Luckin Coffee (LKNC) Q3 2026 earnings summary

Executive summary

• Q3 net revenue rose 17.0% YoY to RMB17,891.5m; GAAP operating income increased 55.1% to RMB2,756m, with operating margin up 3.8 percentage points to 15.4%.

• Non-GAAP net income reached a quarterly record of RMB2,144.8m, up 50.9% YoY; average monthly transacting customers reached a record 123.0m, up 9.6%.

• The store network added 2,599 net locations and reached 38,909 globally.

Financial highlights

• GMV increased 19.7% YoY to RMB20.7bn; product sales revenue rose 18.8% to RMB13,648.7m, including RMB12,438.4m from freshly brewed drinks.

• GAAP net income rose 45.4% YoY to RMB1,858.9m; non-GAAP net income rose 50.9% to RMB2,144.8m.

• Operating expenses increased 12.0% to RMB15,135.5m, but fell to 84.6% of revenue from 88.4%, mainly reflecting lower delivery expenses as a revenue share.

• Operating cash flow was RMB4,131.8m, versus RMB2,069.2m in Q3 2025; quarter-end cash, restricted cash, term deposits and short-term investments totaled RMB14,333.4m.

Outlook and guidance

• Priorities include market-share gains, long-term shareholder value, continued store expansion and profitability improvement, supported by a digitally driven model and confidence in China's coffee-market growth.

• No quantitative forward guidance was stated; same-store sales improved month by month from July through September, with the pace of improvement accelerating into Q4.