China's RLX Technology Q2 revenue rises 14.8% on international growth

RLX Technology

14/08/2026 10:40

Overview
China e-vapor firm's Q2 revenue rose 14.8% yr/yr on international expansion and acquisitions
Q2 gross margin improved to 35.4% from 27.5%, driven by revenue mix and supply chain gains
Company acquired 51% of a leading Western European distributor in July 2026 to boost regional reach

Outlook
Company did not provide specific financial outlook

Result Drivers
INTERNATIONAL EXPANSION - Co said Q2 revenue growth was mainly driven by expansion abroad and contributions from its May 2025 acquisition
REVENUE MIX AND SUPPLY CHAIN - Gross margin improvement was attributed to a favorable change in revenue mix and further supply chain optimization
ACQUISITION COSTS - Higher operating expenses were mainly due to increased salary and welfare expenses related to the May 2025 acquisition, partly offset by lower share-based compensation

Company press release: ID:nPn31WTn3a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 1.01 bln
 
Q2 Adjusted Net Income
 
RMB 238.80 mln
 
Q2 Net Income
 
RMB 222 mln
 
Q2 Gross Margin
 
35.40%
 
Q2 Gross Profit
 
RMB 357.80 mln
 
Q2 Operating Expenses
 
RMB 227.50 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for RLX Technology Inc is $2.98, about 48.8% above its August 13 closing price of $2.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)