Chagee (CHA) Q4 2025 earnings summary

Executive summary

• Teahouse network expanded 15.7% year-over-year to 7,453 locations as of December 31, 2025, with significant overseas growth and a focus on premium brand positioning.

• Total GMV for 2025 rose 7.2% year-over-year to RMB31.6 billion, driven by strong overseas performance despite a decline in Greater China GMV in Q4.

• Net revenues for 2025 increased 4% to RMB12.91 billion, but Q4 revenues and profits declined due to restructuring, business model transition, and higher expenses.

• Non-GAAP net income for 2025 was RMB1,909.9 million, with Q4 non-GAAP net income at RMB100 million; GAAP net income for 2025 was RMB1,186.3 million.

• Organizational restructuring and a shift toward high-quality, sustainable growth were prioritized amid volatile market conditions.

Financial highlights

• Q4 2025 net revenues were RMB2,974.5 million, down from RMB3,334.4 million in Q4 2024; full-year net revenues increased 4% to RMB12.91 billion.

• Q4 2025 operating loss was RMB35.5 million, compared to operating income of RMB642.5 million in Q4 2024; full-year operating income was RMB1,347.2 million.

• Q4 2025 GAAP net income was RMB33.9 million; Q4 non-GAAP net income was RMB100 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.

• Net cash provided by operating activities for 2025 was RMB1,644.1 million; net cash used in investing activities was RMB825.0 million.

Outlook and guidance

• 2026 strategy centers on high-value brand positioning, product innovation, scenario expansion, and international growth.

• Revenue and profits are expected to remain broadly flat year-over-year, with same-store sales stabilization as a top KPI.

• Domestic expansion to moderate, targeting about 300 net new tea houses; overseas expansion targets about 200 net new tea houses, with Korea debut planned.

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

• Priority on market share over short-term profitability if conflicts arise.