ATRenew's 2025 Q1 Earnings Call: Unraveling Contradictions on Recycling Subsidies, AI Integration, and Shareholder Returns

Recycling subsidies and market growth potential, AI integration and deployment, capital management and shareholder returns, recycling and trade-in program growth, non-GAAP operating profit margin improvement are the key contradictions discussed in ATRenew's latest 2025Q1 earnings call.



Revenue Growth and Trade-in Services:
- ATRenew reported total revenues of RMB 4,653.5 million in Q1 2025, up 27.5% year-over-year.
- This growth was primarily driven by the accelerated growth of the 1P business, driven by national subsidies for smartphones and increased demand through strategic partnerships like JD.com.

1P Business Performance:
- 1P business revenue grew by 28.8% year-over-year in Q1 2025.
- This was attributed to enhanced offline fulfillment capabilities, improved AHS Recycle brand recognition, and successful strategic partnerships with key players.

Operating Profit and Margin Improvement:
- ATRenew's non-GAAP operating income increased by 39.5% year-over-year to over RMB 110 million.
- Improvements in 1P business gross margin and control over expense ratios contributed to the increase in operating income and profit margin.

Marketplace and Multi-Category Recycling Growth:
- PJT Marketplace saw a significant rise in trade-in and service acceptance, with over one million registered merchants.
- Growth in service revenue and an increase in the overall marketplace take rate reflect the expansion and optimization of recycling services and the growing prominence of the platform.

Store Network Expansion:
- As of March 31, 2025, ATRenew had 1,886 AHS Recycle stores nationwide, with a net addition of 458 during the quarter.
- The expansion of the store network was driven by the need to handle incremental trade-in volumes from national subsidies and improve user satisfaction through better fulfillment capabilities.