Chagee reported Q4 2025 net revenue of RMB 2.97 billion, down year over year and below the company’s prior growth trajectory, while GAAP net income fell sharply and margins compressed; EPS and detailed stock price reaction were not disclosed, so after-hours movement remains unclear.
About Chagee
Chagee Holdings Limited (NASDAQ: CHA) is a premium tea drinks company known for freshly made tea beverages and operates mainly in China with growing overseas exposure. The company went public in April 2025, raising about USD 411 million at an estimated valuation of roughly USD 5.1 billion, and its current market cap is now closer to the low‑to‑mid single‑billion range after a significant share price decline since IPO.
Headquartered in Shanghai, Chagee focuses on healthy and convenient tea products sold through a large store network and digital channels. The business is positioned as a consumer brand with rapid historic growth but now faces margin pressure and slowing same‑store sales. The company has not highlighted a P/E ratio or dividend, and it is currently reinvesting cash flows into expansion and operational restructuring rather than cash returns to shareholders.
Top Financial Highlights
- Q4 2025 net revenues were RMB 2,974.5 million (about USD 425.3 million), down from RMB 3,334.4 million in Q4 2024.
- Full year 2025 net revenues rose 4.0% to RMB 12.91 billion (about USD 1,845.7 million), up from roughly RMB 12.41 billion in 2024.
- Q4 2025 GAAP net income was RMB 33.9 million, sharply lower than RMB 644.1 million in the prior‑year quarter.
- Full year 2025 GAAP net income was RMB 1,186.3 million, down from RMB 2,514.6 million in 2024.
- Q4 2025 non‑GAAP net income was RMB 100.0 million, adjusting for about RMB 66.1 million of share‑based compensation, versus RMB 644.1 million a year earlier.
- Full year 2025 non‑GAAP net income was RMB 1,909.9 million, adjusting for RMB 723.5 million of share‑based compensation, compared with RMB 2,515.2 million in 2024.
- The company maintained a gross margin near 53.2% for 2025, up from about 51.6% in the prior year, reflecting improved cost discipline.
- For full year 2025, operating income was RMB 1,347.2 million, implying an operating margin of 10.4%, down from 23.3% in 2024 as restructuring and compensation costs weighed on profits.
- In Q4 2025, Chagee recorded an operating loss of RMB 35.5 million, versus an operating profit of RMB 642.5 million in Q4 2024.
- Total GMV increased 7.2% in 2025 to RMB 31.6 billion, supported by store expansion and overseas growth.
- Overseas markets delivered an 84.6% year over year GMV increase in Q4 2025, underscoring rapid international scaling.
- Same‑store sales in Q4 2025 declined 25.5% year over year, signaling pressure on mature locations.
- Cash reserves were about RMB 7,892.4 million, providing a solid liquidity buffer for continued investments and restructuring.
- Management guided for continued high‑single to low‑double‑digit revenue growth in 2026, with a focus on stabilizing margins through cost control and store portfolio optimization.
- The company highlighted disciplined capital allocation, prioritizing store quality, technology, and international markets over aggressive domestic expansion.
Beat or Miss?
| Metric | Reported | Difference / Analysis |
| Revenue Q4 2025 | RMB 2,974.5 million | Modest YoY decline, below prior growth trends; consensus details not disclosed. |
| Full Year 2025 Revenue | RMB 12.91 billion | Up 4.0% YoY, signals slower growth versus prior years. |
| Adj. EPS FY 2025 | USD 0.07 per share | Below forecast of USD 0.19 from two analysts, a clear EPS miss. |
| Operating Margin FY25 | 10.40% | Down from 23.3% in 2024, reflects higher costs and restructuring. |
| Non‑GAAP Net Income Q4 | RMB 100.0 million | Significantly lower YoY; reflects pressure from compensation and optimization. |
| Cash Reserves | RMB 7,892.4 million | Strong liquidity; provides cushion despite margin compression. |
Historical Performance
| Category | Q4 2025 (Current) | Q4 2024 (Previous Year) | Change (%) |
| Revenue | RMB 2,974.5 million | RMB 3,334.4 million | Approximately −10.8% YoY |
| Net Income (GAAP) | RMB 33.9 million | RMB 644.1 million | Approximately −94.7% YoY |
| Operating Income | Loss RMB 35.5 million | Profit RMB 642.5 million | Swing to loss, roughly −105.5 percentage points in margin terms |
Historical Performance of Peers (Illustrative)
Public disclosures in this release do not provide detailed competitor financials, so figures below are indicative high‑level references based on sector commentary instead of a strict like‑for‑like GAAP table.
| Category | Chagee Q4 2025 | Selected China tea peer Q4 2025* | Change / Context |
| Revenue | RMB 2,974.5 million | High‑single to low‑double‑digit YoY growth on a smaller base* | Chagee sees revenue decline while some peers still grow. |
| Net Income | RMB 33.9 million | Modest profit growth or flat* | Chagee’s profitability is under more pressure than some peers. |
| Operating Expenses | Rising due to restructuring and share‑based compensation | Also elevated due to expansion and marketing* | Both face cost inflation; Chagee is more heavily impacted in 2025. |
How the Market Reacted?
The specific immediate stock move to Chagee’s Q4 and full year 2025 release is not disclosed in the press materials, but context around the name is cautious. The company has already experienced significant share price pressure since its 2025 IPO, with the stock down roughly 75% from listing levels.
Earlier in 2025, markets reacted negatively to results that combined revenue growth with deteriorating profitability, which suggests investors remain sensitive to margin trends. Overall, this new report leans more bearish than bullish, as modest revenue growth and resilient gross margin are offset by weaker EPS, lower operating margin, and a sharp decline in quarterly net income.
