RLX Technology Inc. ($RLX) Stock: Q2 Earnings Miss on EPS, Revenue Beats, Dividend Announced

TLDR:

• Q2 2025 EPS of $0.14 missed estimates of $0.18
• Revenue of $881.9M beat expectations by $148.2M
• Net income rose to RMB218.5M ($30.5M)
• Dividend of $0.01 per share announced, payable in September
• Stock trades at $2.42 pre-market, up 8.04%

RLX Technology Inc. (NYSE: RLX) reported its second-quarter 2025 earnings on Friday, August 22. As of pre-market trading, shares stand at $2.42, up 8.04%, from the prior close of $2.24.

RLX Technology Inc. (RLX)

The company posted quarterly earnings per share (EPS) of $0.14, falling short of analyst expectations of $0.18 by $0.04.

Despite the EPS miss, revenue was a bright spot, coming in at $881.9 million, well above estimates of $733.7 million. This reflects a significant improvement from RMB627.2 million in the same quarter last year.

Financial Performance Highlights

• Net revenues: RMB880.0 million (US$122.8M), up 40.3% year-over-year.
• Gross margin: 27.5% vs. 25.2% a year ago, boosted by favorable revenue mix.
• Non-GAAP income from operations: RMB116.2M (US$16.2M), up 147.6% YoY.
• GAAP net income: RMB218.5M (US$30.5M), compared with RMB134.9M last year.
• Non-GAAP net income: RMB291.2M (US$40.6M), up from RMB214.8M.

Operating expenses rose slightly to RMB203.1M due to higher salaries, welfare, and branding expenses. General and administrative costs fell due to reduced share-based compensation. Research and development expenses increased to RMB30.1M, reflecting investment in innovation.

Dividend Announcement

RLX’s Board of Directors approved a cash dividend of $0.01 per ordinary share/ADS. Holders of record as of September 12, 2025 will receive payments around September 19 (ordinary shares) and September 26 (ADSs). This marks a step toward shareholder returns, signaling confidence in cash flow strength.

Strategic Growth and Expansion

CEO Ying (Kate) Wang highlighted strong international momentum despite regulatory shifts in the global e-vapor industry. The company credited its growth to compliance-focused strategies, localized execution, and international distribution partnerships. CFO Chao Lu noted disciplined cost control and an optimized product mix driving profitability improvements.

Gross profit grew to RMB242.1M ($33.8M), reflecting efficiency gains across international markets, with conversion rates strengthening in Asia.

Balance Sheet Strength

As of June 30, 2025, RLX reported RMB15.5 billion ($2.17B) in cash, equivalents, and investments, slightly lower than March 31. Operating cash flow was strong at RMB229.6M ($32.1M), reinforcing liquidity to support dividend payouts and global expansion.

Stock and Performance Outlook

RLX shares have risen 25.8% over the past year, though the stock is still down 89.9% over five years. Year-to-date, the stock is up 2.75%, trailing the MSCI World benchmark’s 11.46%.

Management remains optimistic about sustaining momentum, with global compliance and innovation central to its long-term growth strategy. With a dividend in place and expanding international footprint, RLX aims to reinforce investor confidence as it navigates the evolving e-vapor market.

 

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