Q3 FY2026
Filed Nov 3, 2026Net Revenues Increased by 17.0% Year-over-Year to RMB17.9 Billion; GAAP Operating Income Increased by 55.1% Year-over-Year to RMB2.8 Billion, with Operating Margin Expanding to 15.4%; Average Monthly Transacting Customers Reached Another Record High of 123.0 Million
Total net revenues increased 17.0% year-over-year, GAAP operating income increased 55.1%, GAAP operating margin expanded to 15.4%, and net cash provided by operating activities was RMB4,131.8 million. Same-store sales growth for self-operated stores was negative 11.1%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total net revenuesGAAP | RMB17,891.5 million (US$2,666.0 million) | – | 17.0% |
| Q3 2026 GMVother | RMB 20.7B | – | 19.7% |
| Q3 2026 total operating expensesGAAP | RMB15,135.5 million (US$2,255.3 million) | – | 12.0% |
| Q3 2026 operating expenses as a percentage of total net revenuesGAAP | 84.6% | – | – |
| Q3 2026 GAAP operating incomeGAAP | RMB2,755.9 million (US$410.7 million) | – | 55.1% |
| Q3 2026 GAAP operating marginGAAP | 15.4% | – | an increase of 3.8 percentage points |
| Q3 2026 non-GAAP operating incomenon-GAAP | RMB3,047.0 million (US$454.0 million) | – | 58.2% |
| Q3 2026 non-GAAP operating marginnon-GAAP | 17.0% | – | an increase of 4.4 percentage points |
| Q3 2026 income tax expenseGAAP | RMB914.1 million (US$136.2 million) | – | – |
| Q3 2026 net incomeGAAP | RMB1,858.9 million (US$277.0 million) | – | 45.4% |
| Q3 2026 net marginGAAP | 10.4% | – | an increase of 2.0 percentage points |
| Q3 2026 non-GAAP net incomenon-GAAP | RMB2,144.8 million (US$319.6 million) | – | 50.9% |
| Q3 2026 non-GAAP net marginnon-GAAP | 12.0% | – | an increase of 2.7 percentage points |
| Q3 2026 basic net income per ADSGAAP | RMB5.92 (US$0.88) | – | – |
| Q3 2026 diluted net income per ADSGAAP | RMB5.92 (US$0.88) | – | – |
| Q3 2026 non-GAAP basic net income per ADSnon-GAAP | RMB6.80 (US$1.04) | – | – |
| Q3 2026 non-GAAP diluted net income per ADSnon-GAAP | RMB6.80 (US$1.04) | – | – |
| Q3 2026 store-level operating profit - self-operated storesother | RMB3,019.3 million (US$449.9 million) | – | 55.5% |
| Q3 2026 store-level operating margin - self-operated storesother | 23.3% | – | improving by 5.8 percentage points |
| Q3 2026 same-store sales growth for self-operated storesother | negative 11.1% | – | – |
| Q3 2026 average monthly transacting customersother | 123M | – | 9.6% |
| Q3 2026 total storesother | 38,909 | 7.2% | – |
| Q3 2026 self-operated storesother | 25,402 | – | – |
| Q3 2026 partnership storesother | 13,507 | – | – |
| Q3 2026 net new store openingsother | 2,599 | – | – |
| Q3 2026 net cash provided by operating activitiesGAAP | RMB4,131.8 million (US$615.7 million) | – | – |
| Q3 2026 net cash used in investing activitiesGAAP | RMB4,142.2 million (US$617.2 million) | – | – |
| Q3 2026 net cash used in financing activitiesGAAP | RMB21.0 million (US$3.1 million) | – | – |
| Nine months ended September 30, 2026 total net revenuesGAAP | 45,772,563 | – | – |
| Nine months ended September 30, 2026 operating incomeGAAP | 5,594,724 | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | 3,851,436 | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | 7,547,764 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Revenues from product salesNet revenues from freshly brewed drinks increased to RMB12,438.4 million from RMB10,632.9 million, and net revenues from other products increased to RMB1,051.9 million from RMB622.5 million. | RMB13,648.7 million (US$2,033.8 million) | – | 18.8% |
| Net revenues from freshly brewed drinksThis revenue stream accounted for 69.5% of total net revenues, largely consistent with the same quarter of 2025. | RMB12,438.4 million (US$1,853.4 million) | – | – |
| Net revenues from other productsThis revenue stream accounted for 5.9% of total net revenues, compared to 4.1% in the same quarter of 2025. | RMB1,051.9 million (US$156.7 million) | – | – |
| Net revenues from othersThe decrease was mainly due to lower revenue from delivery for self-operated stores. | RMB158.4 million (US$23.7 million) | – | – |
| Revenues from partnership storesIncluded sales of materials of RMB2,811.2 million, delivery service fees of RMB606.3 million, profit sharing and royalty fee of RMB580.8 million, sales of equipment of RMB214.5 million, and franchise and other service fees of RMB30.0 million. | RMB4,242.7 million (US$632.2 million) | – | 11.7% |
Capital returns
- Under the Existing Share Repurchase Program, the Company repurchased a total of 95.8 million Class A ordinary shares, equivalent to 12.0 million ADSs, for a total consideration of US$391.0 million as of September 30, 2026.
- The Existing Share Repurchase Program had an aggregate authorized amount of US$500 million.
- The board approved a New Share Repurchase Program of up to US$500 million of Class A ordinary shares in the form of ADSs for a 12-month period.
What drove it
- Net revenues growth was primarily driven by a 19.7% year-over-year increase in GMV, as a result of an increase in the number of products sold from growth in stores in operation and monthly transacting customers.
- Delivery expenses decreased 38.1%, mainly due to a notable shift in order mix from delivery to pick-up.
- Cost of materials increased due to higher product sales volume and increased sales of materials to partnership stores.
- Store rental and other operating costs increased mainly due to expanded store footprint and increased items sold.
- Sales and marketing expenses increased mainly due to higher spending on advertising and other promotion expenses.
Concerns
- Same-store sales growth for self-operated stores was negative 11.1%, compared to 14.3% in the same quarter of 2025.
- The Company said same-store sales primarily reflected a high prior-year comparison base due to elevated subsidies offered by food delivery platforms during the comparable period.
- Sales and marketing expenses as a percentage of total net revenues was 5.5%, compared to 4.9% in the same quarter of 2025.
- General and administrative expenses as a percentage of total net revenues was 6.0%, compared to 5.2% in the same quarter of 2025.
- The unaudited financial information is preliminary and subject to potential adjustments when audit work is performed for the year-end audit.
What to watch
- Same-store sales growth for self-operated stores following negative 11.1% in Q3 2026.
- The continued mix shift from delivery to pick-up and its effect on delivery expenses.
- Store expansion following 2,599 net new store openings and a quarter-end total of 38,909 stores.
- Monthly transacting customers after reaching 123.0 million.
- Utilization of the remaining Existing Share Repurchase Program authorization and commencement of the New Share Repurchase Program.
Balance sheet and cash flow
- Cash and cash equivalents, restricted cash, term deposits and short-term investments were RMB14,333.4 million (US$2,135.8 million) as of September 30, 2026, compared to RMB8,964.4 million as of December 31, 2025.
- Cash and cash equivalents were 7,586,125 RMB and 1,130,402 US$ as of September 30, 2026.
- Short-term investment, net was 5,025,000 RMB and 748,771 US$ as of September 30, 2026.
- Short-term bank borrowings were 3,250,000 RMB and 484,280 US$ as of September 30, 2026.
- TOTAL ASSETS were 38,327,074 RMB and 5,711,082 US$ as of September 30, 2026.
- Total liabilities were 19,343,083 RMB and 2,882,295 US$ as of September 30, 2026.
- Net cash provided by operating activities was RMB4,131.8 million (US$615.7 million), compared to RMB2,069.2 million in the same quarter of 2025.
- Net cash used in investing activities was RMB4,142.2 million (US$617.2 million).
Analysis
Luckin Coffee reported Q3 2026 total net revenues of RMB17,891.5 million (US$2,666.0 million), up 17.0% year-over-year, supported by GMV growth of 19.7% to RMB20.7 billion. Product-sales revenue increased 18.8% to RMB13,648.7 million, while partnership-store revenue increased 11.7% to RMB4,242.7 million. Average monthly transacting customers reached 123.0 million, a 9.6% year-over-year increase, and the store base reached 38,909 following 2,599 net new openings.
Profit growth exceeded revenue growth. GAAP operating income increased 55.1% to RMB2,755.9 million and GAAP operating margin expanded to 15.4% from 11.6%. Non-GAAP operating income increased 58.2% to RMB3,047.0 million and non-GAAP operating margin increased to 17.0% from 12.6%. Net income increased 45.4% to RMB1,858.9 million, while non-GAAP net income increased 50.9% to RMB2,144.8 million.
The expense mix was a major contributor to margin expansion. Total operating expenses increased 12.0%, below total net revenue growth, and operating expenses as a percentage of total net revenues decreased to 84.6% from 88.4%. Delivery expenses declined 38.1% because of a notable shift in order mix from delivery to pick-up, although cost of materials, store rental and other operating costs, sales and marketing expenses, and general and administrative expenses increased. Same-store sales growth for self-operated stores was negative 11.1%, compared with 14.3% in the same quarter of 2025.
Cash generation strengthened, with net cash provided by operating activities of RMB4,131.8 million (US$615.7 million), compared with RMB2,069.2 million in the same quarter of 2025. Cash and cash equivalents, restricted cash, term deposits and short-term investments were RMB14,333.4 million (US$2,135.8 million) as of September 30, 2026. The Company had repurchased 95.8 million Class A ordinary shares for US$391.0 million under its existing authorization and approved a new share repurchase program of up to US$500 million. The release did not provide financial guidance.
Management, verbatim
Our execution of the high-quality, scaled growth strategy continued to yield positive results. Amid growing coffee demand in China, our average monthly transacting customers reached another record high, while we maintained an industry-leading pace of store expansion. We also continued to improve profitability, with quarterly non-GAAP net income reaching a record RMB2.1 billion.
Dr. Jinyi Guo, Co-founder and CEO of Luckin Coffee
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-period outlook was not provided.
- Gross margin was not reported.
- Free cash flow was not reported.
- Dividend information was not reported.
- A GAAP or non-GAAP tax rate was not reported.
- Q3 2026 revenue, operating-income, net-income, EPS, and cash-flow sequential percentage changes were not reported for the corresponding line items.
- Prior-year values for Q3 2026 total stores, self-operated stores, partnership stores, average monthly transacting customers, GMV, and store-level operating profit were not reported on their respective metric lines.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.