Hesai Group (HSAI) Q1 2026 earnings summary

Executive summary

• Announced strategic partnership as lidar supplier for Mercedes-Benz Level 3 autonomous models, marking a major milestone and validation of technology leadership.

• Achieved record lidar shipments in 2025 and Q1 2026, with 471,723 units shipped in Q1, a 140.9% year-over-year increase, driven by robust demand in ADAS and robotics.

• Launched new products including Picasso, the world’s first 6D full-color SPAD-SoC, and Kosmo, an AI-integrated spatial intelligence device under Strategic Growth Initiatives (SGI).

• Expanded global footprint with new design wins in Europe, China, and Japan, and deepened partnerships with leading OEMs and robotics companies.

• 2026 marks a shift from spatial perception to spatial intelligence, expanding beyond lidar into physical AI, including new products and robotic actuation modules.

Financial highlights

• Q1 2026 net revenues reached RMB 681 million ($99 million), up 30% year-over-year, marking the eighth consecutive quarter of revenue growth.

• Delivered over 471,000 lidar units in Q1, with ADAS and robotics shipments more than doubling year-over-year.

• Gross margin was 39.1% in Q1 2026, down from 41.7% a year ago due to higher contribution from lower-margin products.

• Q1 GAAP net income was RMB 18 million ($2.7 million); non-GAAP net income was RMB 48 million ($6.9 million), extending profitability streaks.

• Cash reserve stood at RMB 7,231.7 million (US$1,048.4 million) as of March 31, 2026.

Outlook and guidance

• Q2 2026 net revenues expected between RMB 850–900 million ($123–130 million), representing 20–27% year-over-year growth.

• Full-year 2026 lidar shipment guidance reaffirmed at 3–3.5 million units.

• SGI segment (including Kosmo) expected to contribute RMB 100 million in 2026 revenues, scaling to RMB 500 million by 2027, with contributions starting in Q2.

• Revenue momentum anticipated to strengthen sequentially throughout 2026.