Nio reported its first quarterly profit since the company was founded, driven by record vehicle deliveries and improved margins in the final quarter of 2025.
For the three months ended December 31, Nio recorded operating profit of 807.3 million yuan ($115.4 million), compared with an operating loss of 6.03 billion yuan during the same period in 2024, according to the company’s financial results released on Tuesday.
On a non-GAAP basis, excluding stock-based compensation, adjusted operating profit reached 1.25 billion yuan ($178.9 million) in the fourth quarter of 2025. The figure exceeded the upper end of the company’s earlier guidance range of 700 million yuan to 1.2 billion yuan.
Nio also reported net profit of 282.7 million yuan ($40.4 million) for the quarter, reversing a net loss of 7.11 billion yuan recorded a year earlier. Adjusted net profit, excluding stock-based compensation, reached 726.8 million yuan.
Revenue for the fourth quarter increased 75.9% year-on-year to 34.65 billion yuan, while the company’s gross margin expanded to 17.5%, compared with 11.7% in the fourth quarter of 2024.
The improvement was largely driven by strong vehicle sales. Nio delivered 124,807 vehicles during the quarter, a 71.7% increase compared with the same period the previous year.
Cost reductions also contributed to the turnaround. Research and development spending fell 44.3% year-on-year to 2.03 billion yuan, reflecting organizational adjustments and lower personnel costs. Selling, general and administrative expenses declined 27.5% to 3.54 billion yuan, mainly due to reduced staffing and marketing costs.
Despite the strong results, the company expects a challenging start to 2026. Nio forecasts first-quarter deliveries of between 80,000 and 83,000 vehicles, representing growth of roughly 90% to 97% year-on-year.
Revenue for the first quarter is projected to range between 24.48 billion yuan and 25.17 billion yuan, more than doubling from the same period in 2025.
The guidance suggests Nio expects to deliver 32,021 to 35,021 vehicles in March, following deliveries of 27,182 vehicles in January and 20,797 vehicles in February.
Earlier, company founder and chief executive William Li warned that China’s electric vehicle sector could face slower growth in the first quarter as government stimulus measures fade.
Demand has been affected by the Chinese New Year holiday, the transition period for electric vehicle trade-in subsidies and additional purchase tax costs for consumers, which have weighed on short-term buying sentiment.
At the same time, rising prices for key inputs such as memory chips and metals could put pressure on automakers’ margins.
As of the end of 2025, Nio reported 45.9 billion yuan in cash and cash equivalents and other funds, providing liquidity as the company seeks to sustain profitability amid shifting market conditions.