RLX Technology's Q3 2025 Results: International Business Fuels Revenue Surge, Shareholder Returns Remain Robust
International Markets Drive Significant Revenue Growth in Q3 2025
RLX Technology posted a sharp rise in third-quarter performance, propelled by expansion across Europe and Asia-Pacific. The company reported net revenues of RMB 1,129.3 million (US$158.6 million), a 49.3% increase compared to the same period last year. This acceleration was primarily driven by the international business, which now represents a commanding 71.6% of total revenues—a clear testament to the firm's global strategy taking hold.
The improvement wasn’t limited to just topline growth. RLX’s gross margin climbed to 31.2% from 27.2% a year earlier, bolstered by high-return investments in Europe and a shift in revenue mix toward more profitable geographies. Notably, the company's non-GAAP income from operations more than doubled year-over-year to RMB 187.8 million (US$26.4 million), while non-GAAP net income reached RMB 295.4 million (US$41.5 million).
Profitability Up Across the Board: Margin Expansion Signals Strength
Beyond headline revenue gains, RLX’s financials highlight significant operating leverage. Gross profit for the quarter was RMB 352.6 million (US$49.5 million), up from RMB 206.0 million last year. Meanwhile, operating expenses increased to RMB 259.3 million (US$36.4 million), mostly due to higher sales, R&D, and shipping outlays—each linked to expanding global reach and product innovation.
Here’s a quick overview of key Q3 financials (in millions):
| Metric | Q3 2024 | Q3 2025 | Change (%) |
|---|---|---|---|
| Net Revenues (RMB) | 756.3 | 1,129.3 | +49.3% |
| Gross Margin (%) | 27.2 | 31.2 | +4.0 pts |
| Non-GAAP Operating Income (RMB) | 84.0 | 187.8 | +123.6% |
| Non-GAAP Net Income (RMB) | 263.6 | 295.4 | +12.1% |
Shareholder Returns Stand Out: Over $500 Million Returned in Dividends and Buybacks
RLX’s capital return policy continues to set it apart in the e-vapor industry. As of the end of Q3 2025, the company had repurchased 170 million shares, totaling US$330 million. The board also approved a new cash dividend of US$0.10 per ADS, bringing total cash dividends distributed to US$171 million since inception. Together with ongoing repurchases, total capital returned exceeds US$500 million.
RLX’s strong balance sheet, with over RMB 15.35 billion (US$2.16 billion) in cash, equivalents, and investments, underpins its commitment to sustainable value creation for investors—even as the company ramps up international expansion and R&D investment.
Resilience Amid Macroeconomic and Regulatory Hurdles
Management emphasized the company’s disciplined execution despite "persistent macro and regulatory challenges." Strategic investments in retail networks, tailored products for local markets, and successful enforcement actions in Mainland China have enabled a measured recovery domestically and further growth abroad.
The rollout of proprietary oral products in the UK demonstrates RLX’s efforts to diversify its portfolio and expand its user base. As regulatory scrutiny increases globally, RLX appears to be positioning itself as a leader in compliance and quality, supporting a long-term global growth narrative.
Key Metrics Table: Financial Snapshot (Q3 2025)
| Key Metric | Amount (RMB million) | Amount (US$ million) |
|---|---|---|
| Net Revenue | 1,129.3 | 158.6 |
| Gross Profit | 352.6 | 49.5 |
| Non-GAAP Net Income | 295.4 | 41.5 |
| Cash and Investments | 15,351.1 | 2,156.4 |
Looking Ahead: Global Strategy and Investor Focus
With management reiterating its confidence in international and innovation-led growth, RLX is clearly signaling an intent to remain on the offensive. The latest financials not only underscore operational progress, but also the importance of capital discipline for shareholders.
As regulatory landscapes evolve and competition intensifies in e-vapor markets, RLX's blend of prudent capital returns, margin expansion, and global growth strategy warrants close monitoring by investors seeking both stability and upside in the consumer health and technology sector.
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