RERE

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. ATRenew (RERE) reported second quarter 2026 results that showed higher net income and earnings per share than a year earlier, alongside completion of a share repurchase program that reduced its share count slightly. See our latest analysis for ATRenew. Over the past year, ATRenew has seen mixed momentum, with the share price down 23.25% year to date but a 3 year total shareholder return of 90.87% pointing to a much stronger earlier recovery phase. Recent earnings and the completed buyback appear to have been met with a period of consolidation, with the 30 day share price return of 7.22% partially offset by a 90 day decline of 11.11% and a 1 year total shareholder return decline of 6.46%. If you are weighing ATRenew’s recent earnings story against other opportunities, this can be a good moment to broaden your search and discover 19 top founder-led companies After stronger profits and a modest buyback, ATRenew’s share price still sits well below recent highs. Does that gap reflect lingering risk, or has the recent pullback reset the odds in buyers’ favor as valuation comes into focus next? ATRenew’s most followed narrative points to a fair value of $6.88 compared with the last close of $4.16, framing the current price as a sizeable discount based on long term cash flow assumptions and profitability targets. Read the complete narrative. Curious what revenue trajectory, margin lift and valuation multiple need to line up for that fair value to hold. The narrative lays out a precise growth path, a shift in profitability, and a lower future earnings multiple that still supports a higher price anchoring that $6.88 figure. Result: Fair Value of $6.88 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, ATRenew’s dependence on Chinese subsidies and high fixed offline costs could quickly weaken this undervalued narrative if there is a shift in policy or store economics. Find out about the key risks to this ATRenew narrative. If the mixed sentiment around ATRenew has you on the fence, this is a good time to review the data and move quickly on your own conclusions. To see what optimistic investors are focusing on, start with the 4 key rewards. Do not stop with ATRenew. Broaden your watchlist now so you can spot quality opportunities early instead of reacting after prices move. Target potential value opportunities by scanning a curated list of 48 high quality undervalued stocks. Strengthen your income stream by reviewing stocks from our hand picked group of 12 dividend fortresses. Prioritise resilience by checking companies identified in the 75 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. Companies discussed in this article include RERE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, Aug. 20, 2026 at 8:00 a.m. ET Head of Investor Relations - Jessie Jin Founder, Chairman, and Chief Executive Officer - Kerry Xuefeng Chen Chief Financial Officer - Rex Chen Operator: Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to ATRenew Inc.'s Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note today's event is being recorded. I will now turn the call over to the first speaker today, Ms. Jessie Jin, Head of Investor Relations. Please go ahead, ma'am. Jeremy Ji: Thank you. Hello, everyone, and welcome to ATRenew's Second Quarter 2026 Earnings Conference Call. Speaking first today is Kerry Chen, our Founder, Chairman and CEO, and he will be followed by Rex Chen, our CFO. After that, we will open the call to questions from the analysts. The second quarter 2026 financial results were released earlier today. The earnings press release and investor slides accompanying this call are now available at our IR website, ir.atrenew.com. There will also be a transcript following this call for your convenience. For today's agenda, Kerry will share his thoughts of our quarterly performance and business strategy, followed by Rex, who will address the financial highlights. Both Kerry and Rex will participate during the Q&A session. Please note our safe harbor statement. Some of the information you will hear during our discussion today will consist of forward-looking statements, and I refer you to our safe harbor statements in the earnings press release. Any forward-looking statements that management makes on this call are based on assumptions as of today, and that ATRenew does not take any obligation to upgrade our assumptions on the statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB and all comparisons are on a year-over-year basis. I'd now like to turn the call over to Kerry for business and strategy updates. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Hello, everyone, and thank you for joining ATRenew's Second Quarter 2026 Earnings Conference Call. We are pleased to review our operating results for the quarter and share our views on industry trends and our strategy. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] In the second quarter, total net revenues exceeded the high end of our guidance, increasing 32.4% year-over-year to RMB 6.61 billion. Our continued focus on 1P has strengthened our end-to-end capabilities and driven rapid growth in product revenue, up 35.9% year-over-year to RMB 6.19 billion. Non-GAAP operating profit grew 70.1% year-over-year to RMB 210 million (sic) [RMB 206.3 million], while non-GAAP operating profit margin expanded by 69 basis points year-over-year to 3.1%. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] First of all, I'd like to share 4 key external shifts and trends. The first dynamic is the year-over-year decline in new device sales. The intuitive thinking is that this could drive our recycling business. But counterintuitively, when new devices are selling well, recycling and trade-in programs are just supplementary value-added services and are not a top priority. Conversely, when new device sales soften, trade-in programs become the most critical and effective promotional tool. Major manufacturers and platforms place greater emphasis on and allocate more resources to trade-in initiatives. We have seen this clearly in our business trends over the past few years. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Second is macroeconomic headwinds in consumption and significant growth in demand for high-quality affordable pre-owned smartphones and other secondhand products. This is clearly reflected in the sustained robust growth of our curated B2C business. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] The third shift is increasingly strengthened regulation, including taxation and device refurbishment. AHS has always been committed to compliant operations, while tighter regulations disproportionately impact fragmented small-scale and noncompliant operators. They benefit our 1P business. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] The fourth shift is the accelerating trend of exporting domestic pre-owned devices. As the penetration rate of trade-in and recycling programs continues to rise in China, domestic supply is expanding rapidly. China has shifted from a net importer to a net exporter of pre-owned smartphones, establishing a clear industry trend where high-end modules are sold domestically while mid- to high-end and low-end modules are exported. With that, let us now move to our business update. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] In recent years, we have firmly prioritized 1P business because trust and efficiency are critical in the secondhand consumer electronics industry. Our 1P model starts with first-hand supply from C2B channels. We add depth to the value chain through compliant refurbishment, strengthen B2C retail for premium curated products and leverage B2C retail pricing capabilities to offer better pricing and user experience on the recycling side. Together, those efforts enhance our end-to-end capabilities across the value chain. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] On recycling, we capitalized on opportunities as brand e-commerce platforms and offline retailers prioritize and invest in trade-in programs, leveraging AHS Recycle's increasingly extensive fulfillment network to enhance the user experience. Trade-in and recycling demand was strong during the June 18 shopping festival. In response, we expanded our nationwide to-door fulfillment team, including flexible capacity to nearly 3,000 by the end of June, up sharply from the end of March. Together with our 2,117 AHS stores, this gave us strong advantages in sourcing and customer service over industry peers. During the major promotional period from May 13 through June 18, the recycling value of mobile phones and consumer electronics at AHS Recycle increased 57% year-over-year. Both to-door and in-store recycling orders grew 45% year-over-year, while face-to-face orders accounted for 80% of recycling orders across all channels. Multiple user experience metrics also continued to improve. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Our compliant refurbishment business also continued to accelerate. Revenue from 1P refurbished products increased 87.8% year-over-year. With higher new device prices, stable preowned market sentiment and more refined pricing strategies and operations, 1P-to-C retail revenue grew 92.4% year-over-year in the second quarter. As a percentage of product revenue, 1P-to-C retail revenue increased 3.6 percentage points sequentially to 48.8%, allowing us to meet user demand better for curated phones, computers, smart devices and other products. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Turning to our 3P businesses. Service revenue decreased 4.2% year-over-year in the second quarter. Within 3P business, we maintained our industry-leading position in B2B, while B2C 3P services faced pressure from merchant activity. In multi-category recycling, we navigated the headwinds from gold price fluctuations and continue to focus on more refined operations. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Specifically, PJT Marketplace continued to expand into fragmented markets, reaching more small-sized merchants, mom-and-pop shops and specialty buyers. By the end of June, total registered merchants on the platform exceeded 2.27 million. For sellers, we offered free shipping on the first 3 orders and aligned inspection standards upfront, lowering selling costs and barriers to trial and error for new small midsized merchants. For buyers, we launched the PJT themed campaign on Douyin and other platforms. Video views rose sharply, driving rapid growth in our specialty buyer model. Together with 1P minimum quantity ordering, these initiatives made it easier for small merchants to start buying on our platform. After their first transaction, buyers gradually become more engaged on the platform through repeat purchases, VIP membership and participation in the like-new device marketplace, showing consistent improvement in transaction stickiness. Throughout this process of user expansion and support, PJT's 3P warehousing inspection penetration rate reached 84.4% this quarter, up around 11.5% year-over-year, delivering rapid scale expansion with solid growth in service revenue. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] For Paipai, platform service revenue decreased year-over-year in the second quarter, mainly due to subsidies provided to POP merchants to boost activity during the promotional campaign and our strategic reduction of service fees. Meanwhile, we continue to refine the consignment model by introducing warehousing capabilities for third-party merchants, improving price competitiveness and sell-through and optimizing financial economics. Paipai's consignment business grew 22.4% sequentially. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] In multi-category recycling services, service revenue maintained a year-over-year growth of over 30%. Gold prices were volatile and trended lower in the second quarter. We also chose to give more back to users. Together, these factors led to a 35% year-over-year decline in gold service revenue. During the quarter, we upgraded a select number of AHS stores to luxury theme stores with improvements to store design and functional areas. Together with more refined tiered pricing and enhanced category-specific service capabilities, luxury recycling service revenue grew 77.3% year-over-year. Building on those positive results and experience, we plan to open more themed multi-category stores this year, including luxury-themed stores and sports-themed stores. This will give more users a better and more engaging experience when recycling and buying pre-owned products. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Our long-term strategy has remained focused and consistent. Here, we would like to reiterate our 3-stage development strategy. Stage 1, we continue to solidify the healthy growth of our core secondhand consumer electronics business. In 2026, the smartphone and consumer electronics market has faced substantial price hikes 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 slight growth in our core secondhand 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. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Stage 2, we are strengthening AHS Recycle's position as China's leading recycling brand. In the pre-owned industry, word-of-mouth brand names remain scarce. We continue to make prudent investments in building the AHS Recycle brand. As ATRenew marks its 15th anniversary, we invited Leo Wu to serve as AHS Recycle's global brand ambassador. Through his youthful, energetic, stylish and environmentally conscious image, we encourage users to embrace a simpler lifestyle and choose high-quality pre-owned products. This initiative has generated broad positive feedback and engagement from users. From secondhand consumer electronics recycling to multi-category recycling and further into consumer retail, we aim to leverage the AHS Recycle brand name to provide users with better recycling and purchasing experiences. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Stage 3, we continue to advance breakthroughs in our overseas strategy. Over the past year, our overseas export business has grown rapidly. In June this year, we hit a milestone with HKD 120 million in monthly sales. Building on our solid progress, on July 28, we held our overseas strategy launch event in Hong Kong and updated our global expansion strategy. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] First, we see a huge pre-owned phone market globally with a scale of over USD 100 billion and Hong Kong, Dubai, and Miami as key hubs. As China is changing from a consumer to a supplier of preowned phones globally, we see a chance to build an international B2B marketplace, leveraging PJT's success domestically. As such, we launched FoneSquare. It relies on 2 core strength of our growing 1P supply and automated quality inspection technology. We will follow our domestic experience and gradually expand from 1P to 3P supply while establishing global standards. We will also optimize cost and efficiency through automated quality inspections and improve transaction transparency, building a more efficient B2B marketplace than traditional trade-in platforms, aiming to give pre-owned phones a second life globally. While exports are growing fast, FoneSquare still needs time to improve, and we appreciate your patience and support. We also launched our overseas consumer brand named ReRe, that is, 'Revalue what you own, Renew the way you choose.' We will cautiously explore the To-C business model through recycling kiosks and physical stores with a small amount of investment. We will share more updates on our overseas business as appropriate. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Looking at 2026 as a whole, we will continue to enhance supply sourcing, customer mind share, merchant services and operating efficiency. We look forward to giving users a better experience, more choices and more value in preowned transactions. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Now I'd like to turn the call over to our CFO for financial updates. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] Good day, everyone. I'm pleased to share our outstanding financial performance for the second quarter of 2026. Both revenues and profits reached record highs. During the quarter, the ongoing rollout of China's trade-in programs for consumer electronics, together with the June 18 shopping festival, further boosted consumer demand for device upgrades and expanded the supply of firsthand devices available for recycling. We actively captured these market opportunities, continue to support recycling and trade-in scenarios and fully leveraged the synergies between our supply chain and retail capabilities. As a result, we sustained solid growth momentum over the quarter. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] In the second quarter, total revenue exceeded the high end of our guidance, increasing by 32.4% year-over-year to RMB 6.61 billion, while non-GAAP operating income surged by 70.1% to over RMB 200 million. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] Before we review the financials in detail, please note that all figures are in RMB and all comparisons are on a year-over-year basis, unless otherwise stated. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] In the second quarter, total revenue growth was primarily driven by continued growth in net product revenue. Net product revenues increased by 35.9% to RMB 6.19 billion, largely attributable to the growth in online sales of pre-owned consumer electronics. Net service revenues were RMB 410 million in the second quarter, representing a decrease of 4.2%. The decrease was primarily due to the discretionary discounts on service fees provided to merchants during the extended June 18 brand promotion event period. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] Now let's discuss operating expenses to provide greater clarity on the trends of our actual operating base expenses. We will mainly discuss our non-GAAP operating expenses, which better reflect how management views our operating results. The reconciliations of GAAP to non-GAAP results are available in our earnings release and the corresponding Form 6-K furnished with the U.S. SEC. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] Merchandise costs increased by 31.9% to RMB 5.22 billion, in line with the growth in product sales. Gross profit margin for our 1P business was 15.7% compared with 13.2% in the same period last year. The gross margin improvement in our 1P business, this was primarily driven by high-efficiency C2B recycling scenarios, compliant refurbishment capabilities incorporated in our supply chains and an increasingly diversified retail channel mix. This allowed us to increase the proportion of higher-margin retail sales with 1P-to-C revenue accounting for 48.8% of product revenue in the second quarter of 2026, up from 34.4% in the same period last year. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] Fulfillment expenses increased by 31.1% to RMB 540 million. Non-GAAP fulfillment expenses increased by 30.5% to RMB 530 million. Under the non-GAAP measures, its increase was primarily driven by higher personnel costs resulting from the growth of our business compared to the same period in 2025 as well as higher logistics expenses in line with the increased product sales. Additionally, operating center-related expenses rose along with the increasing volumes of recycling and transactions. Non-GAAP fulfillment expenses as a percentage of total revenues decreased to 8.1% from 8.2%. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] Selling and marketing expenses increased by 24.8% to RMB 510 million. Non-GAAP selling and marketing expenses increased by 29.9% to RMB 500 million, primarily driven by an increase in commission expenses in relation to channel service fees. Non-GAAP selling and marketing expenses as a percentage of total revenues decreased to 7.6% from 7.8%. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] General and administrative expenses increased by 23.5% to RMB 95.7 million. Non-GAAP G&A expenses also increased by 13.6% to RMB 85.3 million, primarily due to an increase in personnel costs. Non-GAAP G&A expenses as a percentage of total revenues decreased to 1.3% from 1.5%. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] Research and development expenses increased by 23.5% to RMB 77.2 million. Non-GAAP R&D expenses increased by 24.2% to RMB 72.3 million, primarily due to an increase in personnel costs. Non-GAAP R&D expenses as a percentage of total revenues decreased to 1.1% from 1.2%. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] As a result, our non-GAAP operating income exceeded RMB 200 million in the second quarter of 2026 compared to non-GAAP operating income of RMB 120 million in the second quarter of 2025, representing an increase of 70.1% year-over-year increase. Non-GAAP operating profit margin was 3.1% for the quarter compared to 2.4% in the second quarter of 2025, representing an increase of 69 basis points. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] As of June 30, 2026, cash and cash equivalents, restricted cash, short-term investments and funds receivable from third-party payment service providers totaled RMB 2.16 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] During the second quarter of 2026, we repurchased a total of approximately 1 million ADSs for approximately USD 4.2 million. On June 30, 2025, the Board has authorized a share repurchase program under which the company may repurchase up to USD 50 million of our shares over 12 months. The Board has authorized the extension of this share repurchase program for 12 months from June 30, 2026, with key terms unchanged. As of June 30, 2026, we repurchased approximately USD 14.8 million under this program. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] Now turning to the business outlook. For the third quarter of 2026, we anticipate total revenues to be between RMB 6.34 billion to RMB 6.44 billion, representing an increase of 23.1% to 25.1% year-over-year. Please note that this forecast may only reflect our current and preliminary views on the market and operational conditions, which are subject to change. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] This concludes our prepared remarks. Operator, we are now ready to take questions. Operator: The first question today comes from Mandy Liu with UBS. Hejing Liu: [Foreign Language] Congrats on another strong quarter in terms of both revenue and profit. Well, my question is that as the launch of Apple's iPhone 18 is around the corner, how would you expect the impact towards our financial performance ahead? Also, is there any updates on your full year revenue and margin guidance? Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Thank you for the question. Here, I'd like to reiterate a counterintuitive view. When new devices are selling well, recycling and trade-in programs are just supplementary value-added services. But when new device sales soften, trade-in programs become the most critical and effective promotional tool. Major manufacturers and platforms place greater emphasis on and allocate more resources to trade-ins. This year, against new device sales headwinds, e-commerce platforms, brand manufacturers and recyclers have all increased their investments in trade-in scenarios, making C2B recycling for pre-owned consumer electronics more efficient. With strong sourcing channels and convenient recycling fulfillment, we have built an industry-leading supply base and further strengthen our supply side advantage in the pre-owned value chain. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] For the third quarter guidance, we take into account this year's major flagship smartphone launches. Take the iPhone 18 lineup as an example, current market expectations are that Apple may introduce more premium models and some standard modules could shift to next spring. This could extend iPhone 18's volume shipment cycle into the fourth quarter and the first quarter of next year. We monitor this closely. Our third quarter guidance has already factored in the potential impact. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Should new device prices rise due to higher upstream memory costs, trade-in and recycling could be more valuable for users and prices for high-quality pre-owned products will have room for upside. The second quarter already saw a year-over-year increase in the average order volume of our 1P business. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] On profitability, we continue to make disciplined investments in fulfillment capabilities and consumer brand marketing in the second quarter. Benefiting from economies of scale and more refined operations, we delivered the expected year-over-year improvement in non-GAAP operating profit margin. Overall, we expect to maintain strong growth in both revenue and profit this year. Operator: The next question comes from Wan Jiao with CICC. Wan Jiao: [Foreign Language] Could you please elaborate on the reasons for the decline in service revenue and share your outlook? Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] Strategically, our 1P model will play an increasingly vital role in the pre-owned smartphones, consumer electronics category. First, it ensures a premium transaction experience for end users and strengthens brand awareness. In addition, the industry's inevitable shift towards greater compliance will further support the development of our 1P business. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] In the second quarter, net service revenue decreased by 4.2% year-over-year, mainly due to 2 factors. First, we increased subsidies for merchants, including logistic fees incentives for new users as PJT marketplace expanded into more fragmented markets. Second, during the promotional campaign, we provided discounts or waivers on service fees to Paipai POP merchants to boost their transactions. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] Looking ahead, we expect that as PJT continues to penetrate lower-tier markets, more small-sized merchants will gain easier access to the national pre-owned trade-in market. By leveraging our quality inspection technology, platform services and differentiated membership programs, we expect to boost PJT's operational efficiency and grow its platform service revenue in line with the healthy expansion of China's pre-owned consumer electronics and smartphone industry. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] For our Paipai B2C business, we are shifting towards 1P curated retail and 3P consignment models, which will affect revenue in the short term. Under the 1P model, we are co-building capabilities with JD.com to meet consumer demand for curated pre-owned products, helping users upgrade their devices with high-quality affordable options. Under the consignment model, Paipai is continuously exploring ways to support small merchants. We are expanding merchant recruitment, boosting merchant vitality and providing robust support for their store operations, traffic management and after-sales services. Chen Chen: [Foreign Language] Xiaoyi Jin: [Interpreted] In our multi-category recycling services, we are advancing refined operations to reinforce consumer mind share of the AHS brand through themed stores and differentiated user experiences. We are confident to continue growing faster than broader industry. That's it for the question, thank you. Operator: The next question comes from Brian Lantier with Zacks Small-Cap Research. Brian Lantier: Congratulations on navigating what's turned into a challenging year for the smartphone market. I wonder if you could talk a little bit about your development plans and your performance goals for the international business? Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] The main part of our overseas strategy is B2B, which is complemented by our To-C business. B2B remains the core revenue contributor, accounting for around 90% of our overseas revenue. Our goal is to build FoneSquare into a global version of PJT marketplace in 3 years. We will expand our supply and buyers network, bring our automation technologies overseas and improve our open platform. We already have a mature B2B system in Hong Kong, covering inspection, operations and sales. We plan to start building new regional capabilities in Dubai and in the second half of this year. FoneSquare is now officially available in Hong Kong app stores, and we plan to gradually expand into Middle Eastern markets like Dubai and Southeast Asian markets like Malaysia. We continue to optimize FoneSquare's functionality and user experience and expect to launch the next phase of our user growth initiatives soon. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] In addition, we are cautiously exploring overseas To-C opportunities under the ReRe brand, whether through ReRe kiosks already deployed in Europe or our first ReRe store in Hong Kong recently opened in Hong Kong. Our overseas To-C business is still at an early stage of exploration. We will share further updates as we make progress. Operator: The next question comes from Raphael Tse with DBS. Wut Hei Tse: [Foreign Language] Congratulations for the record-breaking quarter. One question from my side. So the group's number of stores declined quarter-over-quarter in the second quarter of 2026, while the number of in-store visitors increased significantly. How can we estimate or forecast the change in store numbers for this year? Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] To begin with, I'd like to note that AHS team has solid capabilities in innovation and pacing for store operations. There are 2 factors to consider in making phased store count adjustments. First is the need to solidify our operations after rapid expansion. Accordingly, we have repositioned some poorly located stores and closed some underperforming ones. This is standard business practice. Secondly, we are preparing and accumulating experience for our new store strategy. Our luxury-themed and sports-themed stores have already seen good data validation. Moving forward, we will adopt a tiered store strategy, upgrading select locations into specialized category themed stores. You will soon see us rolling out more of these themed stores across different categories. I also want to emphasize that our budget to build store-based fulfillment capabilities remains disciplined with no incremental investment. We are strengthening these capabilities by reallocating resources within our existing budget. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] Demand for recycling and trade-in services has been strong this year. We expanded our to-door team to meet higher fulfillment demand in top-tier cities. During the June 18 shopping festival, we used flexible workforce solutions to quickly expand the team to nearly 3,000 people. After the peak period, the to-door capacity adjusted back down, helping us control front-end operating expenses. Xuefeng Chen Kerry: [Foreign Language] Xiaoyi Jin: [Interpreted] We will continue to strengthen our in-store and to-door fulfillment capabilities to provide users with a trusted and convenient experience. Thank you. Operator: As there are no further questions at this time, I'd like to turn the conference back to management for closing remarks. Xiaoyi Jin: Thank you again for joining us. A replay of today's call will be available on our IR website shortly, followed by a transcript when ready. If you have any additional questions, please feel free to e-mail us at [email protected]. Have a good day. Thank you. Operator: This conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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See the 10 stocks » *Stock Advisor returns as of August 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ATRenew (RERE) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in ATRenew Inc. Sponsored ADR? Here are five stocks we like better. ATRenew delivered record Q2 results: Revenue increased 32.4% year over year to CNY 6.61 billion, while non-GAAP operating income rose 70.1% to CNY 210 million, driven by strong demand for pre-owned electronics, trade-in programs and the June 18 shopping festival. The 1P retail and recycling businesses powered growth and margin expansion. Revenue from 1P-to-consumer retail increased 92.4% and reached 48.8% of product revenue, helping lift 1P gross margin to 15.7% from 13.2% a year earlier. Service revenue declined amid merchant incentives, but ATRenew continued investing in marketplace expansion and international B2B operations through its new FoneSquare platform. The company expects Q3 revenue of CNY 6.34 billion to CNY 6.44 billion, representing 23.1% to 25.1% year-over-year growth. ATRenew (NYSE:RERE) reported second-quarter 2026 revenue and non-GAAP operating profit that reached record highs, supported by growth in its first-party, or 1P, pre-owned consumer electronics business and demand tied to China’s trade-in programs and the June 18 shopping festival. Total net revenue rose 32.4% year over year to CNY 6.61 billion, exceeding the high end of the company’s guidance. Net product revenue increased 35.9% to CNY 6.19 billion, primarily driven by online sales of pre-owned consumer electronics. Non-GAAP operating income climbed 70.1% to CNY 210 million, while non-GAAP operating margin expanded to 3.1% from 2.4% a year earlier. → Datavault AI Locks Down CyberCatch in $94M Security Rollup Management said ATRenew’s strategy has centered on expanding its 1P business, in which it sources devices through consumer-to-business channels, refurbishes products and sells curated pre-owned goods to consumers. The company said this model improves transaction trust, operational efficiency and its ability to provide recycling customers with pricing informed by its retail operations. Revenue from 1P refurbished products increased 87.8% from a year earlier. Revenue from 1P-to-consumer retail, or 1P2C, rose 92.4%, reaching 48.8% of product revenue, up 3.6 percentage points sequentially. ATRenew said higher new-device prices, stable pre-owned market sentiment and refined pricing and operations supported the expansion. → Michael Burry Is Betting Against Palantir Again—Should Investors Care? During the promotional period from May 13 through June 18, recycling value for mobile phones and consumer electronics at AHS Recycle rose 57% year over year. Both door-to-door and in-store recycling orders increased 45%, and face-to-face transactions represented 80% of recycling orders across all channels. The company expanded its nationwide door-to-door fulfillment team, including flexible capacity, to nearly 3,000 people by the end of June. It also operated 2,117 AHS stores at quarter-end. Management said it subsequently adjusted door-to-door staffing after the promotional peak to control front-end operating costs. → Home Depot Analysts See a Path to $375 and Beyond Merchandise costs rose 31.9% to CNY 5.22 billion, broadly in line with product-sales growth. However, 1P gross profit margin improved to 15.7% from 13.2% in the prior-year quarter. Chief Financial Officer Rex Chen said the improvement reflected more efficient consumer-to-business recycling, fulfillment capabilities integrated into the supply chain and a greater mix of higher-margin retail sales. Non-GAAP fulfillment expenses increased 30.5% to CNY 530 million, though they declined as a percentage of revenue to 8.1% from 8.2%. Non-GAAP selling and marketing expense rose 29.9% to CNY 500 million, but fell to 7.6% of revenue from 7.8%. Non-GAAP general and administrative expense represented 1.3% of revenue, down from 1.5%, while non-GAAP research and development expense represented 1.1%, compared with 1.2% a year earlier. As of June 30, ATRenew held CNY 2.16 billion in cash and cash equivalents, restricted cash, short-term investments and funds receivable from third-party payment service providers. During the quarter, the company repurchased about 1 million American depositary shares for approximately $4.2 million. Its board extended a $50 million share repurchase authorization for another 12 months beginning June 30, 2026; ATRenew had repurchased approximately $14.8 million under the program as of that date. Net service revenue declined 4.2% year over year to CNY 410 million. Chen attributed the decrease to subsidies for merchants, including logistics support and incentives for new users as PJT Marketplace expanded into fragmented markets, as well as service-fee discounts and waivers for Paipai merchants during the extended 618 promotion. PJT Marketplace had more than 20.27 million registered merchants at the end of June. Its third-party warehousing and inspection penetration rate reached 84.4%, up about 11.5 percentage points from a year earlier. Paipai’s consignment business increased 22.4% sequentially, while Paipai platform service revenue declined due to merchant subsidies and lower service fees. In multi-category recycling, service revenue grew more than 30% year over year, according to management. Gold service revenue fell 35% amid volatile, lower gold prices and the company’s decision to provide more value to users. Luxury recycling service revenue increased 77.3%, and ATRenew said it plans to open additional themed multi-category stores, including luxury and sports-focused locations. Founder, Chairman and Chief Executive Officer Kerry Chen said the company’s overseas business is centered on business-to-business transactions, which account for about 90% of overseas revenue. ATRenew reported HK$120 million in monthly export sales in June and launched FoneSquare, an international B2B marketplace intended to build on PJT Marketplace’s domestic model. The company said it aims to develop FoneSquare into a global version of PJT Marketplace over three years, expanding supply and buyer networks while introducing its automated inspection technology overseas. ATRenew has a B2B system in Hong Kong and plans to begin developing regional capabilities in Dubai in the second half of 2026. It also plans gradual expansion into markets including Dubai and Malaysia. Its consumer-facing overseas brand, ReRe, remains in an early exploratory phase through kiosks in Europe and a recently opened Hong Kong store. For the third quarter, ATRenew forecast total revenue of CNY 6.34 billion to CNY 6.44 billion, representing year-over-year growth of 23.1% to 25.1%. Management said the outlook incorporates potential effects from major flagship smartphone launches and that it expects to maintain strong revenue and profit growth for the full year. ATRenew Inc, through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co Ltd. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ATRenew Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

SHANGHAI, Aug. 20, 2026 /PRNewswire/ -- ATRenew Inc. ("ATRenew" or the "Company") (NYSE: RERE), a pioneer in technology-driven recycling and trade-in solutions for consumer products in China, today announced its unaudited financial results for the three months ended June 30, 2026. Second Quarter 2026 Highlights Total net revenues grew by 32.4% to RMB6,609.3 million (US$974.1 million) from RMB4,991.5 million in the same period of 2025. Income from operations increased by 95.7% to RMB178.3 million (US$26.3 million) from RMB91.1 million in the same period of 2025. Adjusted income from operations (non-GAAP)1 grew by 70.1% to RMB206.3 million (US$30.4 million) from RMB121.3 million in the same period of 2025. Net income increased by 78.6% to RMB129.1 million (US$19.0 million) from RMB72.3 million in the same period of 2025. Adjusted net income (non-GAAP)1 grew by 57.3% to RMB157.1 million (US$23.1 million) from RMB99.9 million in the same period of 2025. Number of consumer products transacted2 was 11.6 million compared to 10.3 million in the same period of 2025. Mr. Kerry Xuefeng Chen, Founder, Chairman, and Chief Executive Officer of ATRenew, commented, "We are pleased to report another strong quarter for ATRenew. In the second quarter of 2026, total net revenues increased by 32.4% year-on-year to RMB6,609.3 million. This was achieved by leveraging our industry-leading supply chain value via a 1P business model. On the recycling side, we prioritized providing users with the best-in-class recycling and trade-in experience. On the processing side, we increased the proportion of compliant refurbished products, ensuring sufficient supply of value-for-money high-quality second-hand devices for both consumers and small and medium-sized businesses. Simultaneously, we expanded the distribution of quality-preowned products to serve diverse global markets, creating greater value for the global circulation of second-hand electronic products." Mr. Rex Chen, Chief Financial Officer of ATRenew, added, "While exceeding the high end of our revenue guidance, ATRenew once again achieved rapid profit growth. In the second quarter of 2026, adjusted income from operations grew by 70.1% year-on-year to RMB206.3 million. During this process, we focused on upgrading the capabilities and quality of AHS stores, strengthening door-to-door fulfillment capabilities on the recycling side, and optimizing the sales channels for our 1P products. Similarly, combining the characteristics of the second-hand industry, we prudently invested in brand marketing and adopted refined cost management in the middle and back offices, achieving continuous optimization of operating profit and maintaining our goal of creating long-term value for shareholders." Second Quarter 2026 Financial Results REVENUE Total net revenues increased by 32.4% to RMB6,609.3 million (US$974.1 million) from RMB4,991.5 million in the same period of 2025. Net product revenues increased by 35.9% to RMB6,194.7 million (US$913.0 million) from RMB4,558.7 million in the same period of 2025. The increase was primarily attributable to an increase in the sales of pre-owned consumer electronics through the Company's online channels. Net service revenues decreased by 4.2% to RMB414.6 million (US$61.1 million), compared to RMB432.8 million in the same period of 2025. This decrease was primarily due to the discretionary discounts on service fees provided to merchants during the extended 618 grand promotion event period. OPERATING COSTS AND EXPENSES Operating costs and expenses were RMB6,442.3 million (US$949.5 million), compared to RMB4,918.1 million in the same period of 2025, representing an increase of 31.0%. Merchandise costs were RMB5,219.2 million (US$769.2 million), compared to RMB3,957.6 million in the same period of 2025, representing an increase of 31.9%. The increase was primarily due to the growth in product sales. Fulfillment expenses were RMB542.3 million (US$79.9 million), compared to RMB413.6 million in the same period of 2025, representing an increase of 31.1%. The increase was primarily due to (i) an increase in personnel costs driven by the growth of our business, (ii) an increase in logistics expense due to the growth in product sales, and (iii) an increase in operating center related expenses as the Company conducted more recycling and transaction activities compared with the same period of 2025. Selling and marketing expenses were RMB507.9 million (US$74.9 million), compared to RMB406.9 million in the same period of 2025, representing an increase of 24.8%. The increase was primarily due to an increase in commission expenses in relation to channel service fees, partially offset by a decrease in amortization of intangible assets resulting from assets and business acquisitions, due to the maturity of major remaining intangible assets in the second quarter of 2025. General and administrative expenses were RMB95.7 million (US$14.1 million), compared to RMB77.5 million in the same period of 2025, representing an increase of 23.5%. The increase was primarily due to an increase in personnel costs, sales tax and associated charges, and share-based compensation expenses, partially offset by a decrease in expected credit loss relating to credit risk. Research and development expenses were RMB77.2 million (US$11.4 million), compared to RMB62.5 million in the same period of 2025, representing an increase of 23.5%. The increase was primarily due to an increase in personnel costs. INCOME FROM OPERATIONS Income from operations was RMB178.3 million (US$26.3 million), representing an increase of 95.7% from RMB91.1 million in the same period of 2025. Adjusted income from operations (non-GAAP) was RMB206.3 million (US$30.4 million), representing an increase of 70.1% from RMB121.3 million in the same period of 2025. NET INCOME Net income was RMB129.1 million (US$19.0 million), representing an increase of 78.6% from RMB72.3 million in the same period of 2025. Adjusted net income (non-GAAP) was RMB157.1 million (US$23.1 million), representing an increase of 57.3% from RMB99.9 million in the same period of 2025. BASIC AND DILUTED NET INCOME PER ORDINARY SHARE Basic and diluted net income per ordinary share were RMB0.80 (US$0.12) and RMB0.80 (US$0.12), compared to RMB0.45 and RMB0.44 in the same period of 2025. Adjusted basic and diluted net income per ordinary share (non-GAAP) were RMB0.97 (US$0.14) and RMB0.97 (US$0.14), compared to RMB0.62 and RMB0.61 in the same period of 2025. CASH AND CASH EQUIVALENTS, RESTRICTED CASH, SHORT-TERM INVESTMENTS AND FUNDS RECEIVABLE FROM THIRD PARTY PAYMENT SERVICE PROVIDERS Cash and cash equivalents, restricted cash, short-term investments and funds receivable from third party payment service providers were RMB2,157.2 million (US$317.9 million) as of June 30, 2026, as compared to RMB2,187.4 million as of December 31, 2025. Business Outlook For the third quarter of 2026, the Company currently expects its total revenues to be between RMB6,340.0 million and RMB6,440.0 million, representing an increase of 23.1% to 25.1% year-over-year. This forecast only reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change. Recent Developments On June 30, 2025, the board of directors of the Company (the "Board") authorized a new share repurchase program, under which the Company may repurchase up to US$50 million of its shares (including ADSs) over a 12-month period starting from June 30, 2025. During the second quarter of 2026, the Company repurchased a total of approximately 1.0 million ADSs for approximately US$4.2 million. As of June 30, 2026, the Company had cumulatively repurchased a total of approximately 3.3 million ADSs for approximately US$14.8 million, with approximately US$35.2 million remaining available for repurchases under the share repurchase program. On May 19, 2026, the Board authorized an extension of the existing share repurchase program for an additional 12-month period commencing from June 30, 2026, with other key terms remaining unchanged. On June 30, 2026, ATRenew published its 2025 Environmental, Social and Governance Report (the "ESG Report"), highlighting multiple improvements. ATRenew advanced climate risk management and emissions reduction. With reference to the IFRS S2 framework, the Company comprehensively identified climate-related risks and opportunities and quantitatively assessed their specific impacts on financial performance. The Company also actively advanced carbon emissions reduction: compared to 2024, the Company reduced its Scope 1 and Scope 2 emissions intensity by 9.5% in 2025, demonstrating steady progress toward its 2030 target of a 35% reduction in Scope 1 and Scope 2 emission intensity from a 2024 baseline. On strengthened business ethics, the Company conducted integrity training sessions, reaching 15,124 participants. Signing rates reached 100% for employee integrity, self-discipline and confidentiality, Leadership Accountability Statements, and the Anti-Commercial Bribery Agreement among franchisees. In addition, 2,178 suppliers signed the Anti-Commercial Bribery Agreement, embedding integrity standards across the workforce and supply chain. Conference Call Information The Company's management will hold a conference call on Thursday, August 20, 2026 at 08:00 A.M. Eastern Time (or 08:00 P.M. Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers: The replay will be accessible through August 27, 2026 by dialing the following numbers: A live and archived webcast of the conference call will also be available at the Company's investor relations website at ir.atrenew.com. About ATRenew Inc. Headquartered in Shanghai, ATRenew Inc. is a pioneer in technology-driven recycling and trade-in solutions for consumer products in China. Since inception in 2011, ATRenew has been on a mission to give a second life to all idle goods, reducing the environmental impact of pre-owned consumer products by facilitating recycling, trade-ins and distribution that prolong their lifecycle. ATRenew's open platform integrates C2B, B2B, and B2C capabilities to empower its online and offline services. Powered by proprietary technologies and a scalable platform ecosystem, ATRenew enhances transaction efficiency and pricing transparency for consumers and merchants alike while advancing circular economy standards in China. ATRenew is a participant in the United Nations Global Compact, and adheres to its principles-based approach to responsible business. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7851 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2026. Use of Non-GAAP Financial Measures The Company also uses certain non-GAAP financial measures in evaluating its business. For example, the Company uses adjusted income from operations, adjusted net income and adjusted net income per ordinary share as supplemental measures to review and assess its financial and operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Adjusted income from operations is income from operations excluding the share-based compensation expenses and amortization of intangible assets resulting from assets and business acquisitions. Adjusted net income is net income excluding the share-based compensation expenses and amortization of intangible assets resulting from assets and business acquisitions and tax effects of amortization of intangible assets resulting from assets and business acquisitions. Adjusted net income per ordinary share is adjusted net income attributable to ordinary shareholders divided by weighted average number of shares used in calculating net income per ordinary share. The Company presents non-GAAP financial measures because they are used by the Company's management to evaluate the Company's financial and operating performance and formulate business plans. The Company believes that adjusted income from operations and adjusted net income help identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that are included in income from operations and net income. The Company also believes that the use of non-GAAP financial measures facilitates investors' assessment of the Company's operating performance. The Company believes that adjusted income from operations and adjusted net income provide useful information about the Company's operating results, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company's operations. The share-based compensation expenses, amortization of intangible assets resulting from assets and business acquisitions and tax effects of amortization of intangible assets resulting from assets and business acquisitions have been and may continue to be incurred in the Company's business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP measures may differ from the non-GAAP measures used by other companies, including peer companies, potentially limiting the comparability of their financial results to the Company's. In light of the foregoing limitations, the non-GAAP financial measures for the period should not be considered in isolation from or as an alternative to income from operations, net income, and net income attributable to ordinary shareholders per share, or other financial measures prepared in accordance with U.S. GAAP. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company's performance. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, "Reconciliations of GAAP and Non-GAAP Results." Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. ATRenew may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ATRenew's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ATRenew's strategies; ATRenew's future business development, financial condition and results of operations; ATRenew's ability to maintain its relationship with major strategic investors; its ability to facilitate pre-owned consumer electronics transactions and provide relevant services; its ability to maintain and enhance the recognition and reputation of its brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ATRenew's filings with the SEC. All information provided in this press release is as of the date of this press release, and ATRenew does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Investor Relations Contact ATRenew Inc.Investor RelationsEmail: [email protected] Christensen AdvisoryEmail: [email protected] View original content:https://www.prnewswire.com/news-releases/atrenew-inc-reports-unaudited-second-quarter-2026-financial-results-302856220.html

ATRenew Inc. (NYSE:RERE) shares fell in premarket trading on Thursday despite the Chinese recycling and trade-in platform delivering second-quarter results that surpassed analyst expectations, as investors focused instead on weaker-than-anticipated third-quarter revenue guidance. The stock declined 4.77% before the opening bell after ATRenew forecast revenue of between RMB6.34 billion and RMB6.44 billion for the third quarter. The midpoint of RMB6.39 billion would represent year-on-year growth of approximately 23.6%, but remained below market expectations. Second-quarter revenue increased 32.4% year on year to RMB6.61 billion ($974.1 million), beating the analyst consensus of RMB6.37 billion and rising sharply from RMB4.99 billion in the corresponding period last year. Adjusted earnings per share reached RMB0.97 ($0.14), exceeding the RMB0.89 consensus estimate by RMB0.08. Growth was primarily driven by product sales. Net product revenue climbed 35.9% to RMB6.19 billion ($913.0 million), supported by increased online sales of pre-owned consumer electronics. Service revenue moved in the opposite direction, falling 4.2% to RMB414.6 million ($61.1 million). ATRenew attributed the decline to discretionary reductions in service fees during the extended 618 promotional period. Profitability improved at a considerably faster pace than revenue during the quarter. Adjusted income from operations surged 70.1% year on year to RMB206.3 million ($30.4 million), while adjusted net income increased 57.3% to RMB157.1 million ($23.1 million). Transaction volumes also expanded, with ATRenew handling 11.6 million consumer products during the quarter, compared with 10.3 million in the same period a year earlier. “We are pleased to report another strong quarter for ATRenew,” said Kerry Xuefeng Chen, Founder, Chairman, and Chief Executive Officer. “In the second quarter of 2026, total net revenues increased by 32.4% year-on-year to RMB6,609.3 million.” Despite the stronger second-quarter figures, the market response was dominated by management’s outlook for the current quarter. ATRenew’s projected third-quarter revenue range of RMB6.34 billion to RMB6.44 billion suggests the company expects to maintain double-digit annual growth, but the forecast fell short of investor expectations following the strength of its latest results. The contrast between accelerating adjusted profitability and a more cautious near-term revenue outlook helped explain the negative share-price reaction. With second-quarter revenue, adjusted earnings and operating profit all showing substantial improvement, ATRenew continues to demonstrate growth across its core pre-owned electronics business. However, Thursday’s premarket decline indicates investors are placing greater weight on the pace of future expansion than on the latest earnings beat. ATRenew stock price

This article first appeared on GuruFocus. Total Net Revenues: RMB6.61 billion in Q2 2026, up 32.4% year-over-year, exceeding the high end of guidance. Net Product Revenue: RMB6.19 billion, up 35.9% year-over-year, driven by growth in online sales of pre-owned consumer electronics. Net Service Revenue: RMB410 million, down 4.2% year-over-year, due to discretionary discounts on service fees during the June 18 promotional period. Non-GAAP Operating Income: RMB210 million, up 70.1% year-over-year. Non-GAAP Operating Margin: 3.16%, up 69 basis points year-over-year. 1P Business Gross Margin: 15.7%, up from 13.2% in the same period last year. 1P-C Retail Revenue: Up 92.4% year-over-year, accounting for 48.8% of product revenue, up from 34.4% in Q2 2025. 1P Refurbished Products Revenue: Increased 87.8% year-over-year. Fulfillment Expenses (Non-GAAP): RMB530 million, up 30.5% year-over-year; as a percentage of total revenues, decreased to 8.1% from 8.2%. Selling and Marketing Expenses (Non-GAAP): RMB500 million, up 29.9% year-over-year; as a percentage of total revenues, decreased to 7.6% from 7.8%. G&A Expenses (Non-GAAP): RMB85.3 million, up 13.6% year-over-year; as a percentage of total revenues, decreased to 1.3% from 1.5%. R&D Expenses (Non-GAAP): RMB72.3 million, up 24.2% year-over-year; as a percentage of total revenues, decreased to 1.1% from 1.2%. Cash and Equivalents: Totaled RMB2.16 billion as of June 30, 2026. Share Repurchases: Repurchased approximately 1 million ADS for approximately USD4.2 million in Q2 2026; approximately USD14.8 million repurchased under the program as of 2026. Store Count: 2,117 AHS stores as of the end of June. Door-to-Door Fulfillment Team: Expanded to nearly 3,000 by the end of June, up sharply from the end of March. PJT Marketplace: Total registered merchants exceeded 2.27 million by the end of June; 3P warehouse inspection penetration rate reached 84.4%, up 11.5% year-over-year. Overseas Export Business: Hit a milestone with HKD120 million in monthly sales in June. Q3 2026 Guidance: Total revenue expected between RMB6.34 billion and RMB6.44 billion, representing an increase of 23.1% to 25.1% year-over-year. Warning! GuruFocus has detected 3 Warning Signs with RERE. Is RERE fairly valued? Test your thesis with our free DCF calculator. Release Date: August 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total net revenues exceeded guidance, growing 32.4% year-over-year to RMB6.61 billion, with product revenue up 35.9%. Non-GAAP operating profit surged 70.1% year-over-year to RMB210 million, with margin expansion of 69 basis points to 3.16%. 1P refurbished product revenue grew 87.8% year-over-year, and 1P-C retail revenue increased 92.4%, boosting retail mix to 48.8% of product revenue. Trade-in and recycling demand surged during the June 18 Shopping Festival, with recycling value up 57% year-over-year and face-to-face orders growing 45%. Overseas expansion is gaining traction, with monthly sales hitting HKD120 million in June and the launch of PhoneSquare, a global B2B marketplace. Gross margin for the 1P business improved to 15.7% from 13.2% year-over-year, driven by efficient sourcing and refurbishment capabilities. Net service revenue declined 4.2% year-over-year, impacted by merchant subsidies and fee waivers during promotional periods. Gold service revenue fell 35% year-over-year due to volatile and lower gold prices, affecting multi-category recycling performance. Paipai platform service revenue decreased year-over-year, partly due to strategic fee reductions and subsidies to boost merchant activity. The number of AHS stores declined quarter-over-quarter as the company closed underperforming locations and repositioned others. Third-quarter revenue guidance implies a slowdown in growth (23.1%-25% year-over-year) compared to Q2's 32.4%, reflecting potential impacts from new device launches. Overseas 2C business is still at an early stage, with limited investment and uncertain near-term profitability. Q: As the launch of Apple's iPhone 18 is around the corner, how would you expect the impact towards our financial performance ahead? Also, is there any updates on your full year revenue and margin guidance? A: Kerry Chen (CEO): We reiterate a counterintuitive view: when new device sales soften, trade-in programs become the most critical promotional tool, and major manufacturers and platforms allocate more resources to them. This year, e-commerce platforms and brands have increased investments in trade-in scenarios, making C2B recycling more efficient. For Q3 guidance, we factored in the potential impact of the iPhone 18 launch, noting that some standard models may shift to next spring, extending the volume ramp cycle into Q4 and Q1 of next year. Should new device prices rise due to higher upstream memory costs, trade-in becomes more valuable for users, and prices for high-quality pre-owned products have upside room. We expect to maintain strong growth in both revenue and profit this year. Q: Could you please elaborate on the reasons for the decline in service revenue and share our outlook? A: Rex Chen (CFO): Net service revenue decreased 4.2% year-over-year in Q2, mainly due to two factors: increased subsidies for merchants (including logistics fees and incentives for new users) as PJT marketplace expanded into fragmented markets, and discounts or waivers on service fees provided to Paipai merchants during the promotional campaign. Looking ahead, we expect PJT to continue penetrating lower-tier markets, leveraging our quality inspection technology and membership programs to grow platform service revenue. For Paipai B2C, we are shifting towards 1P curated retail and 3P consignment models, which will affect revenue in the short term but support long-term growth. Multi-category recycling services continue to grow faster than the broader industry. Q: Could you talk a little bit about your development plans and your performance goals for the international business? A: Kerry Chen (CEO): The main part of our overseas strategy is B2B, accounting for around 90% of overseas revenue. Our goal is to build PhoneSquare into a global version of PJT marketplace in three years. We have a mature B2B system in Hong Kong and plan to start building new regional capabilities in Dubai in the second half of this year. PhoneSquare is now available in Hong Kong app stores, and we plan to expand into Middle Eastern markets like Dubai and Southeast Asian markets like Malaysia. We are also cautiously exploring overseas 2C business under the RERE brand, with kiosks deployed in Europe and the first RERE store recently opened in Hong Kong, though this is still at an early exploration stage. Q: The Group's number of stores declined quarter-over-quarter in the second quarter of 2026, while the number of in-store business increased significantly. How can we estimate or forecast the change in store numbers for this year? A: Kerry Chen (CEO): There are two factors in making phased store count adjustments. First, we need to solidify operations after rapid expansion, so we repositioned poorly located stores and closed underperforming ones. Second, we are preparing for our new store strategyluxury theme and sports theme stores have shown good data validation. Moving forward, we will adopt a tiered store strategy, upgrading select locations into specialized category stores. Our budget for store-based fulfillment capabilities remains disciplined, with low incremental investment by reallocating resources within existing budgets. We also expanded our door-to-door team to nearly 3,000 people during the June 18 shopping festival, then adjusted capacity back down after the peak period to control front-end operating expenses. Q: Can you provide more color on the 1P business gross margin improvement and the drivers behind the strong product revenue growth? A: Rex Chen (CFO): Gross profit margin for our 1P business improved to 15.7% in Q2 2026, compared with 13.2% in the same period last year. This improvement was primarily driven by high-efficiency C2B recycling scenarios, compliant refurbishment capabilities incorporated into our supply chain, and an increasingly diversified retail channel mix. We increased the proportion of higher-margin retail sales, with 1P-C revenue accounting for 48.8% of product revenue in Q2 2026, up from 34.4% in the same period last year. Net product revenues increased 35.9% year-over-year to RMB6.19 billion, largely attributable to growth in online sales of pre-owned consumer electronics. Q: What are the key drivers behind the strong growth in the 1P refurbished products and 1P-C retail revenue? A: Kerry Chen (CEO): Revenue from 1P refurbished products increased 87.8% year-over-year, driven by higher new device prices, stable pre-owned market sentiment, and more refined pricing strategies and operations. 1P-C retail revenue grew 92.4% year-over-year in Q2, and as a percentage of product revenue, it increased 3.6 percentage points sequentially to 48.8%. This growth reflects our ability to meet user demand better for curated phones, computers, smart devices, and other products, leveraging our compliant refurbishment capabilities and end-to-end value chain. Q: How is the PJT marketplace performing in terms of merchant expansion and platform engagement? A: Kerry Chen (CEO): PJT marketplace continues to expand into fragmented markets, reaching more small-sized merchants, mom-and-pop shops, and specialty buyers. By the end of June, total registered merchants on the platform exceeded 2.27 million. For sellers, we offer free shipping on the first three orders and align inspection standards upfront, lowering selling costs and barriers for new small merchants. For buyers, we launched themed campaigns on Douyin and other platforms, driving rapid growth in our specialty buyer model. PJT's 3P warehouse inspection penetration rate reached 84.4% this quarter, up around 11.5% year-over-year, delivering rapid scale expansion with solid growth in service revenue. Q: What is the performance of the multi-category recycling services, particularly in gold and luxury categories? A: Kerry Chen (CEO): Multi-cat recycling services maintained year-over-year growth of over 30%. Gold prices were volatile and trended lower in Q2, and we chose to give more back to users, leading to a 35% year-over-year decline in gold service revenue. However, we upgraded select AHS stores to luxury stores with improved design and functional areas, and luxury resecting service revenue grew 77.3% year-over-year. Building on these positive results, we plan to open more multi-cat theme stores this For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SHANGHAI, Aug. 6, 2026 /PRNewswire/ -- ATRenew Inc. ("ATRenew" or the "Company") (NYSE: RERE), a pioneer in technology-driven recycling and trade-in solutions for consumer products in China, today announced that it plans to release its unaudited financial results for the second quarter of 2026 before the U.S. market opens on Thursday, August 20, 2026. The Company's management will hold an earnings conference call at 08:00 A.M. Eastern Time on Thursday, August 20, 2026 (08:00 P.M. Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers: The replay will be accessible through August 27, 2026 by dialing the following numbers: A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.atrenew.com. About ATRenew Inc. Headquartered in Shanghai, ATRenew Inc. is a pioneer in technology-driven recycling and trade-in solutions for consumer products in China. Since inception in 2011, ATRenew has been on a mission to give a second life to all idle goods, reducing the environmental impact of pre-owned consumer products by facilitating recycling, trade-ins and distribution that prolong their lifecycle. ATRenew's open platform integrates C2B, B2B, and B2C capabilities to empower its online and offline services. Powered by proprietary technologies and a scalable platform ecosystem, ATRenew enhances transaction efficiency and pricing transparency for consumers and merchants alike while advancing circular economy standards in China. ATRenew is a participant in the United Nations Global Compact, and adheres to its principles-based approach to responsible business. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. ATRenew may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ATRenew's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ATRenew's strategies; ATRenew's future business development, financial condition and results of operations; ATRenew's ability to maintain its relationship with major strategic investors; its ability to facilitate pre-owned consumer electronics transactions and provide relevant services; its ability to maintain and enhance the recognition and reputation of its brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ATRenew's filings with the SEC. All information provided in this press release is as of the date of this press release, and ATRenew does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Investor Relations Contact ATRenew Inc.Investor RelationsEmail: [email protected] Christensen AdvisoryEmail: [email protected] View original content:https://www.prnewswire.com/news-releases/atrenew-to-report-second-quarter-2026-financial-results-on-august-20-2026-302844641.html

By Brian Lantier, CFA NYSE: RERE READ THE FULL RERE RESEARCH REPORT Before the market opened on May 19, ATRenew (NYSE: RERE) released its first-quarter results for 2026, highlighting that the diversification of its product lines, strong consumer branding, and access to premium products continue to drive growth, even as the broader domestic smartphone market in China has contracted. ATRenew continues to gain mindshare among consumers, and the company’s strong affiliation with Apple products helped drive demand in Q1. Total net product revenues at ATRenew jumped 34.4% from the same period of 2025 to RMB5.73 billion ($830 million) and were only down 1.7% sequentially from the seasonally strong fourth quarter of 2025. The strong performance of the iPhone 17 was likely the primary driver of this outperformance, but we noted that the company cited strength across all consumer electronics lines, so we think the demand for other Apple products, including MacBooks, may have temporarily boosted revenue in the quarter. Net product revenues for ATRenew exceeded our forecast by 4.5%, or RMB249 million, largely due to higher unit volume, and we believe higher average pricing, driven by a higher proportion of Apple products and higher pricing across all brands as a result of higher memory costs. After adjusting for non-cash share-based compensation expenses of RMB4.4 million in the quarter and small amortization of intangibles (RMB780 thousand), adjusted non-GAAP income was reported at RMB140.1 million or $20.3 million for the quarter or $0.08/ADS, which was about $2.3 million ahead of our forecast or a little over a $0.01/ADS. Model adjustments: We have adjusted our model to reflect the very strong Q1 results and the company’s guidance for Q2 revenues of between RMB6.24 billion and RMB6.34 billion. As a result of this updated guidance, our total revenue forecast for 2026 is now RMB26.4 billion (up from a previous estimate of RMB26.0 billion), representing roughly 25.5% topline growth. We are maintaining our 2027 revenue estimate of RMB31.1 billion, but we are monitoring the timing of Apple’s iPhone 18 launch. If Apple staggers the launch, we believe we may have to increase our Q3 revenue forecast, while decreasing our Q4 revenue forecast and pushing some of that revenue into 2027. Management has also provided further details on the company’s share of losses in equity method investments, and we have now modeled those losses at about RMB47 million and RMB18.5 million in 2027. As a result of these adjustments, at current exchange rates, our full-year adjusted earnings per ADS estimate is now $0.40/ADS, and our 2027 forecast is $0.49/ADS. We believe the company is likely seeing trends in the business that give management greater confidence in the topline and margin forecasts, but we would like to see these trends continue for another quarter or two before making meaningful adjustments to our assumptions. For the time being, we are leaving our target unchanged at $8.00/ADS. With the stock trading at just 10 times our 2027 adjusted earnings per ADS estimate, we believe ATRenew offers a unique small-cap growth value in an expensive market and we would encourage investors to review our full updated research report for further information on ATRenew and its position in the market. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. ATRenew (NYSE:RERE) has drawn fresh attention after reporting Q1 2026 results, with total net revenues up 32.4% year over year and net income rising 215.7%, alongside guidance for 25% to 27% Q2 revenue growth. See our latest analysis for ATRenew. The Q1 beat and Q2 guidance arrived alongside sharp near term share price swings, with an 11.56% 1 day share price return and 8.89% 7 day share price return, but a 90 day share price return that is down 11.62%. The 1 year total shareholder return of 92.37% points to stronger momentum over a longer horizon. If strong earnings has you looking for other ideas in related areas, it could be worth checking a curated list of 43 AI infrastructure stocks as a next step. With Q1 numbers ahead of expectations, Q2 guidance pointing to 25% to 27% revenue growth and the stock still below recent 90-day levels, is ATRenew undervalued, or is the market already pricing in future growth? The most followed narrative places ATRenew's fair value at $6.61, above the last close of $5.02. This frames the current debate around what needs to go right. Read the complete narrative. Want to see what sits behind that valuation gap? The narrative leans on rapid earnings compounding, firmer margins, and a future earnings multiple that assumes real execution. Curious which specific profit and revenue paths underpin that fair value. Result: Fair Value of $6.61 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to weigh the risk that any pullback in Chinese trade-in subsidies or rising competition in device recommerce could pressure ATRenew's thin margins. Find out about the key risks to this ATRenew narrative. While the narrative fair value of $6.61 points to upside, the SWS DCF model tells a very different story. In this view, ATRenew's estimated value is $1.61 per share. The current $5.02 price sits well above that level and implies valuation risk if cash flows fall short. For a closer look at how this cash flow view is built, and what would need to change for the gap to close, Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out ATRenew for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 54 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With sentiment split between upside potential and cash flow concerns, it may be a good time to review the numbers yourself and decide where you stand, starting with 3 key rewards and 1 important warning sign. Before you move on, put this research to work by lining up a few more stocks that match the kind of opportunities you want to focus on next. Target dependable return streams with 12 dividend fortresses that prioritize income potential alongside resilience. Hunt for mispriced opportunities using the 54 high quality undervalued stocks and see which stocks currently sit out of favor relative to their fundamentals. Prioritize stability first by scanning the 66 resilient stocks with low risk scores to find stocks with lower risk scores that could suit a steadier approach. 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. Companies discussed in this article include RERE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]