Entering a Phase of Robust Growth

On the evening of May 21, NIO unveiled its Q1 2026 financial results, revealing that several key financial metrics hit multi-year highs, with the company achieving profitability for two consecutive quarters.

The company reported quarterly revenue of RMB 25.53 billion, up 112.2% year-on-year, effectively doubling the revenue scale compared to the same period last year. In terms of profitability, the adjusted operating profit reached RMB 66.8 million. This marks the second straight quarter of profitability, following the first single-quarter profit recorded in Q4 2025. The adjusted net profit stood at RMB 43.5 million, with both metrics reflecting positive profitability under non-GAAP standards.

A primary driver behind the improved profitability was a substantial increase in gross margin. In Q1, NIO’s consolidated gross margin climbed to 19.0%, with vehicle gross margin at 18.8% and gross margin from other sales at 20.6%—all marking four-year highs. Vehicle gross margin has now increased for four consecutive quarters, rising by 8.6 percentage points from 10.2% year-on-year. Total gross profit reached RMB 4.86 billion, a 428.4% increase year-on-year.

The significant growth in both revenue and gross profit can be directly attributed to the ongoing expansion of vehicle delivery volumes. In Q1, NIO delivered a total of 83,465 new vehicles, a 98.3% increase year-on-year. This included 58,543 deliveries under the main NIO brand, 13,339 under the Ledo brand, and 11,583 under the Firefly brand. The three brands have formed a tiered product lineup and are working in synergy.

Notably, vehicle sales revenue in Q1 reached RMB 22.784 billion, up 129.2% year-on-year—significantly outpacing the 98.3% growth in delivery volume. This indicates a simultaneous rise in the average selling price, as a greater proportion of high-value models effectively optimized the revenue structure. Additionally, the gross margin of non-vehicle businesses rose to 20.6%, benefiting from the improved profitability of spare parts, after-sales services, and energy replenishment businesses as the user base expanded.

Cash flow and financial strength continued to improve. By the end of Q1, the company’s cash reserves had increased to RMB 48.2 billion, achieving positive operating cash flow for three consecutive quarters. In terms of cost control, R&D expenses were RMB 1.885 billion, down 40.7% year-on-year, while selling, general, and administrative expenses amounted to RMB 3.497 billion, a 20.5% decrease year-on-year. These figures highlight significant progress in cost reduction and control.

Looking ahead, NIO’s growth momentum remains robust. The company provided Q2 delivery guidance of 110,000 to 115,000 vehicles, representing a year-on-year increase of 52.7% to 59.6%. Revenue guidance for the quarter stands at RMB 32.78 billion to RMB 34.44 billion, up 72.4% to 81.2% year-on-year. Starting in Q2, the company will enter a period of intensive new product launches and deliveries. The tech-admin flagship SUV, the NIO ES9, has completed pre-sales and will officially launch at the end of May. The Ledo brand’s large five-seat SUV, the Ledo L80, is expected to debut in Q2 as well. The enriched product lineup will provide strong momentum for sales growth in the coming period. Deutsche Bank’s latest research report noted that, due to better-than-expected orders for the ES9, it has raised NIO’s full-year sales forecast by 5% to 420,000 vehicles and significantly reduced its net loss forecast by 49.6%.

Shengma Finance believes that NIO has validated the effectiveness of its multi-brand strategy and the continuous enhancement of operational quality with an outstanding Q1 report. The company’s large-scale strategic investments made in earlier stages are now accelerating their transformation into systematic competitive advantages and tangible operational results, with the company gradually entering a phase of healthy growth driven by "self-generated" capabilities.

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