RLX Technology (RLX)
NYSE:RLX
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RLX Technology
(NYSE:RLX)
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Rating:74Outperform
Price Target:
$2.50
▲(15.21% Upside)
Action:ReiteratedDate:04/28/26
The score is led by strong financial quality (fortress balance sheet and positive cash generation) and a favorable earnings-call outlook highlighting continued growth, margin improvement, and shareholder returns. These positives are moderated by a mixed technical trend (below key longer-term averages with slightly negative MACD) and only moderate valuation support despite the strong dividend yield.
Positive Factors
Fortress balance sheet
Extremely low leverage and a large cash asset base materially reduce financial risk and preserve strategic optionality. This balance-sheet conservatism supports disciplined capital allocation, sustained buybacks/dividends, and provides a durable buffer against regulatory or market shocks over the medium term.
Negative Factors
Revenue volatility
Material swings in revenue and uneven free-cash-flow growth reduce predictability of future earnings and complicate capital planning. Volatility undermines confidence that recent margin and profit improvements will persist, increasing execution risk for sustained international expansion and product rollouts.
Read all positive and negative factors
Positive Factors
Negative Factors
Fortress balance sheet
Extremely low leverage and a large cash asset base materially reduce financial risk and preserve strategic optionality. This balance-sheet conservatism supports disciplined capital allocation, sustained buybacks/dividends, and provides a durable buffer against regulatory or market shocks over the medium term.
Read all positive factors
RLX Technology (RLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.67B
Dividend Yield0.35%
Average Volume (3M)2.40M
Price to Earnings (P/E)22.2
Beta (1Y)0.51
Revenue Growth48.35%
EPS Growth68.22%
CountryUS
Employees381
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)0.03
Shares Outstanding909,728,640
10 Day Avg. Volume1,545,027
30 Day Avg. Volume2,404,224
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)1.27
Price to Sales (P/S)5.67
P/FCF Ratio20.22
Enterprise Value/Market Cap4.84
Enterprise Value/Revenue3.58
Enterprise Value/Gross Profit10.95
Enterprise Value/Ebitda38.32
Forecast
1Y Price Target
$2.50Price Target Upside15.21% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.96
Revenue Forecast (FY)$5.62B
RLX Technology Business Overview & Revenue Model
Company Description
RLX Technology Inc., together with its subsidiaries, researchers, develops, manufactures, distributes, and sells e-vapor products in the People's Republic of China. It serves RELX branded partner stores and other retail outlets through distributor...
How the Company Makes Money
RLX primarily makes money by selling closed-system e-vapor products—(1) hardware devices and (2) consumable pre-filled pods/e-liquids—through distribution and retail channels. Revenue is recognized from product sales (net of discounts, returns, an...
RLX Technology Earnings Call Summary
Earnings Call Date:Mar 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 15, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line growth, margin expansion, sustained profitability, a fortress-like balance sheet (RMB 15.73 billion / ~USD 2.2 billion), and rapid international expansion (76.5% of Q4 revenue) driven by disciplined execution and AI-enabled operating leverage. Key challenges include ASP pressure from product-mix shifts, regional retail value contraction (notably the U.K.), regulatory and tax uncertainties, and near-term supply ramp constraints for new product categories. Overall, the positive financial results, cash generation, shareholder returns and broad global momentum substantially outweigh the manageable regulatory and mix-related headwinds.Positive Updates
Strong Revenue Growth
Fourth quarter net revenues reached RMB 1.14 billion, up 40.3% year-over-year; full year net revenues grew 44% to RMB 3.96 billion.
Negative Updates
Industry ASP Pressure from Product Mix Shift
In 2025 the industry experienced pressure on average selling price per millimeter due to a shift from single-use disposables toward lower-cost pod and refillable systems, impacting category retail value even as volumes recover.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Fourth quarter net revenues reached RMB 1.14 billion, up 40.3% year-over-year; full year net revenues grew 44% to RMB 3.96 billion.
Read all positive updates
Company Guidance
The company guided that for 2026 it expects the broader international industry to grow at double digits while RLX aims to grow significantly faster, with volume and revenue growth to align and early results from geographic expansions expected in H1 2026; management reiterated Europe as a top strategic priority ahead of the U.K. excise tax in Oct 2026 and said it will continue disciplined capital allocation—maintaining a fortress-like balance sheet (RMB 15.73 billion / ~USD 2.2 billion), negative 15 days cash conversion cycle, and RMB 1.1 billion operating cash flow for FY2025—while returning capital (over USD 500 million to date: USD 330 million repurchases, USD 171 million dividends) and targeting dividend distribution of non‑GAAP net profit; FY2025 results cited as context included Q4 net revenues RMB 1.14 billion (+40.3% YoY), FY net revenues RMB 3.96 billion (+44%), Q4 gross margin 31.4% (vs. 27% a year ago), FY non‑GAAP operating income RMB 570 million, Q4 non‑GAAP operating profit RMB 158 million, and FY non‑GAAP net income RMB 1.16 billion, with international sales at 76.5% of Q4 revenue and specific execution wins such as 425 franchise stores, >20% specialty store share and >200% channel revenue growth in East Asia.RLX Technology Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.52B | 2.44B | 1.24B | 5.33B | 8.52B |
| Gross Profit | 1.15B | 726.52M | 387.71M | 2.31B | 3.67B |
| EBITDA | 319.61M | -60.63M | -400.11M | 1.14B | 2.34B |
| Net Income | 896.75M | 551.84M | 534.33M | 1.44B | 2.02B |
Balance Sheet | |||||
| Total Assets | 17.94B | 16.87B | 16.32B | 16.38B | 16.37B |
| Cash, Cash Equivalents and Short-Term Investments | 10.19B | 8.49B | 8.11B | 10.79B | 12.85B |
| Total Debt | 176.47M | 58.50M | 94.96M | 85.92M | 184.81M |
| Total Liabilities | 2.20B | 881.10M | 716.68M | 838.45M | 2.85B |
| Stockholders Equity | 15.64B | 15.99B | 15.61B | 15.57B | 13.51B |
Cash Flow | |||||
| Free Cash Flow | 985.83M | 842.09M | 166.29M | 448.19M | 1.66B |
| Operating Cash Flow | 1.10B | 854.35M | 198.70M | 486.83M | 1.80B |
| Investing Cash Flow | -822.19M | 3.02B | 2.09B | -4.13B | -7.87B |
| Financing Cash Flow | -282.75M | -678.03M | -1.19B | -477.27M | 9.90B |
RLX Technology Technical Analysis
Neutral
2.17
Price Trends
2.26
Negative
2.26
Negative
2.27
Negative
Market Momentum
-0.03
Negative
47.37
Neutral
67.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLX, the sentiment is Neutral. The current price of 2.17 is above the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.26, and below the 200-day MA of 2.27, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 67.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RLX.
RLX Technology Risk Analysis
RLX Technology disclosed 91 risk factors in its most recent earnings report. RLX Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may engage in acquisitions, investments or strategic alliances, which could require significant management attention and materially and adversely affect our business and results of operations. Q4, 2023
2.
Failure to respond to changes in the regulatory environment in China could materially and adversely affect us. Q4, 2023
3.
Our business is subject to a large number of laws across many jurisdictions, many of which are evolving. Q4, 2023
RLX Technology Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.67B | 22.23 | 5.73% | 0.35% | 48.35% | 68.22% | |
69 Neutral | $127.42B | 7.23 | 16.33% | 5.22% | 2.16% | 171.90% | |
68 Neutral | $124.60B | 12.64 | -215.18% | 7.02% | 0.75% | -19.96% | |
67 Neutral | $259.31B | 26.50 | -105.29% | 3.59% | 8.48% | 45.92% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $1.60B | 34.13 | 20.84% | 0.28% | 14.38% | 42.23% | |
42 Neutral | $80.21M | -6.07 | -2384.12% | ― | -34.71% | -51.50% |
* Consumer Defensive Sector Average
RLX
RLX Technology
2.19
0.41
23.31%
MO
Altria Group
74.55
18.62
33.28%
BTI
British American Tobacco
58.71
17.48
42.40%
PM
Philip Morris
166.38
-0.88
-0.53%
TPB
Turning Point Brands
82.60
17.59
27.06%
ISPR
Ispire Technology, Inc.
1.40
-1.45
-50.88%
RLX Technology Corporate Events
RLX Technology Posts Strong 2025 Results on International Expansion and Margin Gains
Mar 13, 2026
RLX Technology reported unaudited results on March 13, 2026, showing strong growth for the fourth quarter and full year 2025, driven largely by international expansion and contributions from an acquired entity. Fourth-quarter 2025 net revenues ros...
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.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower 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.
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.