NIO's Q3 revenue increased by 16.7% to 21.8 billion yuan, with a record high vehicle gross margin of 14.7%. Both Q4 revenue and delivery guidance reached new highs | Earnings report insights
The financial report shows that in the third quarter, 87,071 smart electric vehicles were delivered, a year-on-year increase of 40.8%. The company's three major brands, Nio, LeDao, and Firefly, have all achieved market breakthroughs, laying the foundation for the company to enter a new growth cycle. It is expected that in the fourth quarter, deliveries will reach between 120,000 and 125,000 vehicles, a year-on-year increase of 65.1% to 72.0%, with total revenue expected to be between 32.8 billion and 34 billion RMB, a year-on-year increase of 66.3% to 72.8%
Nio has made breakthrough progress in profitability and operational efficiency, with the gross margin for vehicles rising to 14.7% in the third quarter, the highest level in nearly three years. The revenue and delivery guidance for the fourth quarter both set historical highs.
Key Financial Metrics
Q3 total revenue reached RMB 21.8 billion (USD 3.06 billion), a year-on-year increase of 16.7%;
Delivered 87,071 smart electric vehicles, a year-on-year increase of 40.8%;
Gross profit reached RMB 3.02 billion, a year-on-year increase of 50.7%;
Overall gross margin rose to 13.9%, significantly improved from 10.7% in the same period last year;
The company's total cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits amounted to RMB 36.7 billion (USD 5.1 billion).
On November 25, Nio's latest financial report showed that in the third quarter, it delivered 87,071 smart electric vehicles, a year-on-year increase of 40.8%, with total revenue reaching RMB 21.8 billion (USD 3.06 billion), a year-on-year increase of 16.7%. The three major brands under its umbrella—Nio, Ladao, and Firefly—have all achieved market breakthroughs, laying the foundation for the company to enter a new growth cycle.
The company expects to deliver between 120,000 and 125,000 vehicles in the fourth quarter, a year-on-year increase of 65.1% to 72.0%, with total revenue expected to be between RMB 32.8 billion and RMB 34 billion, a year-on-year increase of 66.3% to 72.8%.
(Source: Nio)
After the financial report was released, Nio's U.S. stock pre-market rose more than 9%.
Three Major Brands Drive Strong Delivery Growth
The delivery composition of Nio in the third quarter shows the effectiveness of its multi-brand strategy.
The financial report indicates that the high-end brand Nio delivered 36,928 vehicles, the family-oriented brand Ladao delivered 37,656 vehicles, and the small high-end electric vehicle brand Firefly delivered 12,487 vehicles.
(Source: Nio Financial Report)
Nio stated that it delivered 40,397 vehicles in October. As of October 31, the cumulative deliveries for 2025 reached 241,618 vehicles, with total deliveries reaching 913,182 vehicles.
Founder, Chairman, and CEO Li Bin stated that the all-new ES8 set the fastest record for deliveries exceeding 10,000 units among pure electric models priced above RMB 400,000 in the Chinese market, the Ladao L90 has maintained the top sales of large pure electric SUVs for three consecutive months, and Firefly has quickly established a leading position in the small intelligent high-end electric vehicle market since its first delivery
Cost Optimization Drives Profitability Improvement
The financial report shows that vehicle sales in the third quarter reached RMB 19.2 billion, a year-on-year increase of 15.0% and a quarter-on-quarter increase of 19.0%.
Although changes in product structure led to a decline in average selling price, the continuous reduction in per vehicle material costs drove the vehicle gross margin up from 10.3% in the previous quarter to 14.7%.
Other sales revenue was RMB 2.6 billion, a year-on-year increase of 31.2%, mainly from increased sales of used cars, revenue from technology research and development services, and growth in sales of spare parts, after-sales services, and energy solutions driven by the continuous growth in user scale.
Chief Financial Officer Qu Yu stated, "Through continuous cost optimization and an increase in the proportion of high-gross-margin vehicle deliveries, the vehicle gross margin improved to 14.7% quarter-on-quarter, and the overall gross margin reached the highest level in the past three years."
Significant Efficiency Gains in Operating Expense Control
The financial report states that R&D expenses in the third quarter were RMB 2.4 billion, a year-on-year decrease of 28.0% and a quarter-on-quarter decrease of 20.5%.
R&D expenses under non-GAAP were RMB 1.9 billion, a year-on-year decrease of 33.2%.
NIO attributed this mainly to reduced R&D personnel costs due to organizational optimization and a decrease in design and development costs resulting from new products and technologies being at different stages of development.
Sales, general, and administrative expenses were RMB 4.2 billion, a year-on-year increase of 1.8% and a quarter-on-quarter increase of 5.5%. Compared to the same period last year, it remained relatively stable, with the quarter-on-quarter increase mainly due to increased sales and marketing activities related to new product launches.
The financial report shows that operating losses were RMB 3.5 billion, narrowing by 32.8% year-on-year and 28.3% quarter-on-quarter. Adjusted operating losses under non-GAAP were RMB 2.8 billion, narrowing by 39.5% year-on-year and 31.3% quarter-on-quarter
