NIO Inc. (NYSE:NIO), a prominent player in the electric vehicle (EV) market, is known for its innovative approach and diverse brand offerings. The company, headquartered in China, competes with other EV giants like Tesla and BYD. NIO's strategy includes a multi-brand approach, featuring its flagship NIO brand, the value-oriented ONVO, and the Firefly brand, which has contributed to its recent growth in vehicle deliveries.
On November 25, 2025, NIO reported its earnings, revealing an earnings per share (EPS) of -$0.16, surpassing the estimated EPS of -$0.22. This improvement is part of a broader trend, as highlighted in their Q3 2025 earnings call, where NIO reported an adjusted loss per share of $0.15. The company's net loss decreased by 31.2% to $488.9 million, indicating a positive shift in financial performance.
Despite the positive EPS surprise, NIO's revenue of $3.06 billion fell short of the estimated $3.11 billion. This shortfall aligns with the Q3 report, where revenue increased by 16.7% year-on-year but still missed analyst expectations of $3.14 billion. The revenue miss suggests potential demand challenges or pricing pressures that NIO needs to address to meet market expectations.
NIO's vehicle deliveries surged to 87,071 units, marking a 40.8% increase from the previous year. This growth is attributed to NIO's strategic focus on a higher-margin vehicle mix and cost optimization strategies, which helped achieve the highest gross margins in three years at 13.9%. The vehicle margin also improved to 14.7%, up from 13.1% a year ago, contributing to a 50.7% increase in gross profit to approximately $423 million.
Despite these operational improvements, NIO faces financial challenges. The company's price-to-earnings (P/E) ratio is approximately -3.62, indicating negative earnings. The debt-to-equity ratio is significantly negative at approximately -24.13, reflecting a high level of debt compared to equity. Additionally, the current ratio of about 0.84 suggests potential difficulties in covering short-term liabilities with current assets. These financial metrics highlight areas where NIO needs to focus on improving its financial health.
