Chagee navigates structural pivot as 2025 revenue hits $1.85B

Chagee Holdings (NASDAQ:CHA) announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025, on Tuesday, March 31, 2026.

The company, a leading brand in the premium freshly-made tea sector, demonstrated steady top-line growth for the year, reaching a total net revenue of RMB 12.91 billion (US$1,845.7 million), a 4% increase over 2024.

The fiscal year was defined by significant physical expansion, with the Chagee network growing to 7,453 locations globally—a 15.7% increase year-over-year.

This scale contributed to a total Gross Merchandise Volume (GMV) of RMB 31.58 billion for 2025.

Despite the annual growth, the fourth quarter saw a decrease in net revenue to RMB 2,974.5 million, compared to RMB 3,334.4 million in the same period of the previous year.

Profitability in the fourth quarter was impacted by a strategic "organizational structure optimization" and a "business model transition."

These initiatives, combined with share-based compensation expenses, resulted in a Q4 operating loss of RMB 35.5 million (US$5.1 million).

However, the company remained profitable on a full-year basis, reporting an operating income of RMB 1,347.2 million (US$192.7 million) and a healthy operating margin of 10.4%.

On a bottom-line basis, Chagee reported a full-year GAAP net income of RMB 1,186.3 million (US$169.6 million).

Adjusting for one-time share-based compensation expenses of RMB 723.5 million, the company’s non-GAAP net income for 2025 stood at RMB 1,909.9 million (US$273.1 million).

Meanwhile, Chagee enters 2026 with a formidable balance sheet, reporting cash and cash equivalents of RMB 7,892.4 million as of December 31, 2025.