Chagee Q2 2026: Modest Revenue Growth, Higher GAAP Profit, and Member Slippage
Chagee's Q2 filing shows a 2.5% revenue increase and much higher GAAP profit, while same-store GMV, active members and adjusted profit weakened.
signal:CHA:2026-08-28 origin: sec:0001104659-26-102704 Chagee Q2 2026: Modest Revenue Growth, Higher GAAP Profit, and Member Slippage
Chagee’s second-quarter results contain two different stories. The network expanded and GAAP profit rose sharply, but revenue grew only modestly, same-store GMV remained negative and non-GAAP net income declined. The large GAAP comparison also benefited from much lower share-based compensation than in the prior-year quarter.
Financial snapshot
| Q2 metric | 2026 | 2025 | Change |
|---|---|---|---|
| Net revenue | RMB 3,414.6 million | RMB 3,331.9 million | +2.5% |
| Operating income | RMB 524.7 million | RMB 107.6 million | +387.6% |
| Net income | RMB 464.8 million | RMB 77.2 million | +501.8% |
| Non-GAAP net income | RMB 488.7 million | RMB 629.8 million | -22.4% |
| Non-GAAP net margin | 14.3% | 18.9% | -4.6 percentage points |
The gap between GAAP and non-GAAP trends matters. Share-based compensation fell to RMB 23.9 million from RMB 552.5 million, making the GAAP year-over-year comparison unusually favorable. Adjusted profit and margin show that underlying profitability did not improve in the same way.
Network growth did not translate into strong same-store performance
Chagee reported 7,639 teahouses at June 30, 2026, up 8.5% year over year. Second-quarter GMV was RMB 7,660.3 million. Overseas GMV grew 114.3% to RMB 504.0 million, but it remained a relatively small share of total GMV.
In Greater China, average monthly GMV per teahouse fell to RMB 338,259 from RMB 356,080 in the first quarter. Same-store GMV growth was negative 16.1%. These figures suggest that new-store expansion is offsetting pressure at mature stores rather than reflecting broad-based demand growth.
Active-member trend is another caution
Active members declined sequentially to 47.1 million from 50.0 million in the first quarter. One quarter does not establish a durable trend, but the decline is worth monitoring alongside same-store GMV because both are closer to customer demand than total store count.
Revenue mix and cash
Revenue from franchised teahouses fell to RMB 2,474.0 million, while revenue from company-owned teahouses rose to RMB 940.6 million as that network expanded. Company-owned growth can support revenue, but it also changes the cost and capital profile of the business.
Cash and cash equivalents plus restricted cash totaled RMB 6,567.5 million at quarter-end, down from RMB 8,627.8 million a year earlier. The balance sheet also held time deposits and short-term investments, so the cash comparison should not be interpreted without those items.
What to watch next
The thesis strengthens if same-store GMV contraction narrows, active members recover and adjusted margin stabilizes while overseas GMV keeps growing. It weakens if store additions continue to mask deteriorating mature-store economics or if company-owned expansion drives costs faster than sales.
The next report should be checked for same-store GMV, active members, average monthly GMV per Greater China teahouse, franchised versus company-owned revenue and non-GAAP margin.
Sources and review note
This article was rewritten from Chagee’s Form 6-K and attached second-quarter 2026 results release, filed with the SEC on August 28, 2026. Unverifiable consensus estimates, valuation claims, embedded charts and mechanical trading levels from the automated draft were removed. Figures are company-reported and unaudited. This is analysis, not investment advice.