ATRenew (RERE) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenues rose 32.4% year-over-year to RMB 6,160.1 million, driven by expansion in recycling, trading of secondhand consumer electronics, and strategic focus on 1P-centric operations, surpassing guidance high-end.

• Non-GAAP operating income increased 70.2% to RMB 190.5 million, with operating profit margin improving to 3.1%; GAAP net income surged 215.7% to RMB 135.1 million.

• Enhanced user experience through offline fulfillment, expanded store network, and increased face-to-face transactions, with 80% fulfillment ratio and AHS store count reaching 2,156.

• Transaction volumes reached 10.8 million units, up 13.7% year-over-year, with robust growth in both 1P and 3P segments and multi-category recycling.

• Continued investment in technology, automation, and ESG initiatives, including upgraded automation facility and strong ESG ratings.

Financial highlights

• Net product revenues increased 34.4% to RMB 5,729.8 million; net service revenues up 10.4% to RMB 430.3 million.

• Non-GAAP operating income surged 70.2% to RMB 190.5 million; GAAP operating margin improved by 145 bps to 3.0%.

• Cash, equivalents, restricted cash, short-term investments, and funds receivable totaled RMB 1.72 billion as of March 31, 2026.

• Gross margin for 1P business improved to 15.9% from 15.2% year-over-year.

• Merchandise costs rose 33.2% to RMB 4,816.8 million.

Outlook and guidance

• Q2 2026 revenue expected between RMB 6,240 million and RMB 6,340 million, up 25%-27% year-over-year.

• Management anticipates scaling faster than initial expectations for 2026, with meaningful margin improvement and ongoing cost efficiency.

• Focus remains on expanding categories, leveraging technology, and optimizing cost structure.