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 record average monthly transacting customers of 112.7 million, up 22.9% year-over-year.

• Expanded global store count to 36,310, with 2,714–5,000 net new stores opened year-over-year, and cumulative transacting customers approaching 500 million.

• Maintained industry leadership in China and continued disciplined international expansion, focusing on operational efficiency, localized strategies, and digital capabilities.

• Achieved record monthly transacting customers and continued to gain market share, supported by high-quality scale growth and strategic execution.

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

Financial highlights

• Total net revenues reached RMB 15.9 billion, up 28.5%–29% year-over-year; GMV increased 29.8%–30% to RMB 18.4 billion.

• Revenues from self-operated stores rose 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%–26.5% 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 1.75–1.8 billion (margin 11%).

• Generated RMB 2.6–2.63 billion in net operating cash; total cash position at RMB 10.9–10.93 billion as of June 30, 2026.

Outlook and guidance

• Cautiously optimistic for the second half, expecting persistent high base effects on same-store sales but improving profitability and margins due to normalized delivery mix and operational efficiencies.

• Plans to continue adapting strategies to evolving market conditions, balancing growth with profitability, and leveraging digital and brand strengths.

• Confident in long-term growth potential and continued store expansion in China, supported by early-stage coffee consumption trends and ongoing international expansion.