ATRenew reports another set of brilliant quarterly results

ATRenew (RERE) has just reported another set of excellent quarterly earnings. The company’s reported sales have turned out to be better than the sales reported for the same period a year ago and also the first quarter of 2026. Although the expenses have also increased, the company’s efficiency has greatly improved. But let me take a closer look at the company’s quarterly earnings in this article.

Earnings summary

Here are the key second quarter earnings highlights:

• The total net sales increased by 32.4% to RMB 6,609.3 million or $974.1 million from RMB 4,991.5 million over the same period a year ago.
• Income from operations, meanwhile, almost doubled, rising by 95.7% to RMB 178.3 million or $26.3 million from RMB 91.1 million for the same period a year ago.
• Non-GAAP adjusted income from operations increased by 70.1% to RMB 206.3 million or $30.4 million compared to RMB 121.3 million for the same period a year ago.
• Non-GAAP adjusted net income increased by 57.3% to RMB 157.1 million or $23.1 million from RMB 99.9 million for the same period a year ago.
• Most importantly, ATRenew’s net income increased by 78.6% to RMB 129.1 million or $19.0 million versus RMB 72.3 million for the same period a year ago.

As I have written in my previous articles about ATRenew, the company has always reported brilliant sales growth. But in the past several quarters, it has been reporting positive net GAAP profits, which is obviously a positive both for the company’s stockholders and investors considering buying RERE shares. Now, a few words on how ATRenew managed to report such a brilliant set of earnings.

Key earnings highlights

ATRenew’s sales growth was mostly due to continued growth in net product revenue. Net product revenues increased by 35.9% to RMB 6.19 billion thanks to rising online sales of second-hand consumer electronics.

Thanks to the fact that brands, e-commerce platforms, and offline retailers heavily invest in trade-in programs and also thanks to the shopping festival that took place on the 18^th of June and that led to high trade-in and recycling demand, ATRenew’s recycling department performed very well in the second quarter.

As concerns ATRenew’s 3P businesses, PJT Marketplace reached more small-sized merchants, including mom-and-pop shops and specialty buyers. So, as of the end of June, total registered merchants on the platform exceeded 2.27 million. Among the initiatives to attract sellers, free shipping on the first three orders was offered, which lowered selling costs and barriers to trial and error for new small-sized business customers. As an example of an incentive for buyers, a PJT-themed campaign on Douyin and other platforms was launched.

The multi-category recycling services department redesigned a number of AHS stores into luxury-themed shops. Thanks to the company’s pricing strategy and improved category-specific service capabilities, luxury recycling service sales increased by 77.3% year-over-year. The company is also going to build even more luxury-themed and sports-themed stores in order to improve users’ experience when recycling and buying pre-owned products.

ATRenew’s outlook and other developments

For 3Q 2026, ATRenew expects its sales revenues to be between RMB 6,340.0 million and RMB 6,440.0 million, representing a rise between 23.1% and 25.1% year-over-year. So, the company expects its sales to keep increasing.

Among other positive news, ATRenew’s board of directors extended its existing share buyback program. Under this program, ATRenew may buy back up to $50 million worth of its stock.

Valuations

ATRenew’s stock price has dropped significantly compared to the 52-week high of around $6 per share reached in January this year. Even after the brilliant earnings, the stock is lingering near the $4 mark, which makes RERE shares good value for money. Moreover, the stock is now trading for a quarter of the price the shares traded for immediately after the company’s IPO.

Source: TradingView

Upside factors

The main growth engine for ATRenew is clearly its core second-hand consumer electronics business. In 2026, the consumer electronics market has faced significant price increases across the upstream supply chain. Brand manufacturers are actively adjusting their product portfolios and placing greater emphasis on trade-in programs. At the same time, e-commerce platforms are also introducing subsidy programs to support device upgrades. Against this backdrop, we have captured these opportunities through our 1P model. Leveraging our front-end fulfillment capabilities and targeted trade-in scenarios, we drove rapid growth in our core second-hand consumer electronics business. At the same time, we are strengthening merchant capabilities with a decentralized strategy to penetrate fragmented markets, while leveraging AI-powered automated inspection to reinforce the infrastructure we have built for the industry.

Moreover, the company is strengthening its image as “China’s leading recycling brand.” As part of its marketing campaign, Leo Wu, a famous Chinese actor, was invited to serve as AHS Recycle’s global brand ambassador. The actor actively promotes environmental awareness while encouraging consumers to choose a simpler lifestyle, while paying attention to high-quality pre-owned products. As reported by the company’s management, this marketing campaign has generated positive attention and user engagement. Also, consumer consciousness and environmental friendliness in general are getting popular in China, while the Chinese government actively encourages recycling among businesses and consumers.

Also, ATRenew’s business operations are not only located in China. Over the past year, ATRenew’s overseas export business has expanded substantially. In June 2026, the company hit a milestone with HK$120 million in monthly sales.

Downside risks

The risk of deteriorating relations between the US and China remains a key consideration. ATRenew is currently listed in the US, and a further escalation in geopolitical or regulatory tensions could potentially increase listing-related risks. A potential dual listing in Hong Kong, similar to JD.com, could provide an additional listing venue and help mitigate such risks while broadening access to Asian investors.

I do not even think that an economic downturn might negatively impact ATRenew. Given the fact that the company relies on selling second-hand electronics, it does not rely much on high consumer incomes, which means that a possible recession in China is unlikely to heavily affect its sales.

Also, as I have mentioned above, the company’s stock is not expensive. In fact, despite the brilliant sales and earnings growth, the stock price has dropped somewhat, which is a nice opportunity for growth-oriented investors to buy a company with a bright future at a moderate price.

Conclusion

In conclusion, I would say that ATRenew’s stock has rarely been such good value for money as it is now. The profitability margins are rapidly improving, as are the sales. The business is rapidly expanding, while the stock price is very low compared to where it used to be in the past when the earnings and sales were not as high as they are today.