ATRenew Inc. Sponsored ADR (RERE)
NYSE:RERE
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ATRenew Inc. Sponsored ADR
(NYSE:RERE)
Select Model
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Rating:63Neutral
Price Target:
$5.50
▲(23.04% Upside)
Action:Reiterated
Date:05/20/26
The score is driven primarily by mixed financial performance—strong growth and a low-leverage balance sheet but weakened by the 2025 reversal to negative operating/free cash flow and margin pressure. The latest earnings call is supportive with strong growth guidance and improving profitability, while technicals and valuation are neutral-to-slightly cautious (mixed momentum and a ~26x P/E).
Positive Factors
Strong revenue growth and return to profitability
ATRenew has shown sustained top-line momentum and a return to positive net income in 2025, reflecting scale in its recommerce model. Durable revenue growth supports reinvestment in refurbishment, fulfillment and marketplace expansion, strengthening long-term competitive positioning.
Negative Factors
Volatile cash generation; negative OCF and FCF in 2025
The 2025 swing to materially negative operating and free cash flow signals inconsistent cash conversion and elevated working-capital needs. Persistent cash volatility can constrain funding for stores, refurbishment capacity, and international expansion, increasing execution and liquidity risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and return to profitability
ATRenew has shown sustained top-line momentum and a return to positive net income in 2025, reflecting scale in its recommerce model. Durable revenue growth supports reinvestment in refurbishment, fulfillment and marketplace expansion, strengthening long-term competitive positioning.
Read all positive factors
ATRenew Inc. Sponsored ADR (RERE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.08B
Dividend YieldN/A
Average Volume (3M)966.38K
Price to Earnings (P/E)150.0
Beta (1Y)1.01
Revenue Growth32.51%
EPS Growth241.09%
CountryUS
Employees2,096
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.71
Shares Outstanding131,728,120
10 Day Avg. Volume1,523,427
30 Day Avg. Volume966,379
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)3.37
Price to Sales (P/S)0.66
P/FCF Ratio-24.74
Enterprise Value/Market Cap10.06
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit2.87
Enterprise Value/Ebitda21.19
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.08
Revenue Forecast (FY)$26.16B
ATRenew Inc. Sponsored ADR Business Overview & Revenue Model
Company Description
ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras, household products, ...
How the Company Makes Money
ATRenew primarily makes money from the recommerce value chain for used consumer electronics. Its core revenue stream is product sales: it acquires used devices (from individual consumers and other sources), grades/tests them, and then resells them...
ATRenew Inc. Sponsored ADR Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line growth (revenues up ~32% YoY), marked expansion of higher-margin refurbished and direct-to-consumer channels, significant marketplace and GMV gains, improved gross margins and operating profit margin expansion, alongside disciplined near-term guidance. Offsetting items include rising operating expenses, an inventory build tied to strategic mix shift, modest macro softness in new device shipments, and some concentration risk in a major sourcing channel. On balance, the positive operational momentum, margin improvement, and robust growth in strategic areas (refurbishment, marketplace, multi-category GMV) outweigh the near-term cost and inventory headwinds.Positive Updates
Strong Revenue Growth
Total net revenues grew 32.4% year-over-year to roughly RMB 6.2–6.6 billion in Q1 2026 (transcript shows RMB 6.16B per CFO and RMB 6.6B per CEO), reflecting accelerated overall growth driven by product sales and trading.
Negative Updates
Rising Operating Costs and Headcount-Driven Expenses
Merchandise costs increased 33.2% YoY to RMB 4.82 billion. Non-GAAP fulfillment expenses rose ~20.7% to RMB 520 million (personnel and operating center costs), G&A increased ~33% to ~RMB 79M, and R&D climbed ~36% to ~RMB 72–73M, reflecting higher investment and staffing costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Total net revenues grew 32.4% year-over-year to roughly RMB 6.2–6.6 billion in Q1 2026 (transcript shows RMB 6.16B per CFO and RMB 6.6B per CEO), reflecting accelerated overall growth driven by product sales and trading.
Read all positive updates
Company Guidance
Management guided Q2 2026 total revenues to RMB 6,240–6,340 million, implying year‑over‑year growth of about 25%–27%. For context, they closed Q1 with revenues of roughly RMB 6.16 billion (up 32.4% YoY), non‑GAAP operating income of just over RMB 190 million (up ~70% YoY) and a non‑GAAP operating margin of 3.1% (up 69 basis points) with a marketplace take rate of 4.92% and 1P retail accounting for 45.1% of product revenue; management said they now expect to scale in 2026 faster than earlier planned and to deliver meaningful margin improvement while prioritizing 1P growth, AI productivity, steady overseas expansion and continued investment in face‑to‑face fulfillment (current store/field metrics include ~2,156 stores, a 2,248‑person door‑to‑door team and a long‑term target of 5,000 stores), and they extended their share‑repurchase program after repurchasing about USD 11 million to date under a USD 50 million authorization.ATRenew Inc. Sponsored ADR Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.54B | 20.47B | 16.33B | 12.97B | 9.87B | 7.78B |
| Gross Profit | 3.80B | 2.52B | 3.24B | 2.63B | 2.27B | 2.04B |
| EBITDA | 513.90M | 515.78M | 362.70M | 192.38M | -2.16B | -521.33M |
| Net Income | 210.36M | 327.13M | -8.23M | -156.25M | -2.47B | -816.55M |
Balance Sheet | ||||||
| Total Assets | 5.20B | 5.97B | 5.09B | 5.49B | 5.05B | 7.50B |
| Cash, Cash Equivalents and Short-Term Investments | 1.92B | 1.81B | 2.61B | 2.43B | 2.52B | 1.89B |
| Total Debt | 244.21M | 393.14M | 354.93M | 405.94M | 203.93M | 165.45M |
| Total Liabilities | 1.41B | 1.98B | 1.40B | 1.78B | 1.17B | 1.08B |
| Stockholders Equity | 3.79B | 3.99B | 3.69B | 3.71B | 3.88B | 6.42B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -543.62M | 582.95M | 158.72M | 819.83M | -1.09B |
| Operating Cash Flow | 0.00 | -403.27M | 642.81M | 243.90M | 881.30M | -1.02B |
| Investing Cash Flow | 0.00 | -132.44M | -424.40M | 172.01M | -516.68M | -670.40M |
| Financing Cash Flow | 0.00 | -13.31M | -307.71M | 68.70M | -186.04M | 2.29B |
ATRenew Inc. Sponsored ADR Technical Analysis
Negative
4.47
Price Trends
4.73
Negative
5.18
Negative
4.76
Negative
Market Momentum
0.03
Negative
49.52
Neutral
70.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RERE, the sentiment is Negative. The current price of 4.47 is below the 20-day moving average (MA) of 4.60, below the 50-day MA of 4.73, and below the 200-day MA of 4.76, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RERE.
ATRenew Inc. Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.07B | 31.34 | 14.24% | ― | 9.26% | 18.70% | |
66 Neutral | $1.37B | 28.14 | 12.85% | ― | 10.02% | 26.46% | |
63 Neutral | $1.08B | 150.00 | 8.02% | ― | 32.51% | 241.09% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $572.94M | -16.18 | -36.11% | ― | 10.25% | 70.25% | |
51 Neutral | $224.33M | -32.20 | -2.64% | ― | 27.00% | 88.21% | |
47 Neutral | $879.35M | -6.02 | -194.88% | ― | 31.78% | ― |
* Consumer Cyclical Sector Average
RERE
ATRenew Inc. Sponsored ADR
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2.12
82.81%
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ATRenew Inc. Sponsored ADR Corporate Events
ATRenew Posts Strong Q1 2026 Profit Surge and Extends Share Buyback Program
May 19, 2026
ATRenew reported unaudited results for the quarter ended March 31, 2026, showing total net revenues up 32.4% year-on-year to RMB6.16 billion, driven mainly by higher sales of pre-owned electronics through its online channels. Operating income jump...
ATRenew Posts Strong 2025 Revenue and Profit Gains on Pre-Owned Electronics Growth
Mar 11, 2026
On March 11, 2026, ATRenew reported unaudited results showing strong growth for the fourth quarter and full year 2025, with Q4 net revenues up 29% year-on-year to RMB6.25 billion and full-year revenues up 28.9% to RMB21.05 billion. The number of c...
ATRenew Adds JD.com Executive to Board, Reshapes Committees After Director Resignation
Mar 6, 2026
On March 6, 2026, ATRenew Inc. announced that Yue Teng, a strategic investment director at JD.com, has been appointed to its board of directors and compensation committee, while Rui Zhu has joined the nominating and corporate governance committee....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.