Luckin Coffee Reports Strong Revenue Growth in Q2 2025

Luckin Coffee Inc ( (LKNCY) ) has released its Q2 earnings. Here is a breakdown of the information Luckin Coffee Inc presented to its investors.

Luckin Coffee Inc. is a technology-driven retail network based in China, specializing in providing high-quality, convenient, and affordable coffee and other products. In its latest earnings report for the second quarter of 2025, Luckin Coffee announced a significant increase in total net revenues, reaching RMB12,358.7 million, a 47.1% rise compared to the same quarter in 2024. This growth was primarily fueled by a 46.2% increase in gross merchandise value (GMV) and an expansion in the number of stores and monthly transacting customers.

The company reported a notable rise in operating income, which increased by 61.8% year-over-year to RMB1,700.1 million, with a GAAP operating margin of 13.8%. Non-GAAP operating income also saw a substantial increase, reaching RMB1,854.5 million. Revenues from product sales and partnership stores both experienced significant growth, with partnership store revenues increasing by 55.0%. Operating expenses rose by 45.0% due to business expansion, yet operating expenses as a percentage of net revenues decreased, reflecting improved efficiency.

Luckin Coffee’s net income for the quarter was RMB1,250.5 million, a 43.6% increase from the previous year, with a net margin of 10.1%. The company also reported a strong cash position, with net cash provided by operating activities amounting to RMB2,560.5 million. The total number of stores increased to 26,206 by the end of the quarter, indicating the company’s aggressive expansion strategy.

Looking ahead, Luckin Coffee remains committed to leveraging its scale and supply chain strengths to drive sustainable long-term growth. The company aims to continue expanding its market share and enhancing its product innovation capabilities to navigate evolving market conditions effectively.