Luckin Coffee reports 44% surge in Q2 2025 profit as store expansion, customer growth drive revenue 

CHINA – Luckin Coffee has posted a 44% year-on-year increase in net profit for the second quarter of 2025, driven by strong revenue growth, expansion in its store network, and a sharp rise in monthly transacting customers. 

The Chinese coffee chain operator announced a net profit of CNY1.3 billion (US$174.4 million) for the three-month period ending June 30, up from CNY871.1 million (US$121.9 million) in the same period of 2024.  

Despite the growth in earnings, the company’s net margin slightly declined to 10.1% from 10.4%. 

Total revenue surged 47% to CNY12.4 billion (US$1.7 billion), boosted by a 46% jump in gross merchandise volume to CNY14.2 billion (US$1.97B). The growth reflects higher transaction volumes from an expanded store network and increased consumer activity. 

Revenues from product sales reached RMB9.49 billion (US$1.3 billion), marking a 44.9% rise from RMB6.55 billion (US$909.7M) recorded in the second quarter of 2024.  

Freshly brewed drinks contributed RMB8.67 billion (US$1.2 billion), up from RMB6.01 billion in the same period last year. This segment accounted for 70.2% of total revenue, a slight decrease from 71.6% in the previous year. 

As of June 30, 2025, Luckin Coffee operated 26,206 stores across China, including 16,968 self-operated outlets and 9,238 under partnership arrangements. This represents an 8.8% increase in store count from the end of the first quarter. 

Revenue from partnership stores stood at RMB2.87 billion (US$399.8 million), a 55% increase from RMB1.85 billion in Q2 2024. This segment made up 23.2% of total net revenues, compared to 22% a year earlier. 

Monthly transacting customers reached a record 91.7 million during the quarter, up 32% year-on-year. 

Operating profit under Generally Accepted Accounting Principles (GAAP) rose nearly 62% to CNY1.7 billion (US$237 million), with the GAAP operating margin climbing to 13.8% from 12.5%. 

Chief Executive Officer Guo Jinyi credited the company’s performance to its scale-driven strategy, operational efficiency, and supply chain capabilities. He noted that the company remains focused on market expansion and innovation to sustain its growth. 

Earlier this month, Luckin Coffee launched its entry into the United States market with the opening of two stores in New York City. 

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