Chagee Holdings reported fourth‑quarter 2025 net revenues of RMB 2,974.5 million (US$425.3 million), down 11.3% from RMB 3,334.4 million in the same quarter of 2024. Net income fell to RMB 33.9 million (US$4.9 million), giving a net income margin of 1.1% versus 19.3% in Q4 2024. Cash, cash equivalents, restricted cash and time deposits totaled RMB 7,892.4 million (US$1,128.6 million) at year‑end, a 62% increase from RMB 4,868.7 million in 2024.
The quarter ended in an operating loss of RMB 35.5 million, a sharp reversal from an operating income of RMB 642.5 million in Q4 2024. The loss reflects a 23.3% operating margin in 2024 that collapsed to 10.4% in 2025, driven largely by a near‑doubling of general and administrative expenses to RMB 2,450.4 million and restructuring costs associated with a business‑model transition and organizational optimization.
Segment performance underscored the shift in Chagee’s growth engine. Franchised teahouses grew 15.7% YoY, while company‑owned outlets expanded 126.2%. Overseas GMV surged 84.6%, offsetting a 25.5% decline in same‑store GMV in Greater China. The stronger international mix helped lift gross margin to 53.2% in Q4, up from 51.6% in Q4 2024, but operating expenses outpaced revenue growth.
Management emphasized the company’s focus on disciplined capital allocation and long‑term value creation. CFO Aaron Huang said, “Our fourth quarter and the full year 2025 results demonstrate our durable profitability and our commitment to returning value to shareholders through disciplined capital allocation. This positions us strongly as we execute our 2026 priorities.” CEO Junjie Zhang added, “For domestic market, we focus on existing prioritizing quality. This year, we will moderate domestic expansion pace and shift our focus to same‑store sales growth and ensuring store level health and profitability.” He also noted, “From a long‑term perspective, we will continue to make overseas operations a powerhouse growth driver, and we are unwavering in our goal to evolve Chagee into a global key leader originating from China but resonating universally.”
The company will provide further guidance during its earnings call scheduled for 8:00 a.m. U.S. Eastern Time on March 31 2026. Investors can review the full financial statements and call transcript on Chagee’s investor relations website for additional detail.
Chagee’s robust cash position of RMB 7.9 billion supports ongoing investments and cushions the company against domestic market headwinds. The strategic pivot toward international expansion and company‑owned outlets, coupled with disciplined cost management, positions Chagee to recover from the Q4 operating loss and pursue growth in 2026, while the continued decline in Greater China same‑store GMV signals a need for renewed focus on domestic store performance.
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