approached $500 million. Total net revenues for the quarter reached around R&D $13.9 billion, up 29% year-over-year. Same short sales for our self-operated stores declined 5.3% year-over-year in the second quarter, primarily due to the temporary high comparison base created by elevated food delivery subsidies in the prior year period. This performance was fully consistent with our previous expectations for the trajectory of business operations. Meanwhile, as food delivery competition gradually returned to more rational levels, our operating incomes resumed year-over growth in the quarter, growing 22% to R&B 2.1 billion, with an operating margin of 13.4%. This further reinforced the recovery in our profitability. Our second quarter results once again validate the strength of our high-quality scale growth strategy and further strengthen our confidence in capturing long-term market opportunities. 稍后CFO安静会和大家分享更详细的财务数据 Next, I will walk you through the quarterly progress across our three core business pillars People, products and places, focusing on store coverage, product innovation and customer experience Following that, our CFO安静 will share more detailed financial updates
In the end of the day, we keep in the long-term care process, 推進全國門店網絡布局, 深化高地線城市覆蓋, 提升消費者觸達和服務能力, 持續釋放中國咖啡市場的增長潛力。 截至二季度末, 公司全球門店總數達到36310家, 同比增長39%, 規模和增速均零跑行業。
Starting with our store network, we continue to expand our nationwide footprint based on our long-term view of customer demand. We further strengthen our presence across cities of all tiers, enhancing consumer accessibility and service capabilities to continuously unlock the long-term growth potential of China's coffee market. By the end of the second quarter, our global store count reached 36,310, up 39% new beer.
We continue to lead the industry in both scale and expansion pace. 联营12462家 当前中国咖啡市场仍处于渗透率持续提升 消费频次稳步上涨的高速成长阶段 加强各线级城市和消费场景的覆盖能力 是建立长期市场领先优势的重要基础 依托瑞幸强大的数字化能力和战略执行力 我们能够精准洞察消费需求 并高效落地为门店规划布局 通过数据驱动的门店选址 数字化运营以及数字化营件 我们在确保单店质量的基础上 持续提升规模化扩张效率与运营的一致性 不断深化锐性与消费者的连接 持续将市场机遇转化为长期市场份额 In China, we added 2,668 national stores during the quarter, bringing our total store count to 36,087.
This includes 23,625 self-operative stores and 12,462 partnership stores. China's coffee market remains in a high-growth space, supported by rising penetration and increasing consumption frequency. Extending our reach across all CD tiers and consumption scenarios remains fundamental to building long-term market leadership. Leveraging working strong digital capabilities and strategic execution, we are able to precisely identify consumer demand and efficiently expand our store network based on these insights. Through data-driven site selection, SITU we enabled store construction and intelligent store operations. We continue to enhance expansion efficiency and operational consistency while maintaining store quality. This enables us to deepen consumer engagement and consistently translate market opportunities into sustain the market share again. Internationally, we continue to expand our overseas presence in a disciplined manner. Leveraging the proven digital operating capabilities we have developed in China, we tailored our approach to local consumer preferences and market dynamics to further improve our localized operations. In the second quarter, we added 46 manual stores, bringing our total international store counts to 223. This includes 89 self-operated stores in Singapore. 20 self-operated stores in the U.S., and 114 franchise stores in Malaysia. Building on our presence in these markets, we will continue to refine our product offerings and enhance our operational and organizational capabilities. We will also continue to optimize store level economics and develop standardized of replicable operating practices, leading the groundwork for a continued international expansion. 具有鲜明品牌特色的标志性产品 进一步夯使品牌心智壁垒
本季度 小网友美式 凭借消费者自创合法再次出圈 充分体现了我们精准捕捉消费趋势 快速响应用户需求 持续开展产品体验创新的综合实力 并有效沉淀了具有锐性标识度的品牌资产 二季度 该产品销量寄身Top2单品 截至本季度末 小黄油系列累计销量突破5亿杯 此外 我们着重强化健康化的产品策略和研发方向 丰富低负担的清爽型饮品选择 更好地贴合客户日益成熟的口碑偏好 本季度我们推出年度重磅小青菊美式 深化瑞幸标志性水果美式的品牌认知 同时满足消费者对高品质健康化饮品的升级需求 该产品上市首周销量突破千万杯 产品复购和用户留存均有着良好的表现 深受客户喜爱 非咖啡领域 本季度我们推出酸奶吸 冰奶等全新系列产品 持续丰富全品类产品布局 为消费者提供全时段全场景的一站式饮品选择 截至二季度末 瑞幸25款累计销量突破一杯的产品中 非咖品类已占据五席 这也充分印证了瑞幸强大的品牌号召力和产品运营能力
On the product front, we continue to strengthen Lockheed's position and main share as a professional coffee brand, while leading innovative and health-conscious beverage trends through deeper insights into evolving consumer needs. In the second quarter, we launched 28 new freshly-glued beverages and over a dozen snack items. In the coffee category, we continue to develop signature products that embody Lockheed's unique brand identity, reinforcing the competitive mode built around our brand man-share. During the quarter, our little batch Americano once again gained significant traction as consumers discovered creative ways of enjoying the product. This success demonstrates our ability to identify emerging trends, respond quickly to evolving preferences, and continuously innovate the product experience. Further strengthening the distinctive brand equity we have built over time, this product ranked among our top two best-selling products by volume in the second quarter. And the cumulative sales of the Little Butter series surpassed 500 million cups by quarter We also continue to strengthen our wellness-oriented product strategy and R&D focus, expanding our selection of light and refreshing beverage options to better align with the evolving taste preferences of our increasingly sophisticated customer base. During the quarter, we launched our annual flagship product, Palamanzi Americano, first deepening consumer recognition of Lockheed's signature fruity Americano offerings, while meeting growing demand for high-quality, house-conscious beverages, with sales surpassing 10 million cups within its first week of launch. This product delivered encouraging repeat purchase and customer retention performance. Reflecting its strong consumer appeal beyond policy, we introduced new product lines during the quarter, including yogurt smoothies and ice milk beverages. Further broadening our omni-category product portfolio and providing consumers with a one-star beverage destination across various day parts and consumption scenarios. By the end of the second quarter, five of Lockheed's 25 products that have each support 100 million cups in cumulative sales were non-coffee products, further demonstrating Lockheed's strong brand appeal and product execution capabilities. 优质的产品供给和敏锐的数据洞察,不断夯实品牌心智和用户连接,提升客户规模与消费频次。 刚才所提到的小朋友美式的再度走红,即使我们深化消费者互动,共同塑造品牌记忆的体现,也进一步推动了用户口碑和消费增长。
此外,我们继续通过多元化、跨界联名等品牌互动方式 为客户提供超越产品本身的情绪价值 深化情感共鸣 在产品创新和品牌建设的共同推动下 二季度,我们新增交易客户超2500万 月均交易客户再创新高 同比增长23% 超1.1亿
截至二季度末瑞幸累计交易客户已接近5亿 同时客户月均消费倍量也创下历史新高 这既体现了消费者对瑞幸品牌与产品的值余认可 也印证了中国咖啡销柜习饭正在不断的强化 On the customer side, we continue to enhance the customer experience through our accessible store network, high-quality product offerings, and data-driven consumer insights. These strengths further reinforce our brand measure and connections with consumers, helping us expand our customer base and increase purchase frequency. As mentioned earlier, the strong market response to Little Butcher Americano reflects our efforts to deepen consumer engagement and co-create lasting brand memories. It also further drove positive word of mouth and increased consumption. In addition, we continue to engage consumers through diversified brand initiatives, including IT collaborations, delivering emotional value beyond the products themselves, and fostering deeper brand relevance with our customers, driven by product innovation and brand building. We added more than 25 million new transaction customers in the second quarter, bringing average monthly transaction customers to a new record high of over 110 million, up 23% over the year. By the end of the second quarter, our cumulative transacting customers approached 500 million. At the same time, our average monthly cost per customer also reached an all-time high.
These achievements reflect consumers' continued recognition of the lucky brands and the products, while reaffirming that coffee consumption habits in China are continuing to deepen. 此外,在践行企业责任方面,我们始终关注消费者的健康需求,将好喝气健康的产品理念融入饮品研发和消费体验。 近年来 瑞幸持续优化产品体系提升供链品质和产品评审标准 推动健康化成为产品创新的重要方向 通过更清洁的配方和更优质的原料 为消费者提供兼顾口感 品质与健康的轻负担饮品体验 同时 我们不断深化与专业科研机构合作 推进咖啡健康的研究与科普 42024年與北京大學醫學部共建北大醫學瑞幸咖啡健康創新基地以來,已完成多項創新課題,並將學術成果轉化為產品實踐。 今年6月,我們聯合新華網、北大醫學部等多方共同啟動了咖啡健康科普行動,並發布2026年中國限制飲品健康趨勢分析報告。
In addition, as part of our commitment to corporate responsibility, we remain attentive to consumers' growing health needs and incorporate our product philosophy of great taste and wellness into beverage development and the consumer experience. In recent years, we have continued to optimize our product strategy by enhancing supply chain quality and raising product evaluation standards, making health-conscious innovation an important focus of our product development. Through cleaner formulations and higher quality ingredients, we aim to deliver beverage experiences that balance taste, quality, and wellness. Meanwhile, we have continued to deepen collaboration with leading research institutions to advance coffee health research and consumer activation. Since establishing the Peking University Health Science Center Locking Coffee Health Innovation Base in partnership with Peking University Health Science Center in 2024, we have completed multiple innovative research projects and continue to apply academic findings to product development in June this year. Together with Hacking University Health Science Center and other partners, we jointly launched the Coffee Health Education Initiative along with the release of the health and wellness trend in China's freshly prepared beverage market, 2026, looking ahead, we will continue to integrate research insights with product innovation and contribute to the sustainable and health-conscious evolution of the freshly built beverage industry. 并最终将市场需求转化为长期市场份额的能力 凭借瑞幸数字化驱动可复制可特转的经营体系以及长期积累的品牌资产
我们不断放大门店网络产品创新和客户规模之间的协同效应 形成可持续的增长动能 充分把握中国咖啡消费的历史性增长机遇 展望未来,我们将继续坚定推进高质量规模增长战略,持续提升门店覆盖、产品创新和消费体验等综合竞争力,进一步提升市场份额,为客户、伙伴和股东创造长期价值。 In summary, the second quarter marked another significant quarter in which we continue to validate and deliver on our long-term growth strategy.
High-quality scale growth is not simply about increasing store count. It reflects our ability to continuously identify, respond to, and even create demand, and ultimately translate market demand into sustainable market share games. Leveraging lock-in is digitally driven, replicable, and scalable operating models. Together with the brand equity, we have built overtime. We continue to amplify the synergies across our store network, product innovation, and the customer base. These trends create sustainable growth momentum and positions as well to fully captured the historic opportunities presented by China's coffee market. Looking ahead, we remain committed to executing our high-quality scale growth strategy. As we consistently enhance our capabilities across store network coverage, product innovation, and customer experience, we aim to further expand our market share while creating long-term value for our customers, partners, and the shareholders. our consumers, partners, and investors for their ongoing support, and to our 220,000 Locking Team members for their valuable contributions to the company's growth. We will continue to work together towards building a world-class coffee brand and making Locking Coffee a part of everyone's daily life. Now, I will turn the call over to Anjing to go through our financial results in detail.
Thank you, Jingyi. Good day, everyone. Thank you for joining today's call. In the second quarter, we delivered solid top-line growth and the continued profitability recovery, reflecting our operational resilience and the strong execution of our growth strategy. Let me now walk you through the financial details. In the second quarter, total net revenues increased by 29% year-over-year to RMB $15.9 billion, managed by a 30% year-over-year increase in GMV to RMB $18.4 billion. This growth was supported by higher total cut volumes across both self-operated and partnership stores, as we continue to expand our stock network and grow our customer base. Revenues from productive sales increased by 29% year-over-year to R&B $12.2 billion, reflecting the solid performance of our self-operated stores. Breaking down our product itself into three streams. Net revenues from freshly-brewed streams, or R&B, $11.2 billion, representing about 70% of total net revenues. Net revenues from other products, or R&B, $892 million, or about 6% of total net revenues. Net revenues from others were R&B $171 million, or roughly 1% of total net revenues. Looking at our company-owned stores, revenues from self-operated stores increased by 27% year-over-year to R&B $11.6 billion. Same-store sales growth was negative 5.3% for this quarter, mainly reflecting the high Comparation base created by the elevated food delivery subsidies in the five-year period. Store-level operating profit increased by 26% year-over-year to RMB 2.5 bidding, with self-operated store-level operating margin of 21.3%. Revenues from partnership stores increased by 28% year-over-year to R&B of $3.7 billion, accounting for 26% of total net revenues. This growth was largely driven by a continued expansion of our partnership store network. Sales of the material roles remain the largest contributor, Builder, followed by the delivery service fees and the profit sharing and the loyalty fees. Cost of materials as a percentage of the total net revenues were 39%, compared to 37% in the same period of 2025. Many due to fluctuations in average selling price and a certain raw material price. In actual terms, cost of materials increased by 34% year-over-year to R&B's $6.1 billion, largely due to increases in cut volumes in self-operated stores and the material sales to partnership stores. Store level, store rental, and the other operating costs as a percentage of the total net revenues was 27%, compared to 22% in the same period of 2025. In absolute terms, these expenses increased by 36% year-over-year to R&B $3.6 billion, mainly driven by higher payroll costs from cost volume growth and rising rental expenses due to continued store expansion. Deliberate expenses as a percentage of the total net revenues decreased to 10% from 14% in the same period of 2025. This improvement was mainly driven by a lower proportion of delivery orders as well as lower average delivery costs per order as we enhance fulfillment efficiency. In absolute terms, delivery expenses decreased by 3% year-over-year to earn the $1.6 billion. Sales and marketing expenses as a percentage of total net revenues were 6%, compared to 5% in the same period of 2025. In actual terms, sales and marketing expenses increased by 56% year-over-year to R&B 925 million, many due to higher spending on advertising and promotion, as well as higher commission fees paid to the food delivery and live streamed platforms. General and administrative expenses as a percentage of the total net revenue was 6%. Last flat compared to the same quarter of 2025. In actual terms, GNA expenses increased by 34% year-over-year to R&B 985 million. Many driven by higher share-based compensation, and payroll costs, as well as increased investment in research and development. Our GAAP operating profit increased by 22% year-over-year to R&B 2.1 billion, with an operating margin of 13.4% compared to 14.1% in the prior year period. On a non-GAAP basis, operating profit increased by 26% year-over-year to R&B 2.4 billion, with a non-GAAP operating margin of 15.1% compared to 15.3% in the prior year period. Net profit increased by 16% year-over-year to R&B 1.5 billion, with a net margin of 9.4% compared to 10.4% in the prior year period. On a net gap basis, net profit increased by 23% to R&B 1.8 billion with a net gap net margin of 11% compared to 11.6% in the prior year period. Finally, looking at our balance sheet and cash flow, We generate R&B $2.6 billion in net operating cash during the second quarter of 2026. As of June 30, 2026, our total cash position, which includes cash and cash equivalents, restricted cash, term deposit, and short-term investments was R&B $10.9 billion. compared to R&B $9 billion at the end of December 31st, 2005. During the quarter, we utilized short-term borrowers as part of our capital allocation strategy to support an ongoing shareholder return initiative. We continued to maintain a strong net cash position of R&B $9 billion and a healthy leverage profile, supported by our robust cash generation capabilities and the discipline of financial management. This provides us with flexibility to continue investing future growth opportunities while returning capital to shareholders. During the second quarter, we repurchased 49 million Class A ordinary shares, or 6 million ADS, for a total consideration of $195 million, and their over $300 million share repurchase programs. In closing, our second quarter marked another step forward in turning our long-term strategy into tangible results. Our expanded store network and growing customer base have precisioned us well for long-term growth. Looking ahead, we will remain focused on discipline and execution, continuous improvement in operational efficiency, and a sustainable value creation for our shareholders. With that, we will open the call for questions. Operator, please feel ahead.
Operator
Ladies and gentlemen, we will now begin the question and answer session. To ask a question, please press star, then 1. If you are using a speakerphone, please pick up your handset. To withdraw your question, please press star, then two. The first question today comes from Jesse Hsu with JP Morgan.
Please go ahead. 市场的预期非常显著的在领跑这个市场 那上半年持续超预期的情况下 想跟管理层请教一下我们对下半年如何展望 那从铜电来看在七八月的高基数的情况下 下半年会是一个什么样的趋势 以及随着外卖比例的持续正常化和这个结构 渠道结构的一个优化 我们对下半年利润率的修复和利润的弹性应该怎么看 那我翻译一下 Thanks for taking my question. This is Jesse Xu from JP Morgan. Congrats on a very strong 2Q, very encouraging in a weak macro environment, especially against some challenges for the whole industry year to date. And second quarter turned out to be a beat in both the same store sales and also margins, clearly diverging from and outperforming the whole industry. So my question is mainly on second half outlook, considering a tough phase during July to August, how should we think about the same store sales trend for the second half, and as the delivery mix continues to normalize, how should we think about the margin and earnings outlook from here?
Thank you. is in a more healthy and can continue to develop. The market competition has also come back to the products, manufacturing, and customer value. These are the key areas of the market for the long-term investment.
Thank you for the question. Since the beginning of the year, delivery platform competition has gradually returned to a more visible level. We believe the freshly brewed beverage industry is also moving towards a healthier and more sustainable development stage. And the market competition is increasingly shifting back to product innovation, operational excellence, and consumer value creation. So all the areas we're looking at consistently invest and build our long-term strength around.
From the outside environment, the pace of the supply chain is faster than our expected year-to-year. 去年外卖补贴形成的高技术压力也开始逐步的显现出来,并已经反映到了二季度同店的表现中,对于三季度,由于去年的七八月份处在一个平台外卖补贴较为激烈的阶段,我们预计相关高技术的影响仍将持续,但与此同时,随着外卖占比自去年三季度的高点以来持续回落, 以及配送履约效率的稳步优化 我们也看到盈利修复的趋势也更加清晰
利润表现也正在持续地改善中 Right, so from an external perspective full delivery subsidies have been scaled back more quickly than we initially expect at the beginning of the year So the high-ditch pressure created by last year's elevated subsidies has also become more apparent and it's already reflected in our second quarter sales performance. As for the third quarter, as platform subsidies were particularly intense during July and August of last year, we expect the result from high-base effect to persist. At the same time, we are seeing improving trends in our profitability and margins, supported by the continued decline in deliver mix from peak levels since the third quarter of last year, as well as the improvements in our fulfillment efficiency. And from an internal perspective, we've also continued to optimize various products and operational initiatives this year with very encouraging results. For example, our Cup Size Upgrade Initiative and the product innovation around Little Bunch Americano I just mentioned, these efforts not only enhance customer experience but also supported the overall average selling price and our cup volume.
Operator
Xin Yu Ruan with Goldman Sachs. Please go ahead.
Let me translate my question into English. So the company has a very fast store opening pace in the first half, but in the meanwhile we see industrial-wide store self-growth pressure under the delivery of minimalization, and multiple players actually sold down store opening this year. On this backdrop, what supported Lockheed's faster store expansion, and what is the company's plan and strategy on store opening in the second half, and in store opening outlook, and how do we balance store opening and store self-growth. And in the longer term, how do we think about the room for the store expansion in China?
Thank you. 这既是我们能够坚持高质量规模增长战略的重要基础,也是我们能够持续开新店,开好店的最重要的核心驱动因素。 Thank you for the question.
First, I'd like to reiterate that we remain very confident in the long-term growth potential of China's coffee market. So compared with more mature coffee markets globally, coffee consumption in China remains in its early stages of habit formation with significant room for future penetrations and frequency growth. This long-term market opportunity is the foundation for our high quality scale growth strategy. It's also the key driver for our continued expansion, leaving us plenty of headroom to continue opening more stores while maintaining store quality. As coffee consumption increasingly becomes part of China's consumers' daily routines, Locking has built a nationwide store network covering all city tiers and diverse consumption scenarios. So from tier one cities to county level markets and townships and across different consumption scenarios, for example, office buildings, commercial districts, street front locations, residential communities, companies and transportation hubs, we continue to expand consumer accessibility and strengthen Lockheed's brand measure as a nationwide professional coffee brand. 而支撑这一能力的是一套覆盖人货场全链路可复制可拓展的经营体系 从需求洞察门店选址建设运营到后续经营优化 我们通过数字化能力和AI技术持续提升决策效率 依靠成熟的组织能力和强大的执行力 确保新电能够快速高质量的落地 并不断提升运营质量 So for lock-in, store expansion is not simply about adding more stores. It's actually more about leveraging our nationwide store network, strong brand equity, and the product capabilities to better identify and serve the growing customer demand. And supporting this is a highly scalable and replicable operating model covering the full value chain across people, products, and places from demand insights. and site selection to our store construction operations and the ongoing optimization. We leverage our digital capabilities and AI technologies to improve our decision-making efficiency. Our mature organizational capabilities and strong execution actually ensure that we can open stores quickly while maintaining store quality and continuously enhance our store performance. At the same time, our expanding store network further strengthens our brand influence, enhances our ability to scale product innovation and create a virtuous cycle among stores, products, and customers. And so store expansion is not an end in itself, but a crucial foundation for sustainably gaining market share. So to conclude, we believe there is remain substantial We have to look for store growth in China's coffee market. As coffee penetration and consumption frequency continue to increase, the overall market capacity will continue to expand, where provident in our ability to maintain a competitive pace of store expansion, capture the long-term growth opportunities in China's coffee market, and continue to grow Lacking Coffee's market share. Thank you.
Operator
Due to time constraints, no further questions will be taken at this time. This concludes the question and answer session. I'd like to turn the call back to the management team for any closing remarks.
Thank you, everyone, for joining our call today. If you have any further questions, please feel free to contact our IR team. This concludes today's call. We look forward to speaking with you again next quarter.
Operator
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
