Full Truck Alliance Co. Ltd. (YMM) Earnings

Management highlights

### Core Platform Performance & Network Effects - Fulfilled orders reached 68.5 million, growing 12.7% year-over-year in a challenging macroeconomic market, demonstrating solid business resilience - Average monthly active shippers (MAUs) hit 3.57 million, up 12.8% year-over-year, while monthly active truckers continued to grow, strengthening two-sided network effects - Fulfillment rate rose 6.3% year-over-year to a record 47%, with median freight matching time shortened to 5 minutes for the first time ### Product & Operational Initiatives - Completed nationwide coverage for less-than-truckload (LTL) offerings via a dedicated line carrier network, and expanded autonomous delivery vehicle pilots to multiple cities - Resegmented freight product offerings into four clear categories (Express, Entrusted Shipping, General Freight, LTL) with distinct use cases to reduce matching mismatches - Implemented ongoing ecosystem governance to eliminate invalid orders, freight reselling, and low-quality listings, improving overall demand authenticity and fulfillment reliability - Broadened and strengthened transaction protection for both shippers and truckers, lifting user satisfaction significantly across both platform sides ### Technology & New Business Growth - Continued rolling out AI-assisted tools to a broader user base, and fully deployed AI-powered customer service across all applicable use cases, deepening AI integration end-to-end - Overseas new business initiative QMove delivered strong momentum, with rapid growth in both fulfilled orders and fulfillment rates - Achieved nearly full 94.7% coverage of the commission-based monetization model across all eligible cities - Steadily transitioned the freight brokerage business from a fully self-operated model to a dual-track self-operated/aggregator model to reduce compliance risk ### Financial Performance - Core platform profitability and cash generation strengthened significantly, supported by the asset-light business model

Guidance

- Management expects the overall fulfillment rate to continue a steady upward trajectory, as product refinement and expanded AI integration unlock further transaction efficiency gains - Management is cautiously optimistic about long-term order growth, and expects recent moderation in fuel prices to support gradual recovery in overall freight demand; online penetration in the long-haul full truckload market still has substantial room for long-term growth - Transaction service revenue is expected to deliver high-quality, sustainable long-term growth, driven by increasing fulfilled order volumes, higher monetization per order via refined tiered operations, and scaling of emerging business use cases - Long-term cash generation capabilities are expected to strengthen steadily, as the revenue mix continues to shift toward higher-margin, asset-light platform businesses - As the aggregator model for freight brokerage scales, management expects the revenue mix and overall earnings quality of the freight brokerage segment to improve further - Full Truck Alliance will continue expanding the direct shipper base, growing penetration in the full truckload long-haul segment, and improving order quality via ongoing ecosystem governance to drive long-term growth

Segment performance

For the second quarter of 2026, Full Truck Alliance (FTA) reported total net revenues of RMB 3.38 billion, representing a 4.4% year-over-year increase. The Transaction Services segment achieved revenues of RMB 1.77 billion, growing 33.1% year-over-year and contributing 52% of FTA's total net revenues. Reported net income for the quarter was RMB 1.35 billion, up 6.3% year-over-year, while non-GAAP adjusted net income reached RMB 1.43 billion, a 6% year-over-year increase. Net cash provided by operating activities grew significantly year-over-year to RMB 2.15 billion, bringing total cash reserves to RMB 33.4 billion by the end of the quarter.

Risks & headwinds

- Forward-looking statements are subject to inherent uncertainty, and actual results may differ materially from projections due to unforeseen risks, many of which are outside the company's control - Near-term freight operations may face disruption from extreme weather events and natural disasters across regions of China - Electrification of long-haul ad-hoc trucking still faces significant physical and infrastructure hurdles, including limited range, sparse charging coverage, and route flexibility constraints - The legacy self-operated freight brokerage model carries exposure to VAT refund and settlement risks, which the company is addressing via a gradual transition to the aggregator model - The overall macroeconomic environment remains challenging and uncertain, which may impact freight demand growth

Analyst Q&A

• Q: Given rising electric truck penetration and ongoing fuel price volatility, how will these trends impact the freight industry capacity mix and FTA's competitive landscape? /

  A: FTA platform data shows electric trucks now account for over 20% of total fulfilled orders, but they are primarily competitive in short-to-medium haul and local routes, relying on fixed routes, high utilization, and accessible charging infrastructure. Electric trucks are not positioned to replace diesel trucks for ad-hoc long-haul transport (FTA's average long-haul distance exceeds 500km) due to range, infrastructure, and flexibility constraints. Management expects a more diversified capacity mix will benefit FTA's ecosystem, enabling better matching of capacity to use cases and complementary service growth, with FTA positioned to gain from ongoing industry capacity upgrades. (397 characters)

• Q: What drove 12.7% year-over-year Q2 fulfilled order growth, has the impact of high fuel prices faded, and what is the outlook for order growth? /

  A: Growth was driven by ecosystem governance that improved demand authenticity, growing direct shipper share, refined operations including credit rating and payment protection that boosted matching efficiency, and faster-than-average growth in the core full truckload long-haul segment. High fuel prices between late March and May dampened demand for price-sensitive freight, but recent price cuts have gradually eased this pressure. Management is cautiously optimistic long-term, noting large remaining online penetration growth headroom, but cites near-term risks from extreme weather and ongoing macroeconomic uncertainty. (459 characters)

• Q: What drove the record 47% Q2 fulfillment rate, and what is the outlook for this metric going forward? /

  A: The 6.3 percentage point year-over-year increase was driven by three core factors: abundant available truck supply (monthly active truckers grew nearly 5% year-over-year), ongoing ecosystem governance that improved demand quality, and clearer product segmentation that reduced matching mismatches across use cases. Fulfillment rates improved across all shipper segments, with direct shippers achieving an average fulfillment rate over 65%. Management expects fulfillment rates will continue a steady upward trajectory as operations are refined and AI is integrated further across the transaction process. (412 characters)

• Q: What drove 33% year-over-year transaction service revenue growth, and what is the long-term outlook for this segment? /

  A: Strong growth was driven by the near-full national rollout of the commission monetization model (reaching 94.7% penetration), improved fulfillment rates that expanded the base of monetizable high-quality transactions, and refined dynamic commission strategies that improve monetization efficiency while protecting trucker take-home earnings. Management expects transaction service revenue will continue delivering high-quality sustainable long-term growth, supported by growing order volumes, improved per-order monetization, and scaling of new emerging business use cases. (398 characters)