Luckin 2025 Report Card: Q4 net profit down 40%, delivery fees up over 94%, full-year revenue and profit both increase

Lucky Coffee Reports 2025 Full Year Results: Revenue and Profit Grow, but Q4 Net Profit Declines Nearly 40%

On February 26, Lucky Coffee (OTC: LKNCY) released its 2025 full-year financial report, showing growth in both net revenue and net profit. However, net profit in the fourth quarter decreased by nearly 40% year-over-year.

Regarding the decline in key indicators such as net profit in Q4, Guo Jin Yi, co-founder and CEO of Lucky Coffee, stated during the earnings conference that the company’s same-store sales and profitability in Q4 were affected by multiple factors, including seasonal trends, changes in delivery platform subsidies, and sales structure adjustments.

The financial report shows that total operating expenses in Q4 reached 11.955 billion yuan, up 38.9% year-over-year. Delivery costs increased by over 94% to 1.631 billion yuan, mainly due to a significant rise in orders from third-party delivery platforms.

Store Expansion: Over the Past Year, Lucky Coffee Continues to Grow

In the past year, Lucky Coffee continued its expansion, adding 8,708 new stores throughout 2025. As of December 31, 2025, the total number of stores reached 31,048.

[Image: Screenshot from Lucky Coffee official website]

Q4 Net Profit Down Nearly 40%

Delivery Costs Up Over 94% Year-over-Year

On February 26, Lucky Coffee announced its Q4 and full-year 2025 financial results. Total net revenue for 2025 was 49.288 billion yuan, a 42.97% increase year-over-year; net profit was 3.6 billion yuan, up 21.81%.

In Q4, the company’s net revenue increased by 32.91% year-over-year to 12.777 billion yuan, while net profit declined by 39.09% to 518 million yuan.

Lucky Coffee 2025 Financial Highlights

Regarding the decline in net profit and other key metrics in Q4, Guo Jin Yi explained during the earnings call that seasonal factors, reduced subsidies from delivery platforms, and sales structure changes collectively impacted same-store sales and profitability.

Guo noted that Q4 is typically a low season for the industry, with a significant reduction in delivery platform subsidies. Although the proportion of delivery orders decreased slightly compared to the previous quarter, it remained at a relatively high level. Under these circumstances, same-store sales growth for self-operated stores slowed to 1.2%, with operating profit around 820 million yuan.

The financial report shows that total operating expenses in Q4 reached 11.955 billion yuan, up 38.9%, outpacing the growth of total net revenue. Delivery costs increased by 94.46% to 1.631 billion yuan, mainly due to a sharp rise in orders from third-party delivery platforms.

Guo Jin Yi pointed out during the earnings call that due to changes in delivery subsidy policies, the time needed for order structures to revert to self-pickup models, combined with the high base created by large-scale subsidies in 2025, means that same-store performance and profitability in 2026 may still face short-term fluctuations and challenges. This aligns with industry development laws, but short-term volatility will not alter the long-term growth trajectory.

Store Count Exceeds 31,000

CEO: Will Expand Product Price Range

In 2025, material costs and store rental expenses for Lucky Coffee increased by 33.21% and 32.81%, respectively, related to increased product sales and store expansion.

Over the past year, Lucky Coffee continued its expansion, adding 8,708 stores in 2025. In Q4 alone, 1,834 new stores were opened, bringing the total to 31,048 stores as of December 31, 2025.

Thanks to ongoing store expansion, Q4 2025 revenue from self-operated stores reached 9.547 billion yuan, up 32%, while revenue from partner stores was 2.847 billion yuan, up 39.2%.

“Expanding market share remains our primary strategic focus.” Regarding the 2026 and long-term development plans, Guo Jin Yi stated that in a complex and changing market environment, Lucky Coffee will focus on key areas such as stores, costs, and pricing to promote healthy business growth.

In terms of store expansion, the company will implement refined strategies to maintain an efficient and competitive pace of opening new stores, closely monitor store performance; for sales, it will enrich its product matrix on the supply side and implement more targeted, market-aligned marketing strategies on the demand side; for pricing, it will maintain competitive price ranges while broadening the price spectrum.

According to previous reports by Red Star Capital Bureau, after Kudi ended the “Unlimited 9.9 Yuan” promotion, Lucky Coffee recently intensified its “9.9 Yuan Anniversary Coupon” campaign, with some consumers receiving up to five Lucky Coffee “9.9 Yuan Anniversary Coupons” at once. (Previous report: Lucky Coffee increases efforts on “9.9 Yuan Anniversary Coupons” after Kudi ended the “Unlimited 9.9 Yuan” promotion)

Facing competition in the coffee industry, Guo Jin Yi said that now, freshly brewed coffee brands cannot rely solely on a few blockbuster products’ pricing or single marketing campaigns to achieve lasting success. Long-term competitiveness increasingly depends on comprehensive capabilities such as brand recognition, customer experience, emotional connection, product R&D, and store coverage.

Red Star News reporters: Yu Yao, Li Haiyan

Editor: Tao Yueyang

Reviewer: Feng Lingling