RLX Technology (RLX) Q2 2025 earnings summary

Executive summary

• Net revenues rose 40.3% year-over-year to RMB 880 million in Q2 2025, with a 9% sequential increase, driven by international expansion, favorable revenue mix, and regulatory clarity.

• Non-GAAP operating profit reached RMB 116.2 million, marking the seventh consecutive quarter of positive results and a 147.6% year-over-year increase.

• U.S. GAAP net income increased to RMB 218.5 million, up from RMB 134.9 million a year ago.

• Reinforced leadership in the e-vapor sector through compliance, localized strategies, and strategic partnerships.

• Management highlighted effective strategy execution, disciplined cost control, and continued global expansion.

Financial highlights

• Gross margin expanded by 2.3 percentage points year-over-year to 27.5%, with gross profit at RMB 242 million, up 53% year-over-year.

• Non-GAAP operating margin rose over 5 percentage points year-over-year to 13.2%.

• Non-GAAP net profit margin stood at 33.1% for the quarter.

• Operating cash inflow was RMB 230 million, up from RMB 197 million a year ago.

• Total financial assets/cash and equivalents plus investments stood at RMB 15.5 billion (US$2.2 billion) as of June 30, 2025.

Outlook and guidance

• Expects further profitability improvement through global scaling, efficiency, and innovation.

• Plans to expand into additional European and Asian countries, with potential entry into a new continent by early 2026.

• Anticipates industry stabilization and sustainable growth in 2026 and beyond.

• Management confident in navigating regulatory changes and seizing new growth opportunities.

• Ongoing focus on global compliance and innovation to sustain long-term market development.