RLX Technology (RLX) Q1 2026 earnings summary

Executive summary

• Achieved robust revenue growth of 96.2% year-over-year and 38.9% quarter-over-quarter, driven by international expansion, resilient China operations, and the May 2025 acquisition.

• International business contributed over 70% of total net revenues for several consecutive quarters, reflecting successful overseas growth.

• Integrated R&D, manufacturing, and commercial operations into the Nexus hub, enhancing efficiency and competitive edge.

• Strategic focus on Europe with a dual-engine approach: M&A and organic growth, emphasizing long-term synergy and compliance.

• Enhanced global competitiveness through localized strategies and supply chain efficiencies.

Financial highlights

• Net revenues reached RMB 1.59 billion in Q1 2026, up 96.2% year-over-year, with 72% from international business.

• Gross margin expanded to 31.8% from 28.6% year-over-year, driven by favorable product mix and supply chain optimization.

• Non-GAAP operating margin rose to 19.6% from 13.3% year-over-year.

• Non-GAAP income from operations increased 187.9% year-over-year to RMB 310.3 million.

• Non-GAAP net income reached RMB 357.3 million, up 41.4% year-over-year.

Outlook and guidance

• Strong balance sheet and financial flexibility to support further growth and market penetration in Asia and Europe.

• Continued focus on innovation, compliance, and user-centric product development to drive sustainable long-term value.

• No immediate plans for large-scale investment in heated tobacco; focus remains on e-vapor and oral products.

• Ongoing investment in R&D and supply chain optimization to support rising demand.

• Plans to accelerate market penetration in Asia and Europe, leveraging a strong balance sheet for sustainable growth.