Luckin Coffee Announces Fourth Quarter and Fiscal Year 2025 Financial Results
Rhea-AI Summary
Luckin Coffee (OTC: LKNCY) reported strong 2025 growth: FY net revenues RMB49,288.1m (+43.0% YoY), 8,708 net new store openings, and 31,048 stores at year-end. Average monthly transacting customers rose to 94.2 million (+31.1% YoY). FY GAAP operating income was RMB5,072.9m (+42.1% YoY) with GAAP margin ~10.3%.
Q4 net revenues were RMB12,776.8m (+32.9% YoY); Q4 showed margin pressure from higher delivery and operating expenses, reducing Q4 GAAP operating income to RMB821.4m.
Positive
- FY net revenues RMB49,288.1m (+43.0% YoY)
- Net new store openings 8,708 in 2025; 31,048 stores at year-end
- Average monthly transacting customers 94.2m (+31.1% YoY)
- FY GAAP operating income RMB5,072.9m (+42.1% YoY)
Negative
- Q4 GAAP operating income fell 18.5% YoY to RMB821.4m
- Total operating expenses up 38.9% YoY in Q4
- Q4 delivery expenses surged 94.5% YoY
- Store-level operating margin declined 480 bps YoY in Q4 to 15.0%
News Market Reaction – LKNCY
On the day this news was published, LKNCY declined 3.94%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Fourth Quarter Net Revenues Increased by
Fourth Quarter Average Monthly Transacting Customers Increased by
8,708 Net New Store Openings in 2025; Ending the Year with 31,048 Stores
BEIJING, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (OTC: LKNCY) today announced its unaudited financial results for the three months and fiscal year ended December 31, 2025.
FOURTH QUARTER 2025 HIGHLIGHTS1
- Total net revenues were RMB12,776.8 million (US
$1,823.6 million ), representing a32.9% year-over-year increase. - Net new store openings were 1,834, comprising 1,792 stores in China (including Hong Kong), 13 stores in Singapore, 25 stores in Malaysia and 4 stores in the U.S. Total number of stores increased to 31,048 at the fourth quarter end, comprising 20,234 self-operated stores and 10,814 partnership stores, which represented a store unit growth of
6.3% from the total store count as of the end of the third quarter of 2025. - Average monthly transacting customers were 98.4 million, representing a
26.5% year-over-year increase. - Revenues from self-operated stores were RMB9,546.8 million (US
$1,362.6 million ), representing a32.0% year-over-year increase. - Same-store sales growth for self-operated stores was
1.2% , improved from negative3.4% in the same quarter of 2024. - Store-level operating profit – self-operated stores was RMB1,429.2 million (US
$204.0 million ), largely remaining flat year-over-year. Store level operating margin was15.0% , compared to19.8% in the same quarter of 2024. - Revenues from partnership stores were RMB2,846.7 million (US
$406.3 million ), representing a39.2% year-over-year increase. - GAAP operating income was RMB821.4 million (US
$117.2 million ), compared to RMB1,007.8 million in the same quarter of 2024. GAAP operating margin was6.4% , compared to10.5% in the same quarter of 2024. Non-GAAP operating income, which adjusts for share-based compensation expenses, was RMB963.8 million (US$137.6 million ), compared to RMB1,104.4 million in the same quarter of 2024. Non-GAAP operating margin was7.5% , compared to11.5% in the same quarter of 2024.
___________________________
1 Please refer to the section “KEY DEFINITIONS” for detailed definitions on certain terms used.
FISCAL YEAR 2025 HIGHLIGHTS
- Total net revenues were RMB49,288.1 million (US
$7,034.8 million ), representing a43.0% year-over-year increase. - Net new store openings were 8,708, comprising 8,599 stores in China (including Hong Kong), 30 stores in Singapore, 70 stores in Malaysia and 9 stores in the U.S. Total number of stores increased by
39.0% year-over-year to 31,048, comprising 20,234 self-operated stores and 10,814 partnership stores. - Average monthly transacting customers were 94.2 million, representing a
31.1% year-over-year increase. - Revenues from self-operated stores were RMB36,242.8 million (US
$5,172.9 million ), representing a41.6% year-over-year increase. - Same-store sales growth for self-operated stores was
7.5% , significantly improved from negative16.7% in the fiscal year 2024. - Store-level operating profit – self-operated stores was RMB6,436.1 million (US
$918.6 million ), representing a32.2% year-over-year increase. Store-level operating margin was17.8% , compared to19.0% in the fiscal year 2024. - Revenues from partnership stores were RMB11,593.7 million (US
$1,654.8 million ), representing a49.7% year-over-year increase. - GAAP operating income was RMB5,072.9 million (US
$724.1 million ), representing a42.1% year-over-year increase. GAAP operating margin of10.3% , compared to10.4% in the fiscal year 2024. Non-GAAP operating income, which adjusts for share-based compensation expenses, was RMB5,646.1 million (US$805.9 million ), representing a43.5% year-over-year increase. Non-GAAP operating margin was11.5% , compared to11.4% in the fiscal year 2024.
Dr. Jinyi Guo, Co-founder and CEO of Luckin Coffee, said, “Our 2025 results reflect the strength of our scale-focused execution, as we achieved robust growth amid shifting market dynamics. We finished the year strong, reaching our 30,000th-store milestone and expanding our cumulative transacting customer base to over 450 million. This expanded scale reinforced our market leadership and further strengthened our ability to capture the structural tailwinds of China’s coffee market, where competitive advantages are increasingly defined by end-to-end operational and systematic capabilities. Looking ahead to 2026, we remain focused on offering high-quality, great-value products that resonate with customers, while continuing to scale our business to drive long-term shareholder value.”
FOURTH QUARTER 2025 FINANCIAL RESULTS
Total net revenues were RMB12,776.8 million (US
- Revenues from product sales were RMB9,930.1 million (US
$1,417.3 million ), representing an increase of31.2% from RMB7,567.5 million in the same quarter of 2024.- Net revenues from freshly brewed drinks increased to RMB9,150.6 million (US
$1,306.1 million ) from RMB6,924.5 million in the same quarter of 2024. This revenue stream accounted for71.6% of total net revenues, compared to72.0% in the same quarter of 2024. - Net revenues from other products increased to RMB605.1 million (US
$86.4 million ) from RMB496.0 million in the same quarter of 2024. This revenue stream accounted for4.7% of total net revenues, compared to5.2% in the same quarter of 2024. - Net revenues from others increased to RMB174.4 million (US
$24.9 million ) from RMB147.0 million in the same quarter of 2024. This revenue stream accounted for1.4% of total net revenues, compared to1.5% in the same quarter of 2024.
- Net revenues from freshly brewed drinks increased to RMB9,150.6 million (US
- Revenues from partnership stores were RMB2,846.7 million (US
$406.3 million ), representing an increase of39.2% from RMB2,045.8 million in the same quarter of 2024. This revenue stream accounted for22.3% of total net revenues, compared to21.3% in the same quarter of 2024. Revenues from partnership stores included sales of materials of RMB1,744.4 million (US$249.0 million ), delivery service fees of RMB506.6 million (US$72.3 million ), profit sharing and royalty fee of RMB387.9 million (US$55.4 million ), sales of equipment of RMB187.7 million (US$26.8 million ), and franchise and other service fees of RMB20.0 million (US$2.9 million ).
Total operating expenses were RMB11,955.4 million (US
- Cost of materials were RMB5,107.8 million (US
$729.0 million ), representing an increase of33.2% from RMB3,834.4 million in the same quarter of 2024. The increase was mainly due to increases in (i) the number of products sold and (ii) sales of materials to partnership stores. - Store rental and other operating costs were RMB3,150.6 million (US
$449.7 million ), representing an increase of32.8% from RMB2,372.3 million in the same quarter of 2024. The increase mainly resulted from the increased number of stores and items sold which led to year-over-year increases in (i) labor costs, (ii) store rental costs as well as (iii) utilities and other store operating costs. - Depreciation and amortization expenses were RMB434.3 million (US
$62.0 million ), representing an increase of30.9% from RMB331.8 million in the same quarter of 2024. The increase was mainly due to increases in (i) amortization of leasehold improvements for the stores and (ii) depreciation expenses of additional equipment put into use in new stores. - Delivery expenses were RMB1,630.9 million (US
$232.8 million ), representing an increase of94.5% from RMB838.7 million in the same quarter of 2024. The significant increase was mainly driven by the rise in delivery volumes from the third-party food delivery platforms. - Sales and marketing expenses were RMB755.6 million (US
$107.8 million ), representing an increase of31.9% from RMB572.9 million in the same quarter of 2024. The increase was mainly driven by increases in (i) commissions to the third-party food delivery and live streaming platforms, (ii) advertising and other promotion expenses and (iii) payroll costs for sales and marketing staff. Sales and marketing expenses as a percentage of total net revenues was5.9% , similar to6.0% in the same quarter of 2024. - General and administrative expenses were RMB846.2 million (US
$120.8 million ), representing an increase of32.7% from RMB637.6 million in the same quarter of 2024. The increase was mainly driven by increases in (i) payroll costs for general and administrative staff, (ii) share-based compensation for management and employees, (iii) office expenses, and (iv) research and development expenses. General and administrative expenses as a percentage of total net revenues was6.6% , flat compared to6.6% in the same quarter of 2024. - Store preopening and other expenses were RMB25.7 million (US
$3.7 million ), representing an increase of88.9% from RMB13.6 million in the same quarter of 2024, mainly due to more stores preparing to be opened compared to the same quarter of 2024. Store preopening and other expenses as a percentage of total net revenues was0.2% , compared to0.1% of total net revenues in the same quarter of 2024. - Losses and expenses related to Fabricated Transactions and Restructuring were RMB1.4 million (US
$0.2 million ), compared to RMB4.2 million in the same quarter of 2024. - Store-level operating margin – self-operated stores was
15.0% , compared to19.8% in the same quarter of 2024.
GAAP operating income was RMB821.4 million (US
Income tax expenses were RMB330.3 million (US
Net income was RMB518.2 million (US
Basic and diluted net income per ADS was RMB1.60 (US
Non-GAAP basic and diluted net income per ADS was RMB2.16 (US
Net cash provided by operating activities was RMB564.8 million (US
Cash and cash equivalents, restricted cash, term deposits and short-term investments were RMB8,964.4 million (US
KEY OPERATING DATA
| For the three months ended or as of | ||||||||||||||||||||||||||||
| Jun 30, | Sep 30, | Dec 31, | Mar 31, | Jun 30, | Sep 30, | Dec 31, | ||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||
| Total stores | 19,961 | 21,343 | 22,340 | 24,097 | 26,206 | 29,214 | 31,048 | |||||||||||||||||||||
| Self-operated stores | 13,056 | 13,936 | 14,591 | 15,598 | 16,968 | 18,882 | 20,234 | |||||||||||||||||||||
| Partnership stores | 6,905 | 7,407 | 7,749 | 8,499 | 9,238 | 10,332 | 10,814 | |||||||||||||||||||||
| Same-store sales growth for self-operated stores | (20.9 | )% | (13.1 | )% | (3.4 | )% | 8.1 | % | 13.4 | % | 14.4 | % | 1.2 | % | ||||||||||||||
| Average monthly transacting customers (in thousands) | 69,689 | 79,846 | 77,766 | 74,272 | 91,697 | 112,295 | 98,351 | |||||||||||||||||||||
KEY DEFINITIONS
- GMV (gross merchandise value) refers to the transaction amount from the sales of freshly brewed and non-freshly brewed items through self-operated stores and partnership stores.
- Total net revenues include revenues from product sales and revenues from partnership stores.
- Revenues from product sales mainly include net revenue from the sales of freshly brewed and non-freshly brewed items through self-operated stores, e-commerce, offline sales and revenue from delivery for self-operated stores.
- Revenues from self-operated stores include net revenue from the sales of freshly brewed and non-freshly brewed items through self-operated stores, and delivery fees derived from self-operated stores paid by the Company’s customers.
- Revenues from partnership stores include net revenue from the sales of materials, equipment, delivery services, profit sharing and royalty fees, franchise and other services from partnership stores.
- Same-store sales growth for self-operated stores. Defined as the growth rate of total revenue from self-operated stores that (i) were in operation at the beginning of the comparable period and were not closed before the end of the current period and (ii) maintained an average of at least 15 operating days per month over both the current and comparable periods.
- Store level operating profit – self-operated stores. Calculated by deducting cost for self-operated stores including cost of direct materials (including wastage in stores), cost of delivery packaging materials, storage and logistics expenses, commissions to third-party delivery platforms related to revenues from self-operated stores, store depreciation expense (including decoration loss for store closure), store rental and other operating costs, delivery expense, transaction fees, store preopening and other expenses from the Company’s self-operated store revenues.
- Store-level operating profit margin – self-operated stores. Calculated by dividing store level operating profit by total revenues from self-operated stores.
- Total number of stores. The number of stores open at the end of the period.
- Net new store openings. The number of gross new stores opened during the period minus the number of stores permanently closed during the period.
- Average monthly transacting customers. The total of each month’s number of transacting customers divided by the number of months during the period (includes those of partnership stores and those only paid with free-coupons).
- Non-GAAP operating income. Calculated by operating income excluding share-based compensation expenses.
- Non-GAAP net income. Calculated by net income excluding recurring item of share-based compensation expenses, non-recurring item of provision for equity litigants settlement, and income tax effects of GAAP to non-GAAP reconciling items. From the fourth quarter of 2024, the Company added income tax effects of GAAP to non-GAAP reconciling items when reconciling adjustments from GAAP to Non-GAAP net income. Comparative figures were also adjusted accordingly.
- Non-GAAP net income attributable to the Company’s ordinary shareholders. Calculated by adjusting net income attributable to the Company’s ordinary shareholders excluding recurring item of share-based compensation expenses, non-recurring item of provision for equity litigants settlement, and income tax effects of GAAP to non-GAAP reconciling items. From the fourth quarter of 2024, the Company added income tax effects of GAAP to non-GAAP reconciling items when reconciling adjustments from GAAP to Non-GAAP net income attributable to the Company’s ordinary shareholders. Comparative figures were also adjusted accordingly.
- Non-GAAP basic and diluted net income per shares. Calculated as non-GAAP net income attributable to the Company’s ordinary shareholders divided by weighted average number of basic and diluted share.
- Non-GAAP basic and diluted net income per ADSs. Calculated as non-GAAP net income attributable to the Company’s ordinary shareholders divided by weighted average number of basic and diluted ADS.
USE OF NON-GAAP FINANCIAL MEASURES
In evaluating the business, the Company considers and uses non-GAAP operating income/(loss) and non-GAAP net income/(loss), each a non-GAAP financial measure, in reviewing and assessing the Company’s operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents these non-GAAP financial measures because they are used by the Company’s management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measures help identify underlying trends in the Company’s business, provide further information about the Company’s results of operations and enhance the overall understanding of the Company’s past performance and future prospects.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. The Company’s non-GAAP financial measures do not reflect all items of income and expense that affect the Company’s operations and do not represent the residual cash flow available for discretionary expenditures. Furthermore, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. The Company encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure.
The Company defines non-GAAP operating income/(loss) as operating income/(loss) excluding share-based compensation expenses, non-GAAP net income/(loss) as net income/(loss) excluding recurring item of share-based compensation expenses, non-recurring item of provision for equity litigants settlement, and income tax effects of GAAP to non-GAAP reconciling items, and non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders as net income/(loss) attributable to the Company’s ordinary shareholders excluding recurring item of share-based compensation expenses, non-recurring item of provision for equity litigants settlement, and income tax effects of GAAP to non-GAAP reconciling items.
For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures” set forth at the end of this earnings release.
EXCHANGE RATE INFORMATION
This earnings release contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at the rate of RMB7.0063 to US
CONFERENCE CALL
The Company will hold a conference call today, on Thursday, February 26, 2026, at 8:00 am Eastern Time (or Thursday, February 26, 2026, at 9:00 pm Beijing Time) to discuss the financial results.
Participants may access the call by dialing the following numbers:
| USA/Canada Toll Free: | +1-888-317-6003 |
| International: | +1-412-317-6061 |
| Mainland China Toll Free: | 400-120-6115 |
| Hong Kong Toll Free: | 800-963-976 |
| Conference ID: | 5658008 |
The replay will be accessible through March 5, 2026, by dialing the following numbers:
| USA/Canada Toll Free: | +1-855-669-9658 |
| International: | +1-412-317-0088 |
| Access Code: | 7510605 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at investor.lkcoffee.com.
SAFE HARBOR STATEMENTS
This earnings release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. Luckin Coffee may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Luckin Coffee’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the expense, timing and outcome of existing or future legal and governmental proceedings or investigations in connection with Luckin Coffee; the outcome and effect of the restructuring of Luckin Coffee’s financial obligations; Luckin Coffee’s growth strategies; its future business development, results of operations and financial condition; the effect of the non-reliance identified in, and the resultant restatement of, certain of Luckin Coffee’s previously issued financial results; the effectiveness of its internal control; its ability to retain and attract its customers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with its suppliers and business partners; trends and competition in the coffee industry or the food and beverage sector in general; changes in its revenues and certain cost or expense items; the expected growth of China’s coffee industry or China’s food and beverage sector in general; governmental policies and regulations relating to Luckin Coffee’s industry; and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in Luckin Coffee’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Luckin Coffee undertakes no obligation to update any forward-looking statement, except as required under applicable law.
STATEMENT REGARDING PRELIMINARY UNAUDITED FINANCIAL INFORMATION
The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information. Accordingly, you should not place undue reliance upon these preliminary estimates. The preliminary unaudited financial information included in this press release has been prepared by, and is the responsibility of, the Company’s management. The Company’s auditor has not audited, reviewed, compiled or applied agreed-upon procedures with respect to such preliminary financial data. Accordingly, the Company’s auditor does not express an opinion or any other form of assurance with respect thereto. Upon completion of the year-end audit, the Company’s audited financial results may differ materially from its preliminary estimates.
ABOUT LUCKIN COFFEE INC.
Luckin Coffee Inc. (OTC: LKNCY) has pioneered a technology-driven retail network to provide coffee and other products of high quality, high convenience and high affordability to customers. Empowered by proprietary technologies, Luckin Coffee pursues its vision to build a world-class coffee brand and become a part of everyone’s daily life. Luckin Coffee was founded in 2017 and is based in China. For more information, please visit investor.lkcoffee.com.
INVESTOR AND MEDIA CONTACTS
Investor Relations:
Luckin Coffee IR
Email: ir@lkcoffee.com
Bill Zima
ICR
Phone: 646 880 9039
Media Relations:
Luckin Coffee PR
Email: pr@lkcoffee.com
| LUCKIN COFFEE INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of RMB and US$, except for number of shares) | ||||||||||||
| As of | ||||||||||||
| December 31, 2024 | December 31, 2025 (Unaudited) | |||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 4,362,309 | 2,294,112 | 327,436 | |||||||||
| Restricted cash | 3,781 | 5,362 | 765 | |||||||||
| Term deposit- current | 1,127,541 | 3,328,423 | 475,061 | |||||||||
| Short-term investment, net | 250,000 | 2,579,000 | 368,097 | |||||||||
| Accounts receivable, net | 111,251 | 156,330 | 22,313 | |||||||||
| Receivables from online payment platforms | 438,458 | 580,557 | 82,862 | |||||||||
| Inventories, net | 2,500,205 | 2,966,506 | 423,406 | |||||||||
| Prepaid expenses and other current assets, net | 1,938,054 | 2,520,657 | 359,770 | |||||||||
| Total current assets | 10,731,599 | 14,430,947 | 2,059,710 | |||||||||
| Non-current assets: | ||||||||||||
| Property and equipment, net | 5,065,903 | 6,289,986 | 897,761 | |||||||||
| Restricted cash | 40,595 | 57,459 | 8,201 | |||||||||
| Term deposit - non-current | 150,000 | 700,000 | 99,910 | |||||||||
| Other non-current assets, net | 929,165 | 968,836 | 138,281 | |||||||||
| Deferred tax assets, net | 271,601 | 217,036 | 30,977 | |||||||||
| Operating lease, right-of-use assets | 5,937,063 | 7,637,320 | 1,090,065 | |||||||||
| Total non-current assets | 12,394,327 | 15,870,637 | 2,265,195 | |||||||||
| TOTAL ASSETS | 23,125,926 | 30,301,584 | 4,324,905 | |||||||||
| LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Short-term bank borrowings | 300,000 | - | - | |||||||||
| Accounts payable | 738,677 | 1,103,767 | 157,539 | |||||||||
| Accrued expenses and other liabilities | 3,034,205 | 4,148,323 | 592,085 | |||||||||
| Deferred revenues | 153,248 | 156,290 | 22,307 | |||||||||
| Payable for equity litigants settlement | 119,560 | 149,887 | 21,393 | |||||||||
| Operating lease liabilities | 2,343,387 | 2,948,353 | 420,815 | |||||||||
| Total current liabilities | 6,689,077 | 8,506,620 | 1,214,139 | |||||||||
| Non-current liabilities: | ||||||||||||
| Long-term bank borrowings | 33,600 | - | - | |||||||||
| Deferred tax liabilities | - | 339,797 | 48,499 | |||||||||
| Operating lease liabilities | 3,330,529 | 4,315,808 | 615,990 | |||||||||
| Total non-current liabilities | 3,364,129 | 4,655,605 | 664,489 | |||||||||
| Total liabilities | 10,053,206 | 13,162,225 | 1,878,628 | |||||||||
| Commitments and contingencies | ||||||||||||
| Mezzanine equity | ||||||||||||
| Convertible senior preferred shares | 1,514,660 | 1,514,660 | 216,185 | |||||||||
| Shareholders’ equity: | ||||||||||||
| Class A Ordinary shares | 24 | 24 | 3 | |||||||||
| Class B Ordinary shares | 2 | 2 | 0 | |||||||||
| Additional paid-in capital | 16,705,240 | 17,278,391 | 2,466,122 | |||||||||
| Statutory reserves | 368,046 | 453,625 | 64,745 | |||||||||
| Accumulated deficits | (5,953,788 | ) | (2,438,985 | ) | (348,113 | ) | ||||||
| Accumulated other comprehensive income | 438,536 | 331,642 | 47,335 | |||||||||
| Total Company’s ordinary shareholders’ equity | 11,558,060 | 15,624,699 | 2,230,092 | |||||||||
| TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | 23,125,926 | 30,301,584 | 4,324,905 | |||||||||
| LUCKIN COFFEE INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Amounts in thousands of RMB and US$, except for number of shares and per share data) | ||||||||||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
| Net revenues: | ||||||||||||||||||||||||
| Revenues from product sales | 7,567,491 | 9,930,121 | 1,417,313 | 26,729,523 | 37,694,405 | 5,380,073 | ||||||||||||||||||
| Revenues from partnership stores | 2,045,786 | 2,846,712 | 406,307 | 7,745,291 | 11,593,690 | 1,654,752 | ||||||||||||||||||
| Total net revenues | 9,613,277 | 12,776,833 | 1,823,620 | 34,474,814 | 49,288,095 | 7,034,825 | ||||||||||||||||||
| Cost of materials | (3,834,449 | ) | (5,107,775 | ) | (729,026 | ) | (14,083,291 | ) | (18,783,453 | ) | (2,680,938 | ) | ||||||||||||
| Store rental and other operating costs | (2,372,304 | ) | (3,150,644 | ) | (449,687 | ) | (8,540,683 | ) | (11,241,945 | ) | (1,604,548 | ) | ||||||||||||
| Depreciation and amortization expenses | (331,822 | ) | (434,309 | ) | (61,988 | ) | (1,190,037 | ) | (1,557,383 | ) | (222,283 | ) | ||||||||||||
| Delivery expenses | (838,663 | ) | (1,630,855 | ) | (232,770 | ) | (2,821,069 | ) | (6,878,734 | ) | (981,793 | ) | ||||||||||||
| Sales and marketing expenses | (572,893 | ) | (755,552 | ) | (107,839 | ) | (1,920,305 | ) | (2,595,705 | ) | (370,482 | ) | ||||||||||||
| General and administrative expenses | (637,570 | ) | (846,198 | ) | (120,777 | ) | (2,420,462 | ) | (3,057,020 | ) | (436,324 | ) | ||||||||||||
| Store preopening and other expenses | (13,580 | ) | (25,656 | ) | (3,662 | ) | (69,556 | ) | (85,412 | ) | (12,191 | ) | ||||||||||||
| Impairment loss of long-lived assets | - | (2,986 | ) | (426 | ) | (8,925 | ) | (8,495 | ) | (1,212 | ) | |||||||||||||
| Losses and expenses related to Fabricated Transactions and Restructuring | (4,238 | ) | (1,417 | ) | (202 | ) | 149,583 | (7,013 | ) | (1,001 | ) | |||||||||||||
| Total operating expenses | (8,605,519 | ) | (11,955,392 | ) | (1,706,377 | ) | (30,904,745 | ) | (44,215,160 | ) | (6,310,772 | ) | ||||||||||||
| Operating income | 1,007,758 | 821,441 | 117,243 | 3,570,069 | 5,072,935 | 724,053 | ||||||||||||||||||
| Interest and investment income | 34,457 | 55,304 | 7,893 | 89,195 | 188,630 | 26,923 | ||||||||||||||||||
| Interest and financing expenses | (1,917 | ) | - | - | (3,924 | ) | (125 | ) | (18 | ) | ||||||||||||||
| Foreign exchange loss, net | (52,121 | ) | (13,950 | ) | (1,991 | ) | (13,239 | ) | (26,747 | ) | (3,818 | ) | ||||||||||||
| Other income, net | 10,205 | 20,984 | 2,995 | 84,161 | 80,808 | 11,534 | ||||||||||||||||||
| Provision for equity litigants | - | (35,326 | ) | (5,042 | ) | - | (35,326 | ) | (5,042 | ) | ||||||||||||||
| Net income before income taxes | 998,382 | 848,453 | 121,098 | 3,726,262 | 5,280,175 | 753,632 | ||||||||||||||||||
| Income tax expense | (147,691 | ) | (330,263 | ) | (47,138 | ) | (770,553 | ) | (1,679,793 | ) | (239,755 | ) | ||||||||||||
| Net income | 850,691 | 518,190 | 73,960 | 2,955,709 | 3,600,382 | 513,877 | ||||||||||||||||||
| Net income attributable to the Company’s ordinary shareholders | 850,691 | 518,190 | 73,960 | 2,955,709 | 3,600,382 | 513,877 | ||||||||||||||||||
| Net income per share: | ||||||||||||||||||||||||
| Basic | 0.33 | 0.20 | 0.03 | 1.16 | 1.40 | 0.20 | ||||||||||||||||||
| Diluted | 0.33 | 0.20 | 0.03 | 1.16 | 1.40 | 0.20 | ||||||||||||||||||
| Net income per ADS: | ||||||||||||||||||||||||
| Basic* | 2.64 | 1.60 | 0.24 | 9.28 | 11.20 | 1.60 | ||||||||||||||||||
| Diluted* | 2.64 | 1.60 | 0.24 | 9.28 | 11.20 | 1.60 | ||||||||||||||||||
| Weighted average shares outstanding used in calculating basic and diluted income per share: | ||||||||||||||||||||||||
| Basic | 2,547,212,673 | 2,566,563,641 | 2,566,563,641 | 2,545,968,813 | 2,565,138,656 | 2,565,138,656 | ||||||||||||||||||
| Diluted | 2,549,183,737 | 2,567,418,849 | 2,567,418,849 | 2,548,002,050 | 2,568,173,041 | 2,568,173,041 | ||||||||||||||||||
| Net income | 850,691 | 518,190 | 73,960 | 2,955,709 | 3,600,382 | 513,877 | ||||||||||||||||||
| Other comprehensive income /(loss), net of tax of nil: | ||||||||||||||||||||||||
| Foreign currency translation difference, net of tax of nil | 103,435 | (52,155 | ) | (7,444 | ) | 41,592 | (106,894 | ) | (15,257 | ) | ||||||||||||||
| Total comprehensive income | 954,126 | 466,035 | 66,516 | 2,997,301 | 3,493,488 | 498,620 | ||||||||||||||||||
| Total comprehensive income attributable to ordinary shareholders | 954,126 | 466,035 | 66,516 | 2,997,301 | 3,493,488 | 498,620 | ||||||||||||||||||
* Each ADS represents eight Class A Ordinary Shares. The per ADS indicators are based on rounded results of corresponding per share indicators, which could have a rounding difference of absolute amount for not more than 0.04 per ADS.
CHANGES IN INVENTORY ACCOUNTING
Effective from July 1, 2025, the Company elected to change its method of accounting for certain of its inventories, primarily coffee beans produced in its roasting factories, from the weighted average method to the specific identification method, specifically, the by-batch method. The Company believes the by-batch method of accounting for coffee bean inventory in its roasting factories is preferable because this method: (i) better aligns the accounting records with the physical flow of inventories; (ii) better reflects the current cost of assets; and (iii) better represents how the management assesses the performances of different business units and better supports them to make strategic decisions. The effects of the change in accounting method have been retrospectively applied to all periods presented in all sections of this press release on Form 6-K.
The following financial statement line items within the accompanying unaudited interim 2024 and 2025 quarterly condensed consolidated financial statements were adjusted as follows, with all amounts presented in thousands of RMB, except for per share data:
| For the three months ended December 31, 2025 | For the three months ended December 31, 2024 | |||||||||||||||||||||||
| As Calculated (Weighted average method) | As Reported (Specific identification method) | Effect of Change | As Previously Reported (Weighted average method) | As Adjusted (Specific identification method) | Effect of Change | |||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||
| Cost of materials | (5,075,735 | ) | (5,107,775 | ) | (32,040 | ) | (3,847,193 | ) | (3,834,449 | ) | 12,744 | |||||||||||||
| Total operating expenses | (11,923,352 | ) | (11,955,392 | ) | (32,040 | ) | (8,618,263 | ) | (8,605,519 | ) | 12,744 | |||||||||||||
| Operating income | 853,481 | 821,441 | (32,040 | ) | 995,014 | 1,007,758 | 12,744 | |||||||||||||||||
| Net income before income taxes | 880,493 | 848,453 | (32,040 | ) | 985,638 | 998,382 | 12,744 | |||||||||||||||||
| Income tax expense | (338,273 | ) | (330,263 | ) | 8,010 | (144,505 | ) | (147,691 | ) | (3,186 | ) | |||||||||||||
| Net income | 542,220 | 518,190 | (24,030 | ) | 841,133 | 850,691 | 9,558 | |||||||||||||||||
| Net income attributable to the Company’s ordinary shareholders | 542,220 | 518,190 | (24,030 | ) | 841,133 | 850,691 | 9,558 | |||||||||||||||||
| Net income per share: | ||||||||||||||||||||||||
| Basic | 0.21 | 0.20 | (0.01 | ) | 0.33 | 0.33 | 0.00 | |||||||||||||||||
| Diluted | 0.21 | 0.20 | (0.01 | ) | 0.33 | 0.33 | 0.00 | |||||||||||||||||
| Net income per ADS: | ||||||||||||||||||||||||
| Basic | 1.68 | 1.60 | (0.08 | ) | 2.64 | 2.64 | 0.00 | |||||||||||||||||
| Diluted | 1.68 | 1.60 | (0.08 | ) | 2.64 | 2.64 | 0.00 | |||||||||||||||||
| Net income | 542,220 | 518,190 | (24,030 | ) | 841,133 | 850,691 | 9,558 | |||||||||||||||||
| Total comprehensive income | 490,065 | 466,035 | (24,030 | ) | 944,568 | 954,126 | 9,558 | |||||||||||||||||
| Total comprehensive income attributable to the Company’s ordinary shareholders | 490,065 | 466,035 | (24,030 | ) | 944,568 | 954,126 | 9,558 | |||||||||||||||||
| For the year ended December 31, 2025 | For the year ended December 31, 2024 | |||||||||||||||||||||||
| As Calculated (Weighted average method) | As Reported (Specific identification method) | Effect of Change | As Previously Reported (Weighted average method) | As Adjusted (Specific identification method) | Effect of Change | |||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||
| Cost of materials | (18,777,806 | ) | (18,783,453 | ) | (5,647 | ) | (14,115,299 | ) | (14,083,291 | ) | 32,008 | |||||||||||||
| Total operating expenses | (44,209,513 | ) | (44,215,160 | ) | (5,647 | ) | (30,936,753 | ) | (30,904,745 | ) | 32,008 | |||||||||||||
| Operating income | 5,078,582 | 5,072,935 | (5,647 | ) | 3,538,061 | 3,570,069 | 32,008 | |||||||||||||||||
| Net income before income taxes | 5,285,822 | 5,280,175 | (5,647 | ) | 3,694,254 | 3,726,262 | 32,008 | |||||||||||||||||
| Income tax expense | (1,681,205 | ) | (1,679,793 | ) | 1,412 | (762,551 | ) | (770,553 | ) | (8,002 | ) | |||||||||||||
| Net income | 3,604,617 | 3,600,382 | (4,235 | ) | 2,931,703 | 2,955,709 | 24,006 | |||||||||||||||||
| Net income attributable to the Company’s ordinary shareholders | 3,604,617 | 3,600,382 | (4,235 | ) | 2,931,703 | 2,955,709 | 24,006 | |||||||||||||||||
| Net income per share: | ||||||||||||||||||||||||
| Basic | 1.41 | 1.40 | (0.01 | ) | 1.15 | 1.16 | 0.01 | |||||||||||||||||
| Diluted | 1.40 | 1.40 | 0.00 | 1.15 | 1.16 | 0.01 | ||||||||||||||||||
| Net income per ADS: | ||||||||||||||||||||||||
| Basic | 11.28 | 11.20 | (0.08 | ) | 9.20 | 9.28 | 0.08 | |||||||||||||||||
| Diluted | 11.20 | 11.20 | 0.00 | 9.20 | 9.28 | 0.08 | ||||||||||||||||||
| Net income | 3,604,617 | 3,600,382 | (4,235 | ) | 2,931,703 | 2,955,709 | 24,006 | |||||||||||||||||
| Total comprehensive income | 3,497,723 | 3,493,488 | (4,235 | ) | 2,973,295 | 2,997,301 | 24,006 | |||||||||||||||||
| Total comprehensive income attributable to the Company’s ordinary shareholders | 3,497,723 | 3,493,488 | (4,235 | ) | 2,973,295 | 2,997,301 | 24,006 | |||||||||||||||||
| As of December 31, 2025 | As of December 31, 2024 | |||||||||||||||||||||||
| As Calculated (Weighted average method) | As Reported (Specific identification method) | Effect of Change | As Previously Reported (Weighted average method) | As Adjusted (Specific identification method) | Effect of Change | |||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||
| Inventories, net | 2,945,339 | 2,966,506 | 21,167 | 2,473,393 | 2,500,205 | 26,812 | ||||||||||||||||||
| Total current assets | 14,409,780 | 14,430,947 | 21,167 | 10,704,787 | 10,731,599 | 26,812 | ||||||||||||||||||
| Total Assets | 30,280,417 | 30,301,584 | 21,167 | 23,099,114 | 23,125,926 | 26,812 | ||||||||||||||||||
| Accrued expenses and other liabilities | 4,143,031 | 4,148,323 | 5,292 | 3,027,503 | 3,034,205 | 6,702 | ||||||||||||||||||
| Total current liabilities | 8,501,328 | 8,506,620 | 5,292 | 6,682,375 | 6,689,077 | 6,702 | ||||||||||||||||||
| Total liabilities | 13,156,933 | 13,162,225 | 5,292 | 10,046,504 | 10,053,206 | 6,702 | ||||||||||||||||||
| Statutory reserves | 451,506 | 453,625 | 2,119 | 365,927 | 368,046 | 2,119 | ||||||||||||||||||
| Accumulated deficits | (2,452,741 | ) | (2,438,985 | ) | 13,756 | (5,971,779 | ) | (5,953,788 | ) | 17,991 | ||||||||||||||
| Total Company’s ordinary shareholders’ equity | 15,608,824 | 15,624,699 | 15,875 | 11,537,950 | 11,558,060 | 20,110 | ||||||||||||||||||
| TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | 30,280,417 | 30,301,584 | 21,167 | 23,099,114 | 23,125,926 | 26,812 | ||||||||||||||||||
| LUCKIN COFFEE INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$) | ||||||||||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
| Net cash provided by operating activities | 1,628,375 | 564,782 | 80,611 | 4,229,272 | 6,091,062 | 869,371 | ||||||||||||||||||
| Net cash used in investing activities | (1,112,363 | ) | (447,084 | ) | (63,812 | ) | (3,209,806 | ) | (7,786,503 | ) | (1,111,358 | ) | ||||||||||||
| Net cash provided by/(used in) financing activities | 33,600 | - | - | 333,600 | (333,600 | ) | (47,615 | ) | ||||||||||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | 9,281 | (7,016 | ) | (1,001 | ) | 14,976 | (20,711 | ) | (2,956 | ) | ||||||||||||||
| Net increase/(decrease) in cash and cash equivalents and restricted cash | 558,893 | 110,682 | 15,798 | 1,368,042 | (2,049,752 | ) | (292,558 | ) | ||||||||||||||||
| Cash and cash equivalents and restricted cash at beginning of period | 3,847,792 | 2,246,251 | 320,604 | 3,038,643 | 4,406,685 | 628,960 | ||||||||||||||||||
| Cash and cash equivalents and restricted cash at end of period | 4,406,685 | 2,356,933 | 336,402 | 4,406,685 | 2,356,933 | 336,402 | ||||||||||||||||||
| LUCKIN COFFEE INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES (Unaudited, amounts in thousands of RMB and US$, except for number of shares and per share data) | ||||||||||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
| A. Non-GAAP operating income | ||||||||||||||||||||||||
| Operating income | 1,007,758 | 821,441 | 117,243 | 3,570,069 | 5,072,935 | 724,053 | ||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||
| Share-based compensation expenses | 96,658 | 142,388 | 20,323 | 364,846 | 573,148 | 81,805 | ||||||||||||||||||
| Non-GAAP operating income | 1,104,416 | 963,829 | 137,566 | 3,934,915 | 5,646,083 | 805,858 | ||||||||||||||||||
| B. Non-GAAP net income | ||||||||||||||||||||||||
| Net income | 850,691 | 518,190 | 73,960 | 2,955,709 | 3,600,382 | 513,877 | ||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||
| Share-based compensation expenses | 96,658 | 142,388 | 20,323 | 364,846 | 573,148 | 81,805 | ||||||||||||||||||
| Provision for equity litigants | - | 35,326 | 5,042 | - | 35,326 | 5,042 | ||||||||||||||||||
| Income tax effects of GAAP to non-GAAP reconciling items | (9,842 | ) | 2,663 | 380 | (9,842 | ) | (12,562 | ) | (1,793 | ) | ||||||||||||||
| Non-GAAP net income | 937,507 | 698,567 | 99,705 | 3,310,713 | 4,196,294 | 598,931 | ||||||||||||||||||
| Non-GAAP net income attributable to the Company’s ordinary shareholders | 937,507 | 698,567 | 99,705 | 3,310,713 | 4,196,294 | 598,931 | ||||||||||||||||||
| C. Non-GAAP net income per share | ||||||||||||||||||||||||
| Weighted average shares outstanding used in calculating basic and diluted income per share: | ||||||||||||||||||||||||
| Basic | 2,547,212,673 | 2,566,563,641 | 2,566,563,641 | 2,545,968,813 | 2,565,138,656 | 2,565,138,656 | ||||||||||||||||||
| Diluted | 2,549,183,737 | 2,567,418,849 | 2,567,418,849 | 2,548,002,050 | 2,568,173,041 | 2,568,173,041 | ||||||||||||||||||
| Non-GAAP net income per share: | ||||||||||||||||||||||||
| Basic | 0.37 | 0.27 | 0.04 | 1.3 | 1.64 | 0.23 | ||||||||||||||||||
| Diluted | 0.37 | 0.27 | 0.04 | 1.3 | 1.63 | 0.23 | ||||||||||||||||||
| Non-GAAP net income per ADS: | ||||||||||||||||||||||||
| Basic* | 2.96 | 2.16 | 0.32 | 10.40 | 13.12 | 1.84 | ||||||||||||||||||
| Diluted* | 2.96 | 2.16 | 0.32 | 10.40 | 13.04 | 1.84 | ||||||||||||||||||
* Each ADS represents eight Class A Ordinary Shares. The per ADS indicators are based on rounded results of corresponding per share indicators, which could have a rounding difference of absolute amount for not more than 0.04 per ADS.
FAQ
What were Luckin Coffee's (LKNCY) full-year 2025 revenues and growth rate?
How many stores did Luckin Coffee (LKNCY) add in 2025 and what is the year-end total?
Why did Luckin Coffee's (LKNCY) Q4 2025 operating margin decline?
What were Luckin Coffee's (LKNCY) Q4 2025 revenues and customer trends?
How did Luckin Coffee's (LKNCY) store-level profitability perform in 2025?
What cash position did Luckin Coffee (LKNCY) report as of December 31, 2025?
