RLX Technology (RLX) Surges 10% Following Impressive Q3 Results
Stock Performance: RLX Technology Inc. (NYSE:RLX) saw a significant increase of 10.30% in its stock price, closing at $2.57, following strong third-quarter earnings results.
Earnings Growth: The company reported a 22.6% rise in attributable net income to 203.16 million yuan and a 49% increase in revenues to 1.13 billion yuan, driven by international business growth and recovery in China.
Dividend Announcement: RLX Technology announced a cash dividend of $0.1 per unit for shareholders and ADS holders, with payment dates set for early February 2026.
Share Buyback Program: The company successfully repurchased $330 million worth of its shares as part of a $500 million share repurchase initiative aimed at enhancing shareholder value.
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- Repurchase Program Extension: RLX Technology's board has authorized a 24-month extension of its existing share repurchase program until December 31, 2027, allowing for up to $500 million in repurchases, aimed at boosting shareholder confidence and stabilizing stock prices.
- Repurchase Progress: As of December 31, 2025, the company has repurchased approximately 170 million ordinary shares for about $330 million, with around $170 million remaining available for repurchase, reflecting a proactive approach to capital management.
- Market Operation Flexibility: The company plans to execute repurchases through open market transactions, privately negotiated deals, and other legally permissible means, ensuring adaptability to market conditions and compliance with regulations.
- Funding Source Assurance: The repurchases are expected to be funded primarily from the existing cash balance, indicating the company's financial stability and ability to seize future market opportunities.
- Repurchase Program Extension: RLX Technology's board has authorized the extension of its existing share repurchase program for an additional 24 months until December 31, 2027, which is expected to enhance investor confidence and stabilize stock prices.
- Repurchase Amount: Under the current program, the company can repurchase up to $500 million in ordinary shares, having already repurchased approximately $330 million as of December 31, 2025, leaving about $170 million available, indicating the company's recognition of its own value.
- Market Operation Flexibility: The company plans to execute repurchases through open market transactions, privately negotiated deals, and other legally permissible means, allowing it to adapt to market conditions and ensure the effectiveness and efficiency of the buybacks.
- Funding Source: The repurchases are expected to be funded from the company's existing cash balance, reflecting its financial robustness and confidence in future growth.
Strong Revenue Growth: RLX Technology Inc. reported a 49% increase in third-quarter revenue, with over 70% coming from international markets, as the company shifts focus away from its declining home market in China.
Improved Financial Metrics: The company's gross margin improved by 4 percentage points to 31.2%, and net income rose by 22% to 206.8 million yuan, reflecting successful acquisitions and a robust international strategy.
Market Performance and Shareholder Returns: Following positive quarterly results, RLX shares surged by 10.3%, and the company announced a cash dividend of $0.10 per American Depository Share, returning over $500 million to shareholders through dividends and share repurchases.
Regulatory Challenges Ahead: Despite growth, RLX faces significant regulatory scrutiny in various markets, with new rules and tariffs potentially impacting its operations and supply chains, particularly as it expands internationally.
Dividend Announcement: RLX Technology (RLX) has declared a quarterly dividend of $0.10 per share, with a forward yield of 15.56%.
Payment Details: The dividend is payable on February 9, with shareholders of record on January 26, and the ex-dividend date also on January 26.
Earnings Performance: In Q3 2025, RLX reported a non-GAAP EPADS of $0.03, which was in line with expectations, while revenue reached $158.6 million, exceeding estimates by $18.1 million.
Market Outlook: The company is optimistic about mergers and acquisitions (M&A) and new product developments, leading to a rating upgrade.
Stock Performance: RLX Technology Inc. (NYSE:RLX) saw a significant increase of 10.30% in its stock price, closing at $2.57, following strong third-quarter earnings results.
Earnings Growth: The company reported a 22.6% rise in attributable net income to 203.16 million yuan and a 49% increase in revenues to 1.13 billion yuan, driven by international business growth and recovery in China.
Dividend Announcement: RLX Technology announced a cash dividend of $0.1 per unit for shareholders and ADS holders, with payment dates set for early February 2026.
Share Buyback Program: The company successfully repurchased $330 million worth of its shares as part of a $500 million share repurchase initiative aimed at enhancing shareholder value.

U.S. Stock Market Performance: U.S. stocks declined, with the Dow Jones index dropping over 500 points on Friday, while Legence Corp's shares rose 10.7% despite mixed earnings results.
Legence Corp Earnings Report: Legence Corp reported a revenue increase of 26.2% year-over-year to $708.01 million, but missed earnings expectations with a loss of 2 cents per share.
Significant Stock Gains: Cidara Therapeutics saw a 105.6% increase after being acquired by Merck, while other companies like Invivyd Inc and Scholar Rock also experienced notable gains following positive financial results.
Other Notable Performers: Several stocks, including Avadel Pharmaceuticals and Beyond Meat, recorded gains due to various factors such as unsolicited proposals and financial announcements.










