RLX Technology (RLX) Q2 2026 earnings summary

Executive summary

• Achieved 14.8% year-over-year revenue growth in Q2 2026, reaching RMB 1,010.5 million, driven by international expansion and strategic acquisitions, including a major European deal in May 2025.

• Gross profit rose 47.8% year-over-year to RMB 357.8 million, with gross margin expanding to 35.4% from 27.5% a year ago.

• Focused on quality-driven, compliant global growth, operational agility, and expanding the smoke-free product portfolio, including oral nicotine pouches and heat-not-burn products.

• Enhanced global route-to-market strategies, emphasizing retail execution in Asia and a dual-engine approach in Europe.

• Strengthened presence in Europe through targeted M&A and strategic partnerships, including a controlling investment in a Western European distributor in July 2026.

Financial highlights

• Net revenues reached RMB 1,010.5 million, up 14.8% year-over-year, with international markets accounting for 68.5%–70% of total revenues.

• Gross profit increased 47.8% year-over-year; gross margin expanded by 790 basis points year-over-year and 360 basis points sequentially to 35.4%.

• Non-GAAP operating profit reached RMB 149.6 million, up 28.8% year-over-year; non-GAAP net income was RMB 238.8 million.

• Total capital resources as of June 30, 2026, were RMB 13.9 billion, with cash and equivalents plus investments at RMB 13,883.4 million.

• Operating cash flow was negative RMB 63 million for the quarter.

Outlook and guidance

• International revenue growth in the second half will be boosted by the consolidation of the Western Europe distribution platform.

• Organic growth will focus on retail sell-through, inventory health, and user-centric, multi-category innovation.

• Gross margin expected to normalize after temporary product and revenue mix shifts in Q2.

• Mainland China sales forecasted to be broadly flat year-over-year due to regulatory tightening.

• Continued focus on international expansion, product innovation, and strategic investments in Europe.