Full Truck Alliance Co. Ltd. Q1 FY2026 earnings call

Platform Ecosystem Governance

• Implemented and standardized credit rating programs for both shippers and truckers, raising conduct standards for all platform users
• Rolled out freight payment protection to the entire trucker base (previously limited to members), now covering over 90% of platform freight listings, which substantially resolved payment dispute risks and boosted trucker order acceptance willingness
• Cleaned up non-compliant activity including misclassified carpooling orders, cargo reselling, and suspicious low-priced freight listings, strengthening platform fulfillment reliability and removing low-quality users, resulting in structural improvement of overall order quality

User Growth & Operational Scale

• Total fulfilled orders reached 55.04 million, growing over 14% YoY, with overall fulfillment rate hitting 44.1%, up 4.9 percentage points YoY and 1.4 percentage points quarter-over-quarter (QoQ), a new record high
• Average monthly active users (MAUs) for shippers reached 3.11 million, up 12.7% YoY, driven by improved multi-channel acquisition efficiency, scenario-specific product benefits, and strong performance from referral and reactivation initiatives
• Monthly active truckers responding to orders held steady at ~3 million, with growing share of new energy vehicles among newly onboarded truckers supported by lower operating costs and policy tailwinds
• Average fulfillment rate for low/medium frequency direct shippers reached nearly 65%, and the share of high-quality direct shipper orders continues to grow, lifting overall platform fulfillment performance

Product Expansion & Innovation

• AI shipper assistant is deeply integrated into core workflows (shipment posting, freight matching, tracking), and an AI trucker assistant is being piloted to support freight finding, negotiation, and query resolution, driving cost reduction and efficiency gains for both user groups
• Launched pilot programs for autonomous delivery vehicles, with improving unit economics
• Less-than-truckload (LTL) products achieved rapid nationwide coverage via dedicated line carrier capacity, and Q-Move gained traction in four international markets
• Expanded the fueling value-added service network to ~12,000 gas stations, and entered a strategic partnership with Sinopec that went live across Jiangsu, Zhejiang, and Anhui provinces, with 3,000+ Sinopec stations now accessible on the platform
• Completed a strategic transition of the freight brokerage/invoicing business to a dual-track (self-operated + aggregator) model to reduce regulatory exposure while retaining core freight matching activity

Financial Performance

• Achieved high-quality steady growth with continued revenue mix optimization, as higher-margin transaction service revenue grew far faster than total revenue
• Commission penetration rate exceeded 94%, up ~9 percentage points YoY, driven by the phase-out of low-quality non-monetizable orders
• Average monetization per order reached ~RMB 26.9, maintaining a steady healthy YoY upward trend

For Q1 2026, Full Truck Alliance (FTA) reported total net revenues of RMB 2.85 billion, representing a 5.5% year-over-year (YoY) increase. Revenue from freight brokerage services reached RMB 2.02 billion, up 17% YoY, accounting for 70.88% of total net revenue. Transaction service (commission) revenue hit RMB 1.39 billion, up more than 33% YoY, contributing 48.77% of total net revenue. Net cash provided by operating activities increased significantly YoY to RMB 1.56 billion. The newly transitioned freight brokerage aggregator model began generating revenue under the value-added services segment in Q1 2026, with a channel service fee of 1-2% per order, while the self-operated freight brokerage segment maintains a stable 10% service take rate.

• Management expects solid order growth to be sustained in coming quarters, supported by ongoing benefits from platform governance, growing direct shipper share, and deeper AI penetration across matching and fulfillment, positioning FTA for high-quality sustainable full-year growth
• Fulfillment rate is expected to continue a steady upward trajectory, supported by credit system refinement, direct shipper base expansion, ongoing phase-out of low-quality listings, and deeper AI applications
• The Sinopec fueling network partnership will be meaningfully expanded across the rest of 2026, and management expects to turn oil price volatility into an opportunity to grow value-added services and deepen trucker loyalty
• Management expects continued growth in transaction service revenue, with remaining room for improvement in both commission penetration and average monetization per order as newly monetized orders mature
• The freight brokerage business will continue its gradual transition from the self-operated model to the lighter-weight aggregator model to support long-term core platform growth
• AI development will continue through 2026, with planned expansion of multi-modal posting capabilities, deeper integration of AI models with real transaction data, and broader rollout of AI agents across the full transaction lifecycle to drive efficiency gains

• Forward-looking performance is subject to risks and uncertainties, some of which are outside FTA's control, that could cause actual results to differ materially from projections, as outlined in SEC filings
• Geopolitically driven oil price volatility has raised trucker operating costs, and near-term pass-through of higher fuel costs to freight rates may prompt some low-value goods shippers to reduce or defer shipments, leading to softening long-haul freight demand
• The previous full self-operated invoicing model carried material regulatory policy risk, which the dual-track transition is intended to mitigate
• Low-quality freight listings, non-compliant user behavior, and payment default risks have historically negatively impacted platform fulfillment performance and user trust, requiring ongoing governance investment

Q: Fulfilled order growth accelerated to 14% YoY in Q1, much stronger than last quarter. What drove this acceleration, and what is the outlook for coming quarters?

A: The acceleration was driven by three main factors. First, Q4 2025 platform governance temporarily dragged on growth, but by Q1 2026 these measures became routine, and structural improvements to demand authenticity and reliability drove re-accelerated growth. Second, sharp oil price volatility starting in March highlighted FTA's advantage in real-time transparent price discovery, driving shipper migration from offline to the platform. Third, product and operational improvements, including freight payment expansion and feature upgrades, boosted user stickiness and fulfillment frequency. Management expects solid sustained growth for coming quarters.

Q: What impact has recent geopolitically driven oil price volatility had on FTA's platform, and what response measures has management taken?

A: Near-term, higher fuel costs passed through to freight rates may soften long-haul freight demand as some low-value shippers defer shipments, but long-term structural gains from offline online penetration far outweigh this headwind. FTA implemented a fuel price-freight rate linkage mechanism to adjust reference and minimum bidding prices, ran a shipper outreach campaign to promote fair pricing, and expanded its discount fueling network, including a new strategic partnership with Sinopec. These measures protect trucker economics, solidify capacity supply, and create an opportunity to grow value-added services.

Q: What drove 12.7% YoY growth in shipper MAUs to 3.11 million in Q1, and what is the outlook for user growth?

A: Growth came from three core drivers. First, multi-channel user acquisition delivered steady efficiency gains: App Store optimization grew conversion, targeted ads delivered higher ROI, and cross-brand ecosystem partnerships drove solid traffic growth. Second, scenario-specific product benefits such as short-haul order posting fee waivers lowered onboarding barriers for small shippers. Third, user reactivation campaigns and peer-to-peer referrals, the highest ROI and highest quality acquisition channel, drove sustained growth. FTA will continue to focus on high-quality sustainable user growth for the rest of the year.

Q: What is the progress of the freight brokerage business transformation, and what is FTA's AI development update and plan for 2026?

A: The freight brokerage business has transitioned to a dual-track self-operated/aggregator model: self-operated retains end-to-end service for core shippers with a stable 10% take rate, while the new aggregator model shifts invoicing/settlement to third-party partners, with FTA earning a 1-2% channel fee. This transition reduces regulatory exposure, lowers capital intensity, and retains shippers within FTA's core matching ecosystem. For AI, FTA has moved from exploration to targeted testing, building AI agents across shipment posting, matching, fulfillment, and customer service. Pilots show AI-assisted posting delivers materially higher fulfillment rates, and FTA will expand capabilities and deeper model integration in 2026 to drive efficiency gains.