ByteDance's Net Profit Fell by Over 70% Year-on-Year Last Year? Li Liang's Latest Response
According to media reports citing sources, ByteDance's net profit in 2025 fell by more than 70% year-on-year, and its net profit margin also declined significantly, against the backdrop of the company significantly increasing its investment in AI business in the third and fourth quarters of last year.
The report also mentioned that, at the same time, ByteDance's overseas revenue grew by nearly 50% in 2025, far exceeding the domestic growth rate of about 20%. The proportion of overseas revenue also increased from 25% in 2024 to over 30%, reaching a new high. TikTok Shop's GMV grew by nearly 70% year-on-year in 2025, which is the main driving force behind the increase in ByteDance's overseas revenue proportion.
In response, Li Liang, Vice President of Douyin Group, posted, "It needs to be clarified that the 70% decline in ByteDance's net profit in the related reports is based on international accounting standards. In addition to increased investment in emerging businesses, there are also changes in preferred stock and option costs (which do not reflect the actual operation). In reality, due to the slowdown in the growth of Douyin e-commerce and increased investment in emerging businesses, the operating profit margin declined slightly in the second half of the year, but it was far less significant than reported. Without considering the changes in preferred stock and option costs, the overall revenue and profit still grew, and the development trend of TikTok e-commerce and emerging businesses is good."