce services: Pinduoduo and Temu100.0%2 claims
Moat claims
- Applies to
- E-commerce services: Pinduoduo and Temu
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 5, 2026
Pinduoduo has a real but contested buyer and merchant network: broader selection attracts buyers and buyer demand attracts merchants. The group served 16.8 million active merchant accounts in 2025. That is evidence of reach, not proof that merchants or shoppers cannot switch. Temu adds international demand but its retention, profits and separate network strength remain undisclosed.
Active merchants reached 16.8 million in 2025, while Q2 2026 marketing revenue was RMB57.6 billion and acquisition spending was RMB29.7 billion; the network still monetizes demand, but current retention data do not show a stronger barrier to rivals.
- Transaction servicesCN¥54.7B+13%
- Online marketing services and othersCN¥57.6B+3%
- Sales and marketing expensesCN¥29.7B+9%
- Active merchants16,800,000+6%
- Transaction-service revenue per active merchantCN¥12,742+3%
- Pinduoduo active merchants11,500,000+34%
- Pinduoduo active buyers868,700,000+10%
- Alibaba, JD and social-commerce platforms can buy demand through subsidies and promotion.
- Merchants and consumers can use several platforms, weakening the link between network size and pricing power.
- Unsafe goods, disputes and customs friction can turn a larger catalogue into a loss of trust.
- Applies to
- E-commerce services: Pinduoduo and Temu
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 5, 2026
Merchants generally pay for marketing before the service is delivered. These advances finance part of the platform before revenue is earned. Contract liabilities reached RMB10.7 billion at the end of 2025, but most merchant settlement balances are amounts owed to sellers, not prepaid advertising. Rivals can offer the same terms, so this is a modest funding benefit.
Customer advances and deferred revenue were RMB3.6 billion at June 30, 2026, compared with RMB3.4 billion at year end; the funding benefit persists but remains modest beside RMB109.9 billion owed to merchants.
- Online marketing services and othersCN¥57.6B+3%
- Customer advances and deferred revenuesCN¥3.6B+1%
- Payable to merchantsCN¥109.9B+15%
- Contract liabilitiesCN¥10.7B+24%
- Merchant spending cuts or fee concessions reduce balances available before services are delivered.
- Faster settlement and stronger safeguarding rules can reduce usable funding.
- Restrictions on cash transfers from China and seller obligations limit shareholder access to liquidity.
- FilingPDD Holdings 2025 Form 20-F, business, financial statements and governanceApr 29, 2026
- FilingPDD Holdings Q2 2026 results, Form 6-K exhibitAug 25, 2026
Profile change log
- Oct 5, 2026 · analyst revision
Changed industry from Specialty retail to Internet platforms: the reported business sells merchant marketing and transaction services and does not sell inventory as its primary activity. Kept sector Consumer. Added a shared global online retail market profile with national demand data, rival scale and regulatory and currency risks.
- Oct 5, 2026 · analyst revision
Added dated trajectories, operating tests, management and the investment debate. Merchant participation supports a stable network; prepaid services provide a modest stable funding benefit. Added the EUR200 million Temu fine and the new low-value import costs. Sources: 2025 Form 20-F, Q2 2026 results and the European Commission and Council.
- Oct 5, 2026 · analyst revision
Replaced the unweighted Pinduoduo and Temu platform split with the single reported e-commerce segment, representing all revenue. Platform-specific revenue and profit are not disclosed. The consolidated network claim is rated 3 rather than the former domestic-only 4 because international retention and platform economics remain unproven. Pricing power is weak rather than the former domestic moderate rating because merchant switching and subsidy competition constrain fees. Source: 2025 Form 20-F.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
Global online retail of physical goods
Physical consumer goods ordered through online marketplaces, brand sites, retailer stores and social-commerce channels, including domestic and cross-border sales. Excludes business-to-business trade, financial transactions and stand-alone consumer services; market size measures goods sold, not the fees a marketplace keeps.
- Alibaba
- PDD Holdings
- Amazon
- ByteDance
- JD.com
- Walmart
- Sea / Shopee
- eBay
- MercadoLibre
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| PDD | 52 | 56.3% | 21.9% | |
| Industry median | 19 | 75 | 56.7% | 25.1% |
| Sector median | 85 | 74 | 55.5% | 16.9% |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- China online goods sales reached RMB8,419.5 billion in January-August 2026, up 4.3%, against 1.1% growth in total consumer-goods retail. Online demand is stronger than overall retail, but merchant budgets still face slow consumption. This national comparison does not establish any platform's share.
- Price-sensitive households can shift spending toward discount marketplaces when incomes or confidence weaken. This can support order volume, but weaker merchant profits constrain advertising budgets.
- More merchant choice and better matching can raise shopping frequency and service demand. Social-commerce discovery also gives ByteDance and other content platforms a way to compete for that demand.
- Local merchants, consolidated shipping and reliable payments can shorten delivery and improve landed costs. They require investment and can reduce the cost advantage of a pure cross-border model.
- Interest rates have an indirect effect on demand and merchant funding, and a direct effect on income earned from platform cash and investments. More interest income does not establish stronger marketplace operations.
- Import regulation is a strong direct cost risk for cheap cross-border goods: US duty-free treatment remains suspended and the EU now charges a duty on qualifying low-value imports. Sellers may absorb the cost or raise prices and lose orders.
- Product-safety, consumer-protection and data rules require screening and enforcement. Temu's EUR200 million fine shows that scale can bring liabilities rather than a compliance advantage.
- Large marketplaces and social platforms can fund subsidies and buy traffic. Consumers and sellers use several platforms, so a larger network alone does not protect merchant fees.
- Currencies and freight costs strongly affect cross-border landed prices. A stronger yuan raises the foreign-currency cost of Chinese supply; exchange movements also affect reported overseas results. No reliable numerical earnings sensitivity is disclosed.
- Chinese consumer confidence and merchant profitability affect domestic demand; fees, refunds and subsidies can squeeze sellers even when volume grows. Platform cash can include restricted settlement money and may face cross-border transfer limits.
Bulls & bears
Can PDD retain useful merchant and buyer demand while absorbing fee support, acquisition spending and Temu compliance costs, so operating profit grows without relying on investment returns?
Arguments
What to watch
- 1Active merchants and reported transaction-service revenue per active merchant
- 2Marketing and transaction-service revenue alongside sales and marketing expenses
- 3Operating profit, other non-operating losses and prepayment balances
Next check: Q3 2026 results, when announced: check demand, acquisition spending and any explanation of the large Q2 other loss. In the next annual report, check merchant retention disclosures and Temu economics.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Sep 25, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 52/100 by <a href="https://www.findmymoat.com/stocks/XNAS:PDD">Find My Moat</a> (as of September 2026)Request update
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