Chagee (CHA) Q4 2025 earnings summary

Executive summary

• The teahouse network expanded 15.7% year-over-year to 7,453 locations as of December 31, 2025, with accelerated overseas growth and selective domestic expansion focused on profitability and store health.

• 2025 was marked by significant market volatility, organizational restructuring, and a deliberate slowdown in new product launches, resulting in a 25.5% Q4 same-store sales decline, but management maintained a focus on long-term brand value and operational health.

• Major internal adjustments and business model transitions were completed by year-end, returning to stable operations and reaffirming a strategy centered on high-value brand positioning, consumer experience, and sustainable growth for 2026.

• Overseas expansion accelerated, with strong GMV growth and new market entries, while domestic expansion will be more selective.

• Active members reached 44.7 million in Q4 2025 under a revised omni-channel engagement methodology.

Financial highlights

• Full-year 2025 GMV reached RMB31.6 billion, up 7.2% year-over-year; Q4 GMV was RMB7,322.9 million.

• Q4 2025 net revenues were RMB2,974.5 million, down from RMB3,334.4 million in Q4 2024; full-year net revenues increased 4.0% to RMB12.91 billion.

• Q4 2025 gross profit was RMB1,581.9 million, with a gross margin of 53.2%, up from 51.6% last year.

• Q4 2025 GAAP net income was RMB33.9 million (1.1% margin), down from RMB644.1 million (19.3% margin) in Q4 2024; non-GAAP net income was RMB100.0 million (3.4% margin).

• Cash and cash equivalents, restricted cash, and time deposits totaled RMB7,892.4 million as of December 31, 2025, up from RMB4,868.7 million a year earlier.

Outlook and guidance

• 2026 will focus on high-quality growth, with revenue and profit expected to remain broadly flat year-over-year.

• Same-store sales growth is expected to stabilize in the first half and improve in the second half of 2026.

• Domestic expansion will be limited to about 300 new stores in strategic locations; overseas expansion targets about 200 new stores, with continued business model refinement and investment in global infrastructure.

• Management is optimizing omni-channel member engagement and expects enhanced customer loyalty tracking.