RLX Technology (RLX) Q4 2025 earnings summary

Executive summary

• Achieved robust revenue and profit growth in Q4 and FY2025, driven by international expansion, strategic investments, and a scalable, AI-empowered business model.

• International markets contributed 76.5% of Q4 revenue, with significant market share gains and expansion in Asia Pacific and Europe.

• Strengthened position in Mainland China due to improved regulatory enforcement and compliance.

• Maintained a fortress-like balance sheet with $2.2 billion in cash and disciplined capital management.

• Management targets multidimensional and sustainable growth in 2026, leveraging internal agility and external partnerships.

Financial highlights

• Q4 2025 net revenues reached RMB 1,141.3 million, up 40.3% year-over-year; FY2025 net revenues grew 44% to RMB 3,958.9 million.

• Q4 gross margin improved to 31.4% (from 27% a year ago); FY2025 gross margin rose to 29.9%.

• Q4 non-GAAP operating profit was RMB 158 million; FY2025 non-GAAP operating income doubled to RMB 570 million.

• FY2025 non-GAAP net income surged to RMB 1,162.3 million; U.S. GAAP net income rose 65.6% to RMB 934.4 million.

• Generated RMB 1,104.5 million in operating cash flow for FY2025.

Outlook and guidance

• Expects continued double-digit industry growth internationally in 2026, with company growth outpacing the market.

• Anticipates steady, healthy growth in mainland China, though at a more normalized pace after a strong 2025.

• Plans further geographic expansion, product diversification, and supply chain optimization, with a strong pipeline of new international markets.

• Positive outlook for European operations, expecting industry consolidation to favor compliant, scaled operators.

• Focus on compliance, product innovation, and channel expansion for nicotine pouch products in 2026.