Luckin Coffee (LKNC) Q2 2025 earnings summary

Executive summary

• Net revenues reached RMB 12.4 billion in Q2 2025, up 47.1% year-over-year, driven by accelerated store expansion and strong customer growth.

• Operating profit rose 61.8% year-over-year to RMB 1.7 billion, with operating margin expanding to 13.8%.

• Monthly average transacting customers hit a record 91.7 million, up 32% year-over-year, with over 28.7 million new customers added in the quarter.

• Store count reached 26,206 globally, with 2,109 net new stores opened, maintaining market leadership in China and marking milestones in international expansion, including new stores in the U.S.

• Product innovation and sustainability initiatives, such as Luckin AI and LEED certifications, contributed to brand strength and customer engagement.

Financial highlights

• Gross merchandise value increased 46% year-over-year to RMB 14.2 billion.

• Revenues from product sales rose 45% year-over-year to RMB 9.5 billion; freshly brewed drinks accounted for 70% of total net revenues.

• Self-operated store revenue grew 45.6% year-over-year to RMB 9.1 billion; same-store sales growth was 13.4%.

• Partnership store revenues increased 55% year-over-year to RMB 2.87 billion, representing 23% of total net revenues.

• Net profit increased 43.6% to RMB 1.25 billion, with net margin at 10.1%.

• Net operating cash inflow exceeded RMB 2.56 billion; cash reserves reached RMB 8.17 billion as of June 30, 2025.

Outlook and guidance

• Plans to maintain an industry-leading expansion pace and further strengthen scale advantages, with a focus on product innovation and international growth.

• Cautiously optimistic about full-year performance, aiming for high-quality, rapid revenue growth and sustainable profitability.

• Will continue to monitor market developments and proactively expand store count to capture industry opportunities.