NIO (NIO) posted an adjusted lack of $0.16 per share and beat earnings expectations by 11%.
NIO income grew simply 1.8% 12 months over 12 months to $3.06B and missed estimates by 2.9%.
Gross margin expanded to 13.9% from 10.7% a 12 months earlier regardless of aggressive pricing stress.
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NIO Inc. (NYSE: NIO) reported blended Q3 2025 outcomes earlier than the bell on Tuesday, beating earnings expectations whereas lacking on income. The inventory opened risky, spiking as excessive as $6.28 in pre-market buying and selling earlier than settling close to $5.78 by mid-morning. Buyers appeared torn between the narrower-than-expected loss and weaker top-line development. I assumed the earnings beat was significant, however the income miss stored enthusiasm in test.
NIO posted an adjusted lack of $1.49 per share, beating the consensus estimate of $1.67 by about 11%. That’s a notable enchancment from current quarters, the place the corporate persistently missed expectations. Income got here in at RMB 21.69 billion, roughly $21.7 billion, falling in need of the RMB 22.35 billion estimate by 2.9%. Whereas the miss wasn’t dramatic, it alerts demand challenges or pricing stress that administration might want to deal with. Gross revenue for the quarter hit RMB 1.90 billion with a ten.0% margin, down barely from 10.7% a 12 months earlier. The margin compression suggests rising prices or aggressive pricing dynamics in China’s crowded EV market.
Sequential momentum regarded stronger. In comparison with Q1 2025, income jumped 58% and the web loss improved 25%. That type of trajectory exhibits operational progress, even when the year-over-year comparability was extra muted.
The income miss is the headline concern. NIO grew top-line gross sales simply 1.8% 12 months over 12 months, a pointy deceleration for a corporation nonetheless in development mode. At this stage, buyers count on double-digit growth, not low single digits. The shortfall possible displays softer car deliveries or weaker common promoting costs as competitors intensifies. Working bills remained elevated at RMB 6.81 billion, with R&D spending of RMB 3.01 billion and SG&A prices of RMB 3.96 billion. These are mandatory investments for a corporation constructing out battery-swapping infrastructure and new fashions, however they weigh closely on profitability.
The corporate’s working loss got here in at RMB 4.91 billion, translating to a 25.8% working margin on a trailing twelve-month foundation. That’s deep within the purple, and it underscores how far NIO nonetheless has to go earlier than reaching breakeven.
