ATRenew Inc. Sponsored ADR ((RERE)) has held its Q2 earnings call. Read on for the main highlights of the call.
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ATRenew Inc. recently held its earnings call, revealing a strong sentiment of growth and expansion. The company reported robust revenue increases in both its 1P and 3P segments, alongside significant developments in its store and fulfillment networks. While challenges were noted in lower-tier cities and a slight decline in operating profit margin was observed, the overall financial performance was solid, supported by strategic partnerships and a shareholder return program.
Record Revenue Growth
ATRenew reported a remarkable total revenue of RMB 4.99 billion for Q2 2025, marking a year-over-year growth of 32.2%. This impressive growth exceeded the high end of the company’s guidance, showcasing the company’s strong market position and effective business strategies.
1P and 3P Revenue Increase
The earnings call highlighted a significant increase in revenue from both the 1P and 3P segments. The 1P product revenue grew by 34% year-over-year to RMB 4.56 billion, while the 3P service revenue saw a 15.4% increase, reaching RMB 430 million.
Store and Fulfillment Expansion
ATRenew expanded its operational footprint with 2,092 AHS stores nationwide, including 987 self-operated stores and 1,105 jointly operated stores. The company also bolstered its self-operated to-door service team to 1,160 personnel, enhancing its service delivery capabilities.
Refurbished Products Contribution
Refurbished products played a crucial role, contributing 13.5% of the 1P revenue. The P2C retail revenue experienced a significant year-over-year increase of 63.7%, underscoring the growing demand for refurbished products.
Strong Performance in B2B and B2C Marketplaces
The company’s B2B and B2C marketplaces showed strong performance. PJT’s warehousing inspection GMV surged, and Paipai’s consignment GMV increased by an impressive 128% year-over-year, reflecting the company’s robust market strategy.
Shareholder Return Program
ATRenew announced a three-year shareholder return program, committing to return no less than 60% of annual non-GAAP net profit to shareholders from 2025 through 2027. This move is expected to enhance shareholder value and demonstrate the company’s commitment to its investors.
Challenges in Lower-Tier Cities
Despite the overall positive performance, the company faced challenges in lower-tier cities. Constraints in store density and staffing limited the face-to-face fulfillment order ratio to below 50%, indicating areas for potential improvement.
Operating Profit Margin Decline
The non-GAAP operating profit margin for Q2 2025 was 2.4%, a slight decline from 2.5% in the same quarter last year. This minor decrease suggests a need for strategic adjustments to maintain profitability.
Forward-Looking Guidance
Looking ahead, ATRenew remains optimistic about its growth trajectory. The company continues to focus on C2B recycling growth, supported by national subsidies and partnerships with top consumer electronics brands. With a robust expansion strategy and a commitment to shareholder returns, ATRenew is poised for continued success.
In summary, ATRenew’s earnings call painted a picture of a company on the rise, with strong revenue growth and strategic expansions. Despite some challenges, particularly in lower-tier cities, the overall outlook remains positive, driven by innovative strategies and a commitment to shareholder value.