NIO Inc. (NYSE:NIO) reported third‑quarter 2025 results on November 25, 2025, with revenue of RMB 21.79 billion (US$3.06 billion) and a delivery count of 87,071 vehicles, a 40.8% year‑over‑year increase. The company’s vehicle gross margin rose to 14.7%, up from 13.1% in the same quarter a year earlier, while the adjusted loss per share narrowed to RMB 1.49 (US$0.15) per diluted American depositary share, beating the consensus estimate of a loss of RMB 1.67 (US$0.17).
The revenue miss of roughly US$200 million—below the consensus estimate of US$3.26 billion—was driven by a modest decline in average selling price and a slower uptake of lower‑priced models as government subsidies phase out. In contrast, the higher‑margin NIO, ONVO, and FIREFLY brands helped lift the overall gross margin, offsetting the revenue shortfall. The company’s cost‑optimization program, which reduced material costs per vehicle, further contributed to the margin expansion.
The earnings beat was largely a result of disciplined cost control and a favorable product mix. While overall revenue fell short, the company’s ability to maintain a higher gross margin and reduce operating losses—down more than 30% from the prior quarter—allowed the adjusted loss per share to narrow. The management team highlighted that the combination of a higher‑margin vehicle mix and ongoing efficiency gains has positioned the company closer to its non‑GAAP profitability target for 2026.
For the fourth quarter, NIO guided deliveries of 120,000–125,000 units, a 65–72% year‑over‑year increase, and revenue of RMB 32,758–34,039 million (US$4.53–4.71 billion). This guidance represents a new quarterly record and signals management’s confidence in sustained demand, even as the company continues to invest in battery‑swapping infrastructure and in‑house smart‑driving technology. The company also reaffirmed its target of non‑GAAP profitability in 2026, underscoring a long‑term focus on margin expansion.
Management emphasized the multi‑brand strategy’s role in driving growth, noting that all three brands—NIO, ONVO, and FIREFLY—contributed to the delivery increase. CEO William Bin Li highlighted the company’s confidence in achieving quarterly breakeven in Q4 and its broader goal of full‑year profitability by 2026, citing ongoing cost‑optimization and a shift toward higher‑margin products. CFO Stanley Yu Qu added that the company’s operating losses had shrunk by more than 30% quarter‑on‑quarter, reflecting the impact of material cost reductions and operational efficiencies.
Investors responded positively to the earnings beat and margin expansion, with analysts noting the company’s progress in cost control and its ability to maintain profitability momentum despite a revenue miss. The results reinforce confidence in NIO’s multi‑brand strategy and its continued focus on high‑margin vehicle production and technology investments.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.