RLX Technology Inc. ($RLX) Q2 Earnings: EPS Miss, Revenue Surprise & Dividend Shockwave

RLX Technology just dropped a quarterly bomb that's got Wall Street scrambling.

Earnings Whiplash

The numbers tell a split-story: earnings per share stumbled below expectations while revenue sprinted past forecasts. No specific figures here—just pure performance drama unfolding.

Dividend Gambit

Management's throwing cash at shareholders with a surprise dividend announcement. Because nothing says 'we don't know what to do with excess capital' like writing checks instead of investing in growth.

Market Calculus

Traders now face the classic dilemma: punish the EPS miss or reward the revenue beat and shareholder payout? Another day, another earnings report that leaves everyone more confused than before.

TLDR:

• Q2 2025 EPS of $0.14 missed estimates of $0.18
• Revenue of $881.9M beat expectations by $148.2M
• Net income rose to RMB218.5M ($30.5M)
• Dividend of $0.01 per share announced, payable in September
• Stock trades at $2.42 pre-market, up 8.04%

RLX Technology Inc. (NYSE: RLX) reported its second-quarter 2025 earnings on Friday, August 22. As of pre-market trading, shares stand at $2.42, up 8.04%, from the prior close of $2.24.

RLX Technology Inc. (RLX)

The company posted quarterly earnings per share (EPS) of $0.14, falling short of analyst expectations of $0.18 by $0.04.

Despite the EPS miss, revenue was a bright spot, coming in at $881.9 million, well above estimates of $733.7 million. This reflects a significant improvement from RMB627.2 million in the same quarter last year.

Financial Performance Highlights

• Net revenues: RMB880.0 million (US$122.8M), up 40.3% year-over-year.
• Gross margin: 27.5% vs. 25.2% a year ago, boosted by favorable revenue mix.
• Non-GAAP income from operations: RMB116.2M (US$16.2M), up 147.6% YoY.
• GAAP net income: RMB218.5M (US$30.5M), compared with RMB134.9M last year.
• Non-GAAP net income: RMB291.2M (US$40.6M), up from RMB214.8M.

Operating expenses ROSE slightly to RMB203.1M due to higher salaries, welfare, and branding expenses. General and administrative costs fell due to reduced share-based compensation. Research and development expenses increased to RMB30.1M, reflecting investment in innovation.

RLX Technology, $RLX, Q2-25. Results:

📊 Adj. EPS: $0.03 🟢
💰 Revenue: $122.8M 🟢
📈 Net Income: $30.5M
🔎 Strong performance driven by international expansion and improved product mix. pic.twitter.com/mH8PeARvpV

— EarningsTime (@Earnings_Time) August 22, 2025

Dividend Announcement

RLX’s Board of Directors approved a cash dividend of $0.01 per ordinary share/ADS. Holders of record as of September 12, 2025 will receive payments around September 19 (ordinary shares) and September 26 (ADSs). This marks a step toward shareholder returns, signaling confidence in cash FLOW strength.

Strategic Growth and Expansion

CEO Ying (Kate) Wang highlighted strong international momentum despite regulatory shifts in the global e-vapor industry. The company credited its growth to compliance-focused strategies, localized execution, and international distribution partnerships. CFO Chao Lu noted disciplined cost control and an optimized product mix driving profitability improvements.

Gross profit grew to RMB242.1M ($33.8M), reflecting efficiency gains across international markets, with conversion rates strengthening in Asia.

Balance Sheet Strength

As of June 30, 2025, RLX reported RMB15.5 billion ($2.17B) in cash, equivalents, and investments, slightly lower than March 31. Operating cash Flow was strong at RMB229.6M ($32.1M), reinforcing liquidity to support dividend payouts and global expansion.

Stock and Performance Outlook

RLX shares have risen 25.8% over the past year, though the stock is still down 89.9% over five years. Year-to-date, the stock is up 2.75%, trailing the MSCI World benchmark’s 11.46%.

Management remains optimistic about sustaining momentum, with global compliance and innovation central to its long-term growth strategy. With a dividend in place and expanding international footprint, RLX aims to reinforce investor confidence as it navigates the evolving e-vapor market.