RLX Technology (NYSE:RLX) has just put Q1 2026 under the microscope, with recent quarterly numbers showing Q4 2025 revenue of C¥1.08b and basic EPS of C¥0.23, alongside trailing twelve month EPS of C¥0.75 on revenue of C¥3.62b. Over the last few reported quarters, revenue has moved from C¥736.21m in Q4 2024 to C¥1.08b in Q4 2025, while basic EPS shifted from C¥0.10 to C¥0.23. This is drawing investor attention to how the company is converting that top line into sustained margins.

See our full analysis for RLX Technology.

With the headline figures in place, the next step is to see how these results line up against the widely followed growth and risk narratives around RLX, and how the latest margins story may influence those views.

TTM net margin holds at 25.5%

• Over the last twelve months, RLX reported C¥921.9 million of net income (excluding extra items) on C¥3.62b of revenue, which works out to a 25.5% net margin compared with 22.6% in the prior twelve month set provided.
• Consensus narrative highlights RLX as benefiting from the shift toward reduced risk nicotine products and multi category offerings, and the current 25.5% margin level tests that view by showing:
  • Margins are above the 22.6% level seen a year earlier on C¥2.44b of revenue and C¥551.8 million of net income, which lines up with the idea that compliant, higher value products can support profitability.
  • At the same time, the margin is being watched against regulatory and competitive pressures flagged in the consensus narrative, so investors may question how easily this 25.5% margin can be maintained as the product mix and geographies shift.

67.1% earnings growth meets bullish ambitions

• Earnings grew 67.1% over the last year on the data provided, from C¥551.8 million of net income (excluding extra items) in the prior twelve month set to C¥921.9 million now, while trailing EPS rose from C¥0.45 to C¥0.75.
• Bulls argue that rapid international expansion and multi category smokeless products can support strong earnings growth, and the recent numbers partly support that case but also set a high bar:
  • The 67.1% earnings growth and C¥0.75 trailing EPS are stronger than the mid teens annual earnings growth that consensus forecasts of about 14.3% per year are pointing to, so bullish views lean on this recent strength continuing.
  • However, bullish assumptions in the narrative, such as earnings reaching about C¥1.5b by 2029, now have to be weighed against this already high base and the expectation in that same bullish view that profit margins could ease from 25.5% to 16.7%, which could cap how far this growth trend goes.

Bulls argue that a 67.1% earnings jump and a 25.5% margin put RLX on a very different path from slower peers, so if you want to see how that story is built out in full, check out the 🐂 RLX Technology Bull Case

Valuation gap with 19.4x P/E and C¥2.15 share price

• The stock is trading at C¥2.15 with a P/E of 19.4x, compared with a peer average P/E of 31.7x, a Global Tobacco P/E of 12.5x, a DCF fair value of C¥3.35, and an analyst consensus target of C¥3.09.
• Bears focus on regulatory and concentration risks, and the current valuation mix gives them as much to work with as the bulls:
  • The 19.4x P/E is above the 12.5x Global Tobacco average, which fits the cautious view that investors are already paying a premium relative to the broader industry despite those risks.
  • On the other hand, the same stock trades below both the peer P/E of 31.7x and the C¥3.35 DCF fair value and sits under the C¥3.09 analyst target, so anyone leaning on the bearish case has to reconcile those discounts with the stronger trailing earnings growth and 25.5% margin.

Skeptics point to premium pricing versus the wider tobacco industry and regulatory pressure, so if you want to see how that more cautious argument is laid out, have a look at the 🐻 RLX Technology Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for RLX Technology on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

The mix of bullish and cautious signals around RLX is clear, so do not sit on the fence and rely only on headlines. Take a closer look at the company yourself and weigh the trade off between potential upside and the risks that are already on investors' radar with 4 key rewards and 1 important warning sign

See What Else Is Out There

RLX trades on a 19.4x P/E that sits above the 12.5x Global Tobacco average, while regulatory and concentration risks remain front and center for investors.

If that premium and those risks make you cautious, compare this setup with companies screened for stronger downside protection and steadier profiles using the 66 resilient stocks with low risk scores

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.