Luckin Coffee (OTC: LKNCY) continued to shine in the market after releasing its third-quarter 2025 financial results. Although it has been delisted from NASDAQ and now trades on the Over-the-Counter (OTC) market, investor sentiment remains strong. According to the latest closing data, Luckin's stock price stood at about $40, showing a noticeable increase compared to the previous trading day. Year-to-date, the stock has risen over 50%, indicating that the market still holds strong confidence in the company's fundamentals. Amid this, discussions about whether Luckin Coffee can return to a mainstream U.S. exchange have been heating up, becoming a new focal point for investors.

(Image Source: uSMART HK app)

Despite its current OTC status, Luckin Coffee continues to gain investor approval thanks to its expanding store network, steadily growing user base, and strong product innovation. Its scale and digital operations advantages have played a significant role in the rebound of its stock price and in maintaining market confidence.

Revenue Remains Strong, User Growth Accelerates

In Q3 2025, Luckin Coffee reported net revenue of RMB 15.287 billion, a significant year-over-year increase of 50.2%. According to the financial report, this growth was mainly driven by new store openings, increased user activity, and the continuous expansion of the joint-venture store business. The company’s monthly average transaction users surpassed 112 million, a 40.6% increase from the previous year, setting a new record. This data shows that Luckin has successfully transitioned from a "store-driven" to a "user-driven" business model, creating conditions for future service extensions and frequent repurchases. Additionally, the total number of Luckin stores exceeded 29,000, covering key urban centers in first and second-tier cities as well as lower-tier markets, with the store network forming a strong brand moat.

(Data Source: Luckin Coffee Q3 2025 Financial Report)

Profit Pressure in the Short Term, Store Expansion Impacting Margins

Despite the strong revenue growth, Luckin’s net profit attributable to common shareholders decreased by 2.7% year-on-year to RMB 1.278 billion in Q3. This decline was mainly due to increased investment in market expansion and system upgrades. Investments in delivery systems, digital platform updates, employee costs, and joint-venture management fees led to a decrease in the operating profit margin of self-operated stores, which dropped from 23.5% in the same period last year to 17.5%.

However, non-GAAP net profit remained stable with a slight increase, suggesting that the company’s core business is still operating in a steady manner. The decline in profit is largely attributed to its expansion strategy. In the long run, the accumulation of store and user scale will lay the foundation for future profit growth.

Innovation Drives Growth, Same-Store Sales Rebound

One highlight of the quarter is that same-store sales growth for Luckin’s self-operated stores reached 14.4%, significantly improving from a decline of -13.1% during the same period last year. This demonstrates improved brand loyalty and higher consumer repurchase rates. New products such as the "Coconut Latte" and "Velvet Matcha" series, along with several co-branded and seasonal drinks, have helped increase product prices and boosted social media buzz. Additionally, revenue from joint-venture stores surged by over 60%, reaching RMB 3.799 billion, showing that the franchise model is helping the brand penetrate the market rapidly. Luckin has stated that it will continue to focus on its “high-quality coffee + light food and beverages” strategy, aiming to expand into more consumption layers.

Market Outlook: Revenue Growth Awaiting Profit Alignment

Luckin’s third-quarter results reveal strong growth resilience and market potential, marking the company’s entry into an explosive growth phase. Although profits are under short-term pressure, its brand momentum, user scale, and store expansion are laying the groundwork for sustainable development. The capital markets have shown confidence in the stock price, and focus has now shifted to the improvement of profitability.

Facing competition from Starbucks China, Manner, and other local coffee brands, Luckin continues to enjoy advantages from frequent innovation, competitive pricing, and flexible marketing strategies. In the coming quarters, the market expects the company to enter a phase where “revenue growth slows down and profits accelerate.” If supply chain optimization, cost-cutting through digitalization, and improvements in the franchise model are implemented successfully, profits are likely to see a significant boost. Investors will closely monitor when profit margins stabilize and begin to rise again, as this will unlock greater market capitalization potential. The synergy between scale and profitability will be the key factor in the next phase.

How to Buy Luckin Coffee via on uSMART

After logging into the uSMART HK app, click the “Search” button in the top-right corner of the page, enter the ticker code (LKNCY.US), and navigate to the details page to view transaction details and historical trends. Click the “Trade” button in the bottom-right corner, select the trade type, and submit your order after filling in the transaction conditions.

(Image Source: uSMART HK app)