ATRenew's Q2 2025 Earnings Call: Dissecting Contradictions on Subsidies, Profit Margins, and Trade-In Strategies

Impact of national subsidies on trade-in activity, operating profit margin improvements, Apple trade-in business profitability, impact of subsidies on recycling volume, and Apple trade-in business impact are the key contradictions discussed in ATRenew Inc.'s latest 2025Q2 earnings call.



Revenue Growth and Market Performance:
- ATRenew Inc. reported total revenue of RMB 4.99 billion for Q2 2025, representing a year-over-year growth of 32.2%.
- The growth was driven by strong performance in both online sales of pre-owned consumer electronics and 3P multi-category recycling operations.

1P Product Revenue and Supply Chain Efficiency:
- 1P product revenue grew by 34% year-over-year to RMB 4.56 billion.
- The increase was attributed to efficient C2B recycling scenarios, compliant refurbishment capabilities, and a diversified retail channel mix.

3P Service Revenue and Platform Expansion:
- 3P service revenue increased by 15.4% year-over-year with an overall take rate of 5.3%.
- Growth was driven by the multi-category recycling business and the consignment model implemented in Paipai's 3P business, enhancing operational convenience for small-and-medium-sized secondhand merchants.

Operating Profitability and Margin Improvement:
- Non-GAAP operating profit margin was 2.4%, meeting the full-year target.
- Margin improvement was driven by efficient recycling scenarios, compliant refurbishment capabilities, and an increasingly diversified retail channel mix.

Strategic Partnerships and Brand Development:
- ATRenew expanded partnerships with high-quality consumer electronics brands and integrating its comprehensive supply chain capabilities across B2C, B2B, and compliant refurbishment operations.
- This strategy aims to strengthen its position as China's largest and most robust leader in the transaction and service of pre-owned consumer electronics, driven by the increasing acceptance of secondhand consumption among younger consumers.