Nio said on Thursday it expects to post its first-ever quarterly profit in the fourth quarter of 2025, under both non-GAAP and GAAP accounting standards, marking a potential turning point for the Chinese electric vehicle maker after years of losses.
In a profit alert issued before market open, the company forecast non-GAAP adjusted operating profit of between 700 million yuan ($100 million) and 1.2 billion yuan ($172 million) for the quarter. That would compare with a non-GAAP adjusted operating loss of 5.54 billion yuan recorded in the same period of 2024.
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Under U.S. Generally Accepted Accounting Principles (GAAP), Nio said it expects operating profit in the fourth quarter of 2025 to range from about 200 million yuan to 700 million yuan. The company said it uses non-GAAP measures to better reflect the financial indicators management relies on for operational and strategic decision-making.
Nio’s management has previously stated on several occasions that achieving its first quarterly profit by the fourth quarter of 2025 was a key internal target, although those comments were largely framed around non-GAAP metrics. The inclusion of a GAAP-based profit forecast adds further weight to the company’s profitability outlook.
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The automaker attributed the expected turnaround primarily to sustained vehicle sales growth in the fourth quarter, a more favourable product mix and improved vehicle margins. Nio also pointed to ongoing cost-reduction initiatives and continued gains in operational efficiency as contributing factors.
If realised, the result would represent a milestone for Nio as it seeks to demonstrate the long-term viability of its business model in an increasingly competitive Chinese and global EV market.