ATRenew Inc. Announces Unaudited Second Quarter 2025 Financial Results

ATRenew Inc. (NYSE: RERE) reported strong Q2 2025 results, with net revenues up 32.2% YoY to RMB 4,991.5 million ($696.8 million). The company achieved profitability with income from operations of RMB 91.1 million ($12.7 million), a significant improvement from the previous year. The number of transacted consumer products grew to 10.3 million. ATRenew anticipates Q3 2025 revenue between RMB 5,050.0 million and RMB 5,150.0 million. A new $50 million share repurchase program was authorized.

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SHANGHAI, Aug. 20, 2025 /PRNewswire/ — ATRenew Inc. (NYSE: RERE), a leading player in China’s pre-owned consumer electronics market, today unveiled its second quarter 2025 financial results, showcasing a robust performance across key metrics.

Second Quarter 2025: By the Numbers

  • Top-Line Surge: Total net revenues jumped a noteworthy 32.2% year-over-year, reaching RMB4,991.5 million ($696.8 million), up from RMB3,776.7 million in Q2 2024.
  • From Loss to Profit: ATRenew swung to profitability, reporting income from operations of RMB91.1 million ($12.7 million), a stark contrast to the RMB5.6 million loss in the same period last year. The non-GAAP adjusted income from operations also showed positive momentum, rising to RMB121.3 million ($16.9 million) compared to RMB94.1 million in Q2 2024.
  • Volume is Key: The number of consumer products transacted on the platform increased from 8.4 million to 10.3 million, demonstrating growing consumer demand for pre-owned electronics.

“We outperformed our guidance this quarter,” stated Kerry Xuefeng Chen, Founder, Chairman, and CEO of ATRenew. “China’s national subsidies for consumer electronics trade-ins have fueled demand for recycling and upgrades, and we’ve capitalized on this by strengthening our fulfillment capabilities, AHS Recycle brand recognition, and our integrated supply chain. We are at the forefront of the circular economy.” Chen’s comments reflect the company’s strategic alignment with national policies promoting sustainable consumption.

Rex Chen, CFO of ATRenew, highlighted the drivers behind the company’s profitability. “Our adjusted operating profit of RMB121.3 million in the second quarter reflects a strategic shift towards higher-margin retail product revenue, coupled with disciplined expense management.” He continued, “We are actively diversifying our supply-sourcing channels and exploring premium retail and overseas sales opportunities, all aimed at enhancing user experience and delivering sustained value to shareholders.” In essence, ATRenew is positioning itself for long-term growth by optimizing its operations and expanding its market reach.

1. For all measures labeled as “non-GAAP” on this page and following pages, please see “Unaudited Reconciliations of GAAP and Non-GAAP Results” for more information.

2. “Number of consumer products transacted” represents the number of consumer products distributed to merchants and consumers through transactions on the Company’s PJT Marketplace, Paipai Marketplace and other channels the Company operates in a given period, prior to returns and cancellations, excluding the number of consumer products collected through AHS Recycle; a single consumer product may be counted more than once according to the number of times it is transacted on PJT Marketplace, Paipai Marketplace and other channels the Company operates through the distribution process to end consumer.

Diving Deeper: Key Financial Results

REVENUE

ATRenew’s revenue breakdown reveals a diversified approach:

  • Product Power: Net product revenues saw a significant 34.0% increase to RMB4,558.7 million ($636.4 million) from RMB3,401.8 million last year, primarily driven by online sales.
  • Servicing Growth: Net service revenues also grew, albeit at a slower pace, increasing by 15.4% to RMB432.8 million ($60.4 million), compared to RMB374.9 million in Q2 2024, fueled by its multi-category recycling business.

OPERATING COSTS AND EXPENSES

The company’s operating costs and expenses increased by 29.6% year-over-year, reaching RMB4,918.1 million ($686.5 million), compared to RMB3,795.3 million in the same period of 2024.

  • Merchandise Costs: A direct reflection of sales growth, merchandise costs increased by 32.3% to RMB3,957.6 million ($552.5 million).
  • Fulfillment Footprint: Fulfillment expenses grew by 26.0% to RMB413.6 million ($57.7 million), due to increased activity and expansion of the store network.
  • Marketing Push: Selling and marketing expenses rose by 14.9% to RMB406.9 million ($56.8 million), reflecting increased advertising and promotional activities.
  • Administrative Efficiency: General and administrative expenses showed a modest increase of 6.9% to RMB77.5 million ($10.8 million).
  • Tech Investment: Technology and content expenses increased by 25.5% to RMB62.5 million ($8.7 million).

(LOSS) INCOME FROM OPERATIONS

ATRenew posted an income from operations of RMB91.1 million ($12.7 million), a sizable improvement from the loss of RMB5.6 million the prior year.

Adjusted income from operations (non-GAAP) surged to RMB121.3 million ($16.9 million), compared to RMB94.1 million in the same period of 2024.

NET (LOSS) INCOME

Net income was RMB72.3 million ($10.1 million), compared to a net loss of RMB10.7 million in the same period of 2024.

Adjusted net income (non-GAAP) reached RMB99.9 million ($13.9 million), compared to RMB80.5 million in the second quarter of 2024.

BASIC AND DILUTED NET (LOSS) INCOME PER ORDINARY SHARE

Basic and diluted net income per ordinary share were RMB0.45 ($0.06) and RMB0.44 ($0.06) respectively, compared to a loss of RMB0.06 in the same period last year.

Adjusted basic and diluted net income per ordinary share (non-GAAP) were RMB0.62 ($0.09) and RMB0.61 ($0.09), compared to RMB0.48 in the second quarter of 2024.

CASH POSITION

The company’s cash and cash equivalents, restricted cash, short-term investments, and funds receivable from third-party payment service providers stood at RMB2,349.7 million ($328.0 million) as of June 30, 2025, compared to RMB2,919.6 million at the end of 2024.

Looking Ahead: Business Outlook

ATRenew anticipates total revenues for the third quarter of 2025 to fall between RMB5,050.0 million and RMB5,150.0 million, representing a year-over-year increase of 24.7% to 27.1%. This outlook is based on current market and operational conditions and is subject to change.

Recent Developments

ATRenew has been actively repurchasing its shares, signaling confidence in its future prospects. In Q2 2025, the company repurchased approximately 1.6 million ADSs for roughly $4.0 million, bringing the total repurchased under its initial program to 12.3 million ADSs for $31.1 million. Reflecting this positive outlook, the Board has authorized a new $50 million share repurchase program.

ATRenew’s physical store network continues to expand, with 2,092 AHS stores across 291 cities in China as of June 30, 2025.

Demonstrating its commitment to sustainability, ATRenew released its 2024 ESG Report, outlining ambitious emission reduction targets – a 35% cut in Scope 1 & 2 emission intensity and a 50% reduction in Scope 3 emission intensity by 2030 (using 2024 as the baseline).

Committed to shareholder returns, the Board approved a three-year shareholder return plan as of August 18, 2025, commencing with the fiscal year 2025. Accordingly, Company will allocate no less than 60% of its adjusted net income (non-GAAP) for each fiscal year to shareholder returns effected through dividend distributions, share repurchases, or a combination of both. The Board will, at its discretion, evaluate and approve the specific form, timing, and amount of such shareholder return measures in any given fiscal year, taking into consideration the Company’s operating results, cash flow, capital requirements, and other relevant factors.

Conference Call

Management held a conference call on Wednesday, August 20, 2025, to discuss the results, a replay of which is available on ATRenew’s investor relations website.

About ATRenew Inc.

Headquartered in Shanghai, ATRenew Inc. operates a leading technology-driven pre-owned consumer electronics transactions and services platform in China. ATRenew’s open platform integrates C2B, B2B, and B2C capabilities to empower its online and offline services. As a participant in the United Nations Global Compact, ATRenew adheres to its principles-based approach to responsible business and has been working towards giving a second life to all idle goods.

Exchange Rate Information

Translations from RMB to U.S. dollars are made at a rate of RMB7.1636 to US$1.00, the exchange rate on June 30, 2025.

Use of Non-GAAP Financial Measures

The Company uses adjusted income from operations, adjusted net income and adjusted net income per ordinary share as supplemental measures to review and assess its financial and operating performance. Please see “Unaudited Reconciliations of GAAP and Non-GAAP Results” for more information.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties. Please refer to ATRenew’s filings with the SEC for more information.

Investor Relations Contact

ATRenew Inc.
Investor Relations
Email: [email protected]

ICR LLC.
Email: [email protected]
Tel: +1-212-537-0461

 

 

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ATRENEW INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

As of December 31,

As of June 30,

2024

2025

RMB

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

1,970,183

1,299,051

181,341

Restricted cash

132,000

104,199

14,546

Short-term investments

583,764

625,705

87,345

Amount due from related parties, net

117,161

406,434

56,736

Inventories

535,070

814,105

113,645

Funds receivable from third party payment service
providers

233,133

319,749

44,635

Prepayments and other receivables, net

598,045

734,706

102,561