China's RLX Technology Q4 revenue rises 40% on global expansion

RLX Technology

13/03/2026 09:39

Overview

China e-vapor firm's Q4 revenue rose 40% yr/yr, driven by international expansion and acquisitions

Gross margin improved to 31.4% in Q4 from 27.0% a year earlier

Non-GAAP net income for Q4 increased 27.6% yr/yr

Outlook

RLX Technology says it is focused on multidimensional growth in 2026

Company plans to leverage internal agility and external partnerships to address changing market conditions

RLX Technology aims to pursue sustainable, profitable growth and ongoing innovation

Result Drivers

INTERNATIONAL EXPANSION - Co said Q4 revenue growth was primarily driven by international expansion and contributions from a newly acquired entity

REVENUE MIX AND SUPPLY CHAIN - Gross margin improvement attributed to a favorable change in revenue mix and further supply chain optimization

OPERATING EXPENSES - Slight increase in operating expenses driven by higher salary and welfare costs from consolidation of acquired entity, partly offset by lower share-based compensation

Company press release: ID:nPn9PVHQ2a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
RMB 1.14 bln
Q4 Adjusted Net Income
RMB 323 mln
Q4 Net Income
RMB 286.30 mln
Q4 Gross Margin
31.40%
Q4 Gross Profit
RMB 358 mln
Q4 Operating Expenses
RMB 239.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the tobacco peer group is "buy"

Wall Street's median 12-month price target for RLX Technology Inc is $2.88, about 26.7% above its March 12 closing price of $2.27

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 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.)