RLX Technology Inc. (RLX) Stock: Rises 10% After Q3 Earnings Reveal Strong Growth and Expanding Margins

TLDR

• Q3 net revenue surged 49% year-over-year to RMB1.13 billion.
• Gross margin rose to 31.2% from 27.2% last year.
• International markets contributed over 70% of total revenue.
• Cash flow from operations rose to RMB357.5 million.
• Shareholder returns now exceed USD500 million since IPO.

RLX Technology Inc. (NYSE: RLX) closed at $2.57, rising 10.30% before inching up to $2.58 after hours.

RLX Technology Inc., RLX

The company released its Q3 2025 earnings on November 15, 2025, reporting strong revenue gains, margin expansion and significant progress in international markets. These results highlight the company’s accelerating global strategy even as regulatory hurdles continue in Mainland China and Europe.

Revenue Growth Driven by International Expansion

Net revenue reached RMB1,129.3 million (USD158.6 million), up 49% year-over-year and 28% quarter-over-quarter. Growth was supported by equity investments in European markets, stronger performance across international regions and a gradual revenue recovery in Mainland China. International markets represented 71.6% of total quarterly revenue, reflecting the company’s successful global push.

Gross profit rose to RMB352.6 million, supported by an improved revenue mix and stronger profitability in major international markets. Gross margin expanded to 31.2%, up 4 percentage points year-over-year.

Operating Performance and Profitability

Non-GAAP operating income reached RMB187.8 million, up from RMB84.0 million last year. U.S. GAAP income from operations turned positive at RMB93.3 million, reversing a loss in the same quarter of 2024.

Operating expenses rose to RMB259.3 million due to higher salaries, welfare costs and shipping expenses, offset partly by lower share-based compensation. Selling expenses nearly doubled as RLX invested in global retail and logistics. General and administrative expenses dropped from last year, helped by reduced share-based compensation.

Research and development spending increased to RMB41.3 million as RLX expanded investment in product innovation and regulatory compliance.

Cash Flow, Liquidity and Balance Sheet Strength

RLX generated RMB357.5 million in operating cash flow, up sharply from RMB157 million last year. Total financial assets stood at RMB15.35 billion (USD2.16 billion), providing flexibility for new investments, international expansion and shareholder returns.

U.S. GAAP net income rose to RMB206.8 million, while non-GAAP net income reached RMB295.4 million. Basic and diluted net income per ADS improved year-over-year across both GAAP and non-GAAP measures.

Shareholder Returns Continue to Grow

RLX approved a USD0.1 cash dividend per share or ADS, payable in early February 2026. The company has returned USD171 million through dividend programs and repurchased USD330 million worth of shares under its USD500 million buyback plan.

As of November 15, 2025, RLX delivered a 17.89% YTD return, a 58.54% 1-year return, and a 64.30% 3-year return, outperforming the MSCI World Index across all tracked periods.

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