By Amit Chowdhry Today at 5:31 PM

RLX Technology’s gross profit rose 47.8% year over year in the second quarter of 2026 as a more favorable revenue mix and supply-chain optimization helped the global e-vapor company expand gross margin by 790 basis points.

Gross profit reached RMB357.8 million, or approximately $52.7 million, compared with RMB242.1 million in the prior-year quarter. Gross margin increased to 35.4% from 27.5%.

The margin improvement significantly outpaced revenue growth. Q2 net revenue increased 14.8% to RMB1.01 billion, or approximately $148.9 million, from RMB880 million a year earlier. RLX attributed the revenue increase primarily to international expansion and contributions from an acquisition completed in May 2025.

International business has become the majority of RLX’s revenue base, representing 68.5% of Q2 net revenue. The shift reflects the company’s strategy of expanding beyond its original market and building a broader global distribution platform.

RLX is deepening store-level execution in Asia while pursuing what management calls a dual-engine strategy in Europe, combining investments in established local partners with organic growth. The company is also expanding beyond e-vapor into oral nicotine pouches and other smoke-free product categories.

The European strategy expanded further after quarter-end. In July, RLX acquired a 51% equity interest and board control in a leading Western European distributor of next-generation smoke-free and fast-moving consumer goods products.

The acquired company operates a multi-channel logistics network and proprietary B2B digital ordering platform serving a broad base of retail merchants. RLX plans to use its global supply-chain capabilities and capital resources to pursue cost optimization and cross-selling opportunities. The business will be consolidated into RLX’s financial results beginning in Q3.

Operating profitability also improved sharply. GAAP income from operations increased 234.7% to RMB130.4 million, or approximately $19.2 million, from RMB39 million a year earlier.

Non-GAAP income from operations increased 28.8% to RMB149.6 million, or approximately $22 million, from RMB116.2 million in Q2 2025.

GAAP net income increased 1.6% to RMB222 million, or $32.7 million, from RMB218.5 million. Non-GAAP net income was RMB238.8 million, or $35.2 million, compared with RMB291.2 million in the prior-year period.

RLX continues to operate with a substantial liquidity position. At June 30, the company held RMB13.88 billion, or approximately $2.05 billion, across cash and cash equivalents, restricted cash, bank deposits and investment securities. Net cash used in operating activities during Q2 was RMB63.2 million, or approximately $9.3 million.

Management said the company intends to continue balancing strategic investments with shareholder returns while using its balance sheet to support international expansion, distribution investments and a broader smoke-free product portfolio.

KEY QUOTES:

“We delivered solid second quarter results as we continued to strengthen our global business with a focus on quality, stability, and long-term resilience. As our industry matures, competitive advantage is increasingly defined not only by product innovation but also by retail execution and shelf-space leadership.”

“At the same time, we are expanding beyond our leadership in e-vapor into a broader portfolio of smoke-free products, scaling our newly launched modern oral nicotine pouches and building our presence across other smokeless categories.”

Ying (Kate) Wang, Co-Founder, Chairperson and CEO of RLX Technology

“Second quarter net revenues were RMB1.01 billion, up 14.8% year over year, with gross profit rising 47.8% year over year to RMB357.8 million.”

“In July 2026, we acquired a 51% equity interest in one of Western Europe’s largest distributors of next-generation smoke-free and FMCG products, deepening our presence in the region.”

Chao Lu, Chief Financial Officer of RLX Technology