On May 20, RLX Technology Inc. (NYSE: RLX) released its unaudited financial results for the first quarter of 2026, showcasing explosive growth in both revenue and profit, highlighting the success of its global strategy and the strong momentum from its international business.
The financial report reveals that RLX Technology achieved net revenue of RMB 1.5858 billion (approximately USD 229.9 million) in Q1 2026, representing a significant year-on-year increase of 96.2% and a quarter-on-quarter growth of 38.9%. Profitability was equally impressive, with non-GAAP net income reaching RMB 357.3 million (about USD 51.8 million), up 41.4% year-over-year. Operating profit surged 187.9% to RMB 310.3 million.
The quality of earnings also improved steadily. Gross profit for the quarter was RMB 504.3 million, with the gross margin rising to 31.8%, an increase of 3.2 percentage points from the same period last year. In terms of asset reserves, as of March 31, 2026, RLX Technology's combined cash and cash equivalents, various deposits, and short- and long-term investment securities totaled RMB 14.5297 billion (approximately USD 2.1064 billion). This substantial financial reserve solidifies the foundation for implementing its global strategy.
Regarding the outstanding first-quarter performance, Kate Wang, Founder, Chairperson, and CEO of RLX Technology, stated that the company achieved a strong start to 2026, primarily driven by the continued expansion of its global business system and steady growth in consumer demand in Europe and emerging markets. During the quarter, RLX Technology deepened its localized operational strategies and enhanced collaboration with high-quality partners in various regions, ensuring a strong user experience and market competitiveness for its core products in key markets. The company has now fully integrated its R&D, manufacturing, and commercial operations into the new integrated campus "Nexus," significantly improving supply chain efficiency and product market responsiveness, providing robust support for global business expansion. Moving forward, the company will continue to focus on product innovation, channel enhancement, and expansion in key markets, refining global operational efficiency and brand strength, upholding corporate social responsibility, providing adult consumers with high-quality products, and safeguarding the company's long-term sustainable development.
Chao Lu, CFO of RLX Technology, further elaborated on the drivers of the performance growth. He pointed out that the substantial revenue increase in Q1 was primarily driven by both international and domestic business segments. The consolidation of the European acquisition entity established in May 2025 contributed significantly, coupled with a temporary one-time benefit from export policy adjustments, jointly propelling the sharp revenue rise. Furthermore, the operating leverage effect from business growth, ongoing cost optimization initiatives, and the economies of scale from a diversified product portfolio have continuously optimized the company's overall profit margin structure. Supported by a robust balance sheet, the company will leverage its ample financial flexibility to accelerate its expansion in key Asian and European markets, deepen its presence in the global growth track, and continue to create long-term value for shareholders.
Industry analysis suggests that RLX Technology's leapfrog growth in the first quarter validates the soundness of its diversified market layout and globalization strategy. With increasing international market penetration, a maturing localized operational system, and the growing advantages of supply chain integration, RLX Technology is positioned to sustain its high-growth trajectory and consolidate its leading position in the global industry.
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