Alibaba Group Announces June Quarter 2025 Results
$BABA #alibaba--Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba” or “Alibaba Group”) today announced its financial results for the quar...
HANGZHOU, China: $BABA #alibaba--Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba” or “Alibaba Group”) today announced its financial results for the quarter ended June 30, 2025.
“This quarter, our strategic focus on consumption and AI + Cloud delivered strong growth. Our decisive investment in the quick commerce business achieved key milestones as we won consumer mindshare. We generated substantial synergies from combining resources of our consumer platforms which resulted in new highs in monthly active consumers and daily order volume. Driven by robust AI demand, Cloud Intelligence Group experienced accelerated revenue growth, and AI-related product revenue is now a significant portion of revenue from external customers. Looking ahead, we remain committed to investing in our two strategic pillars of consumption and AI + Cloud to capture historic opportunities and drive long-term growth,” said Eddie Wu, Chief Executive Officer of Alibaba Group.
“Our core businesses delivered strong revenue growth. Customer management revenue grew 10% and revenue from Cloud Intelligence Group grew 26%, with AI-related product revenue achieving triple-digit growth for the eighth consecutive quarter. The strength of our core businesses gives us confidence and resources to make significant investments in quick commerce and AI initiatives. We also executed well against our commitment to improve operating efficiency, as AIDC significantly narrowed its loss to approach breakeven this quarter.” said Toby Xu, Chief Financial Officer of Alibaba Group.
BUSINESS HIGHLIGHTS
In the quarter ended June 30, 2025:
- Revenue was RMB247,652 million (US$34,571 million), an increase of 2% year-over-year. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 10% year-over-year.
- Income from operations was RMB34,988 million (US$4,884 million), a decrease of 3% year-over-year, primarily due to the decrease in adjusted EBITA, partly offset by the decrease in amortization of intangible assets, non-cash share-based compensation expense, and a one-time provision in the same quarter last year. Adjusted EBITA, a non-GAAP measurement, decreased 14% year-over-year to RMB38,844 million (US$5,422 million), primarily attributable to the investment in “Taobao Instant Commerce”, as well as user experiences, user acquisition and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group, and improved operating efficiencies across various businesses.
- Net income attributable to ordinary shareholders was RMB43,116 million (US$6,019 million). Net income was RMB42,382 million (US$5,916 million), an increase of 76% year-over-year, primarily due to mark-to-market changes from our equity investments and gain from the disposal of local consumer service business of Trendyol, partly offset by the decrease in income from operations. Non-GAAP net income in the quarter ended June 30, 2025 was RMB33,510 million (US$4,678 million), a decrease of 18% compared to RMB40,691 million in the same quarter of 2024.
- Diluted earnings per ADS was RMB17.98 (US$2.51). Diluted earnings per share was RMB2.25 (US$0.31 or HK$2.47). Non-GAAP diluted earnings per ADS was RMB14.75 (US$2.06), a decrease of 10% year-over-year. Non-GAAP diluted earnings per share was RMB1.84 (US$0.26 or HK$2.02), a decrease of 10% year-over-year.
- Net cash provided by operating activities was RMB20,672 million (US$2,886 million), a decrease of 39% compared to RMB33,636 million in the same quarter of 2024. Free cash flow, a non-GAAP measurement of liquidity, was an outflow of RMB18,815 million (US$2,626 million), compared to an inflow of RMB17,372 million in the same quarter of 2024. The decrease in free cash flow was mainly attributed to the increase in our cloud infrastructure expenditure and the investment in “Taobao Instant Commerce”. As of June 30, 2025, our cash and other liquid investments(1) were RMB585,663 million (US$81,755 million).
Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement.
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(1) | Cash and other liquid investments represent cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, of which that are unrestricted for withdrawal and use. | |
BUSINESS AND STRATEGIC UPDATES
To advance our “user first” strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group, “Hujing DME”) into “All others”. Based on this strategic re-alignment, starting from this quarter, our segment reporting will present the following: (1) Alibaba China E-commerce Group, (2) Alibaba International Digital Commerce Group, (3) Cloud Intelligence Group and (4) All others.
Alibaba China E-commerce Group
We launched “Taobao Instant Commerce” service on the Taobao app at the end of April to meet consumer needs for on-demand delivery across a wide range of product categories, including food, groceries, electronics and apparel. This initiative strengthened the Taobao app’s leadership in China’s e-commerce industry. Our significant investment in quick commerce focused on building consumer mindshare and business scale, which contributed to the 25% year-over-year increase in monthly active consumers on the Taobao app in the first three weeks of August. As part of our quick commerce strategy, we expanded our product offerings and front warehouse coverage for non-food categories. While continuing to improve user experience and enhance operating efficiency, we executed our plan to generate synergies between quick commerce and the rest of Alibaba’s ecosystem by leveraging supply chains, users and membership benefits across our businesses.
Customer management revenue grew 10% year-over-year to RMB89,252 million (US$12,459 million) during the quarter, primarily driven by the improvement of take rate, which benefited from the addition of software service fees in September last year and increasing penetration of Quanzhantui.
We had a successful 6.18 Shopping Festival, which delivered strong consumer growth year-over-year on the Taobao app, as we implemented user-friendly promotion mechanisms and increased support for merchants that provide high-quality products and customer services.
The number of 88VIP members, our highest spending consumer group, continued to increase by double digits year-over-year, surpassing 53 million. We will continue to focus on improving the retention of 88VIP membership through enhanced value proposition to our most valued customers.
Alibaba International Digital Commerce Group (“AIDC”)
For the quarter ended June 30, 2025, revenue from AIDC grew 19% year-over-year to RMB34,741 million (US$4,850 million), primarily driven by strong performance in cross-border businesses. While maintaining a strategic emphasis on key regions, AIDC remained focused on operating efficiency, leading to significantly narrowed losses year-over-year and quarter-over-quarter. The unit economics of the AliExpress’ Choice business continued to improve meaningfully, primarily due to logistics optimization and investment efficiency enhancement. The unit economics of Trendyol’s International business also improved quarter-over-quarter.
AIDC’s international commerce retail businesses, AliExpress and Trendyol in particular, continued to diversify and enrich product offerings by engaging local merchants and partners through different business models in different markets. Our international wholesale platform saw broader adoption by merchants of its AI-powered tools for marketing, procurement and product listing, which provided multiple ways for the platform to monetize. We believe that our diverse businesses, comprehensive product offerings and technological strengths across geographies will bring competitive advantages in the long run set against the backdrop of a rapidly evolving global e-commerce landscape.
Cloud Intelligence Group
For the quarter ended June 30, 2025, revenue from Cloud Intelligence Group was RMB33,398 million (US$4,662 million), an increase of 26% year-over-year. During this quarter, the year-over-year growth of revenue excluding Alibaba-consolidated subsidiaries also accelerated to 26%. This momentum was primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products.
AI-related product revenue maintained triple-digit year-over-year growth for the eighth consecutive quarter. As AI demand continues to grow rapidly, we are also seeing increased demand of compute, storage and other public cloud services to support AI adoption. We will continue to invest in anticipation of customer growth and technology innovation, including AI products and services, to increase cloud adoption for AI and maintain our market leadership.
Alibaba Cloud’s strong position in providing critical infrastructure for the GenAI market has been highlighted in Omdia’s “Market Radar: GenAI Cloud Titans in Asia & Oceania 2025” report, which pointed to our full-stack GenAI solutions, comprehensive and developer-friendly AI platform offering and open-source initiatives. The report emphasized that through Model Studio and Platform for AI (PAI), Alibaba Cloud offers enterprises a user-friendly environment for building and deploying GenAI applications.
Share Repurchases
During the quarter ended June 30, 2025, we repurchased a total of 56 million ordinary shares (equivalent to 7 million ADSs) for a total of US$815 million. These purchases were made in the U.S. market under our share repurchase program. The remaining amount of Board authorization for our share repurchase program, which is effective through March 2027, was US$19.3 billion as of June 30, 2025.
JUNE QUARTER SUMMARY FINANCIAL RESULTS
| Three months ended June 30, |
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| RMB | RMB | US$ | YoY % Change | ||||||||
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Revenue | 243,236 | 247,652 | 34,571 | 2% | ||||||||
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Income from operations | 35,989 | 34,988 | 4,884 | (3)%(2) | ||||||||
Operating margin | 15% | 14% |
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Adjusted EBITDA(1) | 51,161 | 45,735 | 6,384 | (11)%(3) | ||||||||
Adjusted EBITDA margin(1) | 21% | 18% |
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Adjusted EBITA(1) | 45,035 | 38,844 | 5,422 | (14)%(3) | ||||||||
Adjusted EBITA margin(1) | 19% | 16% |
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Net income | 24,022 | 42,382 | 5,916 | 76%(4) | ||||||||
Net income attributable to ordinary shareholders | 24,269 | 43,116 | 6,019 | 78%(4) | ||||||||
Non-GAAP net income(1) | 40,691 | 33,510 | 4,678 | (18)%(3) | ||||||||
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Diluted earnings per share(5) | 1.24 | 2.25 | 0.31 | 82%(4)(6) | ||||||||
Diluted earnings per ADS(5) | 9.89 | 17.98 | 2.51 | 82%(4)(6) | ||||||||
Non-GAAP diluted earnings per share(1)(5) | 2.05 | 1.84 | 0.26 | (10)%(3)(6) | ||||||||
Non-GAAP diluted earnings per ADS(1)(5) | 16.44 | 14.75 | 2.06 | (10)%(3)(6) | ||||||||
| ____________________ | ||
(1) | See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement. | |
(2) | The year-over-year decrease was primarily due to the decrease in adjusted EBITA, partly offset by the decrease in amortization of intangible assets, non-cash share-based compensation expense, and a one-time provision in the same quarter last year. | |
(3) | The year-over-year decreases were primarily attributable to the investment in “Taobao Instant Commerce”, as well as user experiences, user acquisition and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group, and improved operating efficiencies across various businesses. | |
(4) | The year-over-year increases were primarily due to mark-to-market changes from our equity investments and gain from the disposal of local consumer service business of Trendyol, partly offset by the decrease in income from operations, while net income attributable to ordinary shareholders and earnings per share/ADS would further take into account the net loss (income) attributable to noncontrolling interests and (accretion) reversal of accretion of mezzanine equity. We excluded non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items from our non-GAAP measurements. | |
(5) | Each ADS represents eight ordinary shares. | |
(6) | The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding. | |
JUNE QUARTER SEGMENT RESULTS
Revenue for the quarter ended June 30, 2025 was RMB247,652 million (US$34,571 million), an increase of 2% year-over-year compared to RMB243,236 million in the same quarter of 2024. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 10% year-over-year.
The following table sets forth a breakdown of our revenue by segment for the periods indicated:
| Three months ended June 30, |
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Alibaba China E-commerce Group: |
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E-commerce |
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- Customer management | 81,088 | 89,252 | 12,459 | 10% | ||||||||
- Direct sales, logistics and others(2) | 27,434 | 29,325 | 4,093 | 7% | ||||||||
| 108,522 | 118,577 | 16,552 | 9% | ||||||||
Quick commerce(3) | 13,196 | 14,784 | 2,064 | 12% | ||||||||
China commerce wholesale | 5,952 | 6,711 | 937 | 13% | ||||||||
Total Alibaba China E-commerce Group | 127,670 | 140,072 | 19,553 | 10% | ||||||||
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Alibaba International Digital Commerce Group: |
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International commerce retail | 23,691 | 28,395 | 3,964 | 20% | ||||||||
International commerce wholesale | 5,602 | 6,346 | 886 | 13% | ||||||||
Total Alibaba International Digital Commerce Group | 29,293 | 34,741 | 4,850 | 19% | ||||||||
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Cloud Intelligence Group | 26,549 | 33,398 | 4,662 | 26% | ||||||||
All others(4) | 81,354 | 58,599 | 8,180 | (28)% | ||||||||
Unallocated | 419 | 519 | 73 |
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Inter-segment elimination | (22,049) | (19,677) | (2,747) |
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Consolidated revenue | 243,236 | 247,652 | 34,571 | 2% | ||||||||
| ____________________ | ||
(1) | The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker. | |
(2) | Direct sales, logistics and others revenue under Alibaba China E-commerce Group primarily represents direct sales businesses of Tmall Supermarket, Tmall Global and other businesses, where revenue and cost of inventory are recorded on a gross basis within the business group, as well as revenue from logistics services and value-added services. | |
(3) | Quick commerce revenue represents quick commerce business revenue, including revenue generated through “Taobao Instant Commerce” service and the Ele.me app. Quick commerce revenue is net of subsidies that are contra revenue. | |
(4) | All others include Freshippo, Cainiao, Alibaba Health, Hujing DME, Amap, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Lingxi Games, DingTalk and other businesses. The majority of revenue within All others consists of direct sales, where revenue and cost of inventory are recorded on a gross basis, and revenue from logistics services. The decrease was primarily due to the revenue decrease as a result of disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo, Alibaba Health and Amap. | |
The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated:
| Three months ended June 30, |
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