ByteDance's net profit dropped over 70 percent year-on-year in 2025, with a significant decline in net profit margin, dragged down by its increased investments in artificial intelligence businesses during the last third and fourth quarters, mainland media reported.
Li Liang, a vice-president at ByteDance's Douyin Group, said in a post that this figure under International Financial Reporting Standards represents not only rising investments in emerging businesses but also fluctuations in preferred stock and option-related costs.
Excluding the changes in preferred stock and option-related costs, overall revenue and profit maintained growth, he added.
The company's operating profit margin saw a decline in the second half of 2025 due to slowing growth in Douyin e-commerce and rising investments in new businesses, while the drop was not as steep as reported, Li noted.
Last year, the tech giant's international business jumped nearly 50 percent, outpacing the 20 percent growth of its domestic business. The overseas earnings contribute over 30 percent of total revenue, up from about 25 percent in 2024, marking its highest share, the report said.
Its global growth was mainly driven by the e-commerce business, particularly TikTok Shop, which saw a sales boost of nearly 70 percent from a year ago.
However, the report said Bytedance's spending on technology is estimated to expand this year, coupled with the launch of a data security joint venture in the US, its net profit margin will face pressure in the short term.
