RLX Technology (RLX) Q2 2025 earnings summary

Executive summary

• Net revenues rose 40.3% year-over-year to RMB 880 million in Q2 2025, with a 9% sequential increase, driven by international expansion and favorable market dynamics.

• Non-GAAP operating profit reached RMB 116.2 million, marking the seventh consecutive quarter of positive results and a 147.6% year-over-year increase.

• Gross margin improved to 27.5%, up 2.3 percentage points year-over-year, reflecting a favorable revenue mix and margin gains in Asia.

• Management highlighted effective strategy execution, disciplined cost control, and continued global compliance as key drivers.

• Reinforced leadership in the e-vapor sector by focusing on compliance, localized strategies, and strategic partnerships.

Financial highlights

• Gross profit reached RMB 242.1 million, a 53% year-over-year increase, with gross margin at 27.5%.

• Non-GAAP operating margin rose over 5 percentage points year-over-year to 13.2%.

• Non-GAAP net profit margin stood at 33.1% for the quarter.

• Operating cash inflow was RMB 230 million, up from RMB 197 million a year ago.

• Total financial assets stood at RMB 15.5 billion (US$2.2 billion) as of June 30, 2025.

Outlook and guidance

• Expects further profitability improvement through global scaling and efficiency, with plans to expand into additional European and Asian countries and potential entry into a new continent by early 2026.

• Management anticipates continued growth opportunities from regulatory shifts and evolving consumer behavior, aiming for sustainable, profitable growth and long-term value creation.

• Ongoing focus on global compliance and innovation to sustain long-term market development.

• Anticipates industry stabilization and sustainable growth in 2026 and beyond.