- Nio's third-quarter net loss decreased 31.2 percent year-on-year as R&D expenses fell 28 percent, while SG&A expenses remained largely flat from last year.
- Nio guided fourth-quarter vehicle deliveries between 120,000 and 125,000 units, below its previously said target of 150,000 vehicles.
Nio Inc (NYSE: NIO, HKG: 9866) saw its net loss narrow significantly last quarter as it controlled expenses in a bid to achieve its first quarterly profit in the fourth quarter.
The electric vehicle (EV) maker posted a net loss of RMB 3.48 billion ($490 million) in the third quarter, its lowest since the third quarter of 2022, according to its unauditedearnings report released today.
This represents a 31.2 percent decrease from the third quarter of 2024 and a 30.3 percent decrease from the second quarter of 2025.
Adjusted net loss (non-GAAP) for the third quarter was RMB 2.74 billion ($384 million), down 38.0 percent from the third quarter 2024 and down 33.7 percent from the second quarter of 2025.
The company aims to achieve its first non-GAAP quarterly profit in the fourth quarter, its management previously said.
The significant narrowing of the net loss in the third quarter was primarily due to effective cost control.
Nio's R&D expenses in the third quarter were RMB 2.39 billion, the lowest since the third quarter of 2022. This represents a 28.0 percent decrease from the third quarter of 2024 and a 20.5 percent decrease from the second quarter of 2025.
This was primarily due to reduced personnel costs in R&D departments resulting from organizational optimization, as well as decreased design and development costs for new products and technologies at different stages of development, the company said.
Sales, general, and administrative (SG&A) expenses for the third quarter of 2025 totaled RMB 4.18 billion, representing a mere 1.8 percent increase from the third quarter of 2024 -- the lowest year-on-year growth on record -- though up 5.5 percent from the second quarter 2025.
During the third quarter, Nio delivered a record87,071 vehicles, within its guidance range of 87,000 to 91,000 units, though near the lower end.
Deliveries grew 40.77 percent year-on-year and 20.84 percent quarter-on-quarter.
The company's revenue for the third quarter reached a record RMB 21.79 billion, up 16.7 percent from the third quarter of 2024 and 14.7 percent from the second quarter of 2025.
Vehicle sales in the third quarter of 2025 reached RMB 19.20 billion, up 15.0 percent year-on-year from the third quarter of 2024 and up 19.0 percent quarter-on-quarter from the second quarter of 2025.
Nio's gross margin for the third quarter 2025 reached 13.9 percent, the highest since the second quarter of 2022, surpassing the 10.7 percent recorded in the third quarter 2024 and the 10.0 percent achieved in the second quarter 2025.
Vehicle margin for the third quarter of 2025 was 14.7 percent, compared to 13.1 percent in the third quarter of 2024 and 10.3 percent in the second quarter of 2025.
The increase in vehicle gross margin was primarily attributable to a decrease in unit material costs, which Nio attributed to its comprehensive cost reduction initiatives.
As of September 30, Nio's cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits totaled RMB 36.7 billion.
Although the company achieved positive operating cash flow in the third quarter, it had negative operating cash flow in the first two quarters of 2025, Nio said in its earnings report, adding that as of September 30, 2025, its current liabilities exceeded current assets.
Nio guided fourth-quarter vehicle deliveries between 120,000 and 125,000 units, representing growth of about 65.1 percent to 72.0 percent.
This guidance falls below the 150,000-unit target mentioned during its second-quarterearnings call on September 2, implying Nio now expects combined November and December deliveries of 79,603 to 84,603 vehicles.
The company guided fourth-quarter revenue to be between RMB 32.76 billion ($4.60 billion) and RMB 34.04 billion, reflecting year-on-year growth of about 66.3 percent to 72.8 percent.
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