Profitability Plummets for Chagee in Q4, Operating Income Turns to Loss
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Chagee Holdings Limited reported significantly weaker unaudited financial results for the fourth quarter and full year 2025. For Q4 2025, net revenues declined to RMB2.97 billion from RMB3.33 billion year-over-year, and the company swung to an operating loss of RMB35.5 million compared to an operating income of RMB642.5 million in the prior year. GAAP net income also plummeted to RMB33.9 million from RMB644.1 million. Full-year 2025 results showed operating income more than halved to RMB1.35 billion from RMB2.89 billion in 2024, with GAAP net income similarly falling to RMB1.19 billion from RMB2.51 billion. These substantial declines in profitability, despite an increase in the teahouse network and modest full-year revenue growth, highlight significant margin pressures and operational challenges. This news is highly material for a company already trading near its 52-week low, and traders will be looking for clear strategies to reverse these negative trends.
At the time of this announcement, CHA was trading at $9.65 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $9.51 to $41.80. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.