NIO Reports Strong Q2 2025 Revenue and Improved Net Loss

NIO (NIO.US) announced its unaudited financial results for the second quarter ended June 30, 2025, revealing total revenues of RMB19,008.7 million (US$2,653.5 million), surpassing analyst estimates of US$2,653.5 million. This represents an increase of 9.0% from the second quarter of 2024 and 57.9% from the first quarter of 2025. The adjusted net loss (non-GAAP) was RMB4,126.7 million (US$576.1 million), marking a significant decrease of 9.0% year-over-year and 34.3% quarter-over-quarter, and outperforming analyst EPS estimates of -0.3.

Key Business Drivers

Vehicle deliveries in Q2 2025 reached 72,056 units, an increase of 25.6% compared to Q2 2024 and 71.2% from Q1 2025. This growth was driven by strong performances across its brands, including 47,132 vehicles from NIO, 17,081 from ONVO, and 7,843 from FIREFLY. Vehicle sales increased by 2.9% year-over-year and 62.3% quarter-over-quarter to RMB16,136.1 million (US$2,252.5 million), despite a lower average selling price due to product mix changes.

Other sales surged by 62.6% year-over-year and 37.1% quarter-over-quarter to RMB2,872.6 million (US$401.0 million). This increase was primarily fueled by higher revenues from used car sales, technical research and development services, and sales of parts, accessories, and after-sales vehicle services, reflecting the continued expansion of the user base.

Operational Efficiency and Margins

NIO’s gross profit for Q2 2025 was RMB1,897.5 million (US$264.9 million), up 12.4% year-over-year and a substantial 106.3% quarter-over-quarter. Gross margin improved to 10.0% from 9.7% in Q2 2024 and 7.6% in Q1 2025, largely due to a positive mix effect from increased revenue in used cars and technical R&D services. The vehicle margin remained relatively stable quarter-over-quarter at 10.3%, but decreased from 12.2% in Q2 2024, influenced by changes in product mix.

The company also reported a decrease in adjusted loss from operations (non-GAAP) by 14.0% year-over-year and 32.1% quarter-over-quarter to RMB4,040.8 million (US$564.1 million). This improvement reflects the positive impact of comprehensive cost reduction and efficiency improvement initiatives implemented starting in Q2 2025, particularly in research and development and selling, general, and administrative expenses.

Management Outlook

For the third quarter of 2025, NIO anticipates vehicle deliveries to be between 87,000 and 91,000 units, representing an expected increase of approximately 40.7% to 47.1% year-over-year. Total revenues are projected to range from RMB21,812 million (US$3,045 million) to RMB22,876 million (US$3,193 million), indicating an increase of approximately 16.8% to 22.5% compared to the same quarter of 2024.

Management highlighted the strong market reception for new models like the ONVO L90 and NIO All-New ES8, which are expected to reinforce sales momentum. The company is approaching a structural inflection point in its financials, aiming for a sustainable virtuous cycle and continued performance improvements driven by technological innovations, strategic battery swapping infrastructure, and a multi-brand strategy.