AT Renew (RERE) Q3 2025: 102% Refurbished Product Surge Signals Retail Channel Power Shift

2025-11-20 | By EarningsIQ Research

AT Renew’s Q3 marked a structural inflection with refurbished product revenue more than doubling, as retail channel expansion and supply chain integration reshaped profitability and market reach. The company’s asset-light, multi-category platform model is scaling rapidly, while margin improvement and disciplined capital allocation set a higher bar for sustainable growth. Guidance points to continued acceleration, underpinned by deepening brand partnerships and a national fulfillment footprint.

Summary

• Refurbished Retail Outpaces Platform: Direct-to-consumer retail of compliant refurbished products is driving margin and revenue mix improvement.
• Asset-Light Model Accelerates: Multi-category recycling and franchise expansion are scaling the network with disciplined capital use.
• Guidance Signals Confidence: Management projects above-budget growth, leveraging brand, fulfillment, and marketplace innovation.

Performance Analysis

AT Renew delivered 27.1% total revenue growth in Q3, with the 1P (first-party, company-owned inventory) product segment up 28.7% and 3P (third-party, platform services) up 11.6%. The standout was a 102% year-over-year surge in compliant refurbished product revenue, propelled by proprietary refurbishment and expanded retail channels like AHS Selection and PiPi. This shift is improving both gross margin and pricing power across the supply chain.

Marketplace take rates remained stable, with the B2B PJT Marketplace at over 6% and PiPi’s consignment model climbing to 9%, reflecting growing merchant adoption of standardized, end-to-end solutions. Multi-category recycling, especially in high-value verticals like gold, saw transaction volume rise 95%, though with lower take rates due to competitive pricing. Gross margin for the 1P business rose to 13.4%, aided by the higher mix of retail sales (1P2C now 36.4% of product revenue, up from 26.4%).

• Retail Channel Expansion: 1P2C revenue grew over 70% and now represents more than a third of product sales, driving margin gains.
• Marketplace Diversification: B2B and B2C platforms are scaling merchant partners and innovating with new transaction models, supporting healthy take rates.
• Cost Discipline and Leverage: Fulfillment and marketing expense growth trailed revenue, with non-GAAP operating profit margin improving to 2.7%.

Cash reserves of 2.54 billion RMB provide flexibility for reinvestment and shareholder returns, with Q3 seeing a $2.1 million ADS buyback. The business is now positioned for both domestic and international scaling, as operational leverage and brand equity deepen.

Executive Commentary

Strategic Positioning

1. Retail Channel and Brand Power

AT Renew is pivoting toward a retail-driven model, leveraging its AHS Recycle and AHS Selection brands to capture more value from trade-in and refurbishment. The focus on compliant refurbishment, store network expansion (2,195 locations), and premium category additions (luxury, gold, liquor) is raising brand equity and customer stickiness. This shift is enabling stronger pricing power at both the acquisition and resale ends, while also improving supply chain control.

2. Marketplace Innovation and Merchant Ecosystem

The B2B PJT Marketplace surpassed 1.37 million contracted merchants, as AT Renew deepened its infrastructure and merchant services. Innovations like flexible post-sale rights and specialty buyer models (in partnership with Douyin) are expanding platform reach. On the B2C side, PiPi’s consignment GMV grew 180%, with standardized operations reducing merchant friction and supporting higher take rates.

3. Asset-Light, Multi-Category Expansion

Multi-category recycling, anchored by an asset-light platform, is scaling rapidly. The business now operates in 878 self-operated and 131 franchise stores, with new locations stabilizing within months and delivering average monthly contribution profit of 7,000 RMB per store. High-value categories like gold and luxury are prioritized, balancing lower take rates with high transaction volume and customer acquisition benefits.

4. Technology and Automation Integration

Automation and AI are central to AT Renew’s operational model, driving scale efficiencies in inspection, customer service, and fulfillment. Automated systems are reducing cost ratios and enabling the business to handle peak demand with minimal incremental cost, supporting both profitability and service quality as the network grows.

5. Internationalization and Regulatory Engagement

AT Renew is preparing for international expansion, leveraging its experience in standardization and automation to facilitate cross-border trade of pre-owned electronics. Participation in international standards committees and monthly exports exceeding 10,000 units underscore the global potential. The company’s recognition as an Earthshot Prize finalist also enhances its ESG and circular economy credentials.

Key Considerations

Q3 results highlight AT Renew’s ability to drive profitable growth through channel mix optimization, platform scaling, and disciplined cost management. The shift toward higher-margin retail, deepening brand partnerships, and asset-light expansion are reshaping the company’s long-term economics and market positioning.

Key Considerations:

• Retail Margin Leverage: Direct-to-consumer sales of refurbished products are expanding faster than platform services, raising blended gross margin and improving pricing power.
• Store Network Quality: Growth in self-operated and franchise stores is balanced with investment in fulfillment teams and multi-category capabilities, driving local penetration and customer trust.
• Marketplace Take Rate Dynamics: B2B and B2C platform innovation is supporting healthy take rates, with consignment and specialty models providing further upside as merchant adoption deepens.
• Capital Allocation: Share buybacks and strong cash reserves provide flexibility for reinvestment, while continued cost discipline supports sustainable margin expansion.

Risks

Competitive intensity in both retail and platform segments remains high, with pricing pressure in high-value categories and potential regulatory shifts in recycling standards. While the asset-light model reduces exposure to inventory risk, execution on international expansion and scaling new categories will require careful management of quality and brand consistency.

Forward Outlook

For Q4 2025, AT Renew guided to:

• Total revenue of 6,080 million RMB to 6,118 million RMB (25.4% to 27.4% YoY growth)

For full-year 2025, management raised guidance:

• Total revenue of 20.87 to 20.97 billion RMB (27.8% to 28.5% YoY growth)

Management cited:

• Accelerating trade-in penetration and brand partnerships with leading electronics manufacturers
• Continued network expansion in nearly 300 cities, with a focus on fulfillment quality and retail channel strength

Takeaways

AT Renew’s Q3 performance demonstrates the scalability of its integrated retail and marketplace model, with channel mix and operational leverage driving both growth and profitability.

• Retail Channel Inflection: The doubling of refurbished product revenue and rising 1P2C mix are fundamentally altering margin structure and brand power.
• Marketplace and Platform Scaling: Merchant ecosystem expansion, take rate stability, and category innovation are supporting sustainable platform growth.
• Watch for International and Category Expansion: Execution on cross-border trade and high-value category scaling will be critical to sustaining above-market growth rates into 2026 and beyond.

Conclusion

AT Renew’s Q3 results reveal a business in transition toward higher-margin retail and asset-light platform scaling, with operational discipline and brand investment underpinning sustained growth. Management’s confidence in guidance and capital allocation signals a clear path toward broader market leadership and international relevance.

Industry Read-Through

AT Renew’s results highlight a broader shift in the pre-owned electronics and circular economy sectors toward integrated retail and platform models, with compliant refurbishment, omnichannel fulfillment, and technology-driven efficiency emerging as key differentiators. The acceleration of multi-category, asset-light expansion and the importance of brand trust will likely shape competitive dynamics for both incumbents and new entrants. Internationalization and regulatory engagement are becoming prerequisites for scale players as cross-border trade in used electronics grows, suggesting that operational agility and compliance will be critical industry-wide.

RERE Consumer Discretionary Retail Marketplace Refurbished Electronics Asset-light Recycling International Expansion