Li Auto (LI) Q2 2026 earnings summary

Executive summary

• Maintained top position in China's RMB 200,000+ NEV market amid intense competition and a full product refresh, with EREVs and BEVs each accounting for 50% of sales.

• Q2 2026 revenues were RMB 25.7 billion, down 15.1% year-over-year but up 11.7% quarter-over-quarter; vehicle deliveries reached 98,330, down 11.5% year-over-year but up 3.4% sequentially.

• Completed full refresh of L Series, launched new BEV models, and prepared for upcoming launches of Li MEGA and flagship BEV SUV L9.

• Expanded proprietary technology with in-house Mach M100 chip, 5C supercharging, and battery systems, aiming for industry-leading performance.

• Overseas expansion progressing in Central Asia, Middle East, Europe, and right-hand drive markets, with local partnerships and product launches.

Financial highlights

• Q2 total revenue was RMB 25.7 billion, down 15.1% year-over-year, up 11.7% quarter-over-quarter.

• Vehicle sales revenue was RMB 24.1 billion, down 16.7% year-over-year, up 11.8% quarter-over-quarter.

• Gross profit was RMB 2.8 billion, down 53.3% year-over-year, up 56.9% quarter-over-quarter; gross margin at 11%.

• Net loss was RMB 1.7 billion, compared to RMB 1.1 billion net income last year and RMB 2.3 billion net loss prior quarter.

• Free cash flow was negative RMB 1.3 billion, improved from negative RMB 3.8 billion last year and negative RMB 7.4 billion prior quarter; cash position at RMB 87.5 billion.

Outlook and guidance

• Q3 2026 vehicle deliveries expected between 95,000 and 100,000 units; revenue guidance between RMB 26.6 billion and RMB 28 billion.

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

• Long-term gross margin target set at 15%-20%, with margin improvement expected as new products ramp up and cost controls take effect.

• Management anticipates further margin expansion in the second half of 2026 as product mix optimizes.