ATRenew Inc. Reports Strong Q1 2025 Earnings Growth

ATRenew Inc. Sponsored ADR ((RERE)) has held its Q1 earnings call. Read on for the main highlights of the call.

ATRenew Inc. recently held its earnings call, revealing a strong financial performance marked by significant revenue growth and expansion in its retail and recycling capabilities. The company expressed a positive market outlook, bolstered by national subsidies, despite facing challenges in specific segments such as the Apple trade-in program and increased expenses. Overall, the sentiment during the call was optimistic, with robust financial results underscoring the company’s strategic advancements.

Exceeding Revenue Guidance

ATRenew Inc. reported that its total net revenues for the first quarter of 2025 surpassed the high end of its guidance, increasing by 27.5% year-over-year to RMB 4,653.5 million. This achievement underscores the company’s strong market position and effective business strategies.

Non-GAAP Operating Income Growth

The company saw a significant rise in non-GAAP operating income, which grew by 39.5% year-over-year to over RMB 110 million. The non-GAAP operating margin also improved, reaching 2.4%, indicating enhanced operational efficiency.

Strong 1P Business Performance

ATRenew’s 1P business revenue experienced a robust growth of 28.8% year-over-year, with product revenue soaring by over 50%. This highlights the company’s successful efforts in strengthening its core business operations.

Expansion of AHS Recycle Stores

The company expanded its offline presence by adding 458 AHS Recycle stores year-on-year by the end of March 2025. This expansion is expected to enhance ATRenew’s fulfillment capabilities and customer reach.

Growth in Recycling Channels

ATRenew reported a remarkable growth in its C2B consumer electronics recycling value, which increased by over 50% year-over-year. This reflects the growing demand for sustainable recycling solutions.

PJT Marketplace Expansion

The PJT marketplace saw a significant increase in its user base, with registered merchants surpassing one million and a double-digit year-over-year rise in active trade-in merchants. This expansion is likely to boost the platform’s trading activities.

Paipai Consignment Business Growth

Sales in the Paipai consignment business grew by an impressive 2.2 times year-over-year in the first quarter of 2025. This growth demonstrates the company’s successful diversification into new business areas.

Multi-category Recycling Growth

ATRenew’s multi-category recycling segment showed substantial growth, with both transaction value and revenue nearly tripling year-over-year in the first quarter of 2025.

Decline in Apple Official Trade-In Program

Despite a decline in revenue from the Apple official trade-in program due to a high base from early pricing strategies, the company managed to improve its margins, showcasing resilience in adapting to market changes.

Increased Fulfillment and Marketing Expenses

The company reported an increase in non-GAAP fulfillment expenses, which rose to 9.1% of total revenues from 8.3%, and non-GAAP selling and marketing expenses increased to 8.3% from 6.1%. These increases reflect ATRenew’s investments in expanding its market presence.

Forward-Looking Guidance

Looking ahead, ATRenew provided an optimistic financial outlook for the second quarter of 2025, with anticipated total revenues ranging between RMB 4,710 million and RMB 4,801 million. This represents a year-over-year increase of 24.7% to 27.4%, driven by continued growth in the 1P business and retail capabilities.

In summary, ATRenew Inc.’s earnings call highlighted a period of strong financial performance and strategic growth initiatives. The company demonstrated resilience and adaptability in the face of challenges, with a positive outlook for future revenue growth. Investors and market watchers can look forward to ATRenew’s continued expansion and innovation in the recycling and retail sectors.