Chagee (CHA) Q2 2026 earnings summary

Executive summary

• Focused on fundamentals, disciplined execution, and high-quality growth amid increased market volatility and competition in the tea beverage industry.

• Completed organizational review and restructuring in Q1, laying groundwork for sustainable growth.

• Teahouse network expanded to 7,639 locations as of June 30, 2026, up 8.5% year-over-year, with significant overseas growth and 108 net new teahouses opened quarter-over-quarter.

• Overseas markets, especially new entries like South Korea, are significant growth drivers, with overseas GMV surging 114.3% year-over-year.

• Emphasized innovation, product expansion, and consumer experience as key strategic pillars.

Financial highlights

• Q2 2026 revenue reached RMB 3,415 million, up 2.5% year-over-year, but down 3.7% sequentially.

• GAAP net income was RMB 465 million (13.6% margin), up from 2.3% margin last year.

• Non-GAAP net income was RMB 489 million, with a 14.3% margin, down from RMB 629.8 million in Q2 2025.

• Total GMV was RMB 7,660.3 million, with overseas GMV up 18.2% sequentially and 114.3% year-over-year.

• Cash and equivalents stood at RMB 6,795.5 million as of June 30, 2026.

Outlook and guidance

• 2026 is seen as a year of adjustment and stabilization, prioritizing sustainable growth over rapid expansion.

• Q3 same-store sales showed improvement, with July seeing a low single-digit decline and August expected to turn positive year-over-year.

• Continued focus on product innovation, membership enhancement, immersive teahouse experiences, and disciplined overseas expansion.