Chagee Holdings Q1 Revenue Rises 4.5%, Overseas GMV Soars 139%
CHA•Chagee Holdings reported Q1 revenue up 4.5% year-over-year to RMB3,546 million, with gross margin rising to 55.6% from 53.1% and overseas GMV surging 139% y/y. The company launched 12 new products and unveiled a $150 million share repurchase program while same-store GMV fell 16%.
1. Q1 Financial Results
Chagee reported Q1 revenue of RMB3,546 million, up 4.5% year-over-year, and improved gross margin to 55.6% from 53.1%. Overseas GMV surged 139% year-over-year, driven by locally tailored products and expanded consumption scenarios.
2. Product Launches and Marketing Campaigns
The company introduced 12 new products during the quarter, boosting cup volume and sequential GMV growth. Marketing initiatives such as the Tianwen campaign generated about 3 million additional daily orders at their peak, while expansions in morning and evening consumption supported broader market penetration.
3. Operational Performance and Cost Structure
Same-store GMV declined 16%, marking a sequential improvement despite core market headwinds. A new GMV-based revenue-sharing model shifted revenue mix toward franchising services without affecting the 55.6% gross margin, aiming to enhance franchisee resilience. General and administrative expenses rose 30.9% year-over-year, and the income tax rate increased to 21.2% of pretax income.
4. Capital Allocation and Liquidity
Cash and cash equivalents decreased to $7,146.3 million from $7,892.4 million at the end of 2025 as investments in global infrastructure continued. The board approved a $150 million share repurchase program to optimize the capital structure and underscore confidence in long-term growth.
