Why RLX Technology Bears Were Right Before The Drop
RLX Technology's mixed Q2 2026 results, with revenue and net income up but margin down, validated cautious bears before the stock drop.Summary
RLX Technology's latest quarter presented a mixed picture: Q2 2026 revenue reached ¥916.89 million and net income was ¥217.75 million, both higher year-over-year, but net margin fell from 27.3% to 23.7% and earnings per share missed expectations. This outcome partially validated the cautious narrative that focused on regulatory pressures in China and overseas, while also supporting the bullish view centered on global expansion into Europe and oral nicotine pouches. The stock has declined 26.1% over the past year, from US$2.39 to US$1.7, proving bears right in the short term. The key question now is whether RLX can turn its majority international revenue base, European distribution platform, and Southeast Asia manufacturing hub into a durable, higher-quality earnings mix despite tighter regulation and lower-margin downstream businesses.
(Source：Simply Wall Street)
