On Tuesday, ATRenew (NYSE:RERE) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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View the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=1ALqoqas
Summary
ATRenew reported strong financial performance in Q1 2026, with total net revenues reaching RMB 6.16 billion, a 32.4% year-over-year increase, driven by 1P broad tech revenue growth of 34.4%.
The company improved its profitability, with non-GAAP operating profit growing 70.2% year-over-year to RMB 190 million, and the non-GAAP operating profit margin expanding to 3.16%.
Strategic initiatives included strengthening the 1P-centric strategy, expanding face-to-face fulfillment services to 80%, and increasing compliant refurbishment revenue by 76.1% year-over-year.
ATRenew continued its partnership with JD.com to enhance trade-in solutions, achieving a 70% share in trade-in orders through the JD sourcing channel.
The company expanded its multi-category recycling services across 966 stores and plans further expansion to self-operated AHS stores and franchisees.
For Q2 2026, ATRenew anticipates total revenues between RMB 6.24 billion and RMB 6.34 billion, representing a 25% to 27% year-over-year increase.
Management highlighted ongoing efforts to optimize store locations, increase fulfillment capabilities, and leverage AI technologies for long-term efficiency gains.
Full Transcript
OPERATOR
Good morning and good evening ladies and gentlemen. Thank you for standing by and welcome to ATRenew Inc.’s first quarter 2026 earnings conference call. At this time, all participants are in a listen only mode. We will be hosting a question and answer session after management’s prepared remarks. Please note today’s event is being recorded. I will now turn the call over to the first speaker today, Ms. Jessie Jin, head of Investor Relations. Please go ahead, ma’am.
Jessie Jin (Head of Investor Relations)
Thank you. Hello everyone and welcome to ATRenew first quarter 2026 earnings conference call. Speaking first today is Terry Chen, our Founder, Chairman and CEO and he will be followed by Rex Chen, our CFO. After that, we will open the call to questions from the analysts. The first quarter 2026 financial results were released earlier today. The earnings press release and investor slides accompanying this call are now available at our IR website, ir.atrenew.com. There will also be a transcript following this call for your convenience. For today’s agenda, Kerry will share his thoughts on our quarterly performance and business strategy followed by Rex who will address the financial highlights. Both Kerry and Rex will participate during the Q and A session. Please note our safe harbor statements. Some of the information you will hear during our discussion today will consist of forward looking statements and I refer to you our safe harbor statements in the earnings press release. Any forward looking statements that management makes on this call are based on assumptions as of today and that ATRenew does not take any obligations to upgrade our assumptions on these statements. Also, this call includes discussions of certain non GAAP financial measures. Please refer to our earnings press release which contains a reconciliation of non GAAP measures to GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB and all comparisons are on a year over year basis. Now I’d like to turn the call over to Kerry for business and strategy updates. Hello everyone and thank you for joining ATRenew’s first quarter 2026 earnings conference call. We are pleased to review our operating results and share our latest perspective regarding capability building in the second hand industry this year. At the beginning of the year we maintained and interrupted services during the Chinese New Year holiday, achieving a strong start and delivering accelerated overall growth. In the first quarter, total net revenues reached RMB 6.16 billion, representing an accelerated growth rate of 32.4%. This momentum was primarily driven by 1P product revenue which surged 34.4% year over year while 3P service revenue maintained a healthy 10.4% year over year growth rate. Profitability also improved. Non-GAAP operating profit grew 70.2% year over year to 190 million RMB while the non-GAAP operating profit margin expanded by 69 basis points to 3.16%. Amid overall revenue and scale expansion, we continue to advance our one PE centric strategy, strengthening our core foundation in the recycling and trading of secondhand consumer electronics to drive greater value for retail users. We optimized our 1P 2C ratio by securing firsthand supply sources and enhancing compliant refurbishment output. On the supply side, we capitalize on industry trends by prioritizing trade in scenarios that deliver superior user experiences while shifting more fulfillment to offline via two door services. In 2026 the government maintained strong support for trade ins and further advanced fiscal and financial coordination. Against this backdrop, AHS Recycle continues to work closely with JD.com to create industry leading trade in solutions providing a seamless one stop trading experience at highly competitive prices to meet diverse consumer needs. As a result, within the JD sourcing channel, trading orders outpaced overall growth with volume share further expanding year over year to about 70%. Throughout the recycling fulfillment process, we actively guide users towards face to face transactions in offline settings. In the first quarter we expanded beyond our network of 2,156 stores across major cities and scaled up our door to door service team to 2,248 professionals bringing our services directly to users doorsteps. This strategy has lifted our face to face fulfillment ratio to 80% fostering deeper connection and trust through AHS Recycle’s fulfillment capabilities and brand presence. Looking ahead to peak seasons like major promotional campaigns and flagship device launches, we will further implement flexible workflow solutions to enhance face to face fulfillment timeliness and user experience even during the busiest times. During the first quarter we leveraged our proprietary compliant refurbishment business to add depth to our supply chain. With compliant refurbished Product revenue increasing 76.1% year over year, our on demand refurbishment model was a standout performer growing by roughly 180% in revenue. Our compliant refurbishment capabilities allowed us to provide more quality secondhand devices directly to consumers. In terms of retail channels, we expanded across pipeline selection, our official website and new media channels which drove nearly 150% year over year growth in 1P 2C retail revenue from refurbished devices. March marked a significant breakthrough with monthly retail sales of compliant refurbished products topping 200 million RMB. As a result, 1P 2C accounted for 45.1% of our product revenue in the first quarter of 2026, rising 12.1 percentage points from 33% year on year and 3.4 percentage points from 41.7% quarter over quarter. This strategic pivot toward direct to consumer sales allows us to align our recycling prices with real time retail trends, ensuring we offer better recycling prices, maintain a strong price advantage and create greater value for end users. Regarding high quality products from older generations, specifically M3 and N4 models, we targeted differentiated demand for device generations in the international markets to drive compliant exports. This strategy allows us to steadily expand our global scale and unlock an additional over 4% gross profit margin. Turning to our 3G business, PJT Marketplace also delivered healthy and rapid growth in both scale and revenue, further reinforcing its position as industry infrastructure. As we onboarded more new users, we offered free shipping on the first three orders to those new users on PJT Marketplace. We are also replicating the operational capabilities PJT Marketplace has used in serving large clients and extending them to small and medium sized merchants. By streamlining platform processes, we have lowered the barrier to using the platform and improved both transaction efficiency and convenience, enabling small and medium sized merchants to sell their products at better prices. Leveraging TJT Marketplace robust supply chain capabilities. As the industry’s leading B2B platform, we deliver high quality supplies to those merchants while reaching fragmented markets through Douyin’s user base. By …
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