BingEx Limited (NASDAQ: FLX), operating as FlashEx in China, reported a contraction in top-line growth for the second quarter ended June 30, 2026, as intensifying market competition weighed on its on-demand dedicated courier business. Revenues fell to RMB940.3 million (US$138.6 million), down from RMB1,024.6 million in the same period of 2025. This represents an 8.2% decline year-on-year.

The company turned to a GAAP net loss of RMB34.0 million (US$5.0 million), reversing a net income of RMB53.5 million recorded in Q2FY25. On a per-share basis, earnings per share (EPS) came in at $(0.03), a significant shift from the $0.03 per share profit reported in the same period last year. This transition from profit to loss was primarily driven by significant non-operating losses rather than core operational performance. Non-GAAP net income, which excludes changes in fair value of long-term investments and share-based compensation, stood at RMB11.4 million (US$1.7 million), compared to RMB45.6 million in the prior year period.

Operational Performance

Despite the revenue decline, BingEx demonstrated cost discipline across its operating expense lines. Total operating expenses decreased 14.6% year-on-year to RMB88.3 million. This reduction was led by a 24.0% drop in selling and marketing expenses to RMB36.6 million and a 28.6% decline in research and development costs to RMB13.7 million, both attributed to lower share-based payments and staff costs.

Gross profit contracted to RMB95.5 million, resulting in a gross profit margin of 10.2%, down from 12.0% in Q2FY25. The company fulfilled 63.1 million orders during the quarter. Management highlighted that service scale and delivery efficiency improved sequentially, aided by the integration of AI capabilities into fulfillment operations and the commercial expansion of its low-altitude logistics business.

What the Numbers Show

The divergence between GAAP and Non-GAAP results highlights the impact of investment volatility on the bottom line. While operational income remained positive at RMB7.3 million, the company recorded a loss of RMB41.7 million from changes in the fair value of long-term investments, contrasting with earnings of RMB20.5 million in the same period last year. This swing of over RMB62 million was the primary driver behind the transition from a GAAP net profit to a net loss, indicating that the core courier business remains operationally profitable despite broader market headwinds.

Balance Sheet and Capital Allocation

As of June 30, 2026, BingEx held RMB853.4 million (US$125.8 million) in cash, cash equivalents, restricted cash, and short-term investments. The company continued its capital return program, having repurchased approximately 3.9 million ADSs for an aggregate consideration of US$11.8 million as of August 19, 2026. The Board has authorized repurchases up to US$30.0 million under the current program, valid until April 1, 2027.