RLX Technology Inc. reported unaudited fourth‑quarter and full‑year 2025 results that surpassed analyst expectations, with net revenue climbing 40.3% to RMB1,141.3 million (US$163.2 million) in Q4 and 44.0% to RMB3,958.9 million (US$566.1 million) for the year.
The revenue surge was driven by a 76.5% share of international sales, reflecting the company’s successful pivot to overseas markets and the integration of a European e‑vapor acquisition announced in March 2025. Strong demand in core product categories and a favorable mix of higher‑margin items helped offset headwinds in legacy segments.
Gross profit rose 62.8% to RMB358.0 million (US$51.2 million), lifting the gross margin to 31.4% from 27.0% in Q4 2024 and to 29.9% for the full year from 26.4% in 2024. The margin expansion is attributed to the mix shift toward higher‑margin products, improved operational leverage, and disciplined cost management.
Operating income increased to RMB158.1 million (US$22.6 million), a 37.9% year‑over‑year gain, not the 110.2% figure previously reported. The growth reflects the combined effect of higher revenue, improved gross margin, and efficient allocation of operating expenses. Non‑GAAP operating income for the quarter grew 37.9% from RMB106.4 million in Q4 2024.
Non‑GAAP net income reached RMB323.0 million (US$46.2 million), and the company’s normalized earnings per share beat the consensus estimate of ¥0.2324 (US$0.03) by ¥0.060 (US$0.01). Revenue beat analyst expectations, underscoring the strength of the company’s pricing power and demand resilience.
Management reiterated confidence in continued international expansion, noting that the European investment is expected to contribute materially to growth. Ms. Ying (Kate) Wang, Co‑founder and Chairperson, said the company is building structural value across its global footprint and remains disciplined in capital allocation, having returned over RMB500 million to shareholders through share repurchases and dividends and extending the buy‑back program through 2027.
Investors responded positively to the results, with analysts highlighting the margin expansion, revenue beat, and accelerated international growth as key drivers of the favorable market reaction.
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