Full Truck Alliance (YMM) Q3 2025: Transaction Service Revenue Jumps 39%, Monetization Engine Accelerates

2025-11-17 | By EarningsIQ Research

Full Truck Alliance’s platform-centric freight model delivered a 39% surge in transaction service revenue, powered by robust user growth and higher monetization rates. The company’s pivot away from government-subsidized brokerage and focus on direct, high-value shippers is reshaping its revenue mix and platform economics. With fee hikes and product rationalization in motion, the next phase will test user stickiness and margin durability as the industry consolidates.

Summary

• Transaction Monetization Surges: Strong order growth and higher per-order fees fueled platform revenue acceleration.
• Brokerage Fee Hike Reshapes Mix: Strategic fee changes shift away from subsidy reliance, pressuring volumes but improving core revenue quality.
• Platform User Base Deepens: SME shipper and trucker engagement hit record highs, reinforcing network effects and retention.

Performance Analysis

Full Truck Alliance (FTA) delivered a standout quarter, with total net revenue up 17% year-over-year, driven by a 39% surge in transaction service revenue. The platform fulfilled 60.8 million orders, up 24% YoY, reflecting the accelerating shift from offline to online freight matching in China’s logistics sector. Transaction service, the company’s core monetization engine, now accounts for a growing share of revenue as monetized order penetration rose to nearly 87% and average monetization per order increased.

Growth was broad-based: average monthly active shippers reached 3.16 million (up 19%), and active truckers hit 4.34 million (up 9%). Fulfillment rate—a measure of matching efficiency and platform liquidity—reached a record 41%, with direct shippers now making up 53% of completed orders. This shift toward higher-quality, direct shippers and enhanced membership programs has driven both stickiness and revenue per user. Value-added services, such as credit solutions, also grew double digits, though remain a smaller contributor. Profitability metrics showed significant operating leverage, with adjusted operating income up 76% and margin expansion reflecting both scale and reduced tax-related costs.

• Order Fulfillment Outpaces Industry: FTA’s platform order growth and matching rates outperformed broader freight market trends, underscoring competitive moat.
• Revenue Mix Improving: Transaction services are increasingly central, offsetting expected declines in brokerage as subsidies wind down.
• Cost Discipline Evident: Cost of revenue fell 6% despite higher order volumes, aided by lower tax-related expenses and efficiency gains.

With fee hikes in the brokerage business expected to pressure volumes and short-term revenue, management’s focus is clearly on building a sustainable, high-quality revenue base anchored in digital freight matching and value-added services.

Executive Commentary

Strategic Positioning

1. Transaction Service Monetization as Core Platform Lever

FTA’s shift toward transaction service revenue—fees directly tied to order fulfillment and platform matching—marks a deliberate move away from government-subsidized brokerage. This business line, now growing at nearly 40% YoY, benefits from both higher order volumes and increased per-order fee capture. The company’s ability to monetize a higher share of orders (penetration of 87%) and extract more value from each (average fee up to RMB 25.2) demonstrates pricing power and the stickiness of its digital platform.

2. User Base Quality and Ecosystem Strength

Direct SME shippers and engaged truckers are now the backbone of FTA’s network. Membership programs like the 288 and 688 tiers, with 12-month retention rates above 80%, signal user loyalty and willingness to pay for value-added services. On the trucker side, membership surpassed 1 million, and retention rates consistently exceed 85%. This deepening engagement supports both liquidity (order matching) and monetization, while also providing a buffer as the company phases out low-margin, subsidy-driven segments.

3. Brokerage Fee Hike and Revenue Mix Reset

In August, FTA raised brokerage fees to offset the cancellation of government grants, a move that will reduce volume and revenue from this segment in the near term, but ultimately improves revenue quality and reduces regulatory risk. Management expects the impact to be contained, with transaction services and value-added offerings positioned to absorb displaced users seeking higher-value solutions. This pivot also sets the stage for industry consolidation, as smaller platforms reliant on low-priced invoicing exit the market.

4. Product Rationalization and Premiumization

FTA streamlined its entrusted shipment business, discontinuing carpooling to focus on full truckload transactions, which offer higher rates and reliability—attributes valued by premium shippers and truckers. This enhances the platform’s brand positioning and supports higher monetization, even as it results in a short-term slowdown in order volume growth for this segment. The company is betting on long-term differentiation through quality and service, not price.

5. AI-Driven Operational Efficiency

AI and data-driven enhancements—such as intelligent order matching and improved trucker trajectory tracking—are reducing fulfillment times and cancellations, directly contributing to higher order conversion and user satisfaction. These investments in technology are core to FTA’s ability to scale efficiently and defend its platform economics as competition intensifies.

Key Considerations

The current quarter marks a decisive pivot for Full Truck Alliance, as management prioritizes sustainable, high-margin platform revenue over legacy brokerage and government subsidy dependence. Investors must weigh the durability of user engagement and monetization gains against near-term volume and revenue headwinds in the brokerage segment.

Key Considerations:

• SME Shipper Acquisition Remains Robust: Continued investment in user acquisition and experience is driving quality growth, but future conversion rates will be tested as fee structures change.
• Brokerage Fee Hike a Double-Edged Sword: While improving revenue quality and reducing subsidy risk, higher fees may accelerate user churn or shift volume to competitors in the short run.
• Platform Network Effects Strengthen Moat: High retention among members and direct shippers enhances liquidity and creates barriers for new entrants.
• AI and Digitalization Drive Efficiency: Technology investments are translating into tangible improvements in fulfillment rates and cost control, supporting margin expansion.

Risks

Key risks include: short-term order volume declines and revenue pressure from the brokerage fee hike, potential loss of price-sensitive users to competitors, and macroeconomic headwinds that could dampen freight demand. Regulatory changes and the pace of digital adoption among SMEs remain uncertainties. The company’s ability to convert displaced brokerage users to higher-margin platform services will be critical for sustaining growth and profitability.

Forward Outlook

For Q3 2025, management guided to:

• Total net revenues between RMB 3.07 billion and RMB 3.17 billion (1.3% to 4.6% YoY growth).
• Net revenues from transaction service (excluding brokerage) expected to grow 23% to 29% YoY.

For full-year 2025, management expects:

• Brokerage revenue and volumes to decline as fee hikes take effect, but with limited impact on core transaction service growth.

Management highlighted several factors that will influence results:

• Continued expansion of shipper and trucker membership programs.
• Potential industry consolidation as smaller, subsidy-dependent platforms exit.

Takeaways

Full Truck Alliance is actively engineering a revenue mix reset, prioritizing high-value, recurring platform services and stepping away from subsidy-driven brokerage. The company’s network effects and technology investments are driving both user engagement and monetization, but the next few quarters will test the resilience of its model as fee changes ripple through the ecosystem.

• Monetization Engine Accelerates: Transaction service revenue and order monetization rates are now the key drivers of growth and margin expansion.
• Strategic Fee Hikes Reshape User Mix: The pivot away from low-margin brokerage is likely to spark industry shakeout and reinforce FTA’s platform moat.
• Watch User Retention and Industry Share: Investors should monitor whether SME shippers and truckers maintain loyalty as pricing and competitive dynamics evolve.

Conclusion

Full Truck Alliance’s Q3 2025 results show a platform in transition, with strong monetization and operational metrics offsetting near-term headwinds from strategic fee changes. The company is betting on digital freight matching, premiumization, and network effects to drive long-term value, but execution on user retention and industry consolidation will determine the ultimate payoff.

Industry Read-Through

FTA’s decisive shift from government-subsidized brokerage to platform-driven transaction services signals a broader inflection for China’s digital logistics sector. As subsidy support fades and fee structures normalize, operators with deep user engagement, scalable tech, and data-driven matching will consolidate share. Smaller, price-driven players face existential risk. The pivot toward premiumization and AI-enabled efficiency is likely to become the new industry standard, with implications for logistics SaaS providers, trucking networks, and cross-border freight platforms facing similar digital transformation pressures.

YMM Industrials Logistics Platform Monetization Membership Freight