NIO First Quarterly Profit After Record Deliveries

NIO Inc. (NIO) reported its first quarterly profit for Q4 2025 on March 10, 2026, attributing the turnaround to record vehicle deliveries and companywide cost cuts that boosted revenue and margins. Management also set significantly higher delivery guidance for the first quarter of 2026.

Profit, Revenue and Margins

NIO delivered 124,807 vehicles in the fourth quarter, up 71.7% year-over-year and 43.3% sequentially. The breakdown included 67,433 NIO units, 38,290 ONVO, and 19,084 FIREFLY vehicles. Total revenue reached RMB34.7 billion ($5.0 billion), rising 75.9% year-over-year and 59.0% quarter-over-quarter, driven by vehicle sales of RMB31.6 billion, an 80.9% increase from a year earlier.

Gross profit climbed to RMB6.1 billion, lifting gross margin to 17.5% from 11.7% in Q4 2024. Vehicle margin improved to 18.1% from 13.1%. The company posted a GAAP operating profit of RMB807 million ($115 million), reversing an operating loss of about RMB6.0 billion a year earlier. Adjusted non-GAAP operating profit was RMB1.25 billion ($179 million). Net profit was RMB283 million ($40 million), compared with a net loss of about RMB7.1 billion in the prior-year quarter. Net profit attributable to ordinary shareholders was RMB122 million ($17.5 million).

Operating expenses declined sharply. Research and development spending fell 44.3% year-over-year to RMB2.0 billion, while selling, general and administrative expenses dropped 27.5% to RMB3.5 billion. These cuts supported margin expansion.

For full-year 2025, NIO reported revenues of RMB87.5 billion and deliveries of 326,028 units, with a gross margin of 13.6% and vehicle margin of 14.6%. The company recorded a net loss of RMB14.9 billion for the year. As of December 31, 2025, NIO held RMB45.9 billion in cash, short-term investments, and long-term deposits.

Guidance and Product Roadmap

Management set first-quarter 2026 delivery guidance at 80,000 to 83,000 units, implying a year-over-year increase of about 90% to 97%. Revenue guidance ranged from RMB24.5 billion to RMB25.2 billion, suggesting growth of roughly 103% to 109%. The company expects vehicle margin in the first quarter to remain comparable to the recent quarter.

NIO plans quarterly research and development spending of RMB2.0 billion to RMB2.5 billion in 2026. Product launches this year include an all-new ET5 and ET5 Touring, upgrades to the ES6 and EC6 in the second quarter, the Onvo L80 also in Q2, and updates to the L90 and L60 models. Management anticipates a decline in China’s passenger vehicle sales in 2026, even as new-energy vehicle penetration, especially battery-electric vehicles, continues to rise.