RLX Technology Inc. (RLX)

Price$1.77Cached quoteAs of 2026-09-04 16:23 UTC

AI: Undervalued

Price checkRLX looks inexpensive against its asset backing and current earnings power.

RLX Technology Inc. is listed on the New York Stock Exchange under ticker RLX. Recent market data put its equity value near $2.19 billion and its trailing earnings multiple near 16 times, while June shareholder equity was about $2.29 billion. The market value is also only modestly above RLX’s broad cash-and-investment pool. That looks inexpensive, although the earnings multiple includes substantial interest income and some balance-sheet assets are restricted, long-dated, or not freely distributable.

Big pictureA cash-heavy balance sheet offsets uneven cash conversion and policy-sensitive quarterly swings.

RLX generated strong operating cash in 2025, but the first two quarters of 2026 both used operating cash despite positive accounting profits. At June 30, the company held about $2.05 billion across cash, restricted cash, bank deposits, and investment securities, versus roughly $181 million of total liabilities and only about $24 million of short-term borrowing. That provides substantial durability, but Q1 also benefited from a one-time export-policy effect, showing that reported growth can be lumpy and policy-sensitive.

Business strengthInternational expansion and better margins are real strengths, though acquisitions raise execution risk.

Second-quarter revenue grew 14.8% year over year, gross margin rose to 35.4%, and international operations supplied 68.5% of sales. Operating profitability improved sharply, while share-based compensation fell versus a year earlier. Capital allocation is balanced between shareholder returns and expansion: RLX has a buyback authorization running through 2027, has paid cash dividends, and is deploying capital into Europe. Dilution still deserves attention because employee equity awards remain available and recent weighted share counts have not declined consistently.

What could change the storyThe upside needs durable overseas growth; the downside centers on regulation and cash burn.

A bull case is that international revenue keeps growing at a double-digit pace, gross margin stays around the mid-30% range, and the new European distributor adds sales without materially draining cash; that would make the current valuation look conservative. A bear case is tighter nicotine regulation, export or tariff disruption, weaker demand, or costly acquisition integration. If operating cash flow stays negative, liquidity falls quickly, or equity compensation offsets buybacks, the apparent discount could shrink for the wrong reasons.

AI: News

Q2 margin expansionRevenue grew and margins expanded, but cash flow remained negative for a second quarter.

On August 14, 2026, RLX reported second-quarter revenue of RMB1.01 billion, up 14.8% year over year, with gross margin improving to 35.4% from 27.5%. GAAP net income rose only 1.6%, while non-GAAP operating income increased 28.8%. The quarter also used RMB63.2 million of operating cash. Management said first-quarter results had benefited from a one-time export-policy effect, so the sequential slowdown was partly normalization rather than purely weaker demand.

European distribution dealRLX bought control of a Western European distributor to deepen retail access.

In July 2026, disclosed with the August 14 results, RLX acquired a 51% equity interest and board control in a major Western European distributor of smoke-free and fast-moving consumer products. The target brings an offline logistics network and proprietary business-to-business ordering platform. RLX plans to consolidate the business from the third quarter. The deal could strengthen routes to market and cross-selling, but it also increases integration risk and puts more of the company’s cash to work.

Q1 policy-aided surgeFirst-quarter growth was exceptionally strong, helped by a temporary export-policy benefit.

On May 20, 2026, RLX reported first-quarter revenue of RMB1.59 billion, up 96.2% year over year, and non-GAAP operating income up 187.9%. International operations represented 72.3% of revenue. Management attributed the jump to overseas momentum, the 2025 European acquisition, mainland China progress, and a one-time effect from changes in China’s export policies. Despite the strong earnings, operating cash flow was negative, highlighting a gap between accounting profit and cash generation.

Buyback program extendedThe board extended its buyback authorization, preserving a sizeable tool for shareholder returns.

On December 31, 2025, RLX extended its share-repurchase program through December 31, 2027. At that date, the company said it had cumulatively repurchased about 170 million ADS-equivalent ordinary shares for roughly $330 million, leaving around $170 million of authorization unused. The program can support per-share value if purchases are made below intrinsic value, but it is discretionary rather than guaranteed, and future employee-share issuance or acquisitions can offset some of the benefit.

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Free cash flow

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018
Revenue	$566.1M	$376.6M	$223.4M	$773.2M	$1.34B	$585.4M	—	—
Gross profit	$169.3M	$99.5M	$54.6M	$334.2M	$576.2M	$234.1M	—	—
Gross margin	29.90%	26.43%	24.44%	43.23%	43.09%	39.99%	—	—
Research & development	$18.7M	$12.1M	$24.3M	$46.0M	$28.2M	$45.9M	—	—
Operating expenses	$122.3M	$114.2M	$124.6M	$180.0M	$215.5M	$232.1M	—	—
Operating income	$47.0M	−$14.7M	−$70.0M	$154.2M	$360.7M	$2.0M	—	—
Operating margin	8.30%	−3.90%	−31.31%	19.94%	26.98%	0.34%	—	—
EBITDA	$55.6M	−$9.2M	−$63.4M	$166.0M	$367.9M	$5.5M	—	—
EBITDA margin	9.82%	−2.43%	−28.38%	21.47%	27.51%	0.95%	—	—
Net income	$131.8M	$75.6M	$75.3M	$209.0M	$317.7M	−$19.6M	—	—
Net profit margin	23.29%	20.08%	33.68%	27.03%	23.76%	−3.35%	—	—
Basic EPSper basic share	$0.10	$0.06	$0.06	$0.16	$0.23	-$0.01	—	—
Diluted EPSper diluted share	$0.10	$0.06	$0.06	$0.16	$0.23	-$0.01	—	—

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Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of RLX
Holder	Shares held
First Beijing Investment Ltd	59.82M
IDG China Venture Capital Fund V Associates L.P.	55.07M
NOMURA HOLDINGS INC	22.58M
VANGUARD CAPITAL MANAGEMENT LLC	20.93M
OLP CAPITAL MANAGEMENT Ltd	13.32M
BlackRock, Inc.	9.63M
D. E. Shaw & Co., Inc.	9.55M
Aspex Management (HK) Ltd	7.9M
Perseverance Asset Management International	7.36M
Oasis Management Co Ltd.	6.5M
BARCLAYS PLC	6.05M
VANGUARD FIDUCIARY TRUST CO	5.65M
Pictet Asset Management Holding SA	3.93M
MORGAN STANLEY	3.91M
ACADIAN ASSET MANAGEMENT LLC	3.67M
STATE STREET CORP	2.99M
BANK OF AMERICA CORP /DE/	2.46M
TWO SIGMA INVESTMENTS, LP	2.34M
GOLDMAN SACHS GROUP INC	2.17M
Connor, Clark & Lunn Investment Management Ltd.	2.16M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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