NIO (NYSE:NIO) detailed record deliveries, improving margins, and its first-ever quarterly profit as management reviewed fourth-quarter and full-year 2025 results and outlined product and technology priorities for 2026 on its latest earnings conference call.
Deliveries hit records across three brands; Q1 2026 outlook provided
Founder, Chairman, and CEO William Li said the company delivered 124,807 smart EVs in Q4 2025, a 71.7% year-over-year increase, with quarterly deliveries reaching record highs across NIO, Onvo, and Firefly. For full-year 2025, the three brands delivered 326,028 vehicles, up 46.9% year-over-year, which Li described as a return to a “strong growth trajectory.”
Q4 2025 revenue surged; vehicle margin reached 18.1% and operating profit turned positive
CFO Stanley Qu said total revenue in Q4 2025 was RMB 34.7 billion, up 75.9% year-over-year and 59% quarter-over-quarter. Vehicle sales revenue was RMB 31.6 billion, rising 80.9% year-over-year and 64.6% quarter-over-quarter, driven by higher deliveries and a higher average selling price from product mix. Other sales were RMB 3.0 billion, up 36.6% year-over-year, with management citing used car sales, technical R&D services, and parts, accessories, and after-sales services as contributors.
Qu said vehicle margin improved to 18.1%, up from 13.1% in Q4 2024 and 14.7% in Q3 2025, attributing the gains to a more favorable product mix and cost optimization. Other sales gross margin reached a record 11.9%, and overall gross margin rose to 17.5% versus 11.7% a year earlier and 13.9% the prior quarter.
On expenses, Qu reported R&D expense of RMB 2.0 billion, down 44.3% year-over-year and 15.3% quarter-over-quarter, and SG&A expense of RMB 3.5 billion, down 27.5% year-over-year and 15.5% quarter-over-quarter, which management linked to organizational optimization and reduced marketing activities.
Qu said NIO reached a milestone with its first-ever quarterly profit. GAAP operating profit was RMB 810 million (versus an operating loss of RMB 6.0 billion in Q4 2024), while non-GAAP operating profit was RMB 1.25 billion. Net profit was RMB 300 million, compared with a net loss of RMB 7.1 billion a year earlier; non-GAAP adjusted net profit was RMB 700 million. Management also said the company delivered positive operating cash flow and positive free cash flow in the quarter and ended Q4 with RMB 45.9 billion in cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits.
Product pipeline highlights: ES9, Onvo L80, and additional large SUVs
Li highlighted brand-by-brand product updates. For the NIO brand, he said the all-new ES8 began deliveries at the end of September 2025 and reached 70,000 deliveries in 160 days, setting a monthly delivery record for vehicles priced above CNY 400,000. He said the company plans to introduce the ES9 executive flagship SUV in Q2 and to roll out 2026 versions of the ET5, ET5T, ES6, and EC6 in Q2.
For Onvo, Li said the L90 became the best-selling large battery electric SUV in 2025 and that the company plans to launch the Onvo L80, a large five-seat SUV with front and rear trunks, in Q2. Management also said the L90 and L60 will receive product upgrades and refreshes.
During Q&A, Li added that a technology launch event for ES9 is scheduled for April 9 and said a large five-seat SUV based on the all-new ES8 platform is planned for Q3. He framed the product cadence around demand trends he sees in the premium BEV segment.
Technology and infrastructure: New World Model updates, power swap expansion, and Shenji financing
Li said NIO’s long-term R&D investments are “beginning to bear fruit,” citing mass production of several core technologies, including what he described as the world’s first automotive-grade 5-nanometer smart-driving chip, a full-domain vehicle operating system, and the SkyRide intelligent chassis.
He also said the company released a new version of its New World Model (NWM) in late January, using a training approach with closed-loop reinforcement learning. In February, management said the share of driving time using smart driving increased by more than 80% compared with January. Li added that over 2,000 urban power swap stations now support “Power Swap on Pilot,” which management described as a fully automated recharging experience integrated with urban navigation features. NIO also said it plans two major smart-driving software releases in Q2 and Q4 and expects to increase its computing investment for training.
On infrastructure, Li said NIO has deployed 3,815 power swap stations and more than 28,000 chargers and destination chargers worldwide. He highlighted a milestone reached on Feb. 6, 2026: 100 million cumulative battery swaps. During the Chinese New Year holiday, he said swap volume set a record of more than 177,000 swaps in a single day. Management argued battery swapping addresses mismatched vehicle and battery life cycles and can also act as a distributed energy storage asset.
The company also discussed its chip subsidiary. Li said smart-driving chip unit Shenji (GeniTech) signed an agreement for its first equity financing round, raising CNY 2.257 billion at a post-money valuation of more than CNY 8 billion. He said the business is developing next-generation chips and exploring external applications, including robotaxi and embodied AI, and noted the company is already in discussions with external customers. Li also said Shenji’s “second chip” has taped out successfully and is preparing for mass production, and later described its performance as “on par with 3 Orin X,” with a lower cost structure than the first-generation NX9031 chip.
2026 targets: volume growth confidence, margin commentary, and cost discipline
In response to analyst questions on the industry backdrop, Li said he expects China’s passenger vehicle market to see a slight decline year-over-year, while new energy vehicle penetration continues to rise. He emphasized expectations for BEVs to maintain strong momentum and said NIO remains confident in achieving 40% to 50% year-over-year volume growth for the year.
On margins, management said it expects Q1 vehicle gross margin to be maintained at a similar level to Q4, despite early impacts from rising raw material and component costs, including chips, memory, and lithium carbonate. Executives also discussed longer-term internal targets for vehicle margins by brand:
- NIO brand: 20% to 25%
- Onvo: above 15%
- Firefly: above 10%
Qu said the company aims to keep SG&A within 10% of sales revenue over time, even if absolute SG&A rises with higher volume. On R&D, management said quarterly investment in 2026 is expected to be around RMB 2.0 to 2.5 billion, with a focus on improving efficiency under the company’s organizational mechanisms.
Management also addressed balances with related parties, saying growth in amounts owed is mainly tied to receivables linked to its battery asset management company Weineng as battery-as-a-service penetration and sales volumes rise, while noting Weineng has pursued diversified financing channels.
About NIO (NYSE:NIO)
NIO Inc is a pioneer in the premium electric vehicle (EV) segment, dedicated to the design, development and manufacture of smart, high-performance EVs. Established in November 2014 and headquartered in Shanghai, China, the company focuses on integrating cutting-edge electric propulsion, advanced connectivity and autonomous driving technologies into its automotive platforms. NIO’s vision centers on creating a holistic user experience that extends beyond the vehicle itself, encompassing energy services and digital solutions.
The company’s product lineup includes flagship SUVs and sedans such as the ES8, ES6, EC6, ET7 and ET5, each engineered to deliver strong performance, long range and a suite of intelligent driver-assistance features.
