Chagee (CHA) Q1 2026 earnings summary

Executive summary

• Strategic focus sharpened for 2026, emphasizing operational excellence, consumer-centric execution, and profitability recovery.

• Organizational adjustments improved efficiency, resource allocation, and execution speed.

• Expanded global teahouse footprint to 7,531 locations, with 790 company-owned and 6,741 franchised as of March 31, 2026.

• Product and marketing roadmaps prioritized consumer needs, with new product launches and brand promotion.

• Share repurchase program of up to $150 million ADS approved to reward shareholders and demonstrate confidence.

Financial highlights

• Q1 2026 revenue reached RMB 3,546 million, up 4.5% year-over-year and 19.2% quarter-over-quarter.

• Gross margin improved to 55.6% from 53.1% a year ago.

• Non-GAAP net income was RMB 506.7 million, with a non-GAAP net margin of 14.3%.

• Operating income for Q1 2026 was RMB 547.2 million.

• Total GMV was RMB 7,917.8 million, up 8.1% quarter-over-quarter.

Outlook and guidance

• Continued focus on disciplined execution, innovation, steady product launches, and healthy growth across the teahouse network.

• Ongoing upgrades to tea house design and consumer experience, with emphasis on membership engagement.

• Board authorized a $150 million share repurchase program to commence June 1, 2026, funded from existing cash.