Revenue growth has decelerated to 2.2% in 2026Q2, while gross margin has contracted significantly from a peak of 48.5% to 37.4%, indicating severe profitability pressure.
Chagee Holdings Limited American Depositary Shares (CHA) annual income statement — 4-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Sales/Revenue | 12.92B | 12.91B | 12.41B | 4.64B | 491.65M |
| Revenue Growth % | -2.8% | 4.05% | 167.35% | 843.79% | - |
| Cost of Goods Sold | 7.38B | 6.99B | 6.72B | 2.67B | 358.58M |
| COGS % of Revenue | - | 54.16% | 54.2% | 57.51% | 72.93% |
| Gross Profit | 5.54B | 5.92B | 5.68B | 1.97B | 133.07M |
| Gross Margin % | 42.91% | 45.84% | 45.8% | 42.49% | 27.07% |
| Gross Profit Growth % | - | 4.14% | 188.18% | 1381.59% | - |
| Operating Expenses | 4.49B | 4.57B | 2.79B | 897.43M | 248.91M |
| OpEx % of Revenue | - | 35.4% | 22.53% | 19.34% | 50.63% |
| Selling, General & Admin | 3.8B | 3.81B | 2.22B | 624.66M | 173.13M |
| SG&A % of Revenue | - | 29.54% | 17.91% | 13.46% | 35.21% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 4M | 756.47M | 572.62M | 272.77M | 75.78M |
| Operating Income | 1.05B | 1.35B | 2.89B | 1.07B | -115.84M |
| Operating Margin % | 8.12% | 10.44% | 23.27% | 23.15% | -23.56% |
| Operating Income Growth % | - | -53.33% | 168.75% | 1027.22% | - |
| EBITDA | 1.31B | 1.49B | 2.95B | 1.08B | -110.93M |
| EBITDA Margin % | 10.1% | 11.57% | 23.76% | 23.37% | -22.56% |
| EBITDA Growth % | -57.89% | -49.33% | 171.79% | 1077.58% | - |
| D&A (Non-Cash Add-back) | 0 | 146.38M | 60.9M | 10.37M | 4.91M |
| EBIT | 1.31B | 1.62B | 3.04B | 1.01B | -112.38M |
| Net Interest Income | 134.88M | 147.49M | 37.31M | 17.02M | 1.92M |
| Interest Income | 134.88M | 147.49M | 37.31M | 17.02M | 1.92M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 311.51M | 270.85M | 155.5M | -67.78M | 3.46M |
| Pretax Income | 1.36B | 1.62B | 3.04B | 1.01B | -112.38M |
| Pretax Margin % | 10.54% | 12.54% | 24.52% | 21.69% | -22.86% |
| Income Tax | 388.74M | 431.74M | 527.51M | 203.76M | -21.66M |
| Effective Tax Rate % | 28.56% | 26.68% | 17.34% | 20.25% | 19.28% |
| Net Income | 958.24M | 1.17B | 2.52B | 800.9M | -90.72M |
| Net Margin % | 7.42% | 9.07% | 20.28% | 17.26% | -18.45% |
| Net Income Growth % | -63.15% | -53.45% | 214.16% | 982.87% | - |
| Net Income (Continuing) | 972.49M | 1.19B | 2.51B | 802.57M | -90.72M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 225.03M | 235.45M | 100.57M | 1.33M | 73K |
| EPS (Diluted) | 4.96 | 6.01 | 13.71 | 4.36 | -0.79 |
| EPS Growth % | -64.31% | -56.16% | 214.45% | 651.9% | - |
| EPS (Basic) | - | 6.27 | 13.71 | 4.36 | -0.79 |
| Diluted Shares Outstanding | 193.04M | 164.71M | 183.55M | 183.55M | 183.55M |
| Basic Shares Outstanding | 191.36M | 162.47M | 183.55M | 183.55M | 183.55M |
| Dividend Payout Ratio | - | 105.29% | - | - | - |
Quick answers to the most common questions about buying CHA stock.
For fiscal year 2025, Chagee Holdings Limited American Depositary Shares (CHA) reported total revenue of $12.91B. This represents a 2525.3% increase compared to $491.7M in 2022.
Chagee Holdings Limited American Depositary Shares (CHA) is profitable, generating $1.17B in net income for the fiscal year ending 2025 with a net profit margin of 9.1%.
Chagee Holdings Limited American Depositary Shares (CHA) reported an operating income of $1.35B, resulting in an operating profit margin of 10.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Chagee Holdings Limited American Depositary Shares (CHA) generated $5.92B in gross profit for the year, representing a gross profit margin of 45.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression and volatile profitability
Growth Momentum Fades After IPO Surge
Revenue growth has decelerated sharply from triple-digit year-over-year gains in 2024 to a 2.2% increase in 2026Q2, suggesting the post-IPO expansion phase is normalizing into a more mature, slower-growth trajectory.
The company's revenue growth has cooled dramatically from the 145.3% and 62.9% year-over-year increases seen in 2024Q3 and 2024Q4, respectively. The latest quarter's 2.2% growth indicates the business is now growing at a pace more aligned with its mature beverage peers, implying the initial hyper-growth phase driven by new store openings or market penetration may be largely complete.
Gross Margin Erosion Undermines Profitability
Gross margin has contracted significantly from a peak of 48.5% in 2025Q1 to 37.4% in 2026Q2, a 1,110 basis point decline that appears to be the primary driver of the company's recent operational struggles.
The steep decline in gross margin suggests the company may be facing increased input cost pressures, promotional activity to maintain volume, or a shift in product mix toward lower-margin items. This structural compression is particularly concerning as it occurred while revenue growth was still positive, indicating the issue is not solely volume-related but points to a potential loss of pricing power or cost control.
Operating Leverage Turns Negative
Operating income has swung from a robust $820.8M in 2025Q1 to a loss of $35.5M in 2025Q4, demonstrating that the business model lacks stable operating leverage and is highly sensitive to gross margin fluctuations.
The company's operating margin has been volatile, ranging from a high of 28.2% to a low of -1.2% within the last ten quarters. This instability suggests that SG&A and other operating expenses are not scaling efficiently with revenue, and the business is unable to protect profitability when top-line growth slows or margins compress. The negative operating income in 2025Q4, despite $3.0B in revenue, highlights this vulnerability.
Net Income Volatility and SBC Impact
Net income has been highly erratic, swinging from $678.9M in 2025Q1 to just $28.5M in 2025Q4, while stock-based compensation of $104.9M in 2025Q3 represents a material non-cash charge that dilutes reported earnings quality.
The extreme volatility in net income and EPS, with quarterly swings of over 90%, makes it difficult to assess the underlying earnings power of the business. The significant stock-based compensation expense in certain quarters, like the $104.9M in 2025Q3, is a real cost to shareholders that is not reflected in cash flow from operations, further complicating the assessment of true economic profitability.
Sustainability of Profitability in Question
The most significant risk is that the recent margin compression is not cyclical but structural, as the company's gross margin has fallen below that of peer Cracker Barrel (33.0%) and its operating profitability has turned negative.
Short-sellers would focus on the rapid deterioration of the income statement's core profitability metrics. The combination of decelerating growth and collapsing margins suggests the company may have over-expanded or is facing intense competitive pressure that is eroding its unit economics. The negative operating income in 2025Q4, despite still generating $3.0B in revenue, indicates the business may not be viable at current cost structures without a significant strategic shift.