Horizon Robotics (9660) H2 2025 earnings summary

Executive summary

• Revenue reached CNY 3.8 billion (RMB3,758 million) in 2025, up 57.7% year-over-year, driven by automotive solutions, licensing, and mass production of advanced NOA and HSD products.

• Maintained leadership in intelligent assisted driving with 47.7% ADAS and 44% NOA market share in key segments, and automotive business contributed 94.6% of total revenue.

• Advanced SoC shipments exceeded 4 million units, with a 39% year-over-year increase and a shift toward higher-value products.

• HSD mass production began, surpassing 22,000 units, and became a key differentiator for automakers, with 83% of relevant model sales equipped with HSD.

• Expanded global presence with nominations from 11 automakers, over 40 overseas models, and 2 million export nominations.

Financial highlights

• Automotive solutions revenue reached CNY 1.62 billion (RMB1,622.3 million), up 144% year-over-year, now 43% of total revenue.

• Licensing and service revenue grew 17.4% to CNY 1.94 billion (RMB1,934.9 million), supported by new IP deals and OEM adoption.

• Gross margin was 64.5%, with automotive business gross margin at 67.2%.

• R&D expenses rose 63.3% to CNY 5.2 billion (RMB5,153.7 million), reflecting strategic investment in AI, cloud services, and share-based compensation.

• Adjusted operating loss was CNY 2.4 billion (RMB2,372.3 million); reported net loss was CNY 10.5 billion (RMB10,469.4 million), mainly due to fair value changes in convertible bonds and preferred shares.

Outlook and guidance

• Confident in sustaining 60% average annual revenue growth over the next three years, up from previous 50% guidance.

• Gross margin expected to remain above 60% despite memory price inflation, due to high-margin software and SoC business model.

• HSD shipments projected to reach 400,000 units in 2026, with strong growth in sales and ASP.

• Launching Agentic Car SoC and Agentic Car OS in 2026, targeting cockpit-driving fusion and AI agentic functionality.

• Journey 7 series SoC, based on Riemann architecture, to be released in 2027, aiming to match Tesla's next-gen SoC performance.