RLX Technology (NYSE: RLX) released its unaudited financial results for the second quarter and first half of 2026, ending June 30, 2026, on August 15. The company reported H1 2026 revenue of RMB 2.6 billion (approximately USD 383 million), a 54% increase from RMB 1.688 billion in the same period last year. Gross profit for H1 2026 reached RMB 862 million (approximately USD 127 million), while operating profit was RMB 375 million (approximately USD 55.27 million). Net profit stood at RMB 516 million (approximately USD 76.07 million).

In the second quarter of 2026, RLX Technology generated revenue of RMB 1.0105 billion, up 14.8% year-on-year, with a net profit of RMB 222 million.

Acquisition of 51% stake in a Western European distributor

In July 2026, RLX Technology acquired a 51% equity stake in a leading distributor based in Western Europe, gaining board control. This distributor specializes in next-generation smoke-free products and fast-moving consumer goods (FMCG), leveraging a multi-channel logistics network and a proprietary B2B digital ordering platform to establish mature and efficient market access and distribution channels across key European markets. Through this strategic investment, RLX Technology plans to utilize its global supply chain capabilities and capital resources for deep commercial collaboration, aiming to optimize costs and achieve cross-selling synergies. The distributor's financial results will be consolidated into RLX Technology's financial statements starting from the third quarter of 2026.

Q2 revenue of RMB 1 billion, down 36% sequentially

RLX Technology reported Q2 2026 revenue of RMB 1.01 billion (approximately USD 150 million), a 14.8% increase from RMB 880 million in the same period last year, but a 36% decline from RMB 1.586 billion in the previous quarter. The year-on-year revenue growth was primarily attributed to the company's international expansion and contributions from an acquisition in May 2025. International business net revenue accounted for 68.5% of total revenue during the quarter.

RLX Technology co-founder, chairman, and CEO Wang Ying stated that industry competition has extended from product innovation to terminal channel operations and shelf space competition. The company is strengthening refined operations in Asian stores while accelerating channel penetration through European acquisitions, simultaneously expanding multi-category smoke-free products.

Q2 costs of RMB 560 million, up 1% year-on-year

RLX Technology's cost of revenue in Q2 2026 was RMB 560 million, a 1% increase from RMB 550 million in the same period last year.

Q2 gross profit of RMB 358 million with a gross margin of 35%

RLX Technology reported a gross profit of RMB 358 million (approximately USD 52.7 million) in Q2 2026, a 47.8% increase from RMB 242 million in the same period last year. The gross margin was 35.4%, up from 27.5% year-on-year, mainly due to favorable changes in revenue mix and further supply chain optimization. CFO Lu Chao noted that net revenue and gross profit in Q2 2026 retreated from Q1, primarily due to the prior quarter's results including a one-time growth factor from export policy adjustments. Despite this, the gross margin improved to 35.4%, up 7.9 percentage points year-on-year and 3.6 percentage points quarter-on-quarter, reflecting ongoing profitability improvement.

Q2 expenses of RMB 227 million, up 12% year-on-year

RLX Technology's operating expenses in Q2 2026 were RMB 227.5 million (approximately USD 33.5 million), a 12% increase from RMB 203 million in the same period last year. The increase was mainly driven by higher compensation and benefits expenses, primarily related to the May 2025 acquisition, partially offset by a significant decline in share-based compensation expenses. Specifically, selling expenses were RMB 123.7 million (USD 18.2 million) in Q2 2026, compared to RMB 84.6 million in the same period last year, due to increases in compensation and benefits, brand promotion, and depreciation and amortization related to the acquisition, partially offset by lower stock-based compensation. General and administrative expenses were RMB 74.4 million (USD 11 million), down from RMB 88.4 million year-on-year, mainly due to a significant reduction in stock-based compensation, partially offset by higher legal and other consulting fees. Research and development expenses were RMB 29.4 million, compared to RMB 30.1 million in Q2 2025, with the slight decline largely attributed to lower stock-based compensation.

Q2 operating profit of RMB 130 million, operating margin of 13%

RLX Technology's operating profit in Q2 2026 was RMB 130 million, a 234.7% increase from RMB 39 million in the same period last year. The operating margin was 13%. Non-GAAP operating profit was RMB 149.6 million (USD 22 million), up 28.8% from RMB 116.2 million in Q2 2025. Income tax expense was RMB 24.8 million in Q2 2026, compared to RMB 28.5 million year-on-year.

Q2 adjusted net profit of RMB 240 million, down 18% year-on-year

RLX Technology's net profit in Q2 2026 was RMB 222 million (approximately USD 32.7 million), a 1.6% increase from RMB 218.5 million in the same period last year. Adjusted net profit was RMB 238.8 million (approximately USD 35.2 million), an 18% decline from RMB 291.2 million year-on-year. As of June 30, 2026, total assets were RMB 16.851 billion (approximately USD 2.484 billion), including current assets of RMB 10.79 billion (approximately USD 1.59 billion) and non-current assets of RMB 6.06 billion (approximately USD 893 million). Total liabilities were RMB 1.225 billion (approximately USD 181 million), and shareholders' equity was RMB 15.626 billion. Cash and cash equivalents, restricted cash, short-term bank deposits (net), short-term investments, long-term bank deposits (net), and long-term investment securities (net) totaled RMB 13.8834 billion (approximately USD 2.0462 billion), compared to RMB 14.5297 billion as of March 31, 2026. Net cash used in operating activities during Q2 2026 was RMB 63.2 million. RLX Technology's shares closed at USD 1.94 on the reporting date, down 3% from the previous day, giving the company a market capitalization of USD 2.371 billion.