The divergence between surging GAAP profitability (driven by a massive reduction in share-based comp) and declining core GMV/non-GAAP earnings creates a confusing signal. Watch for Q3 same-store GMV trends and overseas GMV trajectory to determine if the domestic slowdown is stabilizing. The $120.5M remaining buyback authorization provides a floor, but the 16.1% same-store decline suggests ongoing competitive pressure in China.
Price Chart
Executive Summary
Chagee reported Q2 2026 results: net revenue grew 2.5% YoY to RMB3,414.6M, GAAP net income surged to RMB464.8M from RMB77.2M, driven by a 387.6% operating income jump to RMB524.7M. However, non-GAAP net income fell 22.4% to RMB488.7M, Greater China GMV declined 9.0% YoY to RMB7,156.3M, and same-store GMV continued to shrink (-16.1%). The company has repurchased $29.5M of ADSs under a $150M buyback program. The mixed picture of strong GAAP profitability versus declining core GMV and non-GAAP earnings warrants a neutral-to-cautious view.
Key Facts
- Net revenue +2.5% YoY to RMB3,414.6M ($503.3M)
- GAAP net income RMB464.8M vs RMB77.2M YoY; operating income +387.6% to RMB524.7M
- Non-GAAP net income fell 22.4% to RMB488.7M from RMB629.8M YoY
- Greater China GMV declined 9.0% YoY to RMB7,156.3M; same-store GMV -16.1%
- Overseas GMV surged 114.3% YoY to RMB504.0M
- Total teahouse network grew 8.5% YoY to 7,639; company-owned teahouses expanded to 883 from 239 YoY
- Active members fell to 47.1M from 50.0M in Q1 2026
- Share repurchase: $29.5M of ADSs bought back; $120.5M remaining under $150M program
- Board member Yong Zhang resigned for personal reasons
Financial Impact
GAAP net income surged ~6x YoY to RMB464.8M, but non-GAAP net income declined 22.4% to RMB488.7M. Greater China GMV fell 9.0% YoY. Cash and equivalents decreased to RMB6,795.5M from RMB7,892.4M at Dec 2025.
Risk Factors
- Greater China same-store GMV declining for five consecutive quarters (-16.1% in Q2 2026)
- Non-GAAP net income margin compressed to 14.3% from 18.9% YoY
- Active member base shrinking sequentially from 50.0M to 47.1M
- Cash burn: operating cash flow fell to RMB358.5M from RMB611.1M YoY; investing cash outflow of RMB998.4M
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-102704 |
| Document: 0001104659-26-102704-index-headers.html | 0001104659-26-102704 |
| Document: 0001104659-26-102704-index.html | 0001104659-26-102704 |
| Document: 0001104659-26-102704.txt | 0001104659-26-102704 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 28, 2026 8w ago | 6-K | $10.80 | awaiting T+60 | — | $12.41 (+14.91%) |
Aug 28, 2026 8w ago | Press Release | $10.80 | awaiting T+60 | — | $12.41 (+14.91%) |
Aug 21, 2026 9w ago | Press Release | $10.81 | awaiting T+60 | — | $12.41 (+14.80%) |
May 29, 2026 21w ago | 6-K | $12.76 $10.84 | ▲ +15.05% | ▲ +16.23% | $12.41 (+2.74%) |
May 29, 2026 21w ago | Press Release | $13.19 $10.63 | ▲ +19.41% | ▲ +20.66% | $12.41 (+5.91%) |
May 22, 2026 22w ago | Press Release | $9.54 $10.05 | ▲ +5.35% | ▲ +2.16% | $12.41 (+30.08%) |
Apr 29, 2026 25w ago | Press Release | $10.68 $11.20 | ▲ +4.87% | ▲ +0.76% | $12.41 (+16.20%) |
Mar 31, 2026 29w ago | 6-K | $9.31 $12.14 | ▲ +30.40% | ▲ +18.02% | $12.41 (+33.30%) |
Mar 31, 2026 29w ago | Press Release | $9.31 $12.14 | ▼ −30.40% | ▼ −18.02% | $12.41 (−33.30%) |
US Market Status
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