ByteDance's net profit for 2025 is rumored to drop by over 70%, as increased investment in AI starts to eat into the profits.

According to ByteBeat Monitor, sources familiar with the matter revealed that ByteDance's 2025 revenue is still growing. Domestic revenue is up by about 20% year-on-year, while overseas revenue has grown by nearly 50%. The proportion of overseas business has also increased from around 25% in 2024 to over 30%, reaching a new high. The expansion of TikTok's e-commerce is the main driver of overseas growth. On the other hand, ByteDance's net profit for the full year of 2025 is down over 70% year-on-year, and the net profit margin has also significantly narrowed.

A turning point is expected in the third and fourth quarters of 2025. To support AI businesses such as Douyin, ByteDance has significantly increased its investment in AI chip procurement, foundational model research and development, and training inference infrastructure.