YMM

Full Truck Alliance operates China's leading digital freight-matching platform, connecting truckers and shippers — an asset-light, network-effect marketplace whose economics are now showing through powerfully. FY2025 revenue grew 16.0% to $1.79B while operating income jumped 74.9% to $593M and net income rose 49.0% to $638M, extending a remarkable swing from a -$573M loss in FY2021 to four straight years of rising profit. Margins are exceptional for any business — 33.2% operating and 35.7% net — reflecting the scalability of a take-rate marketplace once liquidity is established.

The balance sheet is pristine. Liabilities/equity is just 0.08x, the company holds $867M of cash against minimal debt, and operating cash flow grew 62.6% to $662M on trivial capex of $18.5M — a true capital-light cash machine. Management has begun returning capital, with dividends up 39.8% to $204M and modest buybacks. ROE is a more modest 11.0% because the equity base is inflated by a large cash and equity cushion (equity of $5.79B), and retained earnings remain at -$1.00B from the early-stage losses, but the trajectory is unambiguously improving.