| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 47 | 16.1x | 17.8x | Around median | |
Growth | 92 | 49.9% | 7.1% | Top tier | |
Quality | 40 | 2.8% | 4.5% | Around median | |
Safety | 95 | — | 2.6x | Top tier | |
Capital Return | 27 | 0.91% | 2.12% | Bottom tier | |
Momentum | 13 | -19.2% | 2.9% | Bottom tier | |
Sentiment | 64 | 3 | 3 | Around median |
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
RLX Technology Inc. is a company specializing in smoke-free products, including electronic vaping products and modern oral nicotine pouches, alongside heat-not-burn technologies and products for which no commercial launch date has been set. The company generates revenue by selling products through distribution and retail networks and is working to expand its control over go-to-market channels through partnerships, investments, and acquisitions, including a European electronic vaping company acquired in May 2025 and a controlling investment in a Western European distribution platform completed in July 2026.
In Q2 of fiscal year 2026, net revenues reached RMB 1.01 billion, up 14.8% year over year from RMB 880 million, with international markets accounting for approximately 70% of the total. Gross profit rose 47.8% to RMB 357.8 million, and gross margin expanded to 35.4%, up 790 basis points year over year and 360 basis points from the previous quarter, supported by supply chain optimization, improved manufacturing efficiency, and a better geographic and product mix.
RLX generated adjusted operating profit of RMB 149.6 million, up 28.8%, and recorded adjusted net income of RMB 238.8 million, marking its eleventh consecutive quarter of positive adjusted operating profitability. However, the earnings release reported earnings per share of $0.03 versus estimates of $0.09. For fiscal year 2025, revenues increased to $4.0 billion from $2.7 billion in fiscal year 2024, while net income reached $921.9 million versus $551.8 million.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on RLX is "Neutral," and the provided data does not support a consensus price target that can be relied upon. The August 14, 2026 earnings report cited a price-to-earnings ratio of 17.8 times and a price-to-sales ratio of 3.70 times, versus a 52-week range of $1.76 to $2.84; these multiples must be weighed against Q2 fiscal year 2026 revenue growth of 14.8% and earnings per share of $0.03 missing the $0.09 estimate.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Net revenues reached RMB 1.01 billion, up 14.8% from RMB 880 million in the comparable quarter. Growth primarily came from organic volume expansion in international markets and an additional contribution from the acquisition completed in May 2025. International revenues accounted for approximately 70% of total revenues, confirming that expansion outside China has become the company's primary driver.
Gross profit reached RMB 357.8 million, up 47.8% year over year, while gross margin reached 35.4%. This represents an improvement of 790 basis points year over year and 360 basis points from the previous quarter, driven by supply chain optimization, manufacturing yield, geographic mix, and product mix. However, management explained during the August 14, 2026 call that part of the improvement was related to a temporary mix effect, and therefore expects the margin to stabilize within a more balanced range as shipments normalize.
In July 2026, RLX completed a controlling investment in a distributor of smoke-free products and consumer goods in Western Europe. The platform serves more than 30,000 points of sale, and its business-to-business digital platform connects more than 20,000 independent retailers. RLX will begin consolidating its financial results starting in Q3 of fiscal year 2026, with revenues and absolute profits expected to increase, although the distribution business carries a relatively lower gross margin than proprietary branded products.
The company has turned its modern oral nicotine pouch line into a commercial business and was working to increase production capacity as of the August 14, 2026 call. The manufacturing center under construction in Southeast Asia includes dedicated production lines for this category, with the aim of enhancing flexibility, scale, and cost efficiency. RLX plans to connect the products to the point-of-sale networks and digital platforms it has strengthened in Western and Northern Europe, but the provided data does not specify a revenue target or a date for completing the production ramp-up.
Regulatory risks are particularly important because international markets generated approximately 70% of Q2 fiscal year 2026 revenues. In the United Kingdom, regulatory proposals include standardized packaging, standardized device features, restrictions on flavor descriptions, a ban on retail displays, and restrictions on closed stores. In the United States, licensing applications submitted by unconsolidated affiliates were awaiting approvals as of August 14, 2026, so the company said it would not allocate significant capital to commercial expansion until the path for approvals and enforcement becomes clearer.
Capital resources totaled RMB 13.9 billion as of June 30, 2026, including cash and cash equivalents, short-term deposits, and liquid investment securities. In Q2 of fiscal year 2026, the company recorded adjusted operating profit of RMB 149.6 million and adjusted net income of RMB 238.8 million, achieving positive adjusted operating profitability for the eleventh consecutive quarter. On an annual basis, net income increased from $551.8 million in fiscal year 2024 to $921.9 million in fiscal year 2025, alongside revenue growth from $2.7 billion to $4.0 billion.
