RLX Technology Inc. – Q3 2025 Results Deliver a Resounding Upswing

The latest third‑quarter report from RLX Technology Inc. (NYSE: RLX) confirms the company’s trajectory as a dominant player in the electronic vapor sector. With revenues soaring to US$158.6 million—an increase of $18.1 million over analyst consensus—RLX demonstrates a clear outperformance of market expectations and a robust expansion in its Chinese distribution network.

Revenue Surge and Margin Expansion

Net revenue reached RMB 1,129.3 million (US$158.6 million), up markedly from RMB 756.3 million in the same period of 2024. This growth is not merely a headline; it reflects the firm’s strategic penetration into the high‑margin e‑vapor market, where brand loyalty and regulatory compliance converge to create a moat against generic competitors.

Gross margin improved from 27.2 % to 31.2 %, a 4‑point lift that underscores RLX’s efficient supply‑chain management and cost‑control measures. In an industry where margins are often squeezed by raw‑material volatility, this margin expansion signals operational maturity and pricing power.

Earnings Per Share and Operating Profit

Non‑GAAP income from operations hit RMB 187.8 million (US$26.4 million), more than double the RMB 84.0 million recorded a year earlier. This surge translates to a Non‑GAAP EPS of $0.03—exactly in line with analysts’ in‑line forecast—yet the underlying earnings growth is far more compelling than the headline suggests. GAAP net income reached RMB 206.8 million (US$29.1 million), reinforcing the company’s financial solidity.

With a price‑to‑earnings ratio of 29.96 and a market cap of US$2.89 billion, RLX’s valuation sits comfortably above the 52‑week low of US$1.66, yet remains below the 52‑week high of US$2.84. Investors who have watched the stock’s price drift toward its upper bound are now witnessing tangible earnings growth that justifies a premium valuation.

Market Implications

RLX’s performance is not an isolated incident but part of a broader shift in consumer staples. The company’s focus on electronic vapor products—a niche yet rapidly expanding segment—places it ahead of traditional staple producers. The company’s robust revenue growth and margin expansion suggest that the e‑vapor market is not a fleeting trend but a long‑term transformation in consumer behavior.

From a strategic perspective, RLX’s expansion in China, coupled with its offline distribution strength, positions it well to capture emerging markets and regulatory shifts. Analysts who predicted an EPS of CNY 0.217 for the quarter now see a reality that surpasses expectations in both scale and profitability.

Bottom Line

RLX Technology Inc. has delivered a third‑quarter performance that defies conservative market expectations. Revenue growth, margin improvement, and solid earnings metrics converge to paint a portrait of a company that is not just surviving but thriving in the competitive e‑vapor landscape. The company’s trajectory suggests that its valuation will continue to tighten as market participants recognize the sustainable competitive advantages embedded in its supply chain and brand portfolio.