Revenue growth reached 44.8% in 2025Q4, though gross margins remain capped at 33.1% due to the structural impact of the 36% excise tax on e-vapor products.
| Sales/Revenue | 3.52B | 2.44B | 1.24B | 5.33B | 8.52B | 3.82B | 1.55B | 132.61M |
| Revenue Growth % | 43.94% | 96.5% | -76.67% | -37.42% | 123.08% | 146.54% | 1068.33% | - |
| Cost of Goods Sold | 2.37B | 1.72B | 856.33M | 3.03B | 4.85B | 2.29B | 968.41M | 73.37M |
| COGS % of Revenue | 67.28% | 70.28% | 68.83% | 56.77% | 56.91% | 60.01% | 62.5% | 55.32% |
| Gross Profit | 1.15B | 726.52M | 387.71M | 2.31B | 3.67B | 1.53B | 580.94M | 59.25M |
| Gross Margin % | 32.72% | 29.72% | 31.17% | 43.23% | 43.09% | 39.99% | 37.5% | 44.68% |
| Gross Profit Growth % | 58.48% | 87.38% | -83.18% | -37.23% | 140.39% | 162.94% | 880.55% | - |
| Operating Expenses | 831.75M | 833.66M | 884.42M | 1.24B | 1.37B | 1.51B | 524.56M | 57.04M |
| OpEx % of Revenue | 23.64% | 34.1% | 71.09% | 23.28% | 16.12% | 39.65% | 33.86% | 43.01% |
| Selling, General & Admin | 704.32M | 745.35M | 711.74M | 924.61M | 1.19B | 1.22B | 492.63M | 54.97M |
| SG&A % of Revenue | 20.02% | 30.49% | 57.21% | 17.34% | 14.01% | 31.81% | 31.8% | 41.45% |
| Research & Development | 127.44M | 88.31M | 172.69M | 317.11M | 179.91M | 299.29M | 31.93M | 2.06M |
| R&D % of Revenue | 3.62% | 3.61% | 13.88% | 5.95% | 2.11% | 7.84% | 2.06% | 1.56% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6K |
| Operating Income | 319.61M | -107.14M | -496.71M | 1.06B | 2.3B | 13.15M | 56.39M | 2.21M |
| Operating Margin % | 9.08% | -4.38% | -39.93% | 19.94% | 26.98% | 0.34% | 3.64% | 1.67% |
| Operating Income Growth % | 398.3% | 78.43% | -146.71% | -53.74% | 17381.98% | -76.68% | 2450.25% | - |
| EBITDA | 411.13M | -60.63M | -400.11M | 1.14B | 2.34B | 36.22M | 69.79M | 2.25M |
| EBITDA Margin % | 11.68% | -2.48% | -32.16% | 21.47% | 27.51% | 0.95% | 4.5% | 1.7% |
| EBITDA Growth % | 778.08% | 84.85% | -134.95% | -51.17% | 6373.23% | -48.11% | 3004.63% | - |
| D&A (Non-Cash Add-back) | 91.52M | 46.51M | 96.6M | 81.41M | 45.64M | 23.07M | 13.41M | 37K |
| EBIT | 1.02B | 658.8M | 591.74M | 1.78B | 2.66B | 13.15M | 56.39M | 2.21M |
| Net Interest Income | 595.36M | 616.39M | 627.88M | 180.73M | 72.41M | 52.76M | 745K | -107K |
| Interest Income | 595.36M | 616.39M | 627.88M | 180.73M | 72.41M | 52.76M | 745K | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 107K |
| Other Income/Expense | 705.06M | 765.95M | 1.09B | 716.9M | 360.85M | 89.28M | 17.29M | -113K |
| Pretax Income | 1.02B | 658.8M | 591.74M | 1.78B | 2.66B | 102.43M | 73.67M | 2.1M |
| Pretax Margin % | 29.12% | 26.95% | 47.57% | 33.38% | 31.21% | 2.68% | 4.75% | 1.58% |
| Income Tax | 115.75M | 94.46M | 50.76M | 371.58M | 631.43M | 230.53M | 25.92M | 2.38M |
| Effective Tax Rate % | 11.3% | 14.34% | 8.58% | 20.87% | 23.74% | 225.06% | 35.19% | 113.68% |
| Net Income | 896.75M | 551.84M | 534.33M | 1.44B | 2.02B | -128.1M | 47.75M | -287K |
| Net Margin % | 25.49% | 22.57% | 42.95% | 27.03% | 23.76% | -3.35% | 3.08% | -0.22% |
| Net Income Growth % | 62.5% | 3.28% | -62.93% | -28.82% | 1680.56% | -368.29% | 16736.93% | - |
| Net Income (Continuing) | 908.92M | 564.34M | 540.99M | 1.41B | 2.03B | -128.1M | 47.75M | -287K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 97.93M | 1.74M | -10.98M | -28.69M | 3.8M | 0 | 0 | 0 |
| EPS (Diluted) | 0.70 | 0.43 | 0.40 | 1.09 | 1.44 | -0.08 | 0.03 | -0.00 |
| EPS Growth % | 62.79% | 7.5% | -63.3% | -24.31% | 1845.45% | -368.73% | - | - |
| EPS (Basic) | 0.70 | 0.45 | 0.40 | 1.09 | 1.44 | -0.08 | 0.03 | -0.00 |
| Diluted Shares Outstanding | 1.22B | 1.29B | 1.34B | 1.33B | 1.41B | 1.55B | 1.55B | 1.55B |
| Basic Shares Outstanding | 1.22B | 1.23B | 1.34B | 1.32B | 1.4B | 1.55B | 1.55B | 1.55B |
| Dividend Payout Ratio | 10.2% | 16.1% | 17.29% | 0.04% | 16.07% | - | 75.4% | - |
Regulatory Policy Overhang
According to recent financial disclosures, RLX achieved a 44.8% year-over-year revenue growth in 2025Q4, signaling a recovery in volume despite the restrictive transition to the state-mandated national transaction platform and the ongoing challenges associated with the mandatory tobacco-only flavor profile across the domestic Chinese market.
The recent acceleration in top-line growth suggests that the company has successfully navigated the initial friction of the state-mandated distribution overhaul. However, investors should monitor whether this growth is sustainable or merely a reflection of inventory restocking within the new regulatory framework.
As reported in quarterly filings, RLX's gross margin has stabilized near 33%, a structural reset from historical levels that appears directly attributable to the 36% excise tax imposed on e-vapor products, which significantly limits the company's ability to capture incremental value from its recurring cartridge sales.
The current margin profile suggests that RLX functions more like a regulated utility than a high-growth consumer brand. Any future margin expansion appears unlikely without a favorable shift in state tax policy, as the company lacks the pricing power to pass these costs fully to consumers.
Based on the provided income statement data, RLX's net income is heavily supported by non-operating gains, with the company reporting a 25.9% net margin in 2025Q4 that appears significantly bolstered by interest income generated from its substantial cash reserves rather than pure operational efficiency.
Analysts should be cautious when evaluating the company's bottom line, as the reliance on interest income masks the underlying volatility of the core e-vapor business. This suggests that the quality of earnings is sensitive to interest rate environments and the company's ability to maintain its cash pile.
Data from the last ten quarters indicates that RLX's operating income has fluctuated significantly, swinging from deep losses in 2023 to a positive 11% operating margin in 2025Q4, suggesting that the company is still struggling to achieve consistent operating leverage within its current cost structure.
The inconsistency in operating margins warrants further investigation into the company's expense discipline, particularly regarding R&D and administrative costs required for compliance. The transition to profitability appears fragile and highly dependent on maintaining strict control over SG&A expenses.
A critical challenge to the current narrative is that RLX may be structurally capped by state intervention, as evidenced by the mandatory migration to the national platform, which effectively limits the company's long-term growth potential and transforms it into a low-margin service provider for the state.
Short-sellers may focus on the risk that the company's proprietary consumer data could be absorbed by state entities, further eroding its competitive moat. This implies that the current valuation may not be a bargain, but rather a reflection of a business whose upside is permanently constrained.
Quick answers to the most common questions about buying RLX stock.
For fiscal year 2025, RLX Technology Inc. (RLX) reported total revenue of $3.52B. This represents a 2553.4% increase compared to $132.6M in 2018.
RLX Technology Inc. (RLX) is profitable, generating $896.8M in net income for the fiscal year ending 2025 with a net profit margin of 25.5%.
RLX Technology Inc. (RLX) reported an operating income of $319.6M, resulting in an operating profit margin of 9.1%. This margin reflects the operational efficiency of the business before interest and taxes.
RLX Technology Inc. (RLX) generated $1.15B in gross profit for the year, representing a gross profit margin of 32.7%. This demonstrates the company's core pricing power and production efficiency.