Xpeng reported its first net profit since inception, marking a significant financial milestone as the company narrowed losses and improved margins in the final quarter of 2025.
The company posted a GAAP net profit of 380 million yuan ($50 million) in the fourth quarter, compared with a net loss of 1.33 billion yuan in the same period a year earlier, according to its latest financial results. On a non-GAAP basis, net profit reached 510 million yuan, versus a loss of 1.39 billion yuan in the fourth quarter of 2024.
Revenue for the quarter rose 38.2% year-on-year to 22.25 billion yuan, driven largely by vehicle sales, which totaled 19.07 billion yuan, up 30.0% from a year earlier and 5.6% from the third quarter of 2025. The company delivered 116,249 vehicles during the period, representing a 27.04% increase year-on-year but slightly below its earlier guidance range of 125,000 to 132,000 units.
Xpeng’s gross margin improved to 21.3% in the fourth quarter, up from 14.4% a year earlier. Revenue from services and other segments surged 121.9% to 3.18 billion yuan, supported by technical research and development services provided to an automaker, widely understood to be Volkswagen.
Despite the return to profitability, the company continued to report a GAAP operating loss, though significantly reduced to 40 million yuan from 1.56 billion yuan a year earlier. On a non-GAAP basis, Xpeng recorded an operating profit of 80 million yuan, compared with losses in both the prior-year quarter and the third quarter of 2025.
Looking ahead, Xpeng issued softer guidance for the first quarter of 2026, reflecting seasonal weakness in China’s auto market. The company expects vehicle deliveries to range between 61,000 and 66,000 units, implying a year-on-year decline of roughly 29.79% to 35.11%.
First-quarter revenue is projected to come in between 12.2 billion yuan and 13.28 billion yuan, representing a year-on-year decrease of about 16.01% to 22.84%.