ATRenew Inc. (RERE) posted record‑high revenue of RMB5,149.2 million (US$723.3 million) for the three months ended September 30, 2025, a 27.1% year‑over‑year increase that surpassed the consensus estimate of RMB5.21 billion. The growth was driven by a 32.2% rise in first‑party product sales and a 28% rise in third‑party service revenue, reflecting strong demand for refurbished smartphones and tablets in China’s largest second‑hand consumer‑electronics market.
Adjusted operating income climbed to RMB140.3 million (US$19.7 million), up 34.9% from RMB95.5 million in Q3 2024. The improvement was largely due to a 13.4% rise in gross‑profit margin, from 11.7% to 13.4%, as higher‑margin refurbished devices offset lower‑margin legacy inventory. Operating leverage from expanded fulfillment centers also contributed to the margin expansion.
Net income for the quarter was RMB90.8 million (US$12.8 million), up 407.3% year‑over‑year, but the company’s non‑GAAP EPS of 0.50 CNY (US$0.07) fell short of the consensus estimate of 0.61 CNY (US$0.09), a miss of 0.11 CNY or 18.6%. The miss was driven by a one‑time restructuring charge of RMB12 million and higher marketing spend to support the “scenario + supply chain” strategy, which increased inventory costs in the short term.
For Q4 2025, ATRenew guided revenue of RMB6,080.0 million to RMB6,180.0 million, a 25.4%–27.4% year‑over‑year increase, and maintained its full‑year 2025 revenue outlook of RMB20.0 billion to RMB20.5 billion. The guidance signals confidence that the company’s supply‑chain optimization and fulfillment expansion will sustain demand momentum, while the EPS guidance of 0.55 CNY reflects expectations of continued cost discipline after the restructuring charge is amortized.
The company reiterated its three‑year shareholder‑return program, targeting a return of at least 60% of annual non‑GAAP net profit to shareholders, and announced a $50 million share‑repurchase program to be executed over 12 months. In Q3 2025, ATRenew repurchased 0.5 million ADSs for about US$2.1 million, underscoring management’s commitment to enhancing shareholder value while maintaining liquidity.
CEO Kerry Xuefeng Chen said the quarter “demonstrated the effectiveness of our scenario + supply‑chain strategy, which has secured high‑quality supplies and accelerated fulfillment capabilities.” CFO Rex Chen added that the company’s “operational execution and cost discipline” enabled margin expansion, but cautioned that “ongoing pricing volatility in the refurbished‑device market will require continued focus on cost control.”
Market reaction was tempered by the EPS miss; investors focused on the short‑term earnings shortfall despite the revenue beat, reflecting a preference for profitability metrics over top‑line growth. The EPS miss highlighted the impact of the restructuring charge and higher marketing spend, signaling that while revenue growth is strong, the company must manage cost pressures to meet earnings expectations in the next quarter.
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