NIO (NIO) Q2 2026 earnings summary

Executive summary

• Q2 2026 deliveries reached 107,658 smart EVs, up 49.4% year-over-year, with all three brands—NIO, Onvo, and Firefly—achieving both year-over-year and quarter-over-quarter growth in sales volume and average transaction price.

• Gross margin improved to 18.4%, supported by higher-margin products and cost optimization, despite rising raw material and chip costs.

• Non-GAAP operating profit and positive free cash flow were achieved, with cash reserves increasing to RMB 56.7 billion.

• Net loss narrowed significantly to RMB 528.0 million, while adjusted net profit (non-GAAP) was RMB 26.1 million.

• Flagship models ES8 and ES9 maintained strong demand, with ES8 surpassing 140,000 deliveries in 11 months and ES9 requiring a 3-4 month wait for new orders.

Financial highlights

• Total Q2 revenues were RMB 32.1 billion, up 69.1% year-over-year and 25.9% quarter-over-quarter.

• Vehicle sales reached RMB 29.1 billion, up 80.1% year-over-year and 27.5% quarter-over-quarter.

• Vehicle margin was 18.5%, up from 10.3% in Q2 last year; overall gross margin was 18.4%, up from 10% last year.

• R&D expenses were RMB 2.1 billion, down 28.7% year-over-year but up 13.8% quarter-over-quarter.

• SG&A expenses were RMB 4.4 billion, up 11.6% year-over-year and 22.5% quarter-over-quarter, mainly due to new product launches.

• Net loss was RMB 0.5 billion, down 89.4% year-over-year; adjusted net profit was RMB 26.1 million.

Outlook and guidance

• Q3 deliveries expected between 108,000 and 111,000 units.

• Q3 2026 total revenues projected between RMB 33,285 million and RMB 34,051 million, up 52.7% to 56.2% year-over-year.

• Q4 targeted at over 40,000 units per month; annual volume growth expected at 40%-50% mid- to long-term.

• Vehicle margin expected to remain stable despite further cost increases of RMB 2,000-3,000 per car in H2.

• SG&A as a percentage of sales revenue expected to decrease to 10%-11% in H2.