ATRenew (RERE) Q1 2025 earnings summary

Executive summary

• Net revenues for Q1 2025 rose 27.5% year-over-year to RMB 4,653.5 million, surpassing guidance and driven by strong 1P business, C2B recycling, and national subsidy programs.

• Non-GAAP operating income increased 39.5% to RMB 111.9 million, with operating margin improving to 2.4% from 2.2% year-over-year.

• Income from operations reached RMB 72.7 million, reversing a loss of RMB 43.4 million in Q1 2024; net income was RMB 42.8 million, compared to a net loss of RMB 92.9 million a year ago.

• The number of consumer products transacted grew to 9.5 million, and the AHS store network expanded to 1,886 locations.

• Enhanced brand presence and user engagement through new media marketing, partnerships, and ESG initiatives.

Financial highlights

• Net product revenues grew 28.8% to RMB 4,263.7 million, mainly from increased online sales of pre-owned electronics.

• Net service revenues rose 14.2% to RMB 389.8 million, with multi-category recycling and PJT Marketplace leading growth.

• Cash and equivalents, restricted cash, short-term investments, and receivables totaled RMB 2.78 billion as of March 31, 2025.

• Non-GAAP fulfillment expenses rose 40.2% to RMB 430 million (9.1% of revenue), while as a percentage of net revenues, fulfillment expenses declined to 8.3% in Q1 2025.

• Adjusted net income (non-GAAP) surged 276.8% to RMB 78.0 million.

Outlook and guidance

• Q2 2025 total revenues expected between RMB 4,710 million and RMB 4,810 million, representing 24.7%–27.4% year-over-year growth.

• Focus remains on accelerating revenue growth, strengthening fulfillment, improving non-GAAP operating margin, and expanding into new recycling categories.