Luckin Coffee 2025 Financial Report Released: Q4 Revenue Growth but No Profit Increase, Takeout Delivery Costs Surge by 94.5%

On the evening of February 26, Luckin Coffee released its 2025 fourth-quarter and full-year financial results. The report shows that the company’s total net revenue for 2025 reached RMB 49.288 billion, up sharply 43% year over year; net profit was RMB 3.6 billion, up 21.8%, and full-year performance rose in a strong surge.

However, it is worth noting that behind the full-year profitability at Luckin, the fourth quarter saw a “higher revenue but lower profit” situation: revenue for the period grew 32.9% year over year, while net profit fell 39% year over year to RMB 518 million.

Regarding the pressure on fourth-quarter profit, Luckin provided clear reasons in its financial report: soaring costs and a surge in delivery expenses triggered by the takeout-delivery battle are the core factors. The report shows that total operating expenses in the fourth quarter were RMB 11.955 billion, up 38.9% year over year. Among them, delivery costs surged 94.5% to RMB 1.631 billion; the main reason was a significant increase in delivery volume from third-party takeout platforms. At the same time, operating costs such as raw material costs and store rents also rose 33.2% and 32.8% year over year, respectively, which is directly related to the company’s expansion in store count and an increase in product sales.

At an earnings call, Guo Jinyi, co-founder and CEO of Luckin Coffee, said that the ongoing adjustments to the subsidy strategy of delivery platforms mean it takes some time for the cup-volume order structure to shift from delivery back to self-pickup. In addition, the high base formed by large-scale subsidies in 2025 may also cause stage-by-stage fluctuations and challenges in Luckin’s same-store performance and profit in 2026. This phenomenon aligns with the objective规律 of industry development; short-term performance fluctuations will not change the company’s long-term growth logic.

In response to the takeout-delivery battle, Guo Jinyi also clarified Luckin’s core strategic layout, emphasizing that dine-in self-pickup will still be the primary consumption format. In a specific phase of market development, delivery is only a supplementary channel role. “First, compared with the main price bands of China’s freshly prepared coffee, the proportion of delivery fulfillment costs is too high; with higher sensitivity of per-cup pricing, unit economic returns are not ideal. Second, longer delivery times may affect consumers’ expectation for immediacy and their coffee taste experience, which is not an ideal consumption model.”

Guo Jinyi emphasized that Luckin’s store model centered on self-pickup can enable a dense layout across nearly all consumption scenarios, allowing Luckin to stay as close as possible to customers—this is Luckin’s core advantage and also the cornerstone of long-term growth. “As time goes by, the coffee business will naturally return to a self-pickup-oriented model, although this transformation process may take a longer time.”

The financial report also shows that Luckin’s pace of expansion has not slowed; it continues to push forward with its global and local expansion plans. In terms of store operations, the company added a net 1,834 stores in the fourth quarter: 1,792 in China (including Hong Kong), 13 in Singapore, 25 in Malaysia, and 4 in the United States. By the end of 2025, Luckin added a net 8,708 stores for the full year, bringing the total store count to 31,048, up 39% year over year. Of these, 20,234 are self-operated stores and 10,814 are franchised/partnered stores. In terms of revenue, revenue from self-operated stores for the full year was RMB 36.243 billion, up 41.6%; revenue from partner stores was RMB 11.594 billion, up 49.7%.

Guo Jinyi emphasized that Luckin’s store count has now exceeded 30,000, and its cumulative transaction-user base has surpassed 450 million. The continued expansion in scale not only consolidates the company’s market-leading position, but also further enhances the company’s ability to capture the structural dividends in China’s coffee market. He pointed out that the competitive advantages in today’s China coffee market are increasingly reflected in enterprises’ end-to-end operational capabilities and systematic capabilities.