NIO Inc. (NYSE: NIO) is a Chinese smart electric vehicle manufacturer operating under three brands. The NIO brand focuses on premium vehicles, ONVO targets family-oriented buyers, and FIREFLY offers high-end compact electric cars. The company also provides battery-swapping, charging, and other services to its customers.
On September 1, 2026, NIO reported its unaudited financial results for the second quarter ended June 30, 2026. The company recorded an adjusted net profit attributable to ordinary shareholders of RMB24.8 million, equivalent to US$3.7 million. Adjusted basic and diluted earnings were RMB0.01 per ADS, equivalent to approximately US$0.00147 per ADS based on the company’s stated conversion rate of RMB6.78 per US$1.00.
However, NIO remained unprofitable under generally accepted accounting principles. The company reported a GAAP net loss of RMB528.0 million, equivalent to US$77.8 million, compared with a net loss of RMB4.99 billion in the same quarter last year.
The GAAP net loss attributable to ordinary shareholders was RMB721.6 million, equivalent to US$106.4 million, compared with RMB5.14 billion in the prior-year quarter. Basic and diluted GAAP loss was RMB0.29 per ADS, equivalent to approximately US$0.04 per ADS.
Total revenue increased 69.1% year over year and 25.9% sequentially to RMB32.14 billion, equivalent to US$4.74 billion. Despite the strong growth, revenue came in below Wall Street expectations of approximately US$4.8 billion, contributing to a decline in NIO shares following the report.
NIO demonstrated significant improvement in its manufacturing economics. Gross profit increased 211.3% year over year to RMB5.91 billion, equivalent to US$870.5 million, while gross margin expanded to 18.4% from 10.0% a year earlier. Gross margin was slightly below the 19.0% recorded in the first quarter of 2026.
Vehicle margin reached 18.5%, compared with 10.3% in the prior-year quarter and 18.8% in the preceding quarter. NIO attributed the year-over-year improvement primarily to a more favorable product mix.
Vehicle deliveries increased 49.4% year over year and 29.0% sequentially to 107,658 units. This included 60,945 NIO-brand vehicles, 29,124 ONVO vehicles, and 17,589 FIREFLY vehicles. Quarterly deliveries nevertheless fell 2,342 units, or approximately 2.1%, below the lower end of NIO’s previous guidance range of 110,000 to 115,000 vehicles.
For the third quarter of 2026, NIO expects to deliver between 108,000 and 111,000 vehicles, representing year-over-year growth of approximately 24.0% to 27.5%. The company projects revenue between RMB33.29 billion and RMB34.05 billion, equivalent to US$4.906 billion–US$5.019 billion.
The revenue outlook was below Wall Street’s projection of approximately US$5.3 billion, raising concerns about NIO’s near-term growth despite its substantial margin improvement. Investors will continue monitoring delivery growth, pricing pressure in China’s competitive electric vehicle market, operating expenses, and the company’s ability to achieve sustainable GAAP profitability.
