Surging Deliveries and Improved Margins Amidst …

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• Total Revenue: RMB21.8 billion, up 16.7% year over year and 14.7% quarter over quarter.

• Vehicle Sales: RMB19.2 billion, up 15% year over year and 19% quarter over quarter.

• Other Sales: RMB2.6 billion, up 31.2% year over year, down 9.8% quarter over quarter.

• Vehicle Deliveries: 87,071 smart EVs, up 40.8% year over year.

• October Deliveries: 40,397 smart EVs, up 92.6% year over year.

• Q4 Delivery Guidance: 120,000 to 125,000, up 60.1% to 72% year over year.

• Vehicle Gross Margin: 14.7%, up from 13.1% last year and 10.3% last quarter.

• Overall Gross Margin: 13.9%, up from 10.7% last year and 10% last quarter.

• R&D Expenses: RMB2.4 billion, down 28% year over year and 20.5% quarter over quarter.

• SG&A Expenses: RMB4.2 billion, up 1.8% year over year and 5.5% quarter over quarter.

• Operating Loss: RMB3.5 billion, down 32.8% year over year and 28.3% quarter over quarter.

• Adjusted Operating Loss: RMB2.8 billion, down 39.5% year over year and 31.3% quarter over quarter.

• Net Loss: RMB3.5 billion, down 31.2% year over year and 30.3% quarter over quarter.

• Adjusted Net Loss: RMB2.7 billion, down 38% year over year and 33.7% quarter over quarter.

• Cash and Cash Equivalents: RMB36.7 billion at the end of the quarter.

• Equity Financing: $1.16 billion completed in September.

• Positive Operating and Free Cash Flow: Achieved in Q3 2025.

Release Date: November 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• NIO Inc (NYSE:NIO) delivered 87,071 smart EVs in Q3 2025, marking a year-over-year growth of 40.8%.

• The company launched two new large zero battery electric SUVs, the Avo L90 and the all-new ES8, which have received strong market recognition.

• NIO Inc (NYSE:NIO) achieved a vehicle gross margin of 14.7% in Q3, the highest in nearly three years, reflecting improved profitability.

• Operational efficiency improved, with non-GAAP operating loss narrowed by 30% quarter over quarter, and both operating and free cash flow turned positive.

• The company completed a $1.16 billion equity financing, strengthening its balance sheet and supporting long-term R&D and user services.

• NIO Inc (NYSE:NIO) adjusted its Q4 delivery guidance to 120,000 to 125,000 units, which is around 20% lower than the previous target of 150,000 units.

• The phase-out of trade-in and replacement subsidies impacted sales volume, particularly affecting the Envoy L60 and L90 models.

• Despite improvements, the company still faces challenges in achieving its break-even target due to macroeconomic uncertainties and policy changes.

• R&D expenses decreased by 28% year over year, raising concerns about maintaining long-term competitiveness in innovation.

• The company anticipates a seasonal low in Q1 2026, which may affect sales volume and gross margin compared to Q4 2025.

Q: NIO’s updated fourth-quarter delivery guidance is lower than previous targets. How will this affect the company’s break-even target for Q4, and when can NIO achieve a monthly run rate of 50,000 units? A: Bin Li, CEO: Despite the lower guidance, we remain confident in achieving quarterly break-even in Q4. The phase-out of trade-in and replacement subsidies has impacted the entire industry, but we expect strong demand for high-margin products like the new ES8 to support our financial targets. We anticipate achieving a 50,000 monthly delivery rate in the first half of next year, driven by new model launches and improved sales capacity. (Stanley Qu, CFO)

Q: How is NIO preparing for the 2026 purchase tax changes on EVs, and will the company compensate customers for this? A: Stanley Qu, CFO: The impact on NIO is less significant compared to other companies, as most of our users subscribe to the battery, which is excluded from the tax base. We have announced a purchasing tax guarantee for users of the new ES8. Our approach will depend on market dynamics and competition, but we currently have no specific plan to compensate customers. (Bin Li, CEO)

Q: With the focus on cost reduction, will NIO maintain lower R&D and SG&A expenses in 2026? A: Stanley Qu, CFO: We expect R&D expenses to remain around RMB2 billion per quarter, focusing on efficiency and ROI. SG&A expenses will be controlled to achieve a 10% ratio to sales revenue. We aim to maintain competitiveness without compromising on product development. (Bin Li, CEO)

Q: What is NIO’s strategy for overseas expansion, particularly in Europe? A: Stanley Qu, CFO: We are transitioning from a direct-to-consumer model to a partnership-based approach, leveraging local partners’ resources. The Firefly brand will be the first to enter overseas markets, followed by Envo and eventually the NIO brand. This strategy allows us to expand more effectively in Europe, Asia, and other regions. (Bin Li, CEO)

Q: How does NIO plan to balance short-term R&D efficiency with long-term goals, especially with increasing industry investment in AI and intelligence? A: Stanley Qu, CFO: We focus on improving R&D efficiency and prioritizing projects through our CPU mechanism. Despite dialing back expenses, we maintain competitiveness in core EV technologies. Our past investments in foundational technologies allow for more efficient future iterations. (Bin Li, CEO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.