ATRenew (NYSE:RERE) reported fourth-quarter and full-year 2025 results that management said reflected “rapidly improving” operating performance, supported by growth in recycling and trade-in demand for pre-owned consumer electronics in China. On the earnings call, executives highlighted continued momentum in product revenue, a rising mix of higher-margin retail sales, and expanding offline fulfillment capacity, while also outlining priorities for 2026, including deeper investment in AI-driven operations and a continued buildout of the store network.
Revenue and profit reach record highs
Founder, Chairman, and CEO Kerry Chen said the company delivered strong growth in both revenue and profit in the fourth quarter, with total net revenues of RMB 6.25 billion, up 29% year over year. Non-GAAP operating profit was RMB 180 million, an increase of 38.1%.
Product revenue mix shifts toward retail and refurbishment
Rex Chen said fourth-quarter revenue growth was primarily driven by net product revenue, which rose 30.7% to RMB 5.83 billion, “largely attributable to the growth in online sales of pre-owned consumer electronics.” Full-year net product revenue increased 30.6% to RMB 19.38 billion.
Management emphasized a continued shift toward higher-margin retail sales, including 1P-to-consumer (“1P2C”) activity. In the fourth quarter, merchandise costs rose 28.9% to RMB 5.03 billion, while the company’s 1P gross margin improved to 13.7% from 12.5% a year earlier. For the full year, 1P gross margin was 13.8%, up from 11.8% in 2024.
Kerry Chen pointed to growth in compliant refurbishment and retail initiatives as key contributors. He said compliant refurbishment product revenue rose 90.8% year over year in the fourth quarter, and that an on-demand refurbishment strategy contributed 32% of phone refurbishment retail revenue. He also said 1P2C retail revenue increased 88% year over year, and its share of total product revenue rose 12.7 percentage points to a record 41.7%.
Service revenue grows, with multi-category recycling contributing more
Net service revenues increased 8.8% year over year to RMB 420 million in the fourth quarter. Rex Chen attributed the increase largely to PJT Marketplace and the company’s multi-category recycling business, noting that the overall marketplace take rate was 4.79% during the quarter.
Multi-category recycling contributed nearly RMB 80 million of fourth-quarter revenue, representing 18.8% of service revenues. For the full year, net service revenue rose 12.4% to RMB 1.67 billion. Multi-category recycling contributed RMB 250 million, a 93.4% increase year over year, and represented 14.9% of service revenue in 2025, up from 8.6% in 2024.
On the call, Kerry Chen said user enthusiasm for multi-category recycling increased in the fourth quarter, with overall multi-category recycling GMV up 125.7% year over year. He added that gold recycling GMV rose 136.3% and that luxury recycling take rate expanded 1.2 percentage points quarter over quarter, citing peak-season demand and pricing optimization.
Offline footprint expands; medium-term store target unchanged
ATRenew continued expanding its offline fulfillment network, which management tied to trade-in execution and user experience improvements. Kerry Chen said the company ended the quarter with 2,195 AHS stores and 2,154 door-to-door service members, and noted that the proportion of offline fulfillment for JD.com’s trade-in program increased versus the first half of the year.
In response to an analyst question about store expansion targets, management said that in 2025 it added 451 AHS standard stores on a net basis and scaled its door-to-door workforce, with daily order-generating headcount increasing by more than 1,000. The company said its face-to-face trade-in fulfillment ratio exceeded 70%. For 2026, ATRenew said it plans to enhance store quality in high-tier cities, expand footprint in lower-tier cities using franchisee and city partners, and flexibly adjust door-to-door staffing to seasonal demand. Management reiterated that its medium- to long-term target of 5,000 stores remains unchanged, while pacing may be adjusted based on online traffic and brand strategy.
Margins, capital returns, and 2026 outlook
On expenses, Rex Chen said fourth-quarter non-GAAP fulfillment expenses increased 22.4% to RMB 480 million, while the non-GAAP fulfillment expense ratio improved to 7.7% from 8.1%. Non-GAAP selling and marketing expenses rose 44.1% to RMB 460 million, driven primarily by higher commission expenses tied to channel service fees, and the related expense ratio increased to 7.4% from 6.6%. Non-GAAP G&A declined 25.6% to RMB 57.6 million, primarily due to lower personnel costs, and non-GAAP R&D increased 14% to RMB 60.3 million due to higher personnel expenses.
Management also discussed efforts to improve profitability over time. In the Q&A, the company said automated quality inspection technology can reduce per-order inspection costs by about 30% compared with manual inspection, and that it is scaling automation at its Dongguan and Changzhou operation centers while beginning smaller-scale deployment of automated logistics infrastructure.
ATRenew also detailed shareholder returns. Rex Chen said the company repurchased about 1.3 million ADS for approximately $5.8 million in the fourth quarter, and announced a fiscal year 2025 cash dividend of $0.10 per ADS, totaling approximately $23.5 million.
For guidance, the company forecast first-quarter 2026 total revenue of RMB 5.86 billion to RMB 5.96 billion, representing year-over-year growth of 25.9% to 28.1%. Management said the forecast reflects current and preliminary views and is subject to change.
Executives also discussed industry conditions heading into 2026, including rising memory prices that have pushed new device prices higher. Kerry Chen said Apple’s new device pricing has been relatively stable versus Android brands, and that the share of Apple products in ATRenew’s business increased sequentially. He described rising new device prices as both an opportunity—potentially elevating the priority of trade-in programs for manufacturers and e-commerce platforms—and a challenge, as more consumers enter the pre-owned market and pricing and user experience become increasingly important. Management reiterated a commitment to a “retail first” strategy and said its target of retail revenue exceeding 50% of the 1P business remains unchanged.
About ATRenew (NYSE:RERE)
ATRenew Inc, through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co Ltd.
