BingEx Earnings Call: Profit Up, Growth Under Strain

BingEx Ltd. ADR ((FLX)) has held its Q4 earnings call. Read on for the main highlights of the call.

BingEx Ltd. ADR’s latest earnings call painted a cautiously upbeat picture, as the company delivered another year of non‑GAAP profitability and better margins despite clear revenue pressure. Management struck a confident tone on cost control, technology and higher‑value orders, but acknowledged that intense competition and flat volumes are capping near‑term growth.

Profitability Surges Despite Revenue Pressure

Adjusted non‑GAAP net income more than doubled year on year in Q4 to RMB 41.6 million, taking full‑year 2025 non‑GAAP profit to RMB 199.4 million. The non‑GAAP net margin improved to 5% in 2025 from 4.5% in 2024, marking BingEx’s third consecutive year of non‑GAAP net income profitability.

Gross Margins Edge Higher

Gross margin expanded to 10.8% in Q4 and 11.8% for full‑year 2025, up 0.8 percentage points versus 2024. Q4 gross profit increased to RMB 107.9 million from RMB 102.9 million a year earlier, underlining better unit economics even as overall revenue declined.

Shift Toward Higher‑Value Order Mix

The company is steadily tilting its business toward richer categories, with electronics delivery order volume jumping 17% year on year in Q4. Cake delivery also returned to growth, with orders up more than 5%, and this move to mid‑ to high‑value orders is helping support the margin gains.

Expansive Network of Cities, Users and Riders

BingEx closed 2025 with services in 298 cities across China, giving it a wide geographic footprint. The platform counts 31 million registered riders and 120 million registered users, a scale base that management believes can be more fully monetized over time.

Large Fulfillment Volumes Show Platform Stickiness

The company fulfilled 63.2 million orders in Q4 2025 and 249.2 million across the full year, underscoring continued activity on the platform. While volumes are under competitive pressure, these figures highlight that BingEx remains a major player in on‑demand delivery.

Cost Discipline and Efficiency Drive Operating Gains

Cost of revenues fell 3.5% year on year in Q4 to RMB 893.4 million and 11.4% for the full year to RMB 3.5 billion, reflecting tighter cost control and efficiency. Non‑GAAP operating income rose 44% year on year in Q4 to RMB 10.5 million, reaching RMB 92.7 million for 2025.

Solid Cash Cushion Supports Strategy

The company ended 2025 with RMB 951.6 million in cash, cash equivalents, restricted cash and short‑term investments. This liquidity provides room to keep investing in technology, network quality and new services while weathering competitive headwinds.

AI and Drone Innovation Gain Traction

Management highlighted broad deployment of AI across customer service, operations and R&D, with AI‑assisted coding lifting development efficiency by about 30% versus 2024. BingEx also formed a low‑altitude logistics unit and has completed over 2,000 drone deliveries since its pilot, signaling early commercial validation of the concept.

Revenue Decline Flags Growth Challenges

Full‑year 2025 revenue slipped to RMB 4.0 billion from RMB 4.5 billion, an 11.1% year‑on‑year decline driven mainly by lower order volumes amid fierce competition. The drop shows that improved margins are currently offsetting, rather than amplifying, the shrinking top line.

Flat Q4 Revenue Points to Limited Momentum

Fourth‑quarter revenue came in at RMB 1.0 billion, essentially unchanged from the prior year. This stagnation suggests that, while BingEx is stabilizing its operations, it has yet to reignite meaningful revenue growth in its core business.

Gross Profit Falls Despite Better Margins

Despite the margin expansion, full‑year gross profit declined to RMB 469.1 million from RMB 490.6 million in 2024, a drop of about 4.4%. The lower revenue base more than offset unit‑level improvements, underlining the importance of rebuilding volume or pricing power.

Competition Weighs on Volumes and Outlook

Management identified intensified market competition as the main reason for weaker order volumes and signaled that 2026 orders are likely to remain stable rather than grow. This guidance implies ongoing market pressure and a focus on defending share rather than chasing aggressive expansion.

One‑Off Expense Tailwind Clouds Comparisons

The decline in operating expenses was helped by a one‑time factor: immediate recognition of accumulated share‑based compensation in Q4 2024 tied to the IPO. As a result, some of the year‑on‑year operating leverage in 2025 may not repeat at the same scale.

Drone Business Still in Early Days

While the low‑altitude logistics initiative has reached commercial validation, its current scale remains small, with just over 2,000 drone orders completed. Investors should see it as a longer‑term option value rather than a near‑term profit driver.

Guidance: Stable Volumes, Higher‑Value Focus and Tech Push

For 2026, management expects overall order volumes and average selling prices to stay broadly in line with 2025, while pushing for a larger mix of mid‑ to high‑value orders via refined operations and merchant tiering. BingEx plans to accelerate AI and drone deployment to boost efficiency and aims to sustain non‑GAAP profitability while protecting its scale, network reach and liquidity.

BingEx’s earnings call showcased a business that is tightening its operations and leveraging technology to defend profitability in a tough market. With revenue under pressure and growth muted, the key question for investors is whether the shift to higher‑value orders and innovation in AI and drones can eventually translate into renewed top‑line expansion.