by SONG Jianan
Luckin Coffee reported higher fourth-quarter revenue but a sharp decline in profit, as delivery expenses nearly doubled and operating costs outpaced sales growth.
Total net revenue rose 32.9% year on year to 12.78 billion yuan (US$1.87 billion) in the fourth quarter. But net profit attributable to shareholders under U.S. GAAP fell 39.1% to 518 million yuan, with net margin narrowing to 4.1% from 8.8% a year earlier. On a non-GAAP basis, profit declined 25.5% to 699 million yuan.
Total operating expenses climbed 38.9% to 11.96 billion yuan, exceeding revenue growth. Delivery expenses surged 94.5% to 1.63 billion yuan, reflecting a sharp increase in orders fulfilled through third-party platforms. Raw material and rental costs also rose by more than 30% as the company continued expanding its store network.
For the full year, Luckin posted revenue of 49.29 billion yuan, up 43.0%, while net profit rose 21.8% to 3.6 billion yuan.
The company ended 2025 with 31,048 stores after opening a net 8,708 outlets during the year, highlighting its aggressive expansion strategy.
The results come as price competition in China's coffee market shows signs of easing after an extended period of deep discounting.
Analysts said continued cost inflation and rising delivery reliance could weigh on profitability if sales growth moderates.
