Chagee revenue rises but net income falls sharply in Q1 2026
The chain is succeeding in its overseas expansion, but hometown GMV declined.
Chagee Holdings Limited revenue rose to $514.1m in the first quarter ended 31 March 2026, compared to $500.42m a year before, but saw net income sharply fall as rising operating costs weighed on profitability.
The premium tea chain reported a net income of $66.03m in the first quarter, a drop of 33.9% compared to $99.90m from the same period last year.
Net income margin contracted to 12.6% from 20.0% a year earlier, with operating income declining to $80.71m from $121.07m over the same period. Total operating expenses rose to $442.32m from $379.35m, driven by the expansion of company-owned teahouses and higher general and administrative costs, including share-based compensation.
The premium tea chain ended the quarter with 7,531 teahouses across Greater China and overseas markets, a 12.7% increase year on year. Active members reached 50 million, up 11.7% from the fourth quarter of 2025.
Overseas markets were a bright spot, with gross merchandise value generated internationally reaching $62.89m, a 139% year-on-year increase.
However, Greater China GMV declined to $1.1b from $1.18b million in the same quarter of 2025, which Chagee attributed to economic headwinds and intense industry competition.
The company said cost management initiatives helped reduce materials, storage and logistics costs by 1% year on year despite the network expansion.
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