Temu global monthly active users grow 68% in second quarter

Temu reported robust global user growth in Q2 2025, with monthly active users (MAU) reaching 416.5 million (+68% YoY) and daily active users (DAU) at 70.5 million (+65% YoY), largely propelled by significant expansion in the EU (+74% YoY MAU) and Latin America (+122% YoY MAU). However, the platform experienced a sharp contraction in the critical U.S. market, where MAU declined 28% and monthly downloads plummeted 77% year-over-year. This regional divergence highlights Temu's successful international diversification despite challenges and shifting dynamics in its more established markets, even as cumulative downloads surpassed 1.0 billion globally.

Analysis

PDD Holdings' e-commerce platform, Temu, demonstrated robust global user expansion in Q2 2025, with monthly active users (MAU) growing 68% year-over-year to 416.5 million and daily active users (DAU) rising 65% to 70.5 million. This growth is not uniform and reveals a significant strategic pivot towards emerging markets. Expansion was exceptionally strong in Latin America, where MAU surged 122% YoY, and the European Union, with a 74% YoY increase in MAU. These two regions now represent 26% and 34% of the global user base, respectively. Conversely, the platform is facing severe headwinds in the United States, a critical high-value market, where MAU contracted by 28% YoY and DAU fell 35% YoY. This has reduced the US share of global users to just 11%. Adding to this concern, leading indicators show slowing momentum; global monthly downloads declined 7% YoY, driven by a precipitous 77% YoY drop in US downloads, signaling potential challenges in future user acquisition despite cumulative downloads reaching the 1.0 billion milestone.

Key Decisions for Investors

• Investors should assess the net impact of Temu's changing user mix, as rapid growth in the EU and Latin America must be weighed against the significant contraction and potential lower monetization in the declining US market.
• The sharp 77% year-over-year fall in US monthly downloads is a critical leading indicator of market saturation or competitive pressure, warranting close monitoring of customer acquisition costs and retention rates in subsequent quarters.
• Given the divergence between strong YoY active user growth and declining YoY monthly downloads, it is prudent to scrutinize the platform's ability to convert its new international user base into profitable, long-term customers before expanding positions.