ATRenew (NYSE:RERE) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

ATRenew (NYSE:RERE) announced its quarterly earnings results on Thursday. The company reported $0.10 earnings per share for the quarter, topping analysts’ consensus estimates of $0.09 by $0.01, FiscalAI reports. The company had revenue of $972.82 million for the quarter, compared to analysts’ expectations of $930.34 million. ATRenew had a net margin of 2.01% and a return on equity of 12.52%.

Here are the key takeaways from ATRenew’s conference call:

• Q2 revenue and profitability reached record highs: revenue rose 32.4% year over year to CNY 6.61 billion, while non-GAAP operating profit increased 70.1% to CNY 210 million and margin expanded 69 basis points to 3.1%.
• The higher-margin 1P business continued to drive growth, with product revenue up 35.9%, 1P refurbished-product revenue up 87.8%, and 1P2C retail reaching 48.8% of product revenue versus 34.4% a year earlier. Management said improved retail mix lifted 1P gross margin to 15.7% from 13.2%.
• Net service revenue declined 4.2% year over year to CNY 410 million, mainly because of merchant subsidies, waived or reduced fees during the 618 promotion, and pressure on B2C platform merchant activity. Management expects Paipai’s shift toward 1P retail and 3P consignment to cause some short-term revenue adjustment.
• Recycling demand benefited from trade-in programs and the 618 shopping festival: mobile phone and consumer-electronics recycling value rose 57% during the promotional period, while orders increased 45%. The company also highlighted a 77.3% increase in luxury recycling service revenue and plans to expand themed stores.
• ATRenew launched the overseas B2B marketplace FoneSquare and consumer brand ReRe, targeting expansion from Hong Kong into Dubai and Southeast Asia, but said the initiatives remain in early development. Q3 revenue guidance is CNY 6.34 billion–CNY 6.44 billion, up 23.1%–25.1% year over year, while management did not provide specific full-year guidance.

ATRenew Stock Performance

NYSE:RERE opened at $4.15 on Friday. The stock’s 50-day simple moving average is $4.09 and its 200 day simple moving average is $4.68. ATRenew has a 52-week low of $3.50 and a 52-week high of $6.47. The company has a market cap of $910.51 million, a P/E ratio of 14.31 and a beta of 0.31.

Hedge Funds Weigh In On ATRenew

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Cubist Systematic Strategies LLC increased its holdings in ATRenew by 15.9% during the first quarter. Cubist Systematic Strategies LLC now owns 66,119 shares of the company’s stock worth $194,000 after buying an additional 9,094 shares during the last quarter. Caxton Associates LLP acquired a new position in ATRenew during the first quarter worth approximately $114,000. JPMorgan Chase & Co. raised its stake in ATRenew by 160.9% in the second quarter. JPMorgan Chase & Co. now owns 531,349 shares of the company’s stock valued at $1,759,000 after buying an additional 327,715 shares during the period. Marshall Wace LLP lifted its position in shares of ATRenew by 14.2% in the second quarter. Marshall Wace LLP now owns 561,536 shares of the company’s stock valued at $1,859,000 after buying an additional 69,801 shares during the last quarter. Finally, Qube Research & Technologies Ltd lifted its position in shares of ATRenew by 66.8% in the second quarter. Qube Research & Technologies Ltd now owns 267,728 shares of the company’s stock valued at $886,000 after buying an additional 107,267 shares during the last quarter. 19.29% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on RERE shares. CICC Research initiated coverage on ATRenew in a report on Thursday. They issued an “outperform” rating for the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ATRenew in a research report on Wednesday, July 29th. UBS Group began coverage on ATRenew in a report on Tuesday, July 21st. They set a “buy” rating and a $5.50 target price for the company. Finally, Wall Street Zen lowered ATRenew from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 25th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $5.50.

ATRenew News Summary

Here are the key news stories impacting ATRenew this week:

• Positive Sentiment: ATRenew reported second-quarter revenue of RMB6.61 billion (approximately $974.1 million), up 32.4% year over year and above analysts’ expectations. Adjusted earnings of $0.10 per share also exceeded the $0.09 consensus estimate. ATRenew Second-Quarter 2026 Financial Results
• Positive Sentiment: Management highlighted continued progress on its FoneSquare initiative, alongside strong operating growth in the quarter. ATRenew Q3 Revenue Outlook and FoneSquare Update
• Neutral Sentiment: The company’s second-quarter results showed a 1.90% net margin and 11.48% return on equity, indicating profitability but relatively narrow margins. ATRenew Earnings Report
• Negative Sentiment: ATRenew guided for third-quarter revenue of RMB6.34 billion to RMB6.44 billion, or roughly $934.4 million to $949.1 million. The range is below the approximately $976.9 million analyst consensus, signaling a potential slowdown from the second quarter and prompting the negative share-price reaction. ATRenew Shares Fall on Softer Q3 Outlook

ATRenew Company Profile

ATRenew Inc, through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co Ltd.