RLX Technology Q2 2025 Earnings: Revenue Surpasses Expectations, EPS Falls Short

RLX Technology's Q2 2025 earnings show revenues up 42% to CN¥794.1m, beating expectations. Net income increased 64% to CN¥217.1m, and profit margin rose to 27%. However, EPS missed analyst estimates by 7.6%. Revenue is forecast to grow 20% p.a. over the next 3 years.

RLX Technology Inc. (RLX) released its Q2 2025 earnings report, showcasing robust financial performance with significant revenue growth and an impressive profit margin increase. The company's net revenues surged by 42% to CN¥794.1 million, exceeding analyst expectations by 20.89%. This strong performance was accompanied by a 64% increase in net income to CN¥217.1 million and a gross margin expansion to 27%.

However, earnings per share (EPS) fell short of expectations by 7.62%, with actual EPS of $0.166 compared to the forecasted $0.1797. Despite this EPS miss, the revenue beat and improved profit margins buoyed investor sentiment. RLX's stock price rose by 8.08% in pre-market trading, reaching $2.421 per share.

Key financial highlights include:
- Revenue: CN¥794.1 million (up 42% year-over-year)
- Net Income: CN¥217.1 million (up 64% year-over-year)
- Gross Margin: 27% (up from 25% in Q2 2024)
- EPS: $0.166 (missed forecast by 7.62%)

RLX Technology's strong revenue growth and expanded gross margin reflect the company's effective execution in international expansion and adaptation to shifting consumer trends and regulatory environments. The company's operating margin improved to 13.2%, indicating efficient management and cost control.

Looking ahead, analysts forecast continued revenue growth of 20% per annum over the next three years. RLX Technology plans to expand into additional European and Asian markets and is considering expansion to a new continent by early 2026. The company remains focused on innovation and compliance, targeting sustainable growth and shareholder value.

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