RLX Technology Reports Unaudited Third Quarter 2025 Financial Earnings Results

RLX Technology Inc. (RLX) today announced its financial results for the most recent quarter, revealing a significant miss on both earnings and revenue expectations. The company reported earnings per share of $0.022, falling short of the estimated $0.217, while revenue totaled $158.6 million, dramatically below the anticipated $1.0 billion. This disappointing performance highlights ongoing challenges for RLX in the current market landscape.

Key Highlights:

• Net revenues increased by 49.3% year-over-year to RMB1,129.3 million (US$158.6 million) in Q3 2025.
• Gross margin improved to 31.2% from 27.2% in the same period of 2024.
• Non-GAAP income from operations more than doubled to RMB187.8 million (US$26.4 million).
• U.S. GAAP net income was RMB206.8 million (US$29.1 million), up from RMB169.4 million in Q3 2024.
• International business accounted for 71.6% of net revenues, driven by growth in European markets and recovery in Mainland China.
• The company announced a cash dividend of US$0.1 per ordinary share, reinforcing its commitment to shareholder returns.

In the third quarter of 2025, RLX Technology Inc. reported a significant increase in net revenues, reaching RMB1,129.3 million, a 49.3% rise compared to the same quarter in 2024. This growth was attributed to the company’s strategic investments in international markets, particularly in Europe, and a gradual recovery in its Mainland China operations. CEO Ms. Ying (Kate) Wang highlighted the company’s disciplined execution in international expansion and innovation, stating, “Our disciplined execution on international expansion and innovation is translating into tangible growth.” The company also successfully launched its proprietary modern-oral product line in the UK, showcasing its commitment to R&D and market diversification.

CFO Mr. Chao Lu emphasized the strength of RLX’s diversified growth model, noting that the robust financial results reflect organic share gains in existing markets and high-return capital deployment in Europe. He stated, “These results demonstrate the strength of our diversified growth model propelled by organic share gains in existing international markets.” The company remains focused on delivering long-term value to its stakeholders, having returned over US$500 million to shareholders through dividends and share repurchases.

RLX Technology Inc. (RLX) has recently shown a mixed performance in its stock price, with a notable 46.06% increase over the past year, reflecting growing investor interest. However, the stock has experienced a slight dip of 1.69% over the past month, suggesting some volatility in the short term. The company’s price-to-earnings ratio stands at an attractive 4.11, indicating that it may be undervalued compared to its earnings potential. With a two-year compound annual growth rate (CAGR) of 52.75% in earnings per share, RLX demonstrates strong profitability, although its return on invested capital remains slightly negative at -0.18%. The net profit margin of 24.91% highlights the company’s ability to convert revenue into profit effectively. Despite the recent fluctuations, the three-month and six-month price changes of 8.78% and 23.09%, respectively, suggest a positive trend that could indicate a recovery phase. Investors will be keen to see if RLX can maintain this momentum and improve its fundamental metrics moving forward.

RLX Technology Inc., together with its subsidiaries, researchers, develops, manufactures, distributes, and sells e-vapor products in the People’s Republic of China. It serves RELX branded partner stores and other retail outlets through distributors. RLX Technology Inc. was founded in 2018 and is based in Beijing, China.