ATRenew's Q2 Revenue Grows Over 30%, with Increased Share from Self-Operated Business

On August 20, ATRenew (AiHuiShou) released its unaudited financial report for the second quarter of 2026.

During the reporting period, the company's total revenue was RMB 6.609 billion, a year-on-year increase of 32.4%, higher than the previous revenue guidance of RMB 6.24 billion to RMB 6.34 billion; operating profit was RMB 178 million, a year-on-year increase of 95.7%; net profit was RMB 129 million, a year-on-year increase of 78.6%.

On an adjusted basis, non-GAAP operating profit was RMB 206 million, a year-on-year increase of 70.1%, and non-GAAP net profit was RMB 157 million, a year-on-year increase of 57.3%.

This marks another quarter of improved profitability for ATRenew, continuing the trend seen since last year.

In 2025, the company's revenue was RMB 21.048 billion, a year-on-year increase of 28.9%, and it achieved full-year profitability under US Generally Accepted Accounting Principles (GAAP) for the first time. Entering 2026, first-quarter revenue grew 32.4% year-on-year to RMB 6.160 billion, with the second-quarter growth rate remaining at the same level.

Breaking down the revenue structure, growth this quarter still mainly came from the self-operated business. Product sales revenue was RMB 6.195 billion, a year-on-year increase of 35.9%, accounting for nearly 94% of total revenue; service revenue was RMB 415 million, a year-on-year decrease of 4.2%.

The company explained that the growth in product revenue was mainly driven by increased sales of second-hand consumer electronics through online channels; the decline in service revenue was mainly due to service fee discounts offered to merchants during the extended "618" promotional period.

This also means that ATRenew's current growth relies more on its 1P model, where it collects, inspects, and sells goods itself, rather than solely relying on platform matchmaking fees.

For the full year of 2025, its product revenue reached RMB 19.380 billion, accounting for about 92% of total revenue. The self-operated model allows for deeper involvement in the pricing, refurbishment, and retail stages of second-hand goods, while also requiring the assumption of procurement, inventory, and fulfillment costs.

From the expense side, the company's overall operating costs and expenses in the second quarter increased by 31.0% year-on-year, slightly lower than the revenue growth rate. Among these, cost of goods sold increased by 31.9%, and fulfillment expenses increased by 31.1%; sales and marketing expenses increased by 24.8%, all lower than the revenue growth rate. The expansion of scale and the improvement of certain expense ratios are important reasons why the growth rate of operating profit exceeded the revenue growth rate.

Supply sources and sales channels remain key to whether this model can continue to expand. According to the company's figures, the number of consumer goods transactions in the second quarter was 11.6 million, compared to 10.3 million in the same period last year.

Previously, during the "618" period, AiHuiShou disclosed that the recycling value across all categories and channels increased by 42% year-on-year, with the 3C category growing by 57% and the recycling value of second-hand luxury goods increasing by 45%.

These data come from the company's promotional period statistics and cannot be directly equated to quarterly revenue, but they reflect that its recycling categories are extending further from 3C products like mobile phones and computers into areas such as luxury goods.

Another change is the further extension of overseas business to the front end. In July, ATRenew launched FoneSquare, a cross-border trading platform for second-hand 3C products aimed at merchants, and the consumer brand ReRe in Hong Kong, opening the first ReRe store in Hong Kong.

Previously, its overseas business focused more on the circulation of second-hand equipment. This move adds a retail layout, but the related business is still in the expansion stage, making it difficult to judge the actual impact on the group's revenue structure at present.

For the third quarter, ATRenew provided revenue guidance of RMB 6.34 billion to RMB 6.44 billion, a year-on-year increase of 23.1% to 25.1%, with the growth range lower than the actual level of the second quarter.

After several consecutive quarters of scale expansion, what deserves attention next is not only whether revenue can continue to grow, but also whether inventory, fulfillment costs, and profit margins can remain stable as the proportion of self-operated business increases further, and whether multi-category and overseas businesses can form new revenue increments.

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