TLDR:
- Q2 2025 EPS of $0.14 missed estimates of $0.18
- Revenue of $881.9M beat expectations by $148.2M
- Net income rose to RMB218.5M ($30.5M)
- Dividend of $0.01 per share announced, payable in September
- Stock trades at $2.42 pre-market, up 8.04%
RLX Technology Inc. (NYSE: RLX) reported its second-quarter 2025 earnings on Friday, August 22. As of pre-market trading, shares stand at $2.42, up 8.04%, from the prior close of $2.24.
The company posted quarterly earnings per share (EPS) of $0.14, falling short of analyst expectations of $0.18 by $0.04.
Despite the EPS miss, revenue was a bright spot, coming in at $881.9 million, well above estimates of $733.7 million. This reflects a significant improvement from RMB627.2 million in the same quarter last year.
Financial Performance Highlights
- Net revenues: RMB880.0 million (US$122.8M), up 40.3% year-over-year.
- Gross margin: 27.5% vs. 25.2% a year ago, boosted by favorable revenue mix.
- Non-GAAP income from operations: RMB116.2M (US$16.2M), up 147.6% YoY.
- GAAP net income: RMB218.5M (US$30.5M), compared with RMB134.9M last year.
- Non-GAAP net income: RMB291.2M (US$40.6M), up from RMB214.8M.
Operating expenses rose slightly to RMB203.1M due to higher salaries, welfare, and branding expenses. General and administrative costs fell due to reduced share-based compensation. Research and development expenses increased to RMB30.1M, reflecting investment in innovation.
RLX Technology, $RLX, Q2-25. Results:
📊 Adj. EPS: $0.03 🟢
💰 Revenue: $122.8M 🟢
📈 Net Income: $30.5M
🔎 Strong performance driven by international expansion and improved product mix. pic.twitter.com/mH8PeARvpV— EarningsTime (@Earnings_Time) August 22, 2025
Dividend Announcement
RLX’s Board of Directors approved a cash dividend of $0.01 per ordinary share/ADS. Holders of record as of September 12, 2025 will receive payments around September 19 (ordinary shares) and September 26 (ADSs). This marks a step toward shareholder returns, signaling confidence in cash flow strength.
Strategic Growth and Expansion
CEO Ying (Kate) Wang highlighted strong international momentum despite regulatory shifts in the global e-vapor industry. The company credited its growth to compliance-focused strategies, localized execution, and international distribution partnerships. CFO Chao Lu noted disciplined cost control and an optimized product mix driving profitability improvements.
Gross profit grew to RMB242.1M ($33.8M), reflecting efficiency gains across international markets, with conversion rates strengthening in Asia.
Balance Sheet Strength
As of June 30, 2025, RLX reported RMB15.5 billion ($2.17B) in cash, equivalents, and investments, slightly lower than March 31. Operating cash flow was strong at RMB229.6M ($32.1M), reinforcing liquidity to support dividend payouts and global expansion.
Stock and Performance Outlook
RLX shares have risen 25.8% over the past year, though the stock is still down 89.9% over five years. Year-to-date, the stock is up 2.75%, trailing the MSCI World benchmark’s 11.46%.
Management remains optimistic about sustaining momentum, with global compliance and innovation central to its long-term growth strategy. With a dividend in place and expanding international footprint, RLX aims to reinforce investor confidence as it navigates the evolving e-vapor market.
