Revenue growth has re-accelerated to 43.9% TTM, but gross margins remain structurally compressed at 39.0% in 2026Q2 due to the permanent 36% excise tax, while net income is heavily reliant on non-operating income as net margin (23.7%) significantly exceeds operating margin (14.2%).
RLX Technology Inc. (RLX) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 4.47B | 3.52B | 2.44B | 1.24B | 5.33B | 8.52B | 3.82B | 1.55B | 132.61M |
| Revenue Growth % | 53.35% | 43.94% | 96.5% | -76.67% | -37.42% | 123.08% | 146.54% | 1068.33% | - |
| Cost of Goods Sold | 2.92B | 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 | 1.55B | 1.15B | 726.52M | 387.71M | 2.31B | 3.67B | 1.53B | 580.94M | 59.25M |
| Gross Margin % | 34.71% | 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 | 969.61M | 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 | 836.71M | 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 | 132.9M | 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 | 14 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6K |
| Operating Income | 583.69M | 319.61M | -107.14M | -496.71M | 1.06B | 2.3B | 13.15M | 56.39M | 2.21M |
| Operating Margin % | 13.04% | 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 | 695.63M | 411.13M | -60.63M | -400.11M | 1.14B | 2.34B | 36.22M | 69.79M | 2.25M |
| EBITDA Margin % | 15.55% | 11.68% | -2.48% | -32.16% | 21.47% | 27.51% | 0.95% | 4.5% | 1.7% |
| EBITDA Growth % | -0.08% | 778.08% | 84.85% | -134.95% | -51.17% | 6373.23% | -48.11% | 3004.63% | - |
| D&A (Non-Cash Add-back) | 111.94M | 91.52M | 46.51M | 96.6M | 81.41M | 45.64M | 23.07M | 13.41M | 37K |
| EBIT | 1.02B | 1.02B | 658.8M | 591.74M | 1.78B | 2.66B | 13.15M | 56.39M | 2.21M |
| Net Interest Income | 409.07M | 595.36M | 616.39M | 627.88M | 180.73M | 72.41M | 52.76M | 745K | -107K |
| Interest Income | 409.07M | 595.36M | 616.39M | 627.88M | 180.73M | 72.41M | 52.76M | 745K | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 107K |
| Other Income/Expense | 551.12M | 705.06M | 765.95M | 1.09B | 716.9M | 360.85M | 89.28M | 17.29M | -113K |
| Pretax Income | 1.13B | 1.02B | 658.8M | 591.74M | 1.78B | 2.66B | 102.43M | 73.67M | 2.1M |
| Pretax Margin % | 25.36% | 29.12% | 26.95% | 47.57% | 33.38% | 31.21% | 2.68% | 4.75% | 1.58% |
| Income Tax | 131.87M | 115.75M | 94.46M | 50.76M | 371.58M | 631.43M | 230.53M | 25.92M | 2.38M |
| Effective Tax Rate % | 11.62% | 11.3% | 14.34% | 8.58% | 20.87% | 23.74% | 225.06% | 35.19% | 113.68% |
| Net Income | 978.4M | 896.75M | 551.84M | 534.33M | 1.44B | 2.02B | -128.1M | 47.75M | -287K |
| Net Margin % | 21.86% | 25.49% | 22.57% | 42.95% | 27.03% | 23.76% | -3.35% | 3.08% | -0.22% |
| Net Income Growth % | 34.62% | 62.5% | 3.28% | -62.93% | -28.82% | 1680.56% | -368.29% | 16736.93% | - |
| Net Income (Continuing) | 1B | 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 | 0 |
| Minority Interest | 113.97M | 97.93M | 1.74M | -10.98M | -28.69M | 3.8M | 0 | 0 | 0 |
| EPS (Diluted) | 0.75 | 0.70 | 0.43 | 0.40 | 1.09 | 1.44 | -0.08 | 0.03 | -0.00 |
| EPS Growth % | 34.66% | 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 | 1.31B | 1.22B | 1.29B | 1.34B | 1.33B | 1.41B | 1.55B | 1.55B | 1.55B |
| Basic Shares Outstanding | 1.23B | 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% | - |
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.
Key Metrics
Top Statement Risk
Regulatory tax escalation risk
Revenue Growth Re-accelerates on Platform Stabilization
RLX's revenue growth has re-accelerated to 43.9% year-over-year on a trailing twelve-month basis, a significant step-up from the 2.8% growth seen in early 2024, suggesting the business has found a new growth trajectory following the regulatory reset.
The acceleration from single-digit growth in 2024Q1 to consistent 40-50% growth in recent quarters indicates the company has successfully navigated the initial disruption of the mandatory migration to the state transaction platform. This growth appears to be volume-driven as the authorized retail network expands, rather than pricing power, given the state-controlled wholesale structure. The durability of this growth rate is questionable, as it may partly reflect a post-regulation restocking cycle rather than sustainable consumer demand expansion.
Gross Margin Recovery Tempered by Structural Tax Burden
Gross margins have recovered from a low of 28.3% in 2024Q2 to 39.0% in 2026Q2, yet remain structurally compressed versus historical levels due to the permanent 36% excise tax on e-cigarette production.
The margin recovery suggests improved product mix and operational efficiency post-regulation, but the ceiling is clearly defined by the excise tax, which acts as a permanent drag. Compared to global tobacco peers like Altria (72.2% gross margin) or Philip Morris (67.1%), RLX's ~39% margin reflects its position as a taxed, regulated manufacturer rather than a brand owner with pricing autonomy. A return to pre-2022 margin levels appears unlikely without a reduction in the excise tax rate or a significant shift in the wholesale pricing structure mandated by the state.
Operating Leverage Emerges as Overhead Leverage Kicks In
Operating income has swung from a loss of $51.6M in 2024Q1 to a profit of $130.0M in 2026Q2, demonstrating significant operating leverage as SG&A growth has been contained while revenue scaled.
The company's operating margin has expanded from -11.0% to 14.2% over ten quarters, indicating that its cost structure is becoming more efficient as it scales. SG&A as a percentage of revenue has declined from 34.6% in 2024Q1 to 21.6% in 2026Q2, suggesting that the fixed overhead associated with compliance and platform integration is being spread over a larger revenue base. This operating leverage is a positive signal, but its sustainability depends on continued revenue growth and management's ability to control R&D and compliance costs in a dynamic regulatory environment.
Net Income Heavily Reliant on Non-Operating Income
RLX's net margin of 23.7% in 2026Q2 significantly exceeds its operating margin of 14.2%, implying that a substantial portion of net income is derived from non-operating items, likely interest income on its large cash balance.
The persistent gap between operating and net income suggests that core operational profitability is lower than headline earnings indicate. With a cash pile of approximately $5.5 billion, the interest income generated is a major, but volatile, contributor to the bottom line. This creates earnings quality risk, as net income could decline significantly if interest rates fall or if the company deploys its cash for acquisitions or regulatory fines, without a corresponding improvement in core operating performance.
Cost Discipline Evident in SG&A, R&D Remains a Strategic Necessity
SG&A expenses have been well-controlled, declining from 34.6% of revenue in 2024Q1 to 21.6% in 2026Q2, while R&D spending has been maintained at a consistent level to meet evolving state technical standards.
The reduction in SG&A as a percentage of revenue is a key driver of the operating margin expansion, indicating effective overhead management during a period of rapid growth. However, R&D spending, while not growing as a percentage of revenue, remains a critical and non-discretionary cost to ensure product compliance with the State Tobacco Monopoly Administration's specifications. The primary cost driver remains COGS, which is influenced by the excise tax and third-party manufacturing costs, leaving limited room for further structural cost reductions.
The Utility-Like Return on Equity Trap
The strongest bear case is that RLX is being transformed into a regulated utility with a structurally capped return on equity, where the state controls pricing, distribution, and ultimately, profitability.
While revenue growth is strong, the combination of a state-mandated excise tax, wholesale pricing controls, and a fixed distribution platform suggests that RLX's long-term profitability may be capped by regulatory design. The company's massive cash pile, while a strength, could be interpreted as capital that cannot be productively deployed to generate returns above the cost of equity in its current operating environment. This framework implies that the current valuation may not be a discount but rather a fair reflection of a business whose upside is structurally limited by its role within the state tobacco monopoly.