Full Truck Alliance (NYSE:YMM) executives highlighted stronger operating efficiency, improving monetization quality, and a broader push to integrate artificial intelligence across its platform during the company’s fourth quarter and fiscal year 2025 earnings call. Management also discussed the impact of ecosystem governance initiatives on order growth, an improving fulfillment rate, and plans for shareholder returns and new growth initiatives including overseas expansion and autonomous driving.
Orders grew in Q4 and FY2025; cold-chain orders outpaced overall growth
Founder, Chairman, and CEO Hui Zhang said the company delivered “solid business growth” in the fourth quarter despite what he described as a complex market environment, as the company focused on user experience and protection mechanisms for shippers and truckers.
Shipper and trucker engagement metrics, and AI commercialization progress
On the shipper side, Zhang said the company’s targeted user acquisition strategy and refined membership system supported growth in active users. Average monthly active shippers reached 3.28 million in the fourth quarter and 3.14 million for the full year, up 11.6% and 18.6% year-over-year, respectively.
For truckers, management emphasized efforts to optimize credit rating and protection mechanisms. Zhang said the 12-month rolling active trucker base remained at a high level, and that next-month retention for truckers who responded to orders was above 85%.
The company also pointed to expanding AI use cases. Zhang said its AI-powered heavy truck feed, delivered by Giga.AI, is operating commercially in the express delivery and fast freight sectors, and that the company piloted AI assistant capabilities for shippers to improve fulfillment efficiency.
Financial results: revenue mix improvement and higher profitability
Management said it remained focused on enhancing operating efficiency. The company reported net revenues of CNY 12.49 billion for the full year, up 11.1% year-over-year. Transaction service revenues were CNY 5.32 billion for the full year, an increase of 38.2% year-over-year, which management described as an improvement in revenue mix.
On profitability, Full Truck Alliance posted full-year net income of CNY 4.46 billion, up 42.8% year-over-year. On a non-GAAP basis, adjusted net income was CNY 4.79 billion, an increase of 19.3% year-over-year.
Ecosystem governance weighed on Q4 order growth, but management said monetization held up
During Q&A, management addressed investor questions about the moderation in fourth-quarter order growth. The company said the slower order growth rate in Q4 was primarily driven by ecosystem governance initiatives rather than a major change in underlying freight demand.
Management described three main governance areas:
- Addressing misclassified carpooling orders where full truckload shipments were posted as less-than-truckload orders
- Strengthening real-name verification requirements for both truckers and shippers, removing fake or non-compliant accounts
- Implementing measures to curb freight reselling and other irregular transaction activities
Executives said these actions disproportionately affected low-quality orders with limited monetization potential. Some misclassified orders moved back to the full truckload product, while others temporarily shifted offline, which management characterized as a structural adjustment.
Management said transaction service revenue still grew by nearly 30% year-over-year in the fourth quarter, which it cited as evidence that governance efforts did not impair the platform’s core monetization. The company also said it saw improvements including the near-elimination of resale and trading of trucker accounts on third-party platforms, a trucker vehicle verification rate close to 100%, reduced freight reselling activity in January compared with the end of the third quarter, and declining complaint rates.
Looking to 2026, management said it did not expect another large-scale governance campaign in the near term, and that sequential order growth had already shown signs of recovery. Executives said they were “cautiously optimistic” about steady order growth in 2026 as governance impacts diminish, the share of direct shippers rises, and matching efficiency improves.
Fulfillment rate hit a record; commission penetration and per-order monetization rose
Management reported that the overall fulfillment rate reached 42.7% in the fourth quarter, up more than five percentage points year-over-year and a new record, according to the company. Executives added that the average fulfillment rate for mid- and low-frequency direct shippers approached 65%, calling that shipper segment a higher-quality source of freight demand.
Drivers of the improved fulfillment rate included changes to cancellation policies, upgrades to credit scoring, an improved user mix with more direct shipper orders, and product and algorithm enhancements. The company said that in Q4, direct shippers accounted for 55% of total fulfilled orders, up from the prior quarter.
On monetization, the company said fourth-quarter transaction service revenue was about CNY 1.49 billion, up roughly 28% year-over-year. Management attributed the growth to higher commission penetration and improved monetization per order. Commission penetration reached 88.6% in Q4, up roughly six percentage points year-over-year, while cities covered by the commission model rose to 273, which management described as effectively achieving nationwide coverage across major freight markets. Average monetization per order was CNY 26.3 in Q4.
Separately, management outlined capital allocation priorities that included growth investment and shareholder returns. Executives said the company distributed about $200 million in cash dividends in 2025 under its semi-annual dividend policy and repurchased about $52.4 million of shares since the beginning of 2025. The company also said it announced a medium- to long-term shareholder return plan in January 2026, targeting about $400 million in returns to shareholders for 2026, and announced a dividend of approximately $87.5 million for the first quarter.
On new initiatives, management reiterated a “disciplined” approach to overseas expansion and autonomous driving. The company said its overseas business operates under the QMove brand and remains in a model validation and capability replication stage, focusing on emerging markets with large road freight volumes and low digitalization. Management said its priority for 2026 is to deepen presence in existing overseas markets while expanding to new ones at a controlled pace, with a pragmatic approach to monetization timing.
About Full Truck Alliance (NYSE:YMM)
Full Truck Alliance (NYSE: YMM) operates a leading digital freight platform in China, connecting shippers with a vast network of independent truck drivers. The company’s core offering centers on load matching, enabling cargo owners to find suitable carriers quickly through a mobile and web-based interface. By streamlining the booking process, Full Truck Alliance helps reduce downtime and improves overall asset utilization for both shippers and drivers.
The platform features real-time route optimization, electronic waybills, digital payment solutions and in-app communication tools.
