Pinduoduo Q2 2025: Why the Headline Numbers Mislead

From user-first to merchant-first: what it means for margins, Temu, and Maicai

The Ritual Returns

It’s that time of the year again: Pinduoduo’s second quarter earnings. And once again, we’re treated to the by-now familiar ritual. They post the numbers — this time even beating analyst estimates, which, when it comes to Pinduoduo, usually have all the predictive accuracy of a horoscope. Nevertheless, the stock jumps 10% in pre-market, because apparently people still cling to these numbers — even when they mess with their heads.

And then comes the call. As per the sacred Q2 tradition established last year, management can’t help but remind everyone, multiple times, that these profits aren’t sustainable, that volatility should be expected, and that no one should get too comfortable.

And with their classic closing line, “I think it’s about time,” the curtain drops. Everyone goes home a little more confused. But they’ve achieved their goal: Colin Huang is still not the richest man in China. Mission accomplished.

Before PDDs Numbers

Before looking at the actual earnings, I want to start somewhere else. Because looking at Pinduoduo’s Q2 2025 in isolation — margin squeeze here, subsidy spike there — tells you very little.

Instead, I take a step back and examine where Pinduoduo has been, how it got here, and what I believe explains why management is doing what it’s doing — the shift in strategy, the spending, and the repeated insistence that profitability isn’t the goal.

I also look at the changing dynamics in Chinese e-commerce, some of the political pressure shaping the playing field, and how that influences the numbers.

As always, I focus on what I believe is overlooked or not talked about enough — not on what’s already been said a hundred times.