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ATRenew Inc. Sponsored ADR (RERE) AI Stock Analysis
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ATRenew Inc. Sponsored ADR
(NYSE:RERE)
The score is driven primarily by improving fundamentals and a positive earnings call (strong growth and non-GAAP profitability expansion with constructive guidance), partially offset by weak cash-flow quality and margin compression in the financials. Technicals remain a headwind with the stock below key longer-term moving averages, while valuation is moderate with a modest dividend yield.
ATRenew Inc. Sponsored ADR (RERE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.30B
- Dividend Yield
- 2.56%
- Average Volume (3M)
- 747.19K
- Price to Earnings (P/E)
- 17.8
- Beta (1Y)
- 1.42
- Revenue Growth
- 34.75%
- EPS Growth
- 138.72%
- Country
- US
- Employees
- 2,389
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Specialty Retail
ATRenew Inc. Sponsored ADR Business Overview & Revenue Model
Company Description
ATRenew Inc., operating through its various subsidiaries, oversees a comprehensive platform in the People's Republic of China dedicated to the exchange and support of used consumer electronic devices. The company primarily engages in the resale of a...
How the Company Makes Money
ATRenew primarily makes money by facilitating and monetizing the transaction flow of pre-owned consumer electronics. Its revenue model centers on (1) product sales of used consumer electronics: the company acquires devices via consumer trade-ins and...
ATRenew Inc. Sponsored ADR Earnings Call Summary
The earnings call presented a broadly positive operational and financial update: the company delivered record revenue and significant non-GAAP profit growth, improved 1P gross margin and expanded higher-margin 1P-to-C retail mix. Scale metrics (stores, to-door capacity, registered merchants) and category-specific successes (luxury recycling growth) reinforce strong execution. Headwinds include a decline in net service revenue (-4.2%), a pronounced drop in gold service revenue (-35%), higher absolute fulfillment and operating expenses, and early-stage overseas initiatives requiring more time and investment. Overall, the positive growth, margin expansion and healthy balance sheet substantially outweigh the manageable near-term service and cost challenges.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided third-quarter 2026 total revenues of RMB 6.34–6.44 billion, implying year‑over‑year growth of 23.1%–25.1%, noting the outlook already factors in potential new‑device cycle impacts (e.g., iPhone 18 possibly shifting volume into Q4/next Q1). The guide builds off a strong Q2 (total revenue RMB 6.61 billion, +32.4% YoY; net product revenue RMB 6.19 billion, +35.9% YoY; net service revenue RMB 410 million, -4.2% YoY) and improved profitability (non‑GAAP operating income ≈ RMB 206.3 million, +70.1% YoY; non‑GAAP operating margin 3.1%, up 69 bps YoY; 1P gross margin 15.7% vs 13.2% a year ago; 1P‑to‑C retail 48.8% of product revenue vs 34.4% prior). Management reiterated expectations to maintain strong revenue and profit growth while making disciplined investments, and highlighted financial flexibility with RMB 2.16 billion in cash/restricted cash/short‑term investments/funds receivable and ongoing buybacks (≈1 million ADS repurchased in Q2 for ~$4.2 million; ~USD 14.8 million repurchased to date under a USD 50 million program extended for 12 months).
ATRenew Inc. Sponsored ADR Financial Statement Overview
Summary
Strong and accelerating revenue growth and a return to positive net income in 2025 are positives, supported by conservative leverage. However, gross margin compression (to ~12.3% in 2025) and a sharp deterioration in 2025 cash generation (negative operating and free cash flow) weaken earnings quality and raise execution/working-capital risk.
Income Statement
62PositiveBalance Sheet
78PositiveCash Flow
44Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.15B | 20.47B | 16.33B | 12.97B | 9.87B | 7.78B |
| Gross Profit | 5.01B | 2.52B | 3.24B | 2.63B | 2.27B | 2.04B |
| EBITDA | 353.13M | 518.95M | 281.64M | 192.38M | -2.16B | -563.32M |
| Net Income | 485.01M | 327.13M | -8.23M | -156.25M | -2.47B | -816.55M |
Balance Sheet | ||||||
| Total Assets | 6.31B | 5.97B | 5.09B | 5.49B | 5.05B | 7.50B |
| Cash, Cash Equivalents and Short-Term Investments | 1.78B | 1.81B | 2.61B | 2.43B | 2.52B | 1.89B |
| Total Debt | 534.76M | 393.14M | 354.93M | 405.94M | 203.93M | 165.45M |
| Total Liabilities | 2.24B | 1.98B | 1.40B | 1.78B | 1.17B | 1.08B |
| Stockholders Equity | 4.07B | 3.99B | 3.69B | 3.71B | 3.88B | 6.42B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -543.62M | 582.95M | 158.72M | 819.83M | -1.09B |
| Operating Cash Flow | 0 | -403.27M | 642.81M | 243.90M | 881.30M | -1.02B |
| Investing Cash Flow | 0 | -132.44M | -424.40M | 172.01M | -516.68M | -670.40M |
| Financing Cash Flow | 0 | -13.31M | -307.71M | 68.70M | -186.04M | 2.29B |
ATRenew Inc. Sponsored ADR Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RERE, the sentiment is Negative. The current price of 3.90 is above the 20-day moving average (MA) of 3.88, below the 50-day MA of 3.94, and below the 200-day MA of 4.53, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 49.14 is Neutral, neither overbought nor oversold. The STOCH value of 71.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RERE.
ATRenew Inc. Sponsored ADR Peers Comparison
Overall Rating
LQDT79.6Outperform
GME78Outperform
EBAY71Outperform
ELA65Neutral- RERE62Neutral
WINA57Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| LQDT | 80Outperform | $1.40B | 42.09 | 15.18% | ― | 5.18% | 24.25% |
| GME | 78Outperform | $12.22B | 12.18 | 15.72% | ― | -7.71% | 145.76% |
| EBAY | 71Outperform | $53.40B | 26.05 | 46.11% | 1.00% | 15.33% | -0.34% |
| ELA | 65Neutral | $290.79M | 13.02 | 31.49% | ― | 47.74% | 162.62% |
| RERE | 62Neutral | $856.08M | 17.83 | 12.22% | 2.56% | 34.75% | 138.72% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| WINA | 57Neutral | $1.02B | 24.69 | -94.69% | 4.89% | 8.61% | -0.68% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| RERE | ATRenew Inc. Sponsored ADR | 3.90 | 0.03 | 0.78% | |
| EBAY | Ebay Inc | 121.64 | 39.91 | 48.84% | |
| GME | GameStop Corp | 24.23 | 2.12 | 9.59% | |
| LQDT | Liquidity Services | 44.62 | 21.02 | 89.07% | |
| WINA | Winmark | 285.69 | -114.50 | -28.61% | |
| ELA | Envela Corporation | 11.20 | 1.79 | 19.02% |
ATRenew Inc. Sponsored ADR Corporate Events
ATRenew Posts Strong Q2 2026 Results, Extends Share Buyback and Advances ESG Targets
ATRenew Inc. reported strong unaudited financial results for the second quarter of 2026, ended June 30, with total net revenues rising 32.4% year-on-year to RMB6.61 billion and net income jumping 78.6% to RMB129.1 million. Management highlighted robu...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 21, 2026