Chinese e-vapor company RLX Technology Q2 revenue rises on international markets  expansion

RLX Technology

22/08/2025 10:40

Overview

RLX Technology Q2 revenue rises 40.3% yr/yr to RMB880 mln (US$122.8 million)

Gross margin improves to 27.5% from 25.2% in prior year

Non-GAAP income from operations up 147.6% yr/yr to RMB116.2 mln

Outlook

Company emphasizes global compliance and strategic partnerships for future growth

RLX Technology focuses on data-driven localized strategies for expansion

Company confident in navigating regulatory shifts and consumer behavior changes

Result Drivers

INTERNATIONAL EXPANSION - Co attributes 40.3% year-over-year revenue growth to sustained momentum in international markets, per CFO Chao Lu

COST CONTROL - Disciplined cost management and optimized product mix led to a 147.6% increase in non-GAAP income from operations, according to CFO Chao Lu

MARGIN IMPROVEMENT - Gross margin rose to 27.5% from 25.2% in the prior year, driven by favorable revenue mix and improved margins in selected Asian countries

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
RMB 880 mln
Q2 Adjusted Net Income
RMB 291.20 mln
Q2 Net Income
RMB 218.50 mln
Q2 Gross Margin
27.5%
Q2 Gross Profit
RMB 242.10 mln
Q2 Operating Expenses
RMB 203.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 $2.48, about 9.5% above its August 21 closing price of $2.24

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

Press Release: ID:nPn3t7G4Ha

(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.)