Chagee (CHA) Q3 2025 earnings summary

Executive summary

• Net revenue for Q3 2025 was RMB3,208.3 million, down year-over-year, but non-GAAP net income reached RMB502.8 million, reflecting resilient performance in a competitive market.

• The global teahouse network expanded 25.9% year-over-year to 7,338 locations, with 300 net new additions, including significant growth in both Greater China and overseas markets.

• Registered members rose 36.7% year-over-year to 222 million, supporting user acquisition and engagement.

• Product innovation and overseas expansion, including new markets like the Philippines and Vietnam, drove growth.

• Special cash dividend of $0.92 per share/ADS (totaling approximately $177 million) was declared, payable December 15, 2025.

Financial highlights

• Total GMV was RMB7,929.5 million; overseas GMV surged 75.3% year-over-year to RMB300.3 million, while Greater China GMV declined.

• Gross profit was RMB1,726.5 million, with a gross margin of 53.8%, up from 50.1% a year ago.

• Operating income was RMB454.4 million (14.2% margin); non-GAAP operating income was RMB559.3 million (17.4% margin).

• Non-GAAP net income was RMB502.8 million (15.7% margin), down from RMB646.6 million (18.3%) last year.

• Cash and cash equivalents, restricted cash, and time deposits totaled RMB9,142 million as of September 30, 2025, more than doubling year-to-date.

Outlook and guidance

• No formal financial guidance provided; focus remains on sustainable long-term shareholder value, product innovation, and operational efficiency.

• Ongoing strategic expansion in both Greater China and overseas markets is expected to continue.

• Management highlighted intensified subsidy competition among food delivery platforms in China as a key challenge.