Li Auto (LI) Q3 2025 earnings summary

Executive summary

• Third quarter 2025 marked the start of the company's second decade, facing challenges in supply chain, product lifecycle, PR, and policy changes, impacting operations and deliveries.

• Vehicle deliveries fell 39.0% year-over-year to 93,211 units and declined sequentially from 111,074 in Q2 2025.

• Strategic shift back to an entrepreneurial management model to better navigate rapid industry and technology changes, emphasizing user value, efficiency, and proactive problem-solving.

• Long-term vision centers on developing embodied AI vehicles, aiming to transform cars into proactive, intelligent robots that enhance user experience and safety.

• Net loss was RMB 624.4 million, reversing from net income of RMB 2.8 billion in Q3 2024 and RMB 1.1 billion in Q2 2025.

Financial highlights

• Total revenue for Q3 2025 was RMB 27.4 billion, down 36.2% year-over-year and 9.5% quarter-over-quarter.

• Vehicle sales revenue was RMB 25.9 billion, down 37.4% year-over-year and 10.4% quarter-over-quarter, mainly due to lower deliveries.

• Gross profit was RMB 4.5 billion, down 51.6% year-over-year and 26.3% quarter-over-quarter.

• Operating expenses were RMB 5.6 billion, down 2.5% year-over-year but up 7.8% sequentially.

• Free cash flow was negative RMB 8.9 billion, versus positive RMB 9.1 billion last year and negative RMB 3.8 billion last quarter.

Outlook and guidance

• Q4 2025 vehicle deliveries expected between 100,000 and 110,000 units; revenue guidance between RMB 26.5 billion and RMB 29.2 billion.

• 2026 strategy includes major generational upgrades for the L series, standardizing 5C supercharging, and expanding the supercharging network to 4,800 stations.

• Company expects NEV penetration in China to reach 55%-60% in 2026, with premium segment above 60%.

• Q4 2025 revenue projected to be down 40.1% to 34.2% year-over-year.