❯ Meituan posts 104.6 billion yuan in Q2 revenue, ending three losing quarters

back to profitMeituan reported second-quarter revenue of 104.6 billion yuan (about $15.62 billion), up 14.4% year over year, with adjusted net profit of roughly $372 million, ending three consecutive losing quarters. The turn came as the delivery subsidy war cooled — discounting eased after regulators publicly criticized the instant-retail price war earlier this year.

the overseas cadenceOn the earnings call, Wang Xing gave two numbers on unit economics abroad: Keeta reached profitability in Saudi Arabia 22 months after trial operations began, and turned unit economics positive in Hong Kong in 29 months, which the company reads as evidence the model travels. In the second half Keeta will focus on operating efficiency in existing markets, and Meituan says it remains confident in Brazil’s long-term potential. The three losing quarters before this were exactly the period when subsidies ran hottest.

next quarterThe subsidy truce came from regulatory pressure, not the end of competition. Douyin’s push into instant retail remains the biggest variable in Meituan’s margin recovery, and how long it is willing to lose money decides whether this profit curve holds. Whether discounting returns once the third-quarter peak season arrives is the only number to watch after this report, and the only basis for judging whether the turn sticks.

▪ SIGNALOne quarter of profit came from regulation rather than competitiveness; the next quarter’s answer sits in Douyin’s budget.