Nio announced a milestone on March 10, 2026, reporting its first-ever quarterly profitability in the fourth quarter of 2025. The company achieved a Non-GAAP operating profit of 1.25 billion yuan (181.8 million USD) and a Non-GAAP net profit of 720 million yuan (104 million USD), a turnaround from substantial losses in the same period of 2024. This achievement sets the stage for Nio’s ambitious goal of reaching full-year Non-GAAP operating profitability in 2026.
For the fourth quarter of 2025, Nio’s Non-GAAP operating profit of 1.25 billion yuan (181.8 million USD) contrasts sharply with a 5.54 billion yuan (805.6 million USD) loss in Q4 2024. Similarly, the Non-GAAP net profit of 720 million yuan (104 million USD) marks an improvement from a 6.62 billion yuan (962.6 million USD) loss a year prior. This positive shift follows a strategic objective set by Nio at the beginning of 2025 to achieve single-quarter profitability by the fourth quarter. The company had progressively narrowed its Non-GAAP operating losses from 5.94 billion yuan (863.7 million USD) in Q1 2025, to 4.04 billion yuan (587.5 million USD) in Q2, and 2.77 billion yuan (402.8 million USD) in Q3.
The turnaround was driven by a combination of factors, including proactive cost management and a concentrated sales effort. Nio strategically brought forward new product launches and events like Nio Day to earlier in the year, reducing Q4 expenses. The company also achieved a record high in vehicle sales, delivering 124,000 units during the quarter. This surge in sales propelled automotive sales revenue to 31.6 billion yuan (4.6 billion USD), an increase of 80.9% year-over-year and 64.6% quarter-over-quarter. Concurrently, selling, general, and administrative (SG&A) expenses were reduced by 27.5% year-over-year to 3.53 billion yuan (513.3 million USD).
Nio’s profitability was further bolstered by improved vehicle gross margins, which rose to 18.1% in Q4 2025, up 5 percentage points year-over-year and 3.4 percentage points quarter-over-quarter. Nio CFO Qu Yu attributed this to substantial sales growth, an optimized product structure, and effective cost reduction and efficiency improvement measures. Notably, the Nio ES8, with a starting price exceeding 400,000 yuan (58,000 USD), saw a significant sales boost. In December 2025 alone, ES8 deliveries surpassed 22,000 units, accounting for 46% of the company’s total monthly sales. Qu Yu revealed during the earnings call on March 10, 2026, that the ES8 achieved a gross margin of nearly 25% in the fourth quarter.
Operationally, Nio implemented a Core Business Unit (CBU) mechanism in early 2025, decentralizing operating units and establishing independent cost settlement centers to strictly monitor Return on Investment (ROI). Qu Yu also highlighted the formation of dedicated teams for each model, aiming to strike an optimal balance between sales, gross margin, and overall operating results, rather than solely pursuing sales volume.
Looking ahead, Nio founder and chairman William Li expressed strong confidence in the company’s trajectory. He noted the “golden age” for large 3-row pure electric SUVs and large 5-seater SUVs, with domestic sales in this segment growing over 350% in the second half of 2025. Nio plans to capitalize on this trend by launching three new corresponding models in 2026, expanding its large SUV portfolio to five models.
Li Bin projected a 40% to 50% year-over-year increase in sales for 2026, aligning the company’s product strategy with market demand. Nio recorded total sales of 326,000 vehicles in 2025, a 36.9% increase from the previous year. Based on this, the company aims to deliver over 450,000 vehicles in 2026. CFO Qu Yu reiterated the company’s goal to achieve a full-year Non-GAAP operating profit turnaround in 2026, following a 42.3% reduction in Non-GAAP operating loss to 11.51 billion yuan (1.67 billion USD) in 2025.
Nio’s financial health appears robust, with cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits totaling 45.9 billion yuan (6.67 billion USD) by the end of 2025, a 9.5% increase year-over-year. The company also reported positive operating cash flow in both Q3 and Q4 2025. For the first quarter of 2026, Nio anticipates delivering between 80,000 and 83,000 vehicles, representing a year-over-year growth of 90.1% to 97.2%.
Following the earnings announcement, Nio’s American Depositary Shares (ADS) closed at 5.7 USD on March 10, local time, marking a 15.3% increase.
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