Nio sharply narrowed its net loss in the third quarter of 2025 as the electric vehicle maker intensified its cost-control measures ahead of a planned push to achieve its first quarterly non-GAAP profit in the fourth quarter. The company reported a net loss of RMB 3.48 billion ($490 million), its lowest since the third quarter of 2022, according to unaudited results released on Tuesday.
The quarterly net loss was 31.2 percent lower than a year earlier and 30.3 percent below the second quarter of 2025. Adjusted net loss (non-GAAP) fell to RMB 2.74 billion, down 38.0 percent year-on-year and 33.7 percent quarter-on-quarter. Nio said the narrowing losses were driven primarily by tighter cost discipline. “This was primarily due to reduced personnel costs in R&D departments resulting from organizational optimization,” the company said, adding that development expenses also eased as new products progressed into later stages.
R&D spending dropped to RMB 2.39 billion, the lowest in three years, down 28.0 percent from the third quarter of 2024 and 20.5 percent from the second quarter of 2025. SG&A expenses rose slightly to RMB 4.18 billion, just 1.8 percent higher than a year earlier — the smallest year-on-year increase on record — though up 5.5 percent sequentially.
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Operationally, Nio delivered a record 87,071 vehicles in the quarter, rising 40.77 percent year-on-year and 20.84 percent quarter-on-quarter, near the lower end of its guidance range of 87,000 to 91,000 units. Revenue reached an all-time high of RMB 21.79 billion, up 16.7 percent year-on-year and 14.7 percent from the previous quarter. Vehicle sales accounted for RMB 19.20 billion, increasing 15.0 percent year-on-year and 19.0 percent quarter-on-quarter.
Profitability measures improved notably. Gross margin rose to 13.9 percent — the highest since the second quarter of 2022 — compared with 10.7 percent a year earlier and 10.0 percent last quarter. Vehicle margin climbed to 14.7 percent, from 13.1 percent in the third quarter of 2024 and 10.3 percent in the second quarter of 2025. Nio attributed the gains to declining unit material costs driven by its cost-reduction initiatives.
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As of September 30, Nio held RMB 36.7 billion in cash, equivalents, restricted cash, short-term investments and long-term deposits. The company achieved positive operating cash flow in the third quarter but said it had negative operating cash flow in the first half of 2025, noting that current liabilities still exceeded current assets.
For the fourth quarter, Nio guided vehicle deliveries between 120,000 and 125,000 units, representing growth of 65.1 to 72.0 percent year-on-year but falling short of the 150,000-unit target referenced during its second-quarter earnings call. Revenue is forecast to reach between RMB 32.76 billion ($4.60 billion) and RMB 34.04 billion, up 66.3 to 72.8 percent year-on-year.