ByteDance's 2025 Net Profit Reportedly Plunges Over 70% Due to Surge in AI Investments

According to media reports citing sources familiar with the matter, ByteDance's overseas revenue grew nearly 50% in 2025, far outpacing its domestic revenue growth of approximately 20%. The share of overseas revenue in the company's total revenue also rose from 25% in 2024 to over 30%, reaching a new record.

TikTok's e-commerce business was the main driver of ByteDance's overseas revenue growth. It is reported that TikTok Shop's GMV in 2025 grew nearly 70% year-on-year, significantly boosting ByteDance's overseas revenue share while also helping TikTok achieve substantial profitability in 2025.

However, despite ByteDance's revenue growth driven by its overseas business, the company's net profit for 2025 fell more than 70% year-on-year, mainly due to a significant increase in AI investments in the third and fourth quarters of last year.

Sources familiar with the matter revealed that following the substantial investments in the latter half of 2025, ByteDance expects to further increase its technology resource investments in 2026. Combined with the impact of the newly established data security joint venture in the U.S. market, the company's net profit margin is expected to remain under pressure in the near term.