Luckin Coffee (LKNC) Q4 2025 earnings summary

Executive summary

• Achieved foundational progress and rapid growth in 2025, surpassing 31,000 stores globally, including 160 overseas locations, and reinforcing leadership in China's coffee market.

• Added over 110 million new transacting customers, reaching a cumulative base of 450 million; annual freshly brewed beverage sales rose 39% year-over-year to 4.1 billion cups.

• Net revenues for 2025 increased 43% year-over-year to RMB 49.3 billion; operating profit rose 42% to RMB 5.1 billion.

• Continued product innovation with over 140 new products and 23 IP collaborations launched in 2025, with non-coffee beverages accounting for over 20% of total cups sold.

• Same-store sales growth for self-operated stores was 7.5% for the year and 1.2% in Q4, rebounding from negative growth in 2024.

Financial highlights

• Q4 net revenue grew 33% year-over-year to RMB 12.8 billion, driven by a 33% increase in GMV to RMB 14.8 billion.

• Q4 GAAP operating profit was RMB 821 million (6.4% margin), down from RMB 1 billion (10.5%) a year ago, mainly due to higher delivery-related expenses.

• Full-year 2025 GAAP operating profit increased 42% to RMB 5.1 billion (10.3% margin); net profit rose 22% to RMB 3.6 billion (7.3% margin).

• Store-level operating margin for self-operated stores was 15% in Q4 and 17.8% for the year.

• Cash position at year-end was RMB 9 billion, up from RMB 5.9 billion at end-2024, with no outstanding interest-bearing debt.

Outlook and guidance

• Remains focused on scale expansion, market share growth, and maintaining healthy profitability in 2026.

• Expects near-term volatility in same-store performance and profitability due to high 2025 subsidy base and evolving delivery platform dynamics, but confident in long-term growth and efficiency gains.

• Plans to leverage digital site selection, refined store strategies, product innovation, and targeted marketing to drive future growth.