FlashEx’s shares rose 6.84% in premarket trading to $2.03 on Thursday after the company released its Q2 2026 update, lifting the stock slightly above its 52-week low of $1.89.
The logistics platform reported total revenue of CNY 940.3 million for the quarter, an 8.2% decline from CNY 1.02 billion in the same period last year. Cost of revenues fell 6.3% to CNY 844.7 million, while gross profit dropped 22.2% to CNY 95.5 million, reducing the gross margin to 10.2% from 12.0% a year earlier. Operating expenses decreased 14.6% to CNY 88.3 million, but GAAP income from operations fell 62.2% to CNY 7.3 million. Non-GAAP income from operations also declined sharply to $10.8 million, down from $31.9 million in Q2 2025.
Net results reflected the pressure, with a GAAP net loss of CNY 34 million compared to net income of CNY 53.5 million in the prior-year period. Non-GAAP net income totaled $11.4 million, a 75% drop from $45.6 million a year earlier. The company attributed the net loss primarily to CNY 41.7 million in losses from changes in the fair value of long-term investments. Cash, cash equivalents, restricted cash, and short-term investments stood at CNY 853.4 million at quarter-end, with a current ratio of 2.38.
FlashEx expanded its service coverage to 299 cities and grew its registered user base by 4 million to 124 million in Q2. Registered riders, labeled Flash-Riders, reached 3.23 million. Total order volume increased 8.9% quarter-over-quarter, with average delivery time improving slightly from 25.7 minutes to 25.3 minutes.
Category-specific growth included a 169.3% surge in drone delivery order volume, operating across 22 routes, alongside gains in fresh flowers (29.2%), luggage delivery (37.5%), and food pickup (25%). Newly signed merchants rose 18% quarter-over-quarter, while enterprise client signings increased 53.1%.
Executives highlighted the company’s strategic focus on service quality over price competition. Adam Xue, founder and CEO, emphasized the importance of trust and reliability in delivery experiences, while Luke Tang, CFO, noted that a May industry convention in Hangzhou signaled a shift toward service-based competition. The company also launched AI-powered ordering in June, enabling voice-based order descriptions, and expanded low-altitude drone delivery in July with a cross-river route reducing transit times.
FlashEx has repurchased approximately 3.9 million American Depositary Shares for $11.8 million as of August 19, according to the update. The company’s financial health score remains rated as “GOOD” at 2.7 by InvestingPro.
