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Mar 31

RLX Q1 2025 Earnings Report

RLX Technology reported strong Q1 2025 results with notable revenue growth and increased profitability.

Key Takeaways

The company achieved a significant increase in revenue and profitability in Q1 2025, driven by international expansion and effective cost optimization measures.

Revenue rose to $111,387,000 due to international expansion.

Net income increased to $30,695,000 under U.S. GAAP.

Non-GAAP EPS was $0.028, reflecting strong operating efficiency.

Gross margin improved to 28.6%, supported by cost control.

Total Revenue
$111M
Previous year: $65.4M
+70.2%
EPS
$0.028
Previous year: $0.022
+27.3%
Gross margin
28.6%
Previous year: 25.9%
+10.4%
Net cash from operations
$28.5M
Gross Profit
$31.8M
Previous year: $19.9M
+60.2%
Cash and Equivalents
$671M
Previous year: $1.02B
-34.3%
Total Assets
$2.35B
Previous year: $2.22B
+6.1%

RLX

RLX

RLX Revenue by Segment

RLX Revenue by Geographic Location

Forward Guidance

RLX expects continued pressure from regulatory changes but remains confident in its strategic capabilities to sustain growth.

Positive Outlook

  • Strong brand recognition in global markets
  • Robust inventory and supply chain management
  • Shifting to larger-volume e-liquid formats aligns with consumer trends
  • Ongoing international expansion supports revenue
  • Effective cost control measures continue to drive margin improvements

Challenges Ahead

  • Global bans on disposable e-vapor products
  • Increased excise taxes on vapor products
  • Uncertain and evolving international regulatory environment
  • Fluctuations in share-based compensation expenses
  • Continued macroeconomic headwinds impacting demand