RLX Technology (NYSE:RLX) Posts Earnings Results, Hits Estimates

Key Points

• RLX reported quarterly EPS of $0.03, meeting estimates, while Q4 revenue rose to RMB 1.14 billion (up 40.3% YoY) and full-year revenue reached RMB 3.96 billion with gross margin expanding to 31.4% and nine consecutive quarters of positive non-GAAP operating profit.
• International expansion accelerated, with international sales making up 76.5% of revenue as the company pushes into Western Europe and says it has a replicable global expansion blueprint after share gains in Asia Pacific.
• RLX has a strong liquidity position, ending the year with RMB 15.73 billion (~$2.2 billion) in financial assets, generating RMB 1.1 billion in operating cash flow for the year and returning over $500 million to shareholders.

RLX Technology (NYSE:RLX - Get Free Report) announced its quarterly earnings data on Friday. The company reported $0.03 EPS for the quarter, meeting analysts' consensus estimates of $0.03, FiscalAI reports. RLX Technology had a return on equity of 4.74% and a net margin of 21.05%.

Here are the key takeaways from RLX Technology's conference call:

• International growth accelerated in Q4 with international sales comprising 76.5% of revenue; the company is prioritizing Western Europe and reports a replicable global expansion blueprint after rapid share gains in Asia Pacific.
• Strong financial results — Q4 net revenues were RMB 1.14 billion (up 40.3% YoY) and full-year revenue was RMB 3.96 billion (up 44%), with gross margin expanding to 31.4% and nine consecutive quarters of positive non-GAAP operating profit.
• Robust balance sheet and returns — the company ended 2025 with RMB 15.73 billion (~$2.2 billion) in financial assets, generated RMB 1.1 billion operating cash flow for the year, and has returned over $500 million to shareholders while keeping optionality for disciplined M&A.
• Mainland China business is stable and compliant, growing over 20% in 2025 aided by stricter enforcement against illicit products, but management expects 2026 growth to normalize off a high base.
• AI-driven operating leverage — management is embedding AI across product design and supply chain to speed launches and improve efficiency, enabling global scale without proportional headcount increases.

RLX Technology Trading Down 0.7%

NYSE:RLX traded down $0.02 during mid-day trading on Friday, hitting $2.26. 899,424 shares of the company's stock were exchanged, compared to its average volume of 2,404,604. The company has a 50 day simple moving average of $2.33 and a 200-day simple moving average of $2.40. RLX Technology has a fifty-two week low of $1.66 and a fifty-two week high of $2.84. The firm has a market capitalization of $3.54 billion, a P/E ratio of 32.21 and a beta of 1.11.

Analysts Set New Price Targets

Several equities analysts have weighed in on RLX shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of RLX Technology in a report on Thursday, January 22nd. Wall Street Zen raised shares of RLX Technology from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $2.25.

Institutional Investors Weigh In On RLX Technology

Institutional investors and hedge funds have recently bought and sold shares of the business. Marshall Wace LLP boosted its holdings in shares of RLX Technology by 29.3% in the 2nd quarter. Marshall Wace LLP now owns 1,133,093 shares of the company's stock valued at $2,504,000 after buying an additional 257,103 shares in the last quarter. Franklin Resources Inc. lifted its position in shares of RLX Technology by 5.8% during the 4th quarter. Franklin Resources Inc. now owns 510,695 shares of the company's stock valued at $1,190,000 after acquiring an additional 27,917 shares during the period. Public Employees Retirement System of Ohio raised its stake in RLX Technology by 15.3% during the third quarter. Public Employees Retirement System of Ohio now owns 372,311 shares of the company's stock worth $979,000 after purchasing an additional 49,295 shares during the period. XTX Topco Ltd raised its position in shares of RLX Technology by 152.6% in the 4th quarter. XTX Topco Ltd now owns 390,880 shares of the company's stock worth $911,000 after buying an additional 236,153 shares during the period. Finally, Millennium Management LLC increased its position in RLX Technology by 15.6% during the 4th quarter. Millennium Management LLC now owns 207,609 shares of the company's stock worth $484,000 after purchasing an additional 28,052 shares in the last quarter. 22.68% of the stock is owned by institutional investors.

RLX Technology declared that its Board of Directors has initiated a stock repurchase program on Wednesday, December 31st that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its shares are undervalued.

About RLX Technology

RLX Technology Inc NYSE: RLX is a China-based company specializing in electronic nicotine delivery systems. The company develops, manufactures and markets closed-pod vaping devices and prefilled cartridges, positioning its products as an alternative to traditional combustible tobacco. RLX emphasizes consistent nicotine delivery, flavor variety and convenience through its proprietary e-liquid formulations and device design.

RLX operates a vertically integrated business model that encompasses research and development, production, quality control and sales.

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