RLX Technology Inc. Q2 2025 Earnings Call Transcript

RLX Technology Inc. (NYSE:RLX) Q2 2025 Earnings Conference Call reported results through PR News Wire. The company's financial and operational results are available online. The call will include CEO Kate Wang, CFO Chao Lu, and Head of Capital Markets Sam Tsang. The discussion will contain forward-looking information under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

RLX Technology Inc. (NYSE:RLX) reported its Q2 2025 earnings on July 2, 2025, with a mixed performance that saw revenue exceed expectations while earnings per share (EPS) fell short. The company posted actual EPS of $0.166, missing the forecasted $0.1797 by 7.62%, but revenue reached $879.95 million, surpassing the forecast of $727.88 million by a significant 20.89% [1].

The stock price of RLX Technology rose by 8.08% in pre-market trading, reaching $2.421 per share, reflecting investor optimism driven by the substantial revenue beat despite the EPS miss [1]. The company's gross margin expanded to 27.5%, and its operating margin improved to 13.2%, reflecting efficient management and cost control [1].

RLX Technology's revenue growth was impressive, with a 40% year-over-year increase in net revenues and a 9% increase quarter-over-quarter. The company's gross margin has expanded to 27.5%, marking the seventh consecutive quarter of positive non-GAAP operating profit [1]. Analysts forecast continued growth of 27% for FY2025 [1].

The company plans to expand into additional European and Asian markets and is considering expansion to a new continent by early 2026. RLX Technology remains focused on compliance and innovation, targeting sustainable growth and shareholder value. The company maintains a cash dividend of $0.1 per share [1].

Executives expressed confidence in the company's financial stability and growth prospects, with CEO Kate Huang stating, "We are positioning IELTS to cap the opportunities of today while shaping the future of the industry" [1]. CFO Chao Lu added, "Our outstanding Q2 twenty twenty five results demonstrated executional excellence as well as the resilience of our business model" [1].

Risks and challenges include regulatory changes, the dominance of illegal products, global supply chain disruptions, increased competition, and economic uncertainties in emerging markets. The company anticipates a decline in gray/black market products and is collaborating with regulators to combat illegal manufacturing [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-rlx-technology-q2-2025-revenue-beats-forecast-stock-rises-93CH-4206850