RLX Technology Inc. (NYSE: RLX) made headlines as its stock soared 10% to close at $2.57, climbing further to $2.58 in after-hours trading following the release of its Q3 2025 earnings on November 15, 2025. The company’s impressive results demonstrate robust revenue growth and expanding profit margins, underscoring RLX’s focus on international markets amidst ongoing regulatory headwinds in Mainland China and Europe.
In a remarkable display of financial performance, RLX reported a net revenue of RMB1.13 billion (approximately USD158.6 million), which represents a staggering 49% increase compared to the same quarter last year. Furthermore, the company saw a significant 28% increase in revenue quarter-over-quarter, largely propelled by its expanding footprint in international markets, now contributing over 70% to total revenues.
The company’s international strategy appears to be yielding tangible results, with international markets accounting for 71.6% of its quarterly revenue. This growth trajectory is a testament to RLX’s successful equity investments and operational adjustments amid the evolving global landscape.
“The recent earnings report reflects our commitment to robust growth and optimized operational performance,” said a company representative. As part of its continued efforts, RLX reported a gross profit of RMB352.6 million, driven by an enhanced revenue mix and a substantial increase in gross margin, which expanded to 31.2%—up from 27.2% the previous year. This margin expansion indicates stronger profitability across key international markets, pointing toward a strategic approach to enhancing operational efficiency.
Operating performance also showed marked improvements, with non-GAAP operating income climbing to RMB187.8 million, a considerable rise from RMB84.0 million last year. In a significant turn, U.S. GAAP income from operations recorded a positive RMB93.3 million, up from losses in the same quarter of 2024. This shift indicates a stable recovery and growth in RLX’s operational health.
Despite a rise in operating expenses to RMB259.3 million due to increased salaries and shipping costs, RLX’s overall financial health appears strong. The company managed to limit share-based compensation and invests strategically in global retail and logistics capabilities. Research and development expenditures rose to RMB41.3 million, fueling innovations aimed at regulatory compliance and product enhancement.
The company also spotlighted its robust cash flow situation, generating RMB357.5 million in operating cash flow, significantly up from RMB157 million in the preceding year. Total financial assets reached RMB15.35 billion (USD2.16 billion), which bolsters RLX’s ability to pursue new investments and expand shareholder returns.
In terms of shareholder returns, RLX is making proactive efforts, having approved a cash dividend of USD0.1 per share, slated for distribution in early February 2026. So far, the company has returned USD171 million through dividends and repurchased shares exceeding USD330 million as part of its USD500 million buyback plan.
As of November 15, 2025, RLX has achieved a remarkable 17.89% year-to-date return, a 58.54% increase over the past year, and a staggering 64.30% return over three years, significantly outperforming the MSCI World Index during the same periods.
