Operating margins have collapsed from a peak of 28.2% in 2024Q1 to a negative 1.2% in 2025Q4, reflecting significant strain on the company's core profitability.
| Sales/Revenue | 12.91B | 12.41B | 4.64B | 491.65M |
| Revenue Growth % | 4.05% | 167.35% | 843.79% | - |
| Cost of Goods Sold | 6.99B | 6.72B | 2.67B | 358.58M |
| COGS % of Revenue | 54.16% | 54.2% | 57.51% | 72.93% |
| Gross Profit | 5.92B | 5.68B | 1.97B | 133.07M |
| Gross Margin % | 45.84% | 45.8% | 42.49% | 27.07% |
| Gross Profit Growth % | 4.14% | 188.18% | 1381.59% | - |
| Operating Expenses | 4.57B | 2.79B | 897.43M | 248.91M |
| OpEx % of Revenue | 35.4% | 22.53% | 19.34% | 50.63% |
| Selling, General & Admin | 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 |
| R&D % of Revenue | - | - | - | - |
| Other Operating Expenses | 756.47M | 572.62M | 272.77M | 75.78M |
| Operating Income | 1.35B | 2.89B | 1.07B | -115.84M |
| Operating Margin % | 10.44% | 23.27% | 23.15% | -23.56% |
| Operating Income Growth % | -53.33% | 168.75% | 1027.22% | - |
| EBITDA | 1.49B | 2.95B | 1.08B | -110.93M |
| EBITDA Margin % | 11.57% | 23.76% | 23.37% | -22.56% |
| EBITDA Growth % | -49.33% | 171.79% | 1077.58% | - |
| D&A (Non-Cash Add-back) | 146.38M | 60.9M | 10.37M | 4.91M |
| EBIT | 1.62B | 3.04B | 1.01B | -112.38M |
| Net Interest Income | 147.49M | 37.31M | 17.02M | 1.92M |
| Interest Income | 147.49M | 37.31M | 17.02M | 1.92M |
| Interest Expense | 0 | 0 | 0 | 0 |
| Other Income/Expense | 270.85M | 155.5M | -67.78M | 3.46M |
| Pretax Income | 1.62B | 3.04B | 1.01B | -112.38M |
| Pretax Margin % | 12.54% | 24.52% | 21.69% | -22.86% |
| Income Tax | 431.74M | 527.51M | 203.76M | -21.66M |
| Effective Tax Rate % | 26.68% | 17.34% | 20.25% | 19.28% |
| Net Income | 1.17B | 2.52B | 800.9M | -90.72M |
| Net Margin % | 9.07% | 20.28% | 17.26% | -18.45% |
| Net Income Growth % | -53.45% | 214.16% | 982.87% | - |
| Net Income (Continuing) | 1.19B | 2.51B | 802.57M | -90.72M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 235.45M | 100.57M | 1.33M | 73K |
| EPS (Diluted) | 6.01 | 13.71 | 4.36 | -0.79 |
| EPS Growth % | -56.16% | 214.45% | 651.9% | - |
| EPS (Basic) | 6.27 | 13.71 | 4.36 | -0.79 |
| Diluted Shares Outstanding | 164.71M | 183.55M | 183.55M | 183.55M |
| Basic Shares Outstanding | 162.47M | 183.55M | 183.55M | 183.55M |
| Dividend Payout Ratio | 105.29% | - | - | - |
Rapid Revenue Growth Deceleration
According to the latest quarterly financial data, Chagee's revenue growth has shifted from a peak of 145.3% in 2024Q3 to a contraction of 10.8% by 2025Q4, signaling a significant loss of momentum in the company's core beverage retail and supply chain operations.
The transition from triple-digit growth to negative territory suggests that the brand's rapid expansion phase may have hit a saturation point in its primary markets. Investors should monitor whether this decline reflects broader consumer spending fatigue or a structural issue within the franchise-led business model.
As reported in recent income statements, Chagee's operating margin plummeted from a high of 28.2% in 2024Q1 to a negative 1.2% in 2025Q4, indicating that the company is struggling to maintain profitability as top-line revenue growth turns negative.
The erosion of operating margins suggests that fixed costs and aggressive SG&A spending are no longer being adequately absorbed by the shrinking revenue base. This trend warrants further investigation into whether the company's cost structure is too rigid to adapt to a cooling demand environment.
Based on the provided figures, the company's operating income swung from a robust $820.8 million in 2025Q1 to a loss of $35.5 million in 2025Q4, demonstrating that the firm currently lacks the operating leverage to protect its bottom line during revenue downturns.
The inability to scale SG&A expenses in proportion to declining revenue suggests that the company's current operational footprint may be oversized for its current demand levels. This lack of flexibility poses a risk to earnings stability if the revenue contraction persists into future quarters.
While the company maintains a strong cash position, the recent collapse in net income from $678.9 million in 2025Q1 to $28.5 million in 2025Q4 suggests that the underlying profitability of the business model may be more fragile than historical performance would imply.
Short-term observers might focus on the volatility of these earnings as a sign that the company's competitive moat is weakening against lower-cost competitors. The sharp decline in EPS growth, which reached -95.8% in 2025Q4, indicates that the current earnings trajectory is highly sensitive to even minor fluctuations in top-line performance.
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.