Li Auto (LI) Q2 2026 earnings summary

Executive summary

• Maintained top position in China's NEV market (RMB 200,000+), with EREV and BEV each at 50% of sales.

• Q2 2026 revenues were RMB 25.7B, down 15.1% YoY but up 11.7% QoQ; vehicle deliveries reached 98,330, down 11.5% YoY, up 3.4% QoQ.

• Completed full refresh of L Series and launched new BEV models, including Li i6, L8, L6, and upcoming Li MEGA and L9.

• In-house technology advancements: Mach M100 chip, 5C supercharging, proprietary batteries, and drive-by-wire chassis.

• Overseas expansion progressing in Central Asia, Middle East, and Europe, with local partnerships and new model launches.

Financial highlights

• Q2 total revenue: RMB 25.7B, down 15.1% YoY, up 11.7% QoQ; vehicle sales: RMB 24.1B, down 16.7% YoY, up 11.8% QoQ.

• Gross profit: RMB 2.8B, down 53.3% YoY, up 56.9% QoQ; gross margin: 11% (vs. 20.1% YoY, 7.9% QoQ).

• Net loss: RMB 1.7B (vs. RMB 1.1B net income YoY, RMB 2.3B net loss QoQ); diluted net loss per ADS: RMB 1.69.

• Net cash from operations: RMB 15M (vs. RMB 3B used YoY, RMB 6.1B used QoQ); free cash flow: -RMB 1.3B.

• Cash position: RMB 87.5B; share repurchases total $631.5M.

Outlook and guidance

• Q3 2026 vehicle deliveries expected: 95,000–100,000; revenue: RMB 26.6B–28B.

• Full-year CapEx expected around RMB 6B; positive operating and free cash flow depends on Q4 deliveries.

• Management anticipates further margin expansion in H2 2026 as product mix optimizes.

• Long-term gross margin target: 15–20%, driven by raw material costs and in-house technology deployment.