Chagee Q2 Earnings Call Highlights

Chagee Q2 Earnings Call Highlights

Chagee Q2 Earnings Call Highlights Written by MarketBeat August 28, 2026

Key Points Profitability surged despite modest growth: Q2 revenue rose 2.5% year over year to RMB 3.41 billion, while GAAP net income climbed to RMB 464.8 million, lifting the net margin to 13.6% from 2.3%. China demand softened, but overseas expansion accelerated: Greater China GMV fell 4.5% sequentially, while international GMV increased 18.2% sequentially and 114.3% year over year. Chagee expanded to 7,639 tea houses across eight overseas markets, including a new entry into South Korea. Management is prioritizing stabilization and efficiency: Cost controls supported stronger operating margins as the company launched new products and expanded membership engagement. Chagee expects same-store sales to improve toward positive year-over-year growth in August and has repurchased about $30 million of shares while evaluating regular dividends.

Chagee NASDAQ: CHA reported second-quarter 2026 revenue growth and sharply higher profitability as the tea beverage company navigated a softer macroeconomic backdrop and intensifying competition in its core market. Total revenue rose 2.5% year over year to RMB 3.41 billion, while GAAP net income reached RMB 464.8 million, producing a 13.6% net income margin compared with 2.3% a year earlier. Non-GAAP net income was RMB 488.7 million, or a 14.3% margin, which was flat sequentially. The company said it has now recorded positive net income for 14 consecutive quarters.

“Even as top line growth moderated, we maintained the operating discipline we established earlier this year and our profitability held largely intact,” CFO Aaron Huang said. He said the results indicated that cost-structure and organizational-efficiency improvements were durable rather than one-time measures.

GMV Declines Sequentially as Overseas Markets Expand Total gross merchandise value was RMB 7.66 billion in the quarter, down 3.3% from the first quarter. Greater China GMV declined 4.5% sequentially to RMB 7.16 billion, while average monthly GMV per tea house in the region fell to RMB 338,259 from RMB 356,080 in the prior quarter. Overseas markets remained a growth driver. International GMV totaled RMB 504 million, rising 18.2% sequentially and 114.3% year over year. Chagee’s network totaled 7,639 tea houses as of June 30, up from 7,038 a year earlier and 108 more than in the preceding quarter. The network included 7,240 locations in Greater China and 399 overseas, with 6,756 franchisee-operated tea houses and 883 company-owned locations. The company entered South Korea during the quarter, opening three tea houses in Seoul. Those locations sold more than 16,000 cups combined over their first three days, while app downloads before their openings exceeded 46,000, according to COO Aiden Yin. Average daily cup volume per Seoul tea house reached 1,648 in May. Chagee said it operates in eight overseas markets, including Singapore, Malaysia, Thailand, Indonesia, the Philippines, Vietnam, the United States and South Korea.

New Products and Membership Efforts Management said the company introduced 17 products during the quarter, its highest number of launches in a single quarter. The lineup expanded beyond its Original Leaf Fresh Milk Tea offerings to include special deals, Lemon Tea Latte, Matcha Latte and Geelato. The relaunched Melon Oolong Tea Milk sold an average of 110 cups per tea house per day in its first week and accounted for nearly 20% of cup sales, Yin said. The return of Longjing Tea Latte helped lift GMV nearly 25% sequentially during the Tomb Sweeping Day period. Chagee also piloted Geelato, a product combining loose tea leaves with Italian gelato craftsmanship, in selected locations. By August, Geelato had been introduced to more than 190 tea ho...