Image Source: Pixabay

I reviewed and recommended ATRenew Inc. (NYSE: RERE) back in May, and I hope you listened and bought some back then, because the stock has almost doubled over the past six months and, as of this week, according to Yahoo News, the company just crossed the $1 billion market-cap mark! 

And if you missed it back then, don’t worry. I just went through their Q3’25 earnings and read the earnings call transcript carefully. With what they just delivered, I think we’re still only halfway along.

Back then, I liked ATRenew for three simple reasons:

1. The rise of China’s pre-owned electronics market. More consumers were trading in and buying second-hand devices. They do this not just for savings, but for sustainability. That structural shift was only beginning.
    
2. ATRenew’s unique ecosystem. Unlike small recyclers or one-off platforms, ATRenew had built a full circular chain - online trade-in, offline stores, refurbishment, logistics, and resale - all under one roof. That integration gave it an edge in pricing power and user trust.
    
3. Profitability. Even in early 2025, on the bottom line, ATRenew reported a GAAP net income of RMB 42.8 million, a clear swing from a net loss of RMB 92.9 million in Q1 2024.

Six months later, I believe ATRenew has grown from a turnaround story (loss to profit) to a growth story (business is scaling fast).

According to its latest earnings, revenue jumped 27% YoY to RMB 5.15 billion (US $723 million). Even more impressive, their 1P (self-operated) product sales, the backbone of ATRenew’s refurbished-electronics business, grew 28.7% YoY. That means people aren’t just trading in old phones. They’re buying refurbished ones, and the company is monetizing both sides of the cycle.

What I care about the most is the bottom line: ATRenew’s non-GAAP operating profit surged 35% to RMB 140 million, while net income soared to RMB 90.8 million, up five-fold from last year’s RMB 17.9 million. Margins are expanding, not shrinking, a clear sign the company is starting to scale up fast.

Even more telling, gross profit margin for the 1P business improved to 13.4% from 11.7% a year ago. Management credited this to high-efficiency C2B recycling, compliant refurbishment capabilities integrated into its supply chain, and a more diversified retail channel mix. All of these showed that ATRenew’s growth is becoming more efficient, not just bigger.

In the earnings report, the management also gave a forecast for Q4’25, the company expects its total revenues to be between RMB6,080.0 million and RMB6,180.0 million, representing an increase of 25.4% to 27.4% YoY.

Also, what really caught my eye this quarter wasn’t just the numbers, it was the tone of management’s comments. They’re no longer talking only about “recycling in China.” They’re talking about exporting pre-owned consumer electronics devices abroad and building a cross-border re-commerce business. The company has over 15 years deep experience in standardization, automation, and platform capabilities for second-hand consumer electronic products.

In Q3, the company revealed it’s now exporting over 10,000 refurbished devices per month. And if ATRenew can replicate even a fraction of its domestic model overseas, the total addressable market becomes enormous.

Kerry Chen, CEO of ATRenew, said in the earnings call that “Looking forward, as domestic recycling penetration rates increase and standards become further clarified, we believe there will be more exports. We also look forward to replicating our efficient platform capabilities abroad to create an international version of the PJT Marketplace, connecting global sources of pre-owned consumer electronics with global merchants. Simultaneously, we will, at the appropriate time, integrate with the international layouts of our strategic partners to provide solutions and jointly explore the broader retail opportunities in the global markets.”

We all know the circular-economy theme is global, not local. If ATRenew can prove its model works outside China, the addressable market blows up: it’s no longer just a China-only story.

Conclusion:

Given Q3’25 results and management’s push into international markets, I believe ATRenew is still in the early phases of a growth curve. The combination of improving core metrics (volume, gross margin, adjusted operating profit), plus structural tailwinds (subsidies and incentives for the circular economy and global expansion potential) suggest upside remains.

So while recent share price gains are justified by improved fundamentals, I see a potential for further appreciation, especially over the next 12–24 months, assuming the company can further scale its refurbishment/resale business and execute on international expansion without over leveraging working capital.

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