ATRenew Inc. (NYSE:RERE) shares fell in premarket trading on Thursday despite the Chinese recycling and trade-in platform delivering second-quarter results that surpassed analyst expectations, as investors focused instead on weaker-than-anticipated third-quarter revenue guidance.
The stock declined 4.77% before the opening bell after ATRenew forecast revenue of between RMB6.34 billion and RMB6.44 billion for the third quarter. The midpoint of RMB6.39 billion would represent year-on-year growth of approximately 23.6%, but remained below market expectations.
Revenue rises 32% as product sales accelerate
Second-quarter revenue increased 32.4% year on year to RMB6.61 billion ($974.1 million), beating the analyst consensus of RMB6.37 billion and rising sharply from RMB4.99 billion in the corresponding period last year.
Adjusted earnings per share reached RMB0.97 ($0.14), exceeding the RMB0.89 consensus estimate by RMB0.08.
Growth was primarily driven by product sales. Net product revenue climbed 35.9% to RMB6.19 billion ($913.0 million), supported by increased online sales of pre-owned consumer electronics.
Service revenue moved in the opposite direction, falling 4.2% to RMB414.6 million ($61.1 million). ATRenew attributed the decline to discretionary reductions in service fees during the extended 618 promotional period.
Adjusted operating profit climbs 70%
Profitability improved at a considerably faster pace than revenue during the quarter.
Adjusted income from operations surged 70.1% year on year to RMB206.3 million ($30.4 million), while adjusted net income increased 57.3% to RMB157.1 million ($23.1 million).
Transaction volumes also expanded, with ATRenew handling 11.6 million consumer products during the quarter, compared with 10.3 million in the same period a year earlier.
“We are pleased to report another strong quarter for ATRenew,” said Kerry Xuefeng Chen, Founder, Chairman, and Chief Executive Officer. “In the second quarter of 2026, total net revenues increased by 32.4% year-on-year to RMB6,609.3 million.”
Q3 guidance weighs on investor sentiment
Despite the stronger second-quarter figures, the market response was dominated by management’s outlook for the current quarter.
ATRenew’s projected third-quarter revenue range of RMB6.34 billion to RMB6.44 billion suggests the company expects to maintain double-digit annual growth, but the forecast fell short of investor expectations following the strength of its latest results.
The contrast between accelerating adjusted profitability and a more cautious near-term revenue outlook helped explain the negative share-price reaction.
With second-quarter revenue, adjusted earnings and operating profit all showing substantial improvement, ATRenew continues to demonstrate growth across its core pre-owned electronics business. However, Thursday’s premarket decline indicates investors are placing greater weight on the pace of future expansion than on the latest earnings beat.