Li Auto (LI) Q4 2025 earnings summary

Executive summary

• Underwent major strategic adjustment, optimizing direct sales and store efficiency with a new partner program granting managers decision-making and profit-sharing authority.

• Q4 2025 revenues were RMB 28.8 billion, down 35% year-over-year but up 5.2% sequentially; full-year revenues were RMB 112.3 billion, down 22.3% from 2024.

• Q4 2025 vehicle deliveries were 109,194, a 31.2% year-over-year decrease; full-year deliveries were 406,343, down from 500,508 in 2024.

• Launched significant upgrades to the L9 series, emphasizing embodied AI, in-house chip development, and advanced autonomous driving capabilities, with a new launch set for Q2 2026.

• BEV models (i6, i8) saw strong order recovery and production ramp-up, with supply chain bottlenecks resolved and NPS scores rising over 20%.

Financial highlights

• Q4 total revenue: RMB 28.8 billion, down 35% year-over-year, up 5.2% quarter-over-quarter.

• Vehicle sales: RMB 27.3 billion, down 36.1% year-over-year, up 5.4% quarter-over-quarter.

• Gross profit: RMB 5.1 billion, down 42.8% year-over-year, up 14.8% quarter-over-quarter.

• Vehicle margin: 16.8% (Q4), down from 19.7% last year, up from 15.5% prior quarter.

• Net income: RMB 20.2 million, versus RMB 3.5 billion last year and RMB 624.4 million net loss prior quarter.

• Free cash flow: RMB 2.5 billion, versus RMB 6.1 billion last year, and -RMB 8.9 billion prior quarter.

• Full-year 2025 net income was RMB 1.1 billion, down 85.8% year-over-year.

• Full-year 2025 free cash flow was negative RMB 12.8 billion.

Outlook and guidance

• Q1 2026 vehicle deliveries expected between 85,000 and 90,000 units; revenue guidance RMB 20.4–21.6 billion, representing a year-over-year decrease of 21.3% to 16.7%.

• Targeting 20% year-on-year growth in 2026, supported by new product launches, BEV ramp-up, and overseas expansion.

• R&D expenses in 2026 expected to remain around RMB 12 billion, with about half for AI initiatives.