An Xpeng Mona M03 electric sedan on display at the Beijing Auto Show in April 2026. Credit: CnEVPost
- Xpeng’s second-quarter revenue reached 19.74 billion yuan, while its gross margin rose to 20.7%.
- The company guided for third-quarter deliveries of 115,000 to 121,000 vehicles.
Xpeng (NYSE: XPEV) posted a rebound in second-quarter revenue, but its net loss nearly tripled from a year earlier, showing that recovering sales have yet to fully translate into improved profitability.
The company reported second-quarter revenue of 19.74 billion yuan ($2.91 billion), up 8.0% year-on-year and 51.5% sequentially, according to unaudited financial results released Monday.
The result was within Xpeng’s previous guidance range of 19.60 billion yuan to 20.80 billion yuan, though it was close to the lower end.
Its second-quarter net loss was 1.34 billion yuan, up 179% from 480 million yuan a year earlier. The loss narrowed 24.7% from 1.78 billion yuan in the first quarter.
Excluding share-based compensation expenses and a fair-value gain on a derivative liability related to contingent consideration, Xpeng posted a non-GAAP net loss of 1.24 billion yuan. The company recorded losses of 390 million yuan and 1.69 billion yuan in the same period last year and the first quarter, respectively.
Xpeng’s gross margin rose to 20.7% in the second quarter, up from 17.3% a year earlier and slightly higher than 20.6% in the first quarter.
However, its vehicle margin was 12.1%, flat from the first quarter and down from 14.3% a year earlier. Xpeng attributed the year-on-year decline to a product-generation transition.
Services and other businesses were a key driver of the improvement in gross margin. Revenue from the segment jumped 93.9% year-on-year to 2.70 billion yuan, while its margin rose to 75.1% from 53.6% a year earlier.
Xpeng said the growth was mainly driven by technical research and development services provided to an automaker, as well as increased revenue from parts and accessories sales.
Xpeng did not name the automaker, although it was clearly referring to Volkswagen.
Second-quarter vehicle sales revenue was 17.05 billion yuan, up 1.0% year-on-year and 55.0% sequentially.
Vehicle deliveries totaled 103,295 units in the second quarter, up 0.1% year-on-year and 64.8% sequentially.
Xpeng Quarterly Deliveries 2024-2026
Quarter
2024
2025
2026
Q1
21,821
94,008
62,682
Q2
30,207
103,181
103,295
Q3
46,533
116,007
Q4
91,507
116,249
Xpeng quarterly deliveries
2024
2025
2026
Rising expenses continued to weigh on profitability. Research and development expenses increased 32.1% year-on-year to 2.91 billion yuan, mainly due to higher spending on new vehicle models and AI-related technologies.
Selling, general and administrative expenses rose 15.2% year-on-year to 2.50 billion yuan, reflecting increased marketing and advertising spending. Lower government subsidies also reduced other income.
As of June 30, Xpeng held a total of 40.48 billion yuan in cash, cash equivalents, restricted cash, short-term investments and time deposits, down 1.61 billion yuan from the end of March.
Xpeng guided for third-quarter deliveries of 115,000 to 121,000 vehicles, representing a year-on-year range from a 0.87% decline to a 4.30% increase and sequential growth of 11.33% to 17.14%.
The company expects third-quarter revenue of 21.70 billion yuan to 23.40 billion yuan, representing year-on-year growth of 6.47% to 14.81% and sequential growth of 9.91% to 18.52%.
Xpeng delivered 38,027 vehicles in July. To meet its third-quarter guidance, the company needs to deliver a combined 76,973 to 82,973 vehicles in August and September, or an average of about 38,487 to 41,487 vehicles per month.
chairman and CEO He Xiaopeng said the back-to-back success of the GX and Mona L03 had increased the company’s confidence in its upcoming new models. Xpeng also expects the mass production and commercialization of physical AI technologies to accelerate over the coming year.
Earlier Monday, Xpeng announced that its robotics subsidiary Dogotix had secured $900 million in conditional funding commitments at a post-money valuation of $6.3 billion.
The transaction will establish a separate funding channel for the capital-intensive robotics business while allowing Xpeng to retain control.
Dogotix has secured $900 million in funding commitments, with $600 million from external investors including IDG Capital, Alibaba, Tencent and Gaorong Ventures.
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