Full Truck Alliance(YMM 8.77%) reported second quarter 2025 results on August 21, emphasizing GAAP net revenue grew 17.2% year-over-year to RMB 3.24 billion, transaction service revenue surged 39.4% year-over-year, and non-GAAP adjusted operating income rose 76% year-over-year, demonstrating considerable operating leverage. Management also announced an imminent strategic shift in its freight brokerage model, including fee hikes to counter government subsidy changes, projecting a materially different revenue composition for the second half of 2025.

Order growth and fulfillment reach record levels at YMM

Fulfilled orders rose to 61 million in Q2 2025, marking a 23.8% YoY climb, surpassing general industry trends and demonstrating the successful acceleration of platform adoption by both shippers and truckers. The fulfillment rate reached a historic 40.7%, up nearly 7 percentage points year-over-year, while direct shipper orders comprised 53% of total fulfilled orders, further solidifying user base optimization.

"Our fulfillment rate reached a historical high of 40.7% in the second quarter, an increase of nearly seven percentage points from the prior year, marking yet another record for our platform. Notably, the average fulfillment rate among low and medium frequency direct shippers approached 60%, up almost 10 percentage points year-over-year. Orders from these user groups now account for roughly 53% of total fulfilled orders, an increase from last quarter, reflecting ongoing optimization of our shipper user structure and our ecosystem's growing strengths. These breakthrough results underscore the effectiveness of our differentiated operational strategy and lay a strong foundation for further service quality enhancements."
-- Simon Cai, Chief Financing and Investment Officer

The platform's effective user acquisition, robust technological matching, and expansion in high-quality shipper segments enhance both short-term utilization rates and long-term network effects, portending sustainable growth in competitive advantage versus offline and legacy players.

YMM monetization and transaction revenue accelerate

Monetized order penetration reached 86.7%, with average monetization per order rising to RMB 25.2 from RMB 23.9, fueled by improved fee structures and a refined credit rating system for truckers. Transaction service revenue, representing the direct take-rate from online freight matching, climbed 39.4% year-over-year to RMB 1.33 billion, outpacing total platform revenue growth.

"Supported by the dual engine of order growth and improved monetization, revenues from our transaction service achieved another quarter of high-quality growth, rising 39.4% year-over-year to RMB 1,330,000,000. Monetized order penetration reached 86.7%, up more than five percentage points from the prior year, while average monetization per order increased to RMB 25.2 from RMB 23.9. Highly targeted operations within our service ecosystem are consistently strengthening our monetization capabilities. Leveraging a more sophisticated credit rating system and tiered incentive programs for truckers, we effectively addressed the diversified needs of both high-volume and long-tail shippers. These efforts safeguarded trucker income and retention while also enhancing both order volumes and monetization efficiency."
-- Simon Cai, Chief Financing and Investment Officer

By driving rapid monetization expansion alongside robust order and user activity, the company is shifting its earnings structurally from government-influenced segments to scalable and higher-margin platform-driven revenues, with the transaction service business displaying resilience even as freight brokerage faces regulatory headwinds.

Freight brokerage fee hike reshapes YMM’s revenue outlook

On August 1, management enacted a freight brokerage service fee increase to 10%-11% in response to expiring government subsidies, explicitly warning this will drive a significant decline in freight brokerage transaction volume beginning in Q3 2025. Leadership’s guidance forecasts total net revenue (GAAP) for 2025 between RMB 3 billion and RMB 3.62 billion, representing 1.3%-4.6% year-over-year growth, but projects ex-freight-brokerage net revenue to grow 23.4%-29.1% year-over-year, underscoring a clear pivot away from reliance on subsidized business lines.

"As stated in our announcement on August 1, to ensure the sustainable development of our freight brokerage business, the company has decided to increase the freight brokerage service fee starting in August, aiming to reduce reliance on government subsidies and mitigate associated uncertainties. This adjustment may lead to higher costs for shippers, and we anticipate a significant decline in freight brokerage transaction volume beginning in the quarter ending September 30, 2025. Consequently, revenues from the freight brokerage business are expected to decrease while costs are likely to rise, which may exert some pressure on profitability. That said, we expect a shift in the freight brokerage business will have limited impact on our transaction service business. Based on this outlook, we expect our total net revenues to be between RMB 3 billion and RMB 3.617 billion for 2025, representing a year-over-year growth rate of approximately 1.3% to 4.6%. Excluding freight brokerage service, net revenues are expected to range from RMB 2.16 billion to RMB 2.26 billion, reflecting an estimated year-over-year growth rate of 23.4% to 29.1%."
-- Simon Cai, Chief Financing and Investment Officer

This strategic reorientation both limits government-related exposure and enhances the transparency and quality of earnings, albeit at the cost of short-term headline growth, positioning the company for improved margin stability and lower regulatory risk in the long run.

Looking Ahead

Management guided for total net revenues of RMB 3 billion to RMB 3.62 billion, representing 1.3%-4.6% year-over-year growth, but noted that excluding freight brokerage, net revenue is expected to grow 23.4%-29.1% year-over-year, highlighting the platform business’s strength amidst regulatory shifts. They anticipate a significant decline in freight brokerage transaction volume and profitability beginning in Q3 2025 following fee rate adjustments.