JD.com Q4 Revenue Rises 1.5% to $50.38B, Margin Dips Below Zero
JD.com delivered fiscal Q4 revenue of $50.38 billion, up 1.5% year-over-year, and reported an adjusted net income of $0.08 per ADS, beating loss estimates. Marketing expenses surged 50.6% to $3.6 billion, dragging adjusted operating margin to -0.9% and intensifying pressure from competitors.
1. Q4 Financial Results
JD.com reported Q4 2025 revenue of $50.38 billion, a 1.5% year-over-year increase, with net product revenue of $39.04 billion down 2.8% and net service revenue of $11.34 billion up 20.1%. Adjusted net income per ADS was $0.08, compared to an expected loss of $0.03.
2. Rising Costs and Margin Pressure
Marketing expenses increased 50.6% to $3.6 billion, representing 7.2% of revenues and up 230 basis points year-over-year. Fierce price competition drove operating margin to -1.7% and adjusted operating margin to -0.9%, down from 3.0% last year.
3. Profitability and Cash Flow
The company recorded an adjusted EBITDA loss of $118 million, a margin of -0.2%, versus 3.6% a year ago. Free cash flow reached $2.48 billion, supported by operating cash flow of $2.99 billion, and cash and equivalents stood at $32.2 billion as of December 31.
4. Capital Returns and Growth Initiatives
The board approved an annual cash dividend of $1.00 per ADS to holders of record on April 9, 2026. Under a $5.0 billion repurchase program, $3.0 billion of shares (6.3% of outstanding) were bought back in 2025. New business revenue grew 200.9% to $2.01 billion and AI integration was expanded to enhance operations.