RLX Technology Announces Unaudited Second Quarter 2026 Financial Results
Rhea-AI Summary
RLX Technology (NYSE: RLX) reported unaudited second quarter 2026 results, with net revenues of RMB1,010.5 million, up 14.8% year over year, driven mainly by international expansion and a May 2025 acquisition. International revenue contributed 68.5% of total net revenues.
Gross profit rose 47.8% to RMB357.8 million, lifting gross margin to 35.4% from 27.5% a year earlier, supported by a favorable revenue mix and supply chain optimization. U.S. GAAP income from operations increased 234.7% to RMB130.4 million, while non-GAAP income from operations grew 28.8% to RMB149.6 million.
U.S. GAAP net income was RMB222.0 million, up 1.6% year over year, whereas non-GAAP net income declined to RMB238.8 million from RMB291.2 million. As of June 30, 2026, RLX held RMB13,883.4 million in cash, equivalents and investments, with net cash used in operating activities of RMB63.2 million in the quarter.
In July 2026, RLX acquired a 51% equity interest and board control in a leading Western European distributor of next-generation smoke-free and FMCG products. According to the company, this strategic investment enhances its European route-to-market via a multi-channel logistics network and proprietary B2B digital marketplace, with consolidation beginning in the third quarter of 2026.
Positive
- Net revenues RMB1,010.5m, up 14.8% year over year in Q2 2026
- Gross profit RMB357.8m, up 47.8% YoY; margin improved to 35.4%
- GAAP income from operations RMB130.4m, up 234.7% year over year
- International revenue 68.5% of net revenues, reflecting expanded global footprint
- Strategic 51% acquisition of major Western European smoke-free products distributor in July 2026
- Cash, equivalents and investments RMB13,883.4m as of June 30, 2026
Negative
- Non-GAAP net income RMB238.8m, down from RMB291.2m in Q2 2025
- Net cash used in operating activities RMB63.2m in Q2 2026
- Selling expenses RMB123.7m, up from RMB84.6m year over year
- Liquidity pool fell to RMB13,883.4m from RMB14,529.7m at March 31, 2026
Market reaction after 2Q26 earnings report: RLX -5.58%
Following this news, RLX has declined 5.58%, reflecting a notable negative market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $1.89.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 20 | Q1 2026 earnings | Positive | +0.0% | Revenue and profitability rose sharply, but the stock recorded no 24-hour change. |
| Mar 13 | FY2025 earnings | Positive | -0.9% | Strong annual growth coincided with a 0.88% 24-hour decline. |
| Nov 14 | Q3 2025 earnings | Positive | +10.3% | Revenue growth and margin expansion accompanied a 10.3% 24-hour gain. |
| Aug 22 | Q2 2025 earnings | Positive | +7.1% | Revenue growth and improved margins accompanied a 7.14% 24-hour gain. |
| May 16 | Q1 2025 earnings | Positive | +2.0% | Revenue growth and higher GAAP net income accompanied a 2.05% gain. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings history showed positive reactions aligned with three events and divergence in two events.
Key Terms
non-gaap financial measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 Financial Highlights
- Net revenues were
RMB1,010.5 million (US ) in the second quarter of 2026, increasing by$148.9 million 14.8% fromRMB880.0 million in the same period of 2025. - Gross margin was
35.4% in the second quarter of 2026, compared with27.5% in the same period of 2025. - Non-GAAP income from operations[1] was
RMB149.6 million (US ) in the second quarter of 2026, increasing by$22.0 million 28.8% fromRMB116.2 million in the same period of 2025. U.S . GAAP net income wasRMB222.0 million (US ) in the second quarter of 2026, increasing by$32.7 million 1.6% fromRMB218.5 million in the same period of 2025.- Non-GAAP net income[1] was
RMB238.8 million (US ) in the second quarter of 2026, compared with$35.2 million RMB291.2 million in the same period of 2025.
"We delivered solid second quarter results as we continued to strengthen our global business with a focus on quality, stability, and long-term resilience," said Ms. Ying (Kate) Wang, Co-founder, Chairperson, and Chief Executive Officer of RLX Technology. "As our industry matures, competitive advantage is increasingly defined not only by product innovation but also by retail execution and shelf-space leadership. We have refined our global route-to-market strategies accordingly – deepening store-level execution in
Mr. Chao Lu, Chief Financial Officer of RLX Technology, commented, "Second quarter net revenues were
Second Quarter 2026 Financial Results
Net revenues were
Gross profit was
Gross margin increased to
Operating expenses were
Selling expenses were
General and administrative expenses were
Research and development expenses were
Non-GAAP income from operations was
Income tax expense was
Non-GAAP net income was
Non-GAAP basic and diluted net income per ADS[2] were
[1] Non-GAAP net income and non-GAAP income from operations are non-GAAP financial measures. For more information on the |
[2] Non-GAAP basic and diluted net income per ADS is a non-GAAP financial measure. For more information on the Company's non-GAAP |
Balance Sheet and Cash Flow
As of June 30, 2026, the Company had cash and cash equivalents, restricted cash, short-term bank deposits, net, short-term investments, long-term bank deposits, net, and long-term investment securities, net, of
Strategic Investment
In July 2026, RLX Technology acquired a
Conference Call
The Company's management will host an earnings conference call at 8:00 AM
Dial-in details for the earnings conference call are as follows:
+1-888-317-6003 | |
International: | +1-412-317-6061 |
+852-5808-1995 | |
Mainland | 400-120-6115 |
Participant Code (English line): | 7036236 |
Participant Code (Chinese simultaneous interpretation line): | 7119184 |
Participants may choose between the English and Chinese simultaneous interpretation options above when joining the conference call. Please note that the Chinese simultaneous interpretation option is in listen-only mode. Participants should dial in 10 minutes before the scheduled start time and ask to be connected to the call for "RLX Technology Inc." using the appropriate English or Chinese Participant Code above.
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.relxtech.com.
A replay of the conference call will be accessible approximately two hours after the conclusion of the call until August 21, 2026, by dialing the following telephone numbers:
+1-855-669-9658 | |
International: | +1-412-317-0088 |
Replay Access Code (English line): | 9911837 |
Replay Access Code (Chinese line): | 6469534 |
About RLX Technology Inc.
RLX Technology Inc. (NYSE: RLX) is a leading global branded e-vapor company. The Company leverages its strong in-house technology, product development capabilities and in-depth insights into adult smokers' needs to develop superior e-vapor products.
For more information, please visit: http://ir.relxtech.com.
Non-GAAP Financial Measures
The Company uses non-GAAP net income, non-GAAP income from operations and non-GAAP basic and diluted net income per ADS, each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes. Non-GAAP net income represents net income excluding share-based compensation expenses, amortization and depreciation of assets arising from fair value step-up in business acquisitions, and tax effects on non-GAAP adjustments. Non-GAAP income from operations represents net income from operations excluding share-based compensation expenses and amortization and depreciation of assets arising from fair value step-up in business acquisitions. Non-GAAP basic and diluted net income per ADS is computed using non-GAAP net income attributable to RLX Technology Inc. and the same number of ADSs used in the U.S. GAAP basic and diluted net income per ADS calculation.
The Company presents these non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company believes that they help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that are included in net income. The Company also believes that the use of the non-GAAP measures facilitates investors' assessment of its operating performance, as they could provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects, and allow for greater visibility with respect to key metrics used by the management in its financial and operational decision making.
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. They should not be considered in isolation or construed as an alternative to net income, basic and diluted net income per ADS or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review its historical non-GAAP financial measures against the most directly comparable U.S. GAAP measures. The non-GAAP financial measures here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. The Company encourages investors and others to review its financial information in its entirety and not rely on any single financial measure.
For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and non-GAAP Results" set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB6.7851 to US
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" and similar statements. Among other things, quotations from management in this announcement, as well as the Company's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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. Statements that are not historical facts, including but not limited to statements about the Company'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 Company's growth strategies; its future business development, results of operations and financial condition; trends and competition in the global e-vapor market; changes in its revenues and certain cost or expense items; governmental policies, laws and regulations across various jurisdictions relating to the Company'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 risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is current as of the date of this press release, and the Company does not undertake any obligation to update such information, except as required under applicable law.
For more information, please contact:
In China:
RLX Technology Inc.
Head of Capital Markets
Sam Tsang
Email: ir@relxtech.com
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
Email: RLX@tpg-ir.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: RLX@tpg-ir.com
RLX TECHNOLOGY INC. | |||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(All amounts in thousands) | |||
As of | |||
December 31, | June 30, | June 30, | |
2025 | 2026 | 2026 | |
RMB | RMB | US$ | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | 5,367,139 | 4,629,116 | 682,247 |
Restricted cash | 177,873 | 210,875 | 31,079 |
Short-term bank deposits, net | 2,310,486 | 2,110,069 | 310,985 |
Receivables from online payment platforms | 4,080 | 10,281 | 1,515 |
Short-term investments | 2,326,610 | 2,019,812 | 297,683 |
Accounts and notes receivable, net | 190,442 | 333,047 | 49,085 |
Inventories | 297,682 | 416,246 | 61,347 |
Amounts due from related parties | 210,239 | 483,381 | 71,242 |
Prepayments and other current assets, net | 319,478 | 577,277 | 85,080 |
Total current assets | 11,204,029 | 10,790,104 | 1,590,263 |
Non-current assets: | |||
Property, equipment and leasehold improvement, net | 245,981 | 258,924 | 38,161 |
Intangible assets, net | 213,141 | 183,496 | 27,044 |
Long-term investments, net | 8,330 | 8,330 | 1,228 |
Deferred tax assets, net | 29,104 | 43,808 | 6,456 |
Right-of-use assets, net | 82,430 | 80,710 | 11,895 |
Long-term bank deposits, net | 433,618 | 526,412 | 77,584 |
Long-term investment securities, net | 5,116,336 | 4,387,136 | 646,584 |
Goodwill | 567,181 | 561,665 | 82,779 |
Other non-current assets, net | 29,412 | 10,626 | 1,566 |
Total non-current assets | 6,725,533 | 6,061,107 | 893,297 |
Total assets | 17,929,562 | 16,851,211 | 2,483,560 |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts and notes payable | 403,708 | 229,443 | 33,817 |
Contract liabilities | 84,003 | 82,313 | 12,131 |
Salary and welfare benefits payable | 93,947 | 51,820 | 7,637 |
Taxes payable | 159,718 | 192,901 | 28,430 |
Short-term loan | 92,100 | 165,168 | 24,343 |
Accrued expenses and other current liabilities | 149,552 | 162,807 | 23,995 |
Amounts due to related parties | 474,627 | 109,875 | 16,194 |
Dividend payable | 478,833 | - | - |
Lease liabilities - current portion | 28,588 | 22,768 | 3,356 |
Total current liabilities | 1,965,076 | 1,017,095 | 149,903 |
Non-current liabilities: | |||
Deferred tax liabilities | 112,912 | 98,169 | 14,468 |
Lease liabilities - non-current portion | 55,671 | 56,109 | 8,269 |
Other non-current liability | 64,291 | 53,647 | 7,907 |
Total non-current liabilities | 232,874 | 207,925 | 30,644 |
Total liabilities | 2,197,950 | 1,225,020 | 180,547 |
Shareholders' Equity: | |||
Total RLX Technology Inc. shareholders' equity | 15,633,749 | 15,512,261 | 2,286,223 |
Noncontrolling interests | 97,863 | 113,930 | 16,790 |
Total shareholders' equity | 15,731,612 | 15,626,191 | 2,303,013 |
Total liabilities and shareholders' equity | 17,929,562 | 16,851,211 | 2,483,560 |
RLX TECHNOLOGY INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
(All amounts in thousands, except for share and per share data) | ||||||||
For the three months ended | For the six months ended | |||||||
June 30, | March 31, | June 30, | June 30, | June 30, | June 30, | June 30, | ||
2025 | 2026 | 2026 | 2026 | 2025 | 2026 | 2026 | ||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||
Total net revenues | 879,952 | 1,585,821 | 1,010,453 | 148,922 | 1,688,252 | 2,596,274 | 382,643 | |
Cost of revenues | (552,037) | (965,446) | (559,057) | (82,395) | (1,029,563) | (1,524,503) | (224,684) | |
Excise tax on products | (85,835) | (116,119) | (93,563) | (13,790) | (185,658) | (209,682) | (30,903) | |
Gross profit | 242,080 | 504,256 | 357,833 | 52,737 | 473,031 | 862,089 | 127,056 | |
Operating expenses: | ||||||||
Selling expenses | (84,649) | (122,039) | (123,729) | (18,235) | (143,638) | (245,768) | (36,222) | |
General and administrative expenses | (88,406) | (107,207) | (74,366) | (10,960) | (155,874) | (181,573) | (26,761) | |
Research and development expenses | (30,067) | (30,375) | (29,357) | (4,327) | (57,122) | (59,732) | (8,803) | |
Total operating expenses | (203,122) | (259,621) | (227,452) | (33,522) | (356,634) | (487,073) | (71,786) | |
Income from operations | 38,958 | 244,635 | 130,381 | 19,215 | 116,397 | 375,016 | 55,270 | |
Other income: | ||||||||
Interest income, net | 142,851 | 113,820 | 109,116 | 16,082 | 278,804 | 222,936 | 32,857 | |
Investment income | 24,832 | 9,718 | 7,117 | 1,049 | 33,218 | 16,835 | 2,481 | |
Others, net | 40,324 | (28,761) | 235 | 35 | 69,467 | (28,526) | (4,204) | |
Income before income tax | 246,965 | 339,412 | 246,849 | 36,381 | 497,886 | 586,261 | 86,404 | |
Income tax expense | (28,470) | (45,257) | (24,846) | (3,662) | (56,651) | (70,103) | (10,332) | |
Net income | 218,495 | 294,155 | 222,003 | 32,719 | 441,235 | 516,158 | 76,072 | |
Less: net income attributable to noncontrolling | 1,378 | 10,019 | 4,257 | 627 | 2,078 | 14,276 | 2,104 | |
Net income attributable to RLX Technology Inc. | 217,117 | 284,136 | 217,746 | 32,092 | 439,157 | 501,882 | 73,968 | |
Other comprehensive (loss)/income: | ||||||||
Foreign currency translation adjustments | (26,510) | (173,952) | (181,016) | (26,678) | (42,181) | (354,968) | (52,316) | |
Unrealized income/(loss) on long-term investment | 698 | (22,208) | 2,726 | 402 | 2,765 | (19,482) | (2,871) | |
Total other comprehensive loss | (25,812) | (196,160) | (178,290) | (26,276) | (39,416) | (374,450) | (55,187) | |
Total comprehensive income | 192,683 | 97,995 | 43,713 | 6,443 | 401,819 | 141,708 | 20,885 | |
Less: total comprehensive income attributable to | 632 | 11,699 | 4,368 | 644 | 1,268 | 16,067 | 2,368 | |
Total comprehensive income attributable to RLX | 192,051 | 86,296 | 39,345 | 5,799 | 400,551 | 125,641 | 18,517 | |
Net income per ordinary share/ADS | ||||||||
Basic | 0.178 | 0.231 | 0.178 | 0.026 | 0.359 | 0.408 | 0.060 | |
Diluted | 0.166 | 0.216 | 0.167 | 0.025 | 0.335 | 0.383 | 0.056 | |
Weighted average number of ordinary shares/ADSs | ||||||||
Basic | 1,221,705,674 | 1,232,448,894 | 1,226,191,545 | 1,226,191,545 | 1,224,005,302 | 1,229,302,934 | 1,229,302,934 | |
Diluted | 1,309,486,924 | 1,313,480,246 | 1,307,483,883 | 1,307,483,883 | 1,309,617,920 | 1,311,101,429 | 1,311,101,429 | |
RLX TECHNOLOGY INC. | ||||||||
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS | ||||||||
(All amounts in thousands, except for share and per share data) | ||||||||
For the three months ended | For the six months ended | |||||||
June 30, | March 31, | June 30, | June 30, | June 30, | June 30, | June 30, | ||
2025 | 2026 | 2026 | 2026 | 2025 | 2026 | 2026 | ||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||
Income from operations | 38,958 | 244,635 | 130,381 | 19,215 | 116,397 | 375,016 | 55,270 | |
Add: share-based compensation expenses | ||||||||
Selling expenses | 13,262 | 5,919 | 3,327 | 490 | 16,572 | 9,246 | 1,363 | |
General and administrative expenses | 38,368 | 45,841 | 4,218 | 622 | 62,639 | 50,059 | 7,378 | |
Research and development expenses | 7,188 | 3,494 | 1,516 | 223 | 7,933 | 5,010 | 738 | |
Amortization and depreciation of assets resulting from | ||||||||
Cost of revenues | 13,347 | - | - | - | 13,347 | - | - | |
Selling expenses | 4,881 | 9,956 | 9,707 | 1,431 | 6,884 | 19,663 | 2,898 | |
General and administrative expenses | 167 | 469 | 455 | 67 | 195 | 924 | 136 | |
Non-GAAP income from operations | 116,171 | 310,314 | 149,604 | 22,048 | 223,967 | 459,918 | 67,783 | |
Net income | 218,495 | 294,155 | 222,003 | 32,719 | 441,235 | 516,158 | 76,072 | |
Add: share-based compensation expenses | 58,818 | 55,254 | 9,061 | 1,335 | 87,144 | 64,315 | 9,479 | |
Amortization and depreciation of assets resulting from | 18,395 | 10,425 | 10,162 | 1,498 | 20,426 | 20,587 | 3,034 | |
Tax effects on non-GAAP adjustments | (4,513) | (2,527) | (2,465) | (363) | (4,938) | (4,992) | (736) | |
Non-GAAP net income | 291,195 | 357,307 | 238,761 | 35,189 | 543,867 | 596,068 | 87,849 | |
Net income attributable to RLX Technology Inc. | 217,117 | 284,136 | 217,746 | 32,092 | 439,157 | 501,882 | 73,968 | |
Add: share-based compensation expenses | 58,818 | 55,254 | 9,061 | 1,335 | 87,144 | 64,315 | 9,479 | |
Amortization and depreciation of assets resulting from | 13,002 | 7,613 | 7,410 | 1,092 | 15,033 | 15,023 | 2,214 | |
Tax effects on non-GAAP adjustments(a) | (3,164) | (1,824) | (1,777) | (262) | (3,589) | (3,601) | (531) | |
Non-GAAP net income attributable to RLX Technology | 285,773 | 345,179 | 232,440 | 34,257 | 537,745 | 577,619 | 85,130 | |
Non-GAAP net income per ordinary share/ADS | ||||||||
- Basic | 0.234 | 0.280 | 0.190 | 0.028 | 0.439 | 0.470 | 0.069 | |
- Diluted | 0.218 | 0.263 | 0.178 | 0.026 | 0.411 | 0.441 | 0.065 | |
Weighted average number of ordinary shares/ADSs | ||||||||
- Basic | 1,221,705,674 | 1,232,448,894 | 1,226,191,545 | 1,226,191,545 | 1,224,005,302 | 1,229,302,934 | 1,229,302,934 | |
- Diluted | 1,309,486,924 | 1,313,480,246 | 1,307,483,883 | 1,307,483,883 | 1,309,617,920 | 1,311,101,429 | 1,311,101,429 | |
Note (a): The amortization and depreciation expense and related tax effect attributable to noncontrolling interests have been excluded from the presentation in the reconciliation items for GAAP |
RLX TECHNOLOGY INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(All amounts in thousands) | ||||||||
For the three months ended | For the six months ended | |||||||
June 30, | March 31, | June 30, | June 30, | June 30, | June 30, | June 30, | ||
2025 | 2026 | 2026 | 2026 | 2025 | 2026 | 2026 | ||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||
Net cash generated from/(used in) operating activities | 229,616 | (68,841) | (63,227) | (9,319) | 436,781 | (132,068) | (19,464) | |
Net cash (used in)/generated from investing activities | (816,501) | (116,326) | 983,338 | 144,926 | (1,803,667) | 867,012 | 127,782 | |
Net cash used in financing activities | (326,948) | (863,712) | (403,599) | (59,483) | (312,513) | (1,267,311) | (186,779) | |
Effect of foreign exchange rate changes on cash, cash | 2,436 | (57,648) | (115,006) | (16,950) | (5,604) | (172,654) | (25,447) | |
Net (decrease)/increase in cash and cash equivalents | (911,397) | (1,106,527) | 401,506 | 59,174 | (1,685,003) | (705,021) | (103,908) | |
Cash, cash equivalents and restricted cash at the | 4,870,753 | 5,545,012 | 4,438,485 | 654,152 | 5,644,359 | 5,545,012 | 817,234 | |
Cash, cash equivalents and restricted cash at the end | 3,959,356 | 4,438,485 | 4,839,991 | 713,326 | 3,959,356 | 4,839,991 | 713,326 | |
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SOURCE RLX Technology Inc.