ATRenew (RERE) Is Up 10.7% After Strong Q3 Earnings and Upgraded Full-Year Revenue Outlook

• ATRenew Inc. recently reported third quarter 2025 financial results, showing net income of CNY 90.82 million and significant earnings per share growth compared to the previous year, along with robust revenue guidance for both the fourth quarter and full year 2025.
• In addition to these strong financials, the company completed a share buyback of 500,000 shares during the third quarter, reinforcing its capital management approach.
• We’ll examine how ATRenew’s upgraded full-year revenue outlook could influence the company’s investment narrative and sector positioning.

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ATRenew Investment Narrative Recap

To be an ATRenew shareholder, you need to believe that consumer adoption of device recycling in China will continue accelerating, driven by supportive government policies and rising demand for sustainable consumption. The company’s upgraded revenue outlook for 2025 provides more visibility on top-line growth, which could reinforce optimism around transaction volumes in the near term; however, it does not materially reduce the ongoing risks tied to government subsidy dependency and competitive margin pressures.

Among recent announcements, the new full-year and fourth-quarter revenue guidance stands out as most relevant to this catalyst: ATRenew’s projections for up to 28.5% year-over-year revenue growth reinforce its positioning to benefit from growing eco-conscious consumer trends and national trade-in incentives, though these same drivers leave it exposed if policy support wanes.

By contrast, one area investors must not overlook is the potential impact of subsidy changes on future revenue certainty...

Read the full narrative on ATRenew (it's free!)

ATRenew's outlook anticipates CN¥35.8 billion in revenue and CN¥1.1 billion in earnings by 2028. This implies a 24.5% annual revenue growth rate and a roughly CN¥890 million increase in earnings from the current level of CN¥210.4 million.

Uncover how ATRenew's forecasts yield a $6.61 fair value, a 45% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community offers three fair value estimates for ATRenew, ranging from CN¥6.61 to CN¥11.64 per share. While opinions are wide ranging, many participants focus closely on the importance of China’s policy support, highlighting the risk that shifts in government stimulus could have broad performance implications.

Explore 3 other fair value estimates on ATRenew - why the stock might be worth over 2x more than the current price!

Build Your Own ATRenew Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ATRenew research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free ATRenew research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ATRenew's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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