RLX Technology reported a 14.8% year-over-year increase in net revenues for the second quarter of 2026, reaching RMB 1.01 billion ($148.9 million), though results fell short of analyst estimates for both top and bottom lines. Growth was primarily fueled by international expansion and the integration of a prior acquisition, with international markets now contributing 68.5% of total sales. Despite the misses, gross margins expanded significantly to 35.4% due to a more favorable revenue mix and ongoing supply chain improvements.
Key Highlights
- Net revenue of $148.9 million missed the $163.37 million consensus estimate, despite growing 14.8% year-over-year.
- Non-GAAP diluted EPS was $0.026, trailing the analyst expectation of $0.09 per share.
- International revenue share reached 68.5%, increasing from previous years but coming in slightly below the 70% analyst target.
- Gross margin improved to 35.4% from 27.5% in the same period last year, driven by favorable revenue mix and supply chain optimization.
- In July 2026, the company acquired a 51% stake in a major Western European distributor to accelerate its regional route-to-market strategy.