RLX Technology (RLX) Q3 2025 earnings summary

Executive summary

• Net revenues surged 49.3% year-over-year to RMB 1,129.3 million (US$158.6 million) in Q3 2025, driven by international expansion and a measured recovery in Mainland China.

• International business contributed 70-80% of total revenues, with strong growth in Asia-Pacific and Europe, and outperformed industry averages.

• Gross margin improved to 31.2% from 27.2% year-over-year, reflecting favorable geographic mix and margin gains in international markets.

• Non-GAAP operating profit reached RMB 188 million, up 124% year-over-year, with non-GAAP operating profit margin at 16.63%.

• Regulatory enforcement in China improved market dynamics, but an unregulated e-vapor market continues to hinder full recovery.

Financial highlights

• Net revenues reached RMB 1,129 million in Q3 2025, up 49% year-over-year and 28% quarter-over-quarter, mainly from international expansion.

• Gross profit was RMB 353 million, up 71% year-over-year, with gross margin at 31.2%.

• Non-GAAP net income was RMB 295.4 million, up from RMB 263.6 million year-over-year.

• Cash flow from operating activities rose to RMB 358 million from RMB 157 million year-over-year.

• U.S. GAAP net income reached RMB 206.8 million (US$29.1 million), up from RMB 169.4 million a year ago.

Outlook and guidance

• Continued focus on selective international expansion, especially in Asia Pacific and Europe, with tailored products for local markets.

• Expectation of a more favorable regulatory environment in Mainland China supporting compliant players.

• Detailed revenue outlook for 2026 to be shared in future quarters as plans are finalized.

• Focused on further profitability improvement through operating efficiency and a lean structure.

• Management expressed confidence in continued innovation and long-term value creation despite macro and regulatory challenges.