August 14, 2026: RLX Q2 2026 Results
RLX Technology reported a resilient second quarter for 2026, headlined by 14.8% YoY net revenue growth to RMB 1,010.5 million (US$ 148.9 million) and a strong gross margin expansion of +790 bps YoY to 35.4%. Growth was primarily propelled by international expansion (representing 68.5% of total net revenues) and contributions from its May 2025 acquisition.
While sequential revenues and gross profit moderated following a Q1 2026 performance that benefited from a one-time export regulation change, GAAP operating income surged 234.7% YoY to RMB 130.4 million. The company maintains a strong balance sheet with RMB 13.88 billion (US$ 2.05 billion) in cash and short/long-term investments, providing substantial optionality for inorganic expansion and shareholder returns.
| Metric (RMB Millions) | Q2 2026 | Q2 2025 | YoY Change (%) | Key Drivers / Remarks |
| Net Revenues | 1,010.5 | 880.0 | +14.8% | International revenue contribution reached 68.5% |
| Gross Profit | 357.8 | 242.1 | +47.8% | Supply chain efficiencies and revenue mix improvement |
| Gross Margin | 35.4% | 27.5% | +790 bps | Favorable channel mix shift & cost optimizations |
| Total OpEx (GAAP) | 227.5 | 203.1 | +12.0% | Higher payroll from M&A offset by lower SBC |
| GAAP Operating Income | 130.4 | 39.0 | +234.7% | Significant operating leverage as revenue scaled |
| Non-GAAP Operating Income | 149.6 | 116.2 | +28.8% | Excludes share-based compensation |
| GAAP Net Income | 222.0 | 218.5 | +1.6% | Higher operating profit offset by lower net interest/other income |
| Non-GAAP Net Income | 238.8 | 291.2 | -18.0% | Impacted by non-operating income adjustments |
| Diluted GAAP EPS / ADS | RMB 0.167 | RMB 0.166 | +0.6% | US$ 0.025 per ADS |
| Diluted Non-GAAP EPS / ADS | RMB 0.178 | RMB 0.218 | -18.3% | US$ 0.026 per ADS |
Income Statement
Net revenues reached RMB 1.01 billion, driven largely by overseas market expansion. International operations now account for 68.5% of total sales, reflecting RLX’s successful transition away from domestic Chinese regulatory headwinds toward overseas markets. Year-over-year revenue comparison benefitted from full-quarter consolidation of the assets acquired in May 2025. Management noted a quarter-over-quarter moderation in top-line growth compared to Q1 2026 due to the normalization of export regulations following a one-time benefit in Q1.
Gross Profit increased 47.8% YoY to RMB 357.8 million. Gross Margin reached 35.4% (up from 27.5% in Q2 2025). The expansion was driven by a higher margin product and geography mix, as well as ongoing supply chain cost optimization. Selling Expenses were RMB 123.7 million (+46.2% YoY). The increase was attributed to added headcount, marketing, and D&A from the May 2025 acquisition. G&A Expenses decreased to RMB 74.4 million (-15.8% YoY) due to reduced share-based compensation (SBC), offsetting higher legal and consulting fees. RLX maintained tight spending on R&D Expenses at RMB 29.4 million (-2.3% YoY) while continuing investment in non-vapor smoke-free technology.
Balance Sheet, Cash Flow & Strategic M&A
Cash, cash equivalents, restricted cash, bank deposits, and investment securities totaled RMB 13.88 billion (US$ 2.05 billion) as of June 30, 2026 (down slightly from RMB 14.53 billion as of March 31, 2026). Net cash used in operating activities was RMB 63.2 million (US$ 9.3 million) for the quarter, reflecting working capital movements associated with international inventory expansion.
Western European Expansion (July 2026 Post-Period Event): Subsequent to quarter-end, RLX acquired a 51% controlling interest in a major Western European distributor of next-generation smoke-free products and FMCG goods. The acquisition brings a large offline distribution footprint and a proprietary B2B digital marketplace serving European retail merchants, establishing a permanent operational anchor in Western Europe.
Operational & Strategic Highlights
RLX is diversifying away from a pure-play e-vapor model into a broader smoke-free platform. The company is actively scaling its modern oral nicotine pouches and expanding into adjacent smokeless categories. In Europe, the Dual-Engine Model combines direct strategic investments in top-tier local distribution partners with organic channel expansion. In mature Asian markets, the retail execution focus has shifted toward store-level execution and shelf-space retention.
Key Considerations
– Positives: GAAP operating income surged greater than 3x YoY, demonstrating solid cost management and gross margin expansion. Over two-thirds of revenue now originates outside domestic markets, reducing regulatory concentration risk in mainland China. The July 2026 Western European distribution acquisition provides a multi-channel framework (offline + B2B digital) for rapid rollout of nicotine pouches and e-vapor products. RMB 13.88B in liquid assets represents a major valuation backstop and supports continued M&A and capital returns.
– Risks to Monitor: Non-GAAP net income declined 18% YoY, reflecting reduced non-operating yields/interest income relative to prior periods. Operating Cashflow turned negative (RMB 63.2 million) in Q2, requiring close monitoring of working capital efficiency during international scale-up. Regulatory scrutiny surrounding next-generation nicotine products (pouches and vapor) in European and Asian jurisdictions remains an ongoing watchpoint.
May 20, 2026: RLX Q1 2026 Results
RLX Technology reported strong first-quarter growth, supported primarily by the continued expansion of its international operations and broader global footprint. The company highlighted progress in refining localized market strategies, strengthening partnerships with regional distributors, and enhancing product-market fit across overseas markets. Management also pointed to the integration of R&D, manufacturing, and commercial functions into its Nexus operational hub, which appears aimed at improving supply chain efficiency and supporting higher production capacity as demand grows. Europe was identified as a key strategic focus area going forward, alongside continued investment in product innovation, retail expansion, and distribution capabilities.
Financially, RLX recorded substantial year-over-year and sequential revenue growth, driven by international momentum, contributions from its acquired European business, steady development in mainland China, and a temporary benefit linked to changes in China’s export policies. Net revenues were RMB1,586 million (US$230 million) in Q1 2026, increasing by 96.2% from RMB808 million in the same period of 2025. The increase was primarily due to the Company’s international expansion and contributions from the May 2025 acquisition (- speculated to be UK-based vaping company, Totally Wicked). Net revenues from international business represented 72.3% of net revenues for the period.
The company also reported significant improvement in profitability, attributing margin expansion to operating leverage, scale efficiencies, and disciplined cost management across its product portfolio. Gross profit was RMB504 million (US$73.1 million) in the first quarter of 2026, increasing by 118.3% from RMB231 million in the same period of 2025. Gross margin increased to 31.8% in the first quarter of 2026 from 28.6% in the same period of 2025, primarily due to a favorable change in the revenue mix and further supply chain optimization.
Operating expenses were RMB259.6 million (US$37.6 million) in the first quarter of 2026, compared with RMB153.5 million in the same period of 2025. The increase was driven by higher salary and welfare expenses related to the May 2025 acquisition and an increase in share-based compensation expenses.
U.S. GAAP income from operations was up +215.9% to RMB244.6 million (US$35.5 million) in Q1 2026 while the net income was up +31.2% to RMB294.2 million (US$42.6 million). Basic and diluted EPS were RMB0.231 (US$0.033) and RMB0.216 (US$0.031), respectively, in Q1 2026, compared with RMB0.181 and RMB0.170, respectively, in the same period of 2025.
Non-GAAP income from operations was up +187.9% to RMB310.3 million (US$45.0 million) in Q1 2026 while the net income was up +41.4% to RMB357.3 million (US$51.8 million). Basic and diluted EPS were RMB0.280 (US$0.041) and RMB0.263 (US$0.038), respectively, in Q1 2026, compared with RMB0.205 and RMB0.193, respectively, in the same period of 2025.
As of March 31, 2026, RLX had capital resources of RMB14,530 million (US$2,106 million), compared with RMB15,732 million as of December 31, 2025. In Q1 2026, net cash used in operating activities was RMB68.8 million (US$10.0 million). Management indicated that RLX’s balance sheet position provides flexibility to continue investing in market penetration and long-term growth initiatives, particularly across Asia and Europe.
