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Chagee Posts Lower 2025 Profit as Restructuring and Overseas Expansion Weigh on Margins

Story Highlights
  • Chagee expanded its teahouse network 15.7% in 2025, with strong overseas GMV growth offsetting softer Greater China performance.
  • Despite 4% revenue growth in 2025, Chagee’s margins and net income fell sharply as restructuring, model shifts and expansion drove higher costs.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Chagee Posts Lower 2025 Profit as Restructuring and Overseas Expansion Weigh on Margins

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An update from Chagee Holdings Limited Unsponsored ADR ( (CHA) ) is now available.

On March 31, 2026, Shanghai-based Chagee reported unaudited results for the fourth quarter and full year ended Dec. 31, 2025, highlighting a teahouse network of 7,453 locations, up 15.7% year over year. Total 2025 GMV rose 7.2% to RMB31.58 billion, but Greater China GMV fell in the fourth quarter while overseas GMV jumped 84.6%, reflecting shifting demand and faster international growth.

Fourth-quarter 2025 net revenue declined to RMB2.97 billion and the company swung to an operating loss of RMB35.5 million due to restructuring, a business model transition and higher share-based compensation. For 2025 as a whole, net revenue grew 4.0% to RMB12.91 billion, but operating margin roughly halved to 10.4% and GAAP net income dropped to RMB1.19 billion, as Chagee boosted investment in company-owned and overseas stores, corporate infrastructure and organizational changes that pressured short-term profitability.

The most recent analyst rating on (CHA) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Chagee Holdings Limited Unsponsored ADR stock, see the CHA Stock Forecast page.

Spark’s Take on CHA Stock

According to Spark, TipRanks’ AI Analyst, CHA is a Neutral.

Chagee Holdings Limited’s overall stock score reflects a combination of strong valuation and financial health, offset by bearish technical indicators and mixed earnings call results. The company’s attractive P/E ratio and high dividend yield are significant positives, but recent declines in revenue and profitability, along with bearish market momentum, suggest caution. The company’s strategic focus on overseas expansion and product innovation offers potential for future growth.

To see Spark’s full report on CHA stock, click here.

More about Chagee Holdings Limited Unsponsored ADR

Chagee Holdings Limited, listed on Nasdaq under the ticker CHA, operates a large network of premium freshly made tea drink teahouses across Greater China and overseas. The company focuses on healthy, high-quality tea beverages sold through a mix of franchised and company-owned locations, and has been expanding its international footprint and store count.

Average Trading Volume: 595,494

Technical Sentiment Signal: Strong Sell

Current Market Cap: $1.79B

See more data about CHA stock on TipRanks’ Stock Analysis page.

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