ByteDance's 2025 Net Profit Drops Over 70%，AI Business Investment as Main Reason

ByteDance's 2025 net profit dropped over 70% year-on-year, with a significant decline in net profit margin. Insiders revealed that this change was due to the company's substantial investment in AI business in the third and fourth quarters of last year.

Overseas business performed well: 2025 revenue grew nearly 50%, far exceeding the domestic growth rate of about 20%. The proportion of overseas revenue rose from 25% in 2024 to over 30%, hitting a new historical high. TikTok Shop's GMV growth rate was nearly 70% year-on-year, which was the main driver of the increase in overseas revenue.

ByteDance launched its first repurchase of 'Doubao Shares' at $13.08 per share (about 89.3 yuan RMB), an increase of 30.8% from the previous grant price of $10. For employees joining after March 1, 2026, Doubao share incentives will be calculated at this price. In addition, in the fourth quarter of 2025, Byte piloted the 'Doubao Long-term Incentive Plan' to attract and retain large model talents through a virtual share mechanism.