ATRenew Soars 8.62% on Q3 Revenue Surge, Q4 Guidance Boosting Investor Optimism

The share price rose to its highest level so far this month today, with an intraday gain of 8.62%.

ATRenew’s rally reflects strong revenue growth and strategic expansion. Q3 2025 revenue surged 27.1% year-over-year to RMB 5.15 billion, driven by store expansion and partnerships with Apple and Huawei. Management projected Q4 revenue of RMB 6.08–6.18 billion, signaling confidence in sustained momentum. The company’s asset-light model and integrated C2B/B2C operations have enhanced scalability, though recurring earnings shortfalls—such as a -52.56% EPS surprise in Q3—highlight profitability challenges.

Valuation metrics and guidance underpin investor optimism despite risks. A P/E ratio of 37.48 suggests potential undervaluation, though analysts caution that persistent earnings gaps and a high multiple could deter risk-averse investors. CEO Kerry Chen emphasized supply chain efficiency and diversified revenue streams, while CFO Rex Chen reiterated the company’s focus on cost control. However, intensifying competition in the electronics recycling sector and operational scalability concerns remain headwinds. The stock’s 43.93% annual gain underscores market confidence, but translating revenue into consistent profits will be critical for long-term momentum.

Investors are closely watching ATRenew’s ability to convert its aggressive expansion into sustainable earnings. With a growing footprint and strategic partnerships with tech giants like Apple and Huawei, the company has positioned itself at the forefront of the green technology movement. Still, the road to profitability is lined with challenges, particularly in managing expectations for recurring earnings surprises. As the stock continues to attract attention from both institutional and retail investors, all eyes are on the next quarterly report to see if the company can deliver on its ambitious projections.

Meanwhile, the broader electronics recycling market is expected to expand rapidly, creating both opportunities and pressures for ATRenew. The company’s ability to innovate and maintain a cost-efficient supply chain will be pivotal in navigating this landscape. As analysts debate the long-term valuation of the stock, one thing remains clear: the balance between growth and profitability will determine ATRenew’s success in the years to come.