RLX Technology (NYSE:RLX) Posts Quarterly Earnings Results, Misses Expectations By $0.06 EPS

RLX Technology (NYSE:RLX) announced its quarterly earnings results on Friday. The company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.09 by ($0.06), FiscalAI reports. RLX Technology had a net margin of 20.76% and a return on equity of 6.15%. The firm had revenue of $148.73 million during the quarter, compared to the consensus estimate of $173.99 million.

Here are the key takeaways from RLX Technology’s conference call:

• Q2 revenue rose 14.8% year over year to RMB 1.01 billion, while gross profit increased 47.8% to RMB 357.8 million. Gross margin expanded to 35.4%, supported by supply-chain optimization, manufacturing yields, and favorable product mix.
• International markets accounted for approximately 70% of revenue and remained the primary growth engine. The Western European distribution acquisition will be fully consolidated beginning in Q3, providing access to more than 30,000 retail endpoints and over 20,000 independent merchants through its B2B platform.
• Sequential revenue moderated as trade inventories normalized after Q1 shipments were pulled forward by regulatory export adjustments. Management also expects gross margin to settle into a more balanced range, while the lower-margin distribution business will dilute percentage margins despite increasing absolute operating profit and net income.
• RLX reported RMB 13.9 billion in cash and liquid resources and plans to prioritize high-return organic investments, selective accretive M&A, share repurchases, and dividends, subject to board approval. Management emphasized that acquisitions must be strategically synergistic, cash-payback oriented, non-dilutive, and EPS-accretive.
• The company is limiting near-term U.S. investment until PMTA enforcement becomes more predictable, while forecasting Mainland China sales to be broadly flat for the full year amid stricter regulatory approvals. Growth priorities are shifting toward Europe, Asia, and modern oral nicotine pouches, supported by a planned Southeast Asian multi-category manufacturing hub.

RLX Technology Price Performance

RLX Technology stock opened at $1.96 on Friday. The firm has a market cap of $3.03 billion, a price-to-earnings ratio of 17.77 and a beta of 1.20. RLX Technology has a fifty-two week low of $1.76 and a fifty-two week high of $2.84. The firm has a fifty day moving average price of $1.96 and a two-hundred day moving average price of $2.13.

Analyst Ratings Changes

Separately, Weiss Ratings reiterated a “hold (c)” rating on shares of RLX Technology in a report on Friday, July 17th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $2.50.

Institutional Investors Weigh In On RLX Technology

Several hedge funds and other institutional investors have recently made changes to their positions in RLX. Mackenzie Financial Corp boosted its stake in RLX Technology by 40.4% during the 4th quarter. Mackenzie Financial Corp now owns 4,218,617 shares of the company’s stock valued at $9,642,000 after purchasing an additional 1,214,766 shares during the period. Empowered Funds LLC bought a new position in RLX Technology in the 4th quarter worth approximately $167,000. XTX Topco Ltd increased its position in RLX Technology by 152.6% in the 4th quarter. XTX Topco Ltd now owns 390,880 shares of the company’s stock worth $911,000 after buying an additional 236,153 shares during the period. Millennium Management LLC lifted its holdings in shares of RLX Technology by 15.6% during the fourth quarter. Millennium Management LLC now owns 207,609 shares of the company’s stock worth $484,000 after buying an additional 28,052 shares during the last quarter. Finally, Capitolis Liquid Global Markets LLC acquired a new position in shares of RLX Technology during the fourth quarter worth approximately $3,519,000. 22.68% of the stock is owned by institutional investors and hedge funds.

RLX Technology Company Profile

RLX Technology Inc (NYSE:RLX) is a China-based company specializing in electronic nicotine delivery systems. The company develops, manufactures and markets closed-pod vaping devices and prefilled cartridges, positioning its products as an alternative to traditional combustible tobacco. RLX emphasizes consistent nicotine delivery, flavor variety and convenience through its proprietary e-liquid formulations and device design.

RLX operates a vertically integrated business model that encompasses research and development, production, quality control and sales.