RLX Technology Inc. (RLX) Q2 2025 Earnings Call Transcript
Net Revenues RMB 880 million, a 40% year-over-year increase. Reasons for the increase include successful internationalization strategy, capturing opportunities from the global shift towards reduced-risk smokeless alternatives, and the consolidation of a recently acquired European e-vapor company.
Gross Margin 27.5%, a 2.3 percentage point expansion year-over-year. This was due to a favorable revenue mix from international markets and continued cost optimization efforts.
Non-GAAP Operating Profit RMB 116 million, with a non-GAAP operating margin of 13.2%, expanding by more than 5 percentage points year-over-year. This improvement was driven by contributions from the fast-growing international business and enhanced operating leverage.
Operating Cash Inflow RMB 230 million, a significant increase from RMB 197 million in the same period last year. This was attributed to scale growth and disciplined working capital management.
Total Financial Assets RMB 15.5 billion (approximately USD 2.2 billion) as of June 30, 2025. This strong cash position provides flexibility for strategic growth and innovation investments.
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RLX Technology Extends $500 Million Share Repurchase Program to 2027
- Repurchase Program Extension: RLX Technology's board has authorized a 24-month extension of its existing share repurchase program until December 31, 2027, allowing for up to $500 million in repurchases, aimed at boosting shareholder confidence and stabilizing stock prices.
- Repurchase Progress: As of December 31, 2025, the company has repurchased approximately 170 million ordinary shares for about $330 million, with around $170 million remaining available for repurchase, reflecting a proactive approach to capital management.
- Market Operation Flexibility: The company plans to execute repurchases through open market transactions, privately negotiated deals, and other legally permissible means, ensuring adaptability to market conditions and compliance with regulations.
- Funding Source Assurance: The repurchases are expected to be funded primarily from the existing cash balance, indicating the company's financial stability and ability to seize future market opportunities.
RLX Technology Extends $500 Million Share Repurchase Program to 2027
- Repurchase Program Extension: RLX Technology's board has authorized the extension of its existing share repurchase program for an additional 24 months until December 31, 2027, which is expected to enhance investor confidence and stabilize stock prices.
- Repurchase Amount: Under the current program, the company can repurchase up to $500 million in ordinary shares, having already repurchased approximately $330 million as of December 31, 2025, leaving about $170 million available, indicating the company's recognition of its own value.
- Market Operation Flexibility: The company plans to execute repurchases through open market transactions, privately negotiated deals, and other legally permissible means, allowing it to adapt to market conditions and ensure the effectiveness and efficiency of the buybacks.
- Funding Source: The repurchases are expected to be funded from the company's existing cash balance, reflecting its financial robustness and confidence in future growth.
