RLX Technology (RLX) Q2 2026 earnings summary

Executive summary

• Achieved 14.8% year-over-year revenue growth in Q2 2026, driven by international expansion and strategic acquisitions, including a May 2025 acquisition.

• Gross margin improved to 35.4%, reflecting favorable revenue mix and supply chain optimization.

• International markets contributed approximately 68.5%–70% of total net revenues, with Europe as a key growth engine.

• Focused on retail execution, global operational optimization, and multi-category product innovation, including expansion into smoke-free products.

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

Financial highlights

• Net revenues reached RMB 1,010.5 million, up 14.8%–15% year-over-year.

• Gross profit rose 47.8%–48% year-over-year to RMB 357.8–358 million.

• Non-GAAP operating profit was RMB 149.6–150 million, up 28.8%–29% year-over-year.

• Non-GAAP net income stood at RMB 238.8 million for the quarter.

• Total capital resources as of June 30, 2026: RMB 13.9 billion.

Outlook and guidance

• International revenue growth expected to accelerate in the second half due to consolidation of the Western Europe acquisition.

• Organic growth will focus on retail sales velocity and healthy channel inventory.

• 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.