Chagee Reports Third Quarter 2025 Unaudited Financial Earnings Results

Chagee Holdings Limited today announced its financial results for the most recent quarter. The company reported earnings per share that met expectations at $2.57, while revenue fell short of estimates, coming in at $450.7 million compared to the anticipated $3.27 billion. This significant revenue miss highlights challenges the company faced during the quarter, despite achieving its earnings target.

Key Highlights

• Chagee Holdings Limited reported a total of 7,338 teahouses as of September 30, 2025, marking a 25.9% increase from the previous year.
• Total Gross Merchandise Value (GMV) for Q3 2025 was RMB 7,929.5 million, a decrease from RMB 8,301.4 million in Q3 2024, with overseas GMV increasing by 75.3%.
• Net revenues for Q3 2025 were RMB 3,208.3 million, down from RMB 3,541.2 million in Q3 2024.
• Operating income decreased to RMB 454.4 million, with an operating margin of 14.2%, compared to 22.4% in the same quarter of the previous year.
• A special cash dividend of US$0.92 per share was authorized, totaling approximately US$177 million.

Summary

Chagee Holdings Limited, a prominent premium tea drinks brand, announced its unaudited financial results for the third quarter of 2025, revealing a mixed performance. The company experienced a significant increase in its teahouse network, growing to 7,338 locations, which reflects a 25.9% year-over-year growth. However, the total GMV for the quarter decreased to RMB 7,929.5 million, primarily due to a decline in sales volume in the Greater China market, attributed to intensified competition among food delivery platforms. Despite the challenges, the overseas market showed strong growth, with a 75.3% increase in GMV.

Financially, Chagee reported net revenues of RMB 3,208.3 million, down from RMB 3,541.2 million in the same quarter last year. The operating income also saw a decline, resulting in an operating margin of 14.2%. The company’s management remains committed to enhancing shareholder value, as evidenced by the declaration of a special cash dividend of US$0.92 per share. This strategic move underscores Chagee’s focus on maintaining a strong financial position while navigating the competitive landscape of the tea beverage industry.

Chagee Holdings Limited American Depositary Shares (CHA) have experienced a notable decline in price over the past year, with a staggering drop of 49.54%. This downward trend has been particularly pronounced in the last six months, where shares plummeted by 52.30%. Despite these price challenges, the company’s fundamentals present a more optimistic picture; with a price-to-earnings ratio of just 1.34, CHA appears undervalued compared to its peers. The return on invested capital is exceptionally high at 156.95%, indicating that the company is generating significant returns on its investments. Additionally, a net profit margin of 14.99% suggests that Chagee is managing its costs effectively, even amidst declining revenues. However, the lack of growth in earnings and revenue over the past two years raises concerns about the sustainability of its financial health. Investors will be keen to see if the company can reverse its price trajectory and leverage its strong fundamentals to regain market confidence. Overall, while the stock’s performance has been lackluster, the underlying metrics hint at potential for recovery if managed strategically.

Chagee Holdings Limited, through its subsidiaries, owns, operates, and franchises teahouses under the CHAGEE brand name in the People’s Republic of China and internationally. The company engages in sale of tea drinks and related raw materials, packaging, teahouse equipment and other supplies. It operates through online platforms. The company was founded in 2017 and is based in Shanghai, the People’s Republic of China.