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Dingdong (Cayman) Ltd. (DDL)
NYSE:DDL
US Market
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Dingdong (DDL) AI Stock Analysis

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DDL

Dingdong

(NYSE:DDL)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
$2.50
▼(-17.49% Downside)
Action:Reiterated
Date:07/13/26
The score is driven primarily by improved financial stability (positive earnings and stronger free cash flow with a much improved leverage profile), tempered by thin operating margins and a sharp TTM revenue decline that raises sustainability risk. Technicals are a secondary drag, with the stock below key longer-term moving averages and a negative MACD, while valuation is supportive due to the low P/E.
Positive Factors
Improved Free Cash Flow
Sustained positive free cash flow (~543M TTM) strengthens operating self‑funding, reduces reliance on external financing, and supports reinvestment in fulfillment, working capital and strategic priorities. Durable FCF improves resilience through demand cycles and funds growth or deleveraging.
Negative Factors
Sharp Revenue Decline
A near‑22% TTM revenue drop erodes scale advantages and risks reversing recent profitability gains. Lower volumes can strain fixed and fulfillment economics, reducing cash generation and making margins more sensitive to cost fluctuations, threatening medium‑term earnings sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Free Cash Flow
Sustained positive free cash flow (~543M TTM) strengthens operating self‑funding, reduces reliance on external financing, and supports reinvestment in fulfillment, working capital and strategic priorities. Durable FCF improves resilience through demand cycles and funds growth or deleveraging.
Read all positive factors

Dingdong (DDL) vs. SPDR S&P 500 ETF (SPY)

Dingdong Business Overview & Revenue Model

Company Description
Dingdong (Cayman) Limited is a Chinese online retail enterprise that provides a comprehensive selection of food products. Its offerings span fresh produce, meats, seafood, and prepared meals, alongside a diverse assortment of groceries including d...
How the Company Makes Money
Dingdong primarily makes money by selling groceries and related products directly to consumers through its Dingdong Maicai platform. Its core revenue stream is product sales revenue from customer orders (including fresh foods and other consumer st...

Dingdong Earnings Call Summary

Earnings Call Date:Nov 12, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with record-breaking revenue and consistent profitability. Despite challenges like declining gross profit margins and increased market competition, the company's strategic initiatives such as the 'One Big, One Small, One World' strategy and growth in the good product system show promise for continued success. The overall sentiment is positive due to the outweighing highlights.
Positive Updates
Record-Breaking Revenue and GMV
Dingdong reported a GMV of RMB 7.27 billion and a revenue of RMB 6.66 billion, both achieving slight year-over-year growth and marking the highest ever quarterly GMV and revenue.
Negative Updates
Decline in Gross Profit Margin
Gross profit margin was 28.9%, down 0.9 percentage points year-over-year. The decline has narrowed on a quarter-over-quarter basis, but remains a concern.
Read all updates
Q3-2025 Updates
Negative
Record-Breaking Revenue and GMV
Dingdong reported a GMV of RMB 7.27 billion and a revenue of RMB 6.66 billion, both achieving slight year-over-year growth and marking the highest ever quarterly GMV and revenue.
Read all positive updates
Company Guidance
During the Dingdong Limited Third Quarter 2025 Earnings Call, the company provided guidance highlighting its strong financial performance and strategic initiatives. Dingdong has achieved profitability under non-GAAP standards for 12 consecutive quarters and under GAAP standards for 7 consecutive quarters. In Q3 2025, the company reported its highest ever quarterly GMV of RMB 7.27 billion and revenue of RMB 6.66 billion, with year-over-year increases in both metrics. The non-GAAP net profit was RMB 0.1 billion with a profit margin of 1.5%, while the GAAP net profit was RMB 0.08 billion with a margin of 1.2%. The company emphasized its "One Big, One Small, One World" strategy, focusing on developing top-selling products, expanding into smaller cities, and exploring international markets. The strategy aims to leverage its strong supply chain and product development capabilities to sustain growth and compete effectively in the highly competitive instant retail market. Despite the competitive pressures, Dingdong remains confident in maintaining its scale and profitability, bolstered by a robust cash position of RMB 3.94 billion by the end of Q3.

Dingdong Financial Statement Overview

Summary
Financials have materially stabilized versus 2021–2023: net income turned positive in 2023 and remained profitable, and free cash flow is positive and higher on TTM (~543M). Balance sheet leverage improved dramatically (debt-to-equity down to ~0.00x on TTM with equity growth), supporting flexibility. Offsetting this, operating margins remain very thin (~1–2%), and TTM revenue fell sharply (-21.9%), which could pressure profitability and cash generation if volumes don’t stabilize.
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue19.02B24.36B23.07B19.97B24.22B20.12B
Gross Profit5.44B7.11B6.95B6.12B7.49B4.04B
EBITDA173.91M355.19M482.31M182.10M-462.22M-6.12B
Net Income377.91M221.67M295.08M-99.88M-814.37M-6.43B
Balance Sheet
Total Assets6.89B7.02B7.12B7.70B9.38B9.42B
Cash, Cash Equivalents and Short-Term Investments369.80M3.98B4.45B5.31B6.49B5.23B
Total Debt124.53K2.44B3.03B4.52B5.61B5.39B
Total Liabilities5.58B5.84B6.19B7.20B8.96B8.66B
Stockholders Equity1.17B1.04B798.61M382.53M310.18M728.07M
Cash Flow
Free Cash Flow543.35M348.00M830.85M-317.93M-19.75M-6.12B
Operating Cash Flow591.80M520.92M929.03M-234.61M107.14M-5.67B
Investing Cash Flow435.96M417.90M475.50M519.33M-66.90M-4.07B
Financing Cash Flow-740.20M-723.09M-1.72B-934.42M1.11B9.04B

Dingdong Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.03
Price Trends
50DMA
2.34
Negative
100DMA
2.50
Negative
200DMA
2.39
Negative
Market Momentum
MACD
-0.02
Negative
RSI
59.53
Neutral
STOCH
88.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DDL, the sentiment is Neutral. The current price of 3.03 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 2.34, and above the 200-day MA of 2.39, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 88.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DDL.

Dingdong Risk Analysis

Dingdong disclosed 79 risk factors in its most recent earnings report. Dingdong reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Implementation of the Law of the PRC on Safeguarding National Security in Hong Kong involves uncertainty, and the recent policy pronouncements by the PRC government regarding business activities of U.S.-listed PRC businesses may negatively impact our business. Q4, 2023

Dingdong Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$596.39M11.9010.74%2.63%4.20%-3.38%
67
Neutral
$1.96B19.887.49%2.06%4.14%-0.27%
66
Neutral
$758.73M15.7622.26%1.99%3.09%16.13%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
62
Neutral
$507.28M9.0036.14%-18.47%32.49%
56
Neutral
$1.72B16.526.41%0.93%-0.28%68.37%
49
Neutral
$947.68M-2.46-36.58%6.04%-2370.84%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DDL
Dingdong
2.27
-0.05
-2.16%
IMKTA
Ingles Markets
90.15
23.79
35.85%
VLGEA
Village Super Market
44.49
8.74
24.45%
WMK
Weis Markets
78.05
2.96
3.94%
NGVC
Natural Grocers
32.73
-5.94
-15.37%
GO
Grocery Outlet Holding
9.44
-4.33
-31.45%

Dingdong Corporate Events

Dingdong Posts Ninth Straight Profitable Quarter as China Sale to Meituan Reshapes Earnings
May 22, 2026
On May 21, 2026, Dingdong reported unaudited first‑quarter 2026 results showing its gross merchandise value rose 6.3% year on year to RMB6.33 billion and revenue increased 7.5% to RMB5.89 billion, marking nine straight quarters of top‑...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 13, 2026