Nio's shift toward higher-margin models and tighter costs shows progress, useful context for a colleague or investor tracking China's EV evolution.
Nio posts second straight profit Story flow and key facts
Nio achieved its second consecutive quarter of adjusted operating profitability in Q1 2026, reporting a profit of 66.8 million yuan ($9.7 million) compared to a 5.95 billion yuan loss in the same period last year. The turnaround was fueled by strong sales of its high-margin ES8 SUV, which accounted for 54.14% of total deliveries—45,185 units out of 83,465—helping push vehicle margins from 10.2% to 18.8%. Total revenue surged 112.2% year-on-year to 25.53 billion yuan, while gross margin reached a four-year high of 19.0%.
The company also reduced adjusted R&D expenses by 41.4% year-on-year, excluding share-based compensation, reflecting tighter cost control. Despite a GAAP net loss of 332 million yuan, Nio’s cash reserves stood at 48.2 billion yuan as of March 31, with positive net current assets.
Looking ahead, Nio guided for 110,000 to 115,000 deliveries in Q2 2026, supported by the recent launch of the Onvo L80 and the upcoming debut of the flagship ES9 on May 27. Management’s ability to sustain profitability while scaling new models will be key to meeting full-year targets.
Facts
- Nio reported an adjusted operating profit of 66.8 million yuan ($9.7 million) in Q1 2026, its second consecutive profitable quarter on a non-GAAP basis.
- Q1 revenue surged 112.2% year-on-year to 25.53 billion yuan, with vehicle deliveries up 98.3% to 83,465 units.
- The ES8 SUV accounted for 54.14% of total deliveries (45,185 units) and helped lift vehicle margins to 18.8% from 10.2% a year earlier.
- Adjusted R&D expenses fell 41.4% year-on-year to 1.7082 billion yuan, excluding share-based compensation.
- Nio guided for 110,000 to 115,000 deliveries in Q2 2026, with the ES9 set to launch and begin deliveries on May 27.
- Cash and cash equivalents reached 48.2 billion yuan as of March 31, 2026, with net current assets now positive.
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