Lotus Technology (LOT) Q4 2025 earnings summary

Executive summary

• Delivered 6,520 vehicles in 2025, generating $519 million in revenue, a 44% year-over-year decrease due to tariff impacts, phased model launches, and intensified competition.

• Gross margin improved to 9% for the year (up from 3% in 2024), driven by upgraded model deliveries and cost control.

• Operating loss narrowed by 46% year-over-year to $423 million; net loss reduced by 58% to $464 million.

• Service revenue surged 69% year-over-year, mainly from R&D and IP commercialization, now over 75% of service revenue.

• Lifestyle vehicles led deliveries, with China and Europe as key markets; China outperformed the local premium segment.

Financial highlights

• FY25 revenue was $519 million (down 44% YoY); Q4 revenue was $163 million (down 40% YoY).

• Gross margin: 9% for FY25 (up from 3%); Q4 gross margin: 10% (up from -11%).

• Operating loss: $423 million for FY25 (down 46% YoY); Q4 operating loss: $66 million (down 65% YoY).

• Net loss: $464 million for FY25 (down 58% YoY); Q4 net loss: $86 million (down 81% YoY).

• Adjusted EBITDA loss: $356 million for FY25 (down 63% YoY); Q4 adjusted EBITDA loss: $62 million (down 84% YoY).

Outlook and guidance

• Global launch of PHEV model For Me (Eletre X) expected to drive sales and revenue growth in 2026.

• Anticipate further gross margin improvement despite external headwinds, supported by cost reductions and stable pricing.

• Ongoing merger with U.K. Lotus Cars expected to enhance production efficiency and margins.

• Plans to expand Canadian dealer network and launch For Me in Europe, UK, and Middle East.

• Focus remains on revenue growth, margin expansion, and strict cost reductions to progress toward profitability.