Xpeng reported its smallest quarterly net loss in five years as strong delivery momentum and rising service revenue lifted its third-quarter performance.
The company posted a net loss of RMB 380 million in the July–September period, marking a 78.93 percent reduction from a RMB 1.81 billion loss a year earlier and a 20.28 percent improvement from the second quarter.
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It also marked the eighth consecutive quarter of year-on-year loss reduction, with the company reiterating its goal of achieving quarterly profitability in the fourth quarter.
Excluding stock-based compensation, the company’s non-GAAP net loss narrowed to RMB 150 million, compared with RMB 1.53 billion in the same period of 2024 and RMB 390 million in the second quarter.
Revenue surged to RMB 20.38 billion, up 101.8 percent year-on-year and 11.5 percent quarter-on-quarter, supported by record quarterly deliveries of 116,007 vehicles. Vehicle sales revenue rose 105.3 percent year-on-year to RMB 18.05 billion, driven by higher deliveries of newly launched models, while service and other revenue climbed 78.1 percent to RMB 2.33 billion.
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Gross margin improved to a record 20.1 percent, up from 15.3 percent a year earlier. Vehicle margin increased to 13.1 percent from 8.6 percent, though it eased quarter-on-quarter due to ongoing product transitions.
Service and other business margin rose sharply to 74.6 percent, supported by growing technical R&D service income linked to key project milestones with an unnamed automaker, widely understood to be Volkswagen. R&D expenses rose 48.7 percent year-on-year to RMB 2.43 billion as Xpeng accelerated development of new models and technologies, while SG&A expenses increased 52.6 percent to RMB 2.49 billion due to higher franchisee commissions, marketing spending, and sales expansion.
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The company ended the quarter with RMB 48.33 billion in cash, restricted cash, short-term investments, and time deposits. For the fourth quarter, Xpeng forecast vehicle deliveries of 125,000 to 132,000 units, representing growth of 36.6 percent to 44.3 percent year-on-year, and revenue of RMB 21.5 billion to RMB 23.0 billion. Based on October deliveries of 42,013 units, the guidance implies combined November and December deliveries of between 82,987 and 89,987 vehicles.