RELX Technology Q1 Revenue Doubles, International Expansion Shows Significant Results

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On May 20, RELX’s parent company, RLX Technology, released its unaudited financial report for the first quarter of 2026.

Data shows the company achieved net revenue of RMB 1.5858 billion (approximately USD 229.9 million) during the period, a year-on-year increase of 96.2% and a quarter-on-quarter increase of 38.9%. On a non-U.S. GAAP basis, net profit was RMB 357.3 million (approximately USD 51.8 million), up 41.4% year-on-year.

Revenue nearly doubled, while net profit increased by over 40%; the gap of more than 50 percentage points between these two growth rates is the most noteworthy and core feature of this financial report.

Further breakdown of the growth structure shows international business has become RLX Technology’s main source of income. In the first quarter, international business accounted for 72.3% of total revenue.

From one perspective, this means the company has completed its strategic shift from a domestic focus to globalization; from another, it suggests the recovery pace in the domestic market remains relatively slow.

Europe and emerging markets were important drivers of growth this quarter. In May 2025, RLX Technology completed an investment and acquisition of a European entity, which contributed consolidated revenue during this reporting period. In emerging markets such as Southeast Asia and North Asia, RLX Technology maintained its market share advantage through early deployment.

Revenue grew by 96.2%, Non-GAAP net profit rose by 41.4%—this gap was caused by multiple factors.

Firstly, changes in expenses are worth noting. In the first quarter, total operating expenses were RMB 260 million, an increase from the same period last year, mainly due to increased personnel costs from overseas acquisitions, higher equity incentive expenses, and depreciation and amortization from business expansion. While overseas acquisitions rapidly expanded revenue scale, they also raised operating costs.

Secondly, the revenue growth this quarter was not entirely driven by endogenous business. CFO Lu Chao explicitly mentioned in the report, “One-off impact from adjustments to export policies also contributed temporarily to revenue growth.” This statement suggests part of the growth came from a concentrated policy window effect, and whether it can be sustained remains uncertain.

On the positive side, gross margin improved by 3.2 percentage points year-on-year to 31.8%, and Non-GAAP operating profit surged 187.9% year-on-year to RMB 310.3 million. To some extent, this indicates as revenue scale expands, the company is gradually realizing operational leverage.

It is worth noting that the policy environment in the European market is tightening.

The UK government has confirmed it will impose a new excise tax on e-cigarette products starting October 1, 2026, meaning e-cigarettes will officially enter the excise tax framework. Some European countries are also advancing taxes on e-liquid. The increased tax burden may put pressure on the profitability of the company’s European business in the future.

As of March 31, 2026, RLX Technology held cash and various investment reserves of about RMB 14.5297 billion (approximately USD 2.1064 billion), with an overall sound financial position.

This capital reserve provides a buffer for further globalization, but for a company mainly driven by overseas markets, how to achieve sustainable growth amid frequent regulatory changes across countries will be a more important medium- to long-term issue.

This quarter’s results show RLX Technology has gained momentum on its globalization track. However, beneath the appearance of high revenue growth, issues such as the pace of profit release, efficiency in expense control, and regional policy uncertainty remain questions for management to answer.

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