Full Truck Alliance Co. Ltd. Q4 FY2025 earnings call

In the fourth quarter of 2025, amid a complex market environment, the company continued to energize its ecosystem by elevating user experience and strengthening protection mechanisms for both shippers and truckers. In the smart driving field, the smart card was already operating in the express delivery industry and the AI assistant function was implemented to reduce cost and improve transaction efficiency. In 2026, the company will focus on advancing high-quality growth and intelligent transformation across three areas: shifting focus from scale-first to a model balancing quality and scale, continuing to improve the dual-end user credit and evaluation mechanism, and evolving from an information matching platform into an AI-driven intelligent infrastructure while laying the groundwork for additional growth drivers in areas like overseas expansion and autonomous driving.

In 2025, full-year net revenues reached RMB 124.9 billion, up 11.1% year-over-year. Furthermore, transaction service revenues for the full year were RMB 53.2 billion, growing by 38.2% year-over-year. On the bottom line, the company achieved a net income of RMB 44.6 billion for the full year, up 42.8% year-over-year. On a non-GAAP basis, adjusted net income reached RMB 4.79 billion for the full year, up 19.3% year-over-year. In the fourth quarter of 2025, total fulfilled orders reached 63.9 million, representing a year-over-year increase of 12.3%, and full-year total fulfilled orders reached 236 million, up 19.8% year-over-year. Notably, four-year orders for cold-chain logistics grew by nearly 30% year-over-year. For the shipper side, average monthly active shippers reached 3.28 million in the fourth quarter and 3.14 million for the full year 2025, marking year-over-year increases of 11.6% and 18.6% respectively. For the trucker side, the next month's retention rate for truckers who responded to orders was above 85%.

In 2026, the company will shift its focus from scale-first to a model balancing quality and scale, continue to improve the dual-end user credit and evaluation mechanism, evolve from an information matching platform into an AI-driven intelligent infrastructure, and lay the groundwork for additional growth drivers in areas like overseas expansion and autonomous driving, with the goal of achieving high-quality growth and intelligent upgrade.

Q: So looking back at 2025 and The company faced a number of external challenges and also made several strategic adjustments. So as we look into 2026, can you share your overall strategic priorities?

A: During the year, the company made progress in strengthening platform governance, improving operational efficiency, and further optimizing user structure and monetization quality. In 2026, the company will shift focus from scale-first to a model balancing quality and scale, continue to improve dual-end user credit and evaluation mechanism, evolve from information matching platform into AI-driven intelligent infrastructure, and lay groundwork for additional growth drivers in areas like overseas expansion and autonomous driving.

Q: The first one is about the rapid development of AI technology. How might this trend affect freight matching platforms such as FTA, and how do you plan to respond to the potential disruption that AI agents could bring to the traditional platform model? And the second question is, can management share how AI is being applied across the company and what's the key developments in the fourth quarter and what's your plans for the 2026?

A: Simon said AI is not a threat but a tool to enhance capabilities. AI can lower barriers for shippers, improve matching accuracy, etc. In the fourth quarter, AI initiatives progressed from experimental phase to broader deployment. In 2026, AI will continue to serve as a core technology foundation for improving efficiency and enhancing user experience.

Q: With respect to the capital allocation, how does management prioritize among investment in core business growth, new initiatives, and the shareholder returns?

A: The approach is to deliver sustainable returns to shareholders while maintaining healthy growth in core business. In 2025, the company distributed cash dividend and implemented share repurchase program. In 2026, planned to return approximately US dollar 400 million to shareholders and will continue to invest in core business growth and advance new initiatives in a disciplined manner.

Q: We have seen the fulfilled orders grew by 12.3% year-on-year in Q4, and the growth rate is slowing down. Was this mainly driven by the ecosystem governance initiatives? How long do we expect this impact to last, and what is our outlook for order volume in 2026?

A: The slowdown was mainly driven by ecosystem governance initiatives. The principle measures have been largely completed and main impacts have been fully reflected. In 2026, sequential order growth has shown signs of recovery and the company remains cautiously optimistic about steady order growth.

Q: My first question is about the fulfillment rate. So how did the fulfillment rate perform in fourth quarter, and what is the outlook for this metric? And secondly, in terms of the commission revenue growth, it is nearly at 30% year-on-year growth in fourth quarter despite slower order growth. So what were the key drivers behind this, and what is the outlook for this metric going forward?

A: In the fourth quarter, overall fulfillment rate reached 42.7%, up over 5 percentage points year-over-year. Key drivers included systematic optimization of cancellation policy, improvement in user mix, and ongoing product iterations. Outlook is steady upward trend. Commission revenue growth in fourth quarter was mainly driven by continued increase in commission penetration and improvement in monetization per order. Outlook is confident in continued growth with room for further optimization.

Q: My question is about credit solution business within value-added services. I wonder what's the latest progress of this business?

A: In the fourth quarter, the company advanced credit solutions with focus on compliance, risk management, and business model transformation. Completed transition to interest rates of 26% or below for loans. Proactively tightened risk management measures. Outlook is asset quality to gradually improve and business model to transition toward more asset-light approach.

Q: Can management share us what progress have you made in your overseas business so far? And so what are the plans for your city expansion and your strategic priorities for 2026? Is there any timeline for your monetization of your overseas business?

A: Overseas business is in model validation and capability replication stage. Targeting emerging markets with large road freight volumes, low digitalization, etc. Priority in 2026 is deepening presence in existing markets and expanding into new ones in disciplined manner. Monetization will progress as operating model matures.