RLX Technology Inc.

RLX reported second-quarter 2026 net revenues of RMB 1.01 billion, up 14.8% year over year from RMB 880 million. Gross profit was RMB 357.8 million, up 47.8% year over year, and gross margin was 35.4%, up 790 basis points year over year and 360 basis points sequentially. Non-GAAP income from operations was RMB 149.6 million, up 28.8% year over year, and non-GAAP net income was RMB 238.8 million. The company said international revenues were about 70% of net revenues, total capital resources were RMB 13.9 billion as of June 30, 2026, and Mainland China sales are expected to be broadly flat year over year for the full year. For the second half, management expects the Western Europe acquisition to lift reported international revenue growth, while gross margin should normalize to a healthier balanced range as mix effects fade.

Kate Wang framed the quarter as proof of a “quality-driven” growth strategy, emphasizing resilience, compliance, and sustainable expansion rather than chasing low-margin volume. She highlighted Europe as the cornerstone of global growth, including the May 2025 acquisition and the July 2026 controlling investment in a Western European distributor, and said RLX is building a broader smoke-free platform beyond e-vapor into modern oral and heat-not-burn. Her tone was confident and strategic, but also disciplined, repeatedly stressing regulatory adaptability, capital discipline, and patience.

Chao Lu focused on the numbers: revenue of RMB 1.01 billion, gross profit of RMB 357.8 million, gross margin of 35.4%, non-GAAP operating income of RMB 149.6 million, and non-GAAP net income of RMB 238.8 million. He said the gross margin expansion came from supply chain optimization, manufacturing yield improvement, and favorable geographic and product mix, and noted 11 straight quarters of positive non-GAAP operating profit. He also pointed to RMB 13.9 billion in total capital resources at quarter-end and said the new Western Europe distributor will be fully consolidated starting in Q3 2026, which should expand revenue and profit scale even if percentage gross margin trends lower because distribution is structurally lower-margin.

Analysts focused on capital allocation, M&A criteria, second-half overseas growth, margin outlook, the U.S. strategy, China enforcement, European competition, and oral pouches. Management said capital will be split among organic growth, selective accretive M&A, and shareholder returns through buybacks and dividends, with deals needing cash payback, EPS accretion, and strategic fit rather than a fixed valuation cap. On the U.S., RLX said it is waiting for a clearer and more credible regulatory path before committing large-scale capital, while on China it said tighter enforcement against illegal products is positive long term but makes full-year sales likely broadly flat. The company also said modern oral pouches are a principal growth driver and that the Southeast Asia manufacturing hub and European distribution network should support that category’s rollout.