Chagee Holdings Limited Reports Impressive Q3 2025 Results
Chagee Holdings Limited (NASDAQ: CHA), a prominent name in the premium tea drinks sector, has unveiled its unaudited financial results for the third quarter, showcasing a robust chain of growth and strategic progress. This report encapsulates the Company's financial performance as of the close of September 2025.
Operational Highlights of Q3 2025
Growth in Teahouse Network
As of September 30, 2025, the total number of teahouses operated by Chagee has surged to 7,338, a 25.9% year-on-year increase. This expansion reflects Chagee’s commitment to providing quality tea experiences to customers across Greater China and beyond.
Gross Merchandise Value (GMV) Insights
The Company reported a total GMV of RMB 7,929.5 million for the third quarter, slightly down from RMB 8,301.4 million in Q3 2024. Noteworthy is the impressive 75.3% year-over-year growth in the overseas market, totaling RMB 300.3 million, while the Greater China market saw a dip to RMB 7,629.2 million.
Financial Performance Analysis
Earnings Breakdown
During this quarter, Chagee’s net revenues amounted to RMB 3,208.3 million (approximately US$450.7 million), compared to RMB 3,541.2 million in the same period last year. The operational income stood at RMB 454.4 million which translates to an operating margin of 14.2%.
Profitability Trends
Chagee's GAAP net income for the third quarter reached RMB 397.9 million (US$55.9 million), significantly lower than RMB 646.6 million in 2024. Adjusted for share-based compensation, the non-GAAP net income was RMB 502.8 million (US$70.6 million). This reflects the Company's efforts in navigating a competitive market landscape.
Insights on Net Revenue Components
Franchised and Company-Owned Teahouses
Net revenues from franchised teahouses accounted for RMB 2,811.6 million (90% of total revenues), highlighting the core role these franchises play in Chagee’s business model. Conversely, company-owned teahouses reported revenues of RMB 396.7 million, showing a 63.8% rise driven by strategic expansions.
Operating Expenses Overview
Chagee's total operating expenses for Q3 were RMB 2,753.9 million, reflecting a marginal increase from the previous year. Notable efforts in managing operational costs led to a reduction in material and logistics costs.
Shareholder Value and Future Outlook
Special Dividend Announcement
In a move to reward shareholders, the board has authorized a special cash dividend of US$0.92 per share. This distribution underscores Chagee’s commitment to enhancing shareholder value while maintaining sustainable growth.
Looking Ahead
Chagee is set to host a conference call providing detailed insights into these results and its future strategy. The management remains optimistic about future growth trajectories and expanding its market reach across the globe.
Frequently Asked Questions
What were the key operational highlights for Chagee in Q3 2025?
Chagee saw a 25.9% year-on-year increase in teahouses, reaching 7,338, and a significant year-on-year growth of 75.3% in its overseas market GMV.
How did Chagee's financial results compare to the previous year?
Chagee's net revenues decreased from RMB 3,541.2 million in Q3 2024 to RMB 3,208.3 million in Q3 2025, while GAAP net income fell to RMB 397.9 million from RMB 646.6 million.
What percentage of revenues came from franchised teahouses?
Franchised teahouses contributed 87.6% to Chagee's total net revenues for Q3 2025.
What special dividend was declared by Chagee?
The board declared a special cash dividend of US$0.92 per share to be paid around December 15, 2025.
What is Chagee's market outlook for the future?
Chagee aims to expand its market presence globally while enhancing shareholder value through strategic initiatives and careful financial management.
