RLX achieved a 31.4% gross margin in Q4 2025, up from 27% a year earlier, reflecting improved production efficiencies and cost control. While revenue growth was described as robust, nicotine pouch rollouts remain in early stages and may delay full contribution from that segment. The company projects double-digit volume and revenue growth across overseas markets in 2026 and aims to outpace industry averages. A strong pipeline of undisclosed international markets is slated for rollout, underpinning RLX’s strategy to capture additional market share. Over $500 million has been returned to shareholders via dividends and share repurchases, and RLX plans to allocate non-GAAP net profit as dividends subject to board approval. Management will continue optimizing capital structure while preserving cash for strategic investments. In Europe, RLX navigated UK regulatory shifts by shifting its portfolio to compliant systems, expanding shelf space despite market contraction. In Asia, tax hikes on synthetic nicotine have minimal impact on RLX’s natural nicotine products, and an AI-driven ERP system is under development to bolster supply-chain resilience.