Luckin Coffee (LKNC) Q2 2026 earnings summary

Executive summary

• Achieved strong second quarter results with net revenues rising 28.5%–29% year-over-year to RMB 15.9 billion, driven by robust store expansion, product innovation, and increased customer engagement, with record average monthly transacting customers of 112.7 million.

• Expanded global store network to 36,310, adding 2,714 net new stores year-over-year, and cumulative transacting customers approached 500 million.

• Maintained industry leadership in scale and expansion pace, leveraging digital capabilities and operational excellence.

• Continued product innovation and brand building, launching new beverages and expanding non-coffee product lines, with several SKUs surpassing 100 million cups sold.

• Maintained strong profitability and resilient margins despite a high prior-year comparison base.

Financial highlights

• Total net revenues rose 28.5%–29% year-over-year to RMB 15.9 billion, with GMV up 29.8% to RMB 18.4 billion.

• Revenues from self-operated stores increased 26.6%–27% to RMB 11.6 billion; partnership store revenues grew 27.9%–28% to RMB 3.7 billion.

• GAAP operating profit increased 22% to RMB 2.1 billion (margin 13.4%); non-GAAP operating profit up 26% to RMB 2.4 billion (margin 15.1%).

• Net profit rose 16%–16.1% to RMB 1.5 billion (margin 9.4%); non-GAAP net profit up 22.8%–23% to RMB 1.8 billion (margin 11%).

• Generated RMB 2.6 billion in net operating cash; cash and equivalents reached RMB 10.93 billion as of June 30, 2026.

Outlook and guidance

• Management is cautiously optimistic for the second half, expecting continued profitability improvement as delivery mix declines and fulfillment efficiency rises.

• Plans to maintain a competitive store expansion pace, balancing long-term growth opportunities with profitability, and emphasizing product innovation and digital capabilities.