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RLX

RLX Technology Inc.

RLX

RLX Technology Inc. • NYSE
$2.51 ▲ 3.72% (+0.09)
Market Cap $3.07 B
52w High $2.84
52w Low $1.66
Dividend Yield 0.02%
P/E 31.37
Volume 2.86M
Outstanding Shares 1.22B

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $1.034B ▲ $259.308M ▲ $203.163M ▼ 19.651% ▼ $0.17 ▼ $103.313M ▲
Q2-2025 $794.117M ▲ $203.122M ▲ $217.117M ▼ 27.341% ▼ $0.18 $38.958M ▼
Q1-2025 $708.477M ▼ $153.512M ▼ $222.04M ▲ 31.34% ▲ $0.18 ▲ $77.439M ▲
Q4-2024 $736.211M ▲ $231.453M ▲ $121.961M ▼ 16.566% ▼ $0.094 ▼ $-1.485M ▲
Q3-2024 $679.355M $216.636M $165.654M 24.384% $0.14 $-10.66M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $8.469B ▲ $17.431B ▼ $1.239B ▼ $16.101B ▼
Q2-2025 $7.413B ▼ $17.486B ▲ $1.247B ▲ $16.152B ▼
Q1-2025 $8.163B ▼ $17.073B ▲ $849.132M ▼ $16.222B ▲
Q4-2024 $8.493B ▲ $16.871B ▲ $881.096M ▲ $15.988B ▲
Q3-2024 $8.058B $16.403B $743.238M $15.663B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $203.163M ▼ $357.546M ▲ $-343.188M ▲ $-370.205M ▼ $-382.879M ▲ $357.546M ▲
Q2-2025 $217.117M ▼ $229.616M ▲ $-816.501M ▲ $-326.948M ▼ $-911.397M ▼ $229.616M ▲
Q1-2025 $222.04M ▲ $207.165M ▼ $-987.166M ▼ $14.435M ▲ $-773.606M ▼ $207.165M ▼
Q4-2024 $121.961M ▲ $497.011M ▲ $1.901B ▲ $-130.366M ▼ $2.331B ▲ $486.925M ▲
Q3-2024 $0 $156.554M $139.12M $-74.78M $175.076M $156.554M

Five-Year Company Overview

Income Statement

Income Statement RLX’s revenue history is quite volatile. The business grew rapidly, then saw a sharp drop when regulation in China tightened, and more recently has begun to recover. This tells you the core business can scale, but is highly sensitive to policy and market shifts. Profitability is mixed. Gross profits remain healthy, so the products themselves still create solid economic value. However, at the operating level the company has swung from strong profits to recent small losses, suggesting higher operating costs, pricing pressure, or both. Despite this, reported net income has stayed positive in recent years, likely helped by non-operating gains or very light financing costs. Overall, the income statement shows a business with decent unit economics but significant swings in scale and profitability, driven largely by the regulatory environment and the company’s adjustment to it.

Balance Sheet

Balance Sheet RLX carries a very strong balance sheet. Assets have stayed fairly stable over the last several years while shareholder equity makes up almost all of the capital structure. Debt is minimal, which reduces financial risk and interest burden. Cash on hand is substantial relative to the size of the business and has recently increased again. This provides a cushion against regulatory shocks, gives flexibility to invest in new products and markets, and lowers the chance of needing outside financing in a downturn. In short, the company looks conservatively financed and well-capitalized, with a lot of balance-sheet strength compared with the volatility in its income statement.

Cash Flow

Cash Flow Despite earnings volatility, RLX has consistently generated positive operating cash flow. Cash coming in from the core business has remained solid even in years when accounting profits were under pressure. This is a good sign that the underlying cash economics are better than headline profit swings might suggest. Capital spending is modest, and free cash flow is close to operating cash flow. That points to an asset-light model where the company does not need heavy ongoing investment just to maintain operations. The strong free cash flow profile also explains the build-up in cash on the balance sheet. Overall, the cash flow statements tell a more reassuring story than the income statement: the business has remained cash-generative through a turbulent period.

Competitive Edge

Competitive Edge RLX holds a leading position in China’s e-vapor market, supported by strong brand recognition and a large network of physical retail partners. This offline presence is especially important given restrictions on online sales, and it creates a barrier that is hard for new entrants to match quickly. Regulation is a double-edged sword. It increases risk and can hurt demand when rules change, but it also raises the bar for compliance, which favors experienced, better-capitalized players like RLX. The company’s track record of obtaining licenses and adjusting products suggests it has built valuable regulatory know-how. Vertical integration across design, manufacturing, and distribution helps control quality and costs, while responsible-use initiatives support the brand’s standing with regulators and the public. The main competitive threats come from regulatory unpredictability, shifting consumer attitudes toward vaping, and intensifying competition both at home and abroad.

Innovation and R&D

Innovation and R&D RLX appears to treat innovation as a core differentiator rather than an afterthought. It has developed proprietary technologies aimed at smoother, more reliable vaping, such as advanced ceramic coils, leak-resistant pods, and its branded performance systems. These are designed to directly address common pain points for users. The company runs its own R&D and bioscience labs, which is unusual for many consumer products companies. This lets RLX study product safety, user behavior, and harm-reduction aspects more deeply, potentially helping it stay ahead of regulatory expectations and support a more science-based narrative. RLX is also experimenting with smart, connected devices and tailoring product lines to different user preferences. Continued investment along these lines may help sustain differentiation, but it will need to balance innovation with compliance as global rules on e-vapor tighten and evolve.

Summary

RLX is a financially solid but operationally volatile company in a highly regulated niche of the consumer sector. Its revenues and operating profits have swung sharply as the Chinese regulatory environment changed, yet the firm has preserved profitability at the bottom line and remained strongly cash-generative. The balance sheet is a key strength: high equity, very little debt, and a sizable cash position give RLX room to absorb shocks and invest in future growth. At the same time, the company’s dependence on regulatory-heavy markets, particularly China, introduces ongoing uncertainty that can rapidly change the earnings picture. On the strategic side, RLX benefits from a strong domestic brand, a wide offline distribution network, and notable investments in R&D and product differentiation. Its push into international markets and continued focus on technology and harm reduction could broaden its opportunity set but will bring new regulatory and competitive challenges. Overall, RLX combines strong financial resilience and innovative capability with substantial external risks tied to regulation and industry sentiment toward vaping.

NEWS

November 14, 2025 · 4:30 AM UTC

RLX Technology Announces Unaudited Third Quarter 2025 Financial Results

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November 3, 2025 · 1:00 AM UTC

RLX Technology to Report Third Quarter 2025 Financial Results on November 14, 2025

Read more