RLX Technology Earnings on Deck – What to Expect?

RLX Technology Inc. (NYSE: RLX) prepares to release its Q3 2025 earnings report this morning, and markets are keenly watching to see if the company can move back towards growth after regulatory headwinds and market volatility. Currently trading at $2.33, up 5.43% YTD, RLX has presented a mixed picture for investors this year. The upcoming earnings call will be crucial in setting the tone for the stock's performance in the coming months.

Analysts are estimating an earnings per share (EPS) of $0.03 for the quarter. While seemingly modest, this figure will be compared against the backdrop of RLX's Q2 performance, where the company reported a robust 40.3% year-over-year increase in net revenues, reaching RMB 880 million (approximately USD 122.8 million). The gross margin also improved, reaching 27.5%.

A look at recent moving averages provides a glimpse into the stock's momentum. While the current price sits below the 50-day Simple Moving Average (SMA) of $2.48 – potentially signaling short-term bearish sentiment – it remains above the 200-day SMA of $2.21, suggesting a longer-term bullish trend might still be in play. The key question is whether Q3 earnings can reinforce this longer-term optimism.

The second quarter also saw significant improvements in profitability, with non-GAAP income from operations surging by 147.6% to RMB 116.2 million (USD 16.2 million). This growth was attributed to successful international expansion and disciplined cost control – factors investors will be keen to see sustained in the Q3 results.

However, it's not all smooth sailing for RLX. Concerns regarding potential insider trading activities earlier in the year triggered a sharp pre-market decline, highlighting the vulnerability of the stock to perceptions of management integrity. Such events can erode investor confidence and create added volatility.

Markets will be paying close attention to revenue growth, profitability metrics, and management's commentary on the regulatory environment and future growth strategies.