Chagee Holdings Limited (NASDAQ: CHA) Posts Modest Revenue Growth as Profitability Recovers
- Chagee Holdings Limited reported GAAP diluted EPS of $0.36 and non-GAAP diluted EPS of $0.37 for the second quarter of 2026.
- Revenue increased 2.5% year over year to RMB3.41 billion, equivalent to approximately $503.3 million.
- GAAP net income climbed to RMB464.8 million, although non-GAAP net income declined from the previous year.
- Overseas GMV increased 114.3%, partially offsetting lower sales in Greater China.
Chagee Holdings Limited (NASDAQ: CHA) operates a network of premium tea-drink establishments. As of June 30, 2026, the company had 7,639 teahouses across Greater China and overseas markets, representing an 8.5% year-over-year increase.
On August 28, 2026, Chagee reported GAAP basic and diluted EPS of $0.36. Its non-GAAP basic and diluted EPS were $0.38 and $0.37, respectively. Revenue increased 2.5% year over year to RMB3.41 billion, or approximately $503.3 million. Whether this represents an analyst beat or miss depends on the data provider: some services published estimates above $500 million, while Investing.com cited a consensus estimate of approximately $478 million.
Total GMV was RMB7.66 billion, down approximately 5.5% from RMB8.10 billion a year earlier. Greater China GMV decreased approximately 9.0% to RMB7.16 billion, reflecting economic headwinds and intense industry competition. Same-store GMV in Greater China declined 16.1%.
Profitability improved substantially on a GAAP basis. Net income reached RMB464.8 million, up from RMB77.2 million, while the net income margin expanded to 13.6% from 2.3%. However, the comparison was affected by significant IPO-related share-based compensation expenses in the prior-year quarter. On a non-GAAP basis, net income declined 22.4% to RMB488.7 million from RMB629.8 million.
Overseas operations remained a key growth area. Overseas GMV increased 114.3% year over year to RMB504 million, but this growth was not enough to offset the decline in Greater China. Chagee nevertheless recorded its 14th consecutive quarter of positive net income, while CFO Aaron Huang said operational discipline and cost controls helped preserve profitability despite slower top-line growth.
