Revenue growth accelerated to 32.2% in 2025Q2, yet the company continues to operate on thin net margins of 1.4% due to the structural costs inherent in its physical inspection and retail infrastructure.
| Sales/Revenue | 18.54B | 20.47B | 16.33B | 12.97B | 9.87B | 7.78B | 4.86B | 3.93B | 3.26B |
| Revenue Growth % | 27.33% | 25.39% | 25.93% | 31.37% | 26.85% | 60.15% | 23.56% | 20.55% | - |
| Cost of Goods Sold | 14.74B | 17.96B | 13.09B | 10.34B | 7.6B | 5.74B | 3.61B | 3.18B | 2.8B |
| COGS % of Revenue | - | 87.71% | 80.15% | 79.74% | 76.97% | 73.72% | 74.32% | 80.79% | 85.89% |
| Gross Profit | 3.8B | 2.52B | 3.24B | 2.63B | 2.27B | 2.04B | 1.25B | 755.46M | 460.09M |
| Gross Margin % | 20.48% | 12.29% | 19.85% | 20.26% | 23.03% | 26.28% | 25.68% | 19.21% | 14.11% |
| Gross Profit Growth % | - | -22.39% | 23.41% | 15.58% | 11.15% | 63.88% | 65.17% | 64.2% | - |
| Operating Expenses | 3.55B | 2.11B | 3.21B | 2.8B | 4.9B | 2.94B | 1.71B | 1.49B | 716.55M |
| OpEx % of Revenue | - | 10.32% | 19.68% | 21.6% | 49.61% | 37.79% | 35.13% | 37.83% | 21.97% |
| Selling, General & Admin | 1.8B | 1.93B | 1.67B | 1.52B | 1.77B | 1.64B | 918.08M | 1.37B | 672.49M |
| SG&A % of Revenue | - | 9.42% | 10.25% | 11.7% | 17.9% | 21.08% | 18.9% | 34.74% | 20.62% |
| Research & Development | 227.73M | 237.27M | 210.36M | 195.68M | 227.81M | 264.56M | 151.54M | 142.86M | 65.76M |
| R&D % of Revenue | - | 1.16% | 1.29% | 1.51% | 2.31% | 3.4% | 3.12% | 3.63% | 2.02% |
| Other Operating Expenses | 4M | -52.55M | 1.33B | 1.09B | 2.9B | 1.04B | 636.92M | -21.41M | -21.7M |
| Operating Income | 241.36M | 402.66M | 28.97M | -173.34M | -2.62B | -895.07M | -458.78M | -731.81M | -256.46M |
| Operating Margin % | 1.3% | 1.97% | 0.18% | -1.34% | -26.58% | -11.5% | -9.44% | -18.61% | -7.86% |
| Operating Income Growth % | - | 1289.96% | 116.71% | 93.39% | -193.12% | -95.1% | 37.31% | -185.35% | - |
| EBITDA | 501.42M | 515.78M | 362.7M | 160.39M | -2.22B | -521.33M | -98M | -497.13M | -218.34M |
| EBITDA Margin % | 2.71% | 2.52% | 2.22% | 1.24% | -22.48% | -6.7% | -2.02% | -12.64% | -6.69% |
| EBITDA Growth % | 49.29% | 42.21% | 126.13% | 107.23% | -325.5% | -431.99% | 80.29% | -127.69% | - |
| D&A (Non-Cash Add-back) | 260.06M | 113.13M | 333.73M | 333.73M | 405.41M | 373.75M | 360.78M | 234.67M | 38.12M |
| EBIT | 253.84M | 402.66M | 28.97M | -141.35M | -2.57B | -895.07M | -489.32M | -720.41M | -202.83M |
| Net Interest Income | 16.04M | 14.07M | 11.85M | 30.82M | 11.62M | -8.41M | -11.77M | -4.58M | 1.74M |
| Interest Income | 26.77M | 19.94M | 26.86M | 37.88M | 17.78M | 8.37M | 9.32M | 7.81M | 8.27M |
| Interest Expense | 10.73M | 5.87M | 15.02M | 7.06M | 6.16M | 16.78M | 21.09M | 12.4M | 6.54M |
| Other Income/Expense | -45.72M | -20.33M | -94.08M | -25.44M | 43.94M | -65.34M | -59.16M | -3.2M | 47.1M |
| Pretax Income | 195.64M | 382.33M | -65.11M | -198.78M | -2.58B | -960.41M | -517.94M | -735.01M | -209.36M |
| Pretax Margin % | 1.06% | 1.87% | -0.4% | -1.53% | -26.14% | -12.34% | -10.66% | -18.69% | -6.42% |
| Income Tax | -14.72M | 55.2M | -56.88M | -42.53M | -111.78M | -143.86M | -47.32M | -30.12M | -1.92M |
| Effective Tax Rate % | -7.52% | 14.44% | 87.36% | 21.4% | 4.33% | 14.98% | 9.14% | 4.1% | 0.92% |
| Net Income | 210.36M | 327.13M | -8.23M | -156.25M | -2.47B | -816.55M | -470.62M | -704.89M | -207.94M |
| Net Margin % | 1.13% | 1.6% | -0.05% | -1.21% | -25.01% | -10.5% | -9.69% | -17.93% | -6.38% |
| Net Income Growth % | 245.13% | 4075.28% | 94.73% | 93.67% | -202.24% | -73.51% | 33.24% | -238.98% | - |
| Net Income (Continuing) | 210.36M | 327.13M | -8.23M | -156.25M | -2.47B | -816.55M | -470.62M | -704.89M | -207.94M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.57 | 0.89 | -0.03 | -0.64 | -10.11 | -9.17 | -63.01 | -56.18 | -37.32 |
| EPS Growth % | 216.98% | 2725.37% | 94.7% | 93.67% | -10.25% | 85.45% | -12.16% | -50.54% | - |
| EPS (Basic) | - | 0.91 | -0.03 | -0.64 | -10.11 | -9.17 | -63.01 | -56.18 | -37.32 |
| Diluted Shares Outstanding | 369.48M | 364.94M | 242.43M | 243.24M | 244.23M | 144.46M | 28.17M | 28.17M | 29.11M |
| Basic Shares Outstanding | 367.02M | 362.96M | 242.43M | 243.24M | 244.19M | 89.01M | 7.47M | 12.55M | 5.57M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Thin operating margin sensitivity
According to the latest quarterly financial data, ATRenew achieved a 32.2% year-over-year revenue growth in 2025Q2, signaling that the company's physical-digital hybrid model continues to capture significant market share within the competitive Chinese pre-owned electronics sector despite broader macroeconomic headwinds affecting consumer discretionary spending patterns.
The consistent double-digit revenue growth suggests that the company's integration with JD.com and its extensive AHS store network are effectively driving transaction volume. Investors should monitor whether this top-line momentum can be sustained as the company potentially faces market saturation in Tier 1 and Tier 2 cities.
As reported in recent income statements, ATRenew maintains a gross margin of 20.7%, reflecting the inherent costs of physical inspection and inventory procurement required to maintain trust in the pre-owned electronics market, which remains significantly lower than pure-play digital marketplace peers like eBay.
The narrow gross margin profile highlights the capital-intensive nature of the company's 'closed-loop' infrastructure. This suggests that any meaningful profitability expansion will likely depend on the company's ability to shift its revenue mix toward higher-margin 3P marketplace services rather than relying on 1P product sales.
Based on the provided financial figures, ATRenew has transitioned from operating losses in early 2024 to a positive operating income of $91.1 million in 2025Q2, indicating that the company is finally beginning to achieve the necessary scale to cover its substantial fixed retail and logistics costs.
The shift toward positive operating margins suggests that management's long-term investment in physical infrastructure is starting to yield efficiency gains. However, the sustainability of this leverage remains contingent on maintaining strict control over SG&A expenses as the company continues its geographic expansion.
Analysis of the income statement reveals that stock-based compensation remains a recurring expense, totaling $12.3 million in 2025Q2, which warrants careful consideration when evaluating the true cash-generating capability of the company's reported net income of $72.3 million for the same period.
While the company has reached profitability, the reliance on non-cash compensation suggests that investors should focus on adjusted earnings metrics to gauge operational performance. The volatility in quarterly net income, influenced by these items, implies that the path to consistent bottom-line growth may be less linear than the revenue trend suggests.
Financial data indicates that ATRenew operates on razor-thin net margins, with 2025Q2 net income representing only 1.4% of revenue, leaving the company highly vulnerable to any unexpected increases in operational costs or a potential decline in consumer demand for pre-owned electronics.
Short-term margin volatility suggests that the business model is sensitive to competitive pricing pressures and the rising costs of physical retail leases. Investors should monitor whether the company can maintain its current growth trajectory without sacrificing further margin integrity in a highly price-sensitive market.
Quick answers to the most common questions about buying RERE stock.
For fiscal year 2025, ATRenew Inc. (RERE) reported total revenue of $20.47B. This represents a 527.8% increase compared to $3.26B in 2018.
ATRenew Inc. (RERE) is profitable, generating $327.1M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
ATRenew Inc. (RERE) reported an operating income of $402.7M, resulting in an operating profit margin of 2.0%. This margin reflects the operational efficiency of the business before interest and taxes.
ATRenew Inc. (RERE) generated $2.52B in gross profit for the year, representing a gross profit margin of 12.3%. This demonstrates the company's core pricing power and production efficiency.