Group 1 - The core point of the article is that Pony.ai (PONY.US) shares increased by nearly 8%, reaching $15.5, following a significant investment by Cathie Wood, who added approximately $13.37 million in shares [1] Group 2 - The investment by Cathie Wood, a well-known investor, indicates a positive sentiment towards Pony.ai and may attract further interest from other investors [1] - The increase in share price reflects market confidence in Pony.ai's future prospects, potentially linked to developments in the autonomous driving sector [1] - The article highlights the impact of high-profile investors on stock performance, showcasing how their actions can influence market trends [1]

Core Insights - Pony AI Inc. is a China-based autonomous vehicle technology company experiencing significant operational and financial growth [1] - The company has initiated a robotaxi service and has obtained commercial licenses for its operations [1] Company Overview - Pony AI is focused on developing autonomous vehicle technology [1] - The company is actively expanding its services in the autonomous vehicle sector [1] Market Position - The launch of the robotaxi service indicates Pony AI's commitment to advancing its market presence [1] - Obtaining commercial licenses is a critical step for the company to operate legally and expand its service offerings [1]

Group 1 - The core viewpoint of the article highlights the recent performance and financial results of Pony.ai, indicating a stock price increase and a mixed financial outlook [1][2] - As of August 13, Pony.ai's stock opened at $14.8 per share, reflecting a 3.06% increase, with a total market capitalization of $5.258 billion [1] - Financial data shows that for the period ending March 31, 2025, Pony.ai reported total revenue of $13.979 million, representing an 11.64% year-over-year growth, while the net profit attributable to shareholders was a loss of $42.988 million, a decrease of 108.7% compared to the previous year [1] Group 2 - On August 4, Pony.ai received its first "Buy" rating from UBS Group, with a target price set at $20 [2] - The company is scheduled to disclose its fiscal year 2025 interim report on August 12, 2023, before the market opens [2] - Pony.ai is a Cayman Islands-registered holding company that operates primarily through its domestic subsidiary, Guangzhou Pony.ai Technology Co., Ltd., focusing on revolutionary advancements in transportation and mobility through artificial intelligence [2]

Core Viewpoint - The growth of Robotaxi services is unprecedented, with significant performance improvements from leading players like Pony.ai, which reported a substantial increase in revenue and operational scale [1][2]. Financial Performance - In Q2, Pony.ai reported total revenue of 154 million yuan (approximately 21.5 million USD), representing a year-on-year increase of 75.9% and a quarter-on-quarter increase of 53.5% [2]. - The revenue structure shifted notably, with technology licensing and application services becoming the largest revenue source, generating 74.6 million yuan, a staggering year-on-year increase of 901.8%, now accounting for 48.52% of total revenue [4]. - Revenue from Robotaxi services reached 10.9 million yuan, a year-on-year increase of 157.8% [4]. - Robotruck service revenue decreased by 9.9% to 68.2 million yuan, reflecting a strategic focus on higher-margin income [5]. Profitability Metrics - Gross profit for Q2 was 24.8 million yuan, significantly higher than the gross loss of 290,000 yuan in the same period last year, resulting in a gross margin of 16.1% compared to -0.3% in Q2 2024 [7]. - Despite the increase in gross profit, net loss expanded to 380 million yuan from 220 million yuan year-on-year, with adjusted net loss increasing by 52% to 330 million yuan [9]. Operating Expenses - Operating expenses rose to 464 million yuan, a year-on-year increase of 75.1%, driven by R&D expenses of 350 million yuan (up 69%) and sales, general, and administrative expenses of 113 million yuan (up 97.3%) [11]. Strategic Developments - The company is investing heavily in preparation for large-scale deployment, with cash reserves of approximately 5.356 billion yuan, indicating strong financial health [13]. - The CEO emphasized that the path to achieving positive unit economics is becoming clearer, with significant progress in both cost reduction and operational scale [14][19]. Cost and Scale Improvements - The cost of the seventh-generation Robotaxi has decreased by 70%, and the company aims to achieve a fleet of over 1,000 vehicles by the end of the year, having already surpassed 500 vehicles [21]. - The operational range is expanding rapidly, with Pony.ai being the only company offering fully autonomous Robotaxi services in major Chinese cities and testing in international markets [23][25]. - The company is optimizing pricing and operational strategies to cater to different customer segments, with a 136% year-on-year increase in registered Robotaxi users [25][26].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of $21.00 [1][4][6]. Core Views - The company has shown significant revenue growth, with total revenue of $21.455 million in Q2 2025, representing a year-on-year increase of 76% and a quarter-on-quarter increase of 54% [1][2]. - The gross profit reached $3.463 million, with a gross margin of 16.1%, which is an increase of 16.5 percentage points year-on-year [1][2]. - The company is accelerating the mass production of its seventh-generation Robotaxi, having produced over 200 units since June, with a target of 1,000 units by the end of 2025 [1][2][3]. - The Robotaxi service revenue increased by 158% year-on-year, and the revenue from public charging operations surged by 300% [1][2]. - The company is focusing on optimizing single-vehicle costs, aiming for a ratio of remote safety operators to vehicles of 1:30 by the end of 2025, and reducing vehicle insurance costs by 18% [2][3]. Summary by Sections Financial Performance - The company reported a Non-GAAP net loss of $45.893 million in Q2 2025, compared to losses of $30.048 million in Q2 2024 and $28.365 million in Q1 2025 [1][2]. - The revenue from Robotruck decreased by 10% year-on-year to $9.52 million, as the company shifted its strategic focus towards higher-margin businesses [2]. Market Position and Strategy - The company is the only one in China to operate fully autonomous Robotaxi services in four first-tier cities, with over 2 million kilometers of autonomous driving mileage accumulated [3]. - Strategic partnerships are being formed, including a collaboration with a major taxi operator in Shenzhen to deploy over 1,000 Robotaxi vehicles [3]. Valuation and Forecast - The company is projected to achieve revenues of $81 million, $115 million, and $324 million for the years 2025, 2026, and 2027 respectively [4][21]. - The forecasted EV/Sales multiple for 2025 is 4.4x, with a target price of $21 based on discounted cash flow (DCF) analysis [4][21].

Summary of Pony AI Inc. (PONY) Conference Call Company Overview - **Company**: Pony AI Inc. (PONY) - **Industry**: Autonomous Vehicle Technology, specifically focusing on Robotaxi services Key Financial Highlights - **2Q25 Revenues**: Increased by 76% YoY to US$21 million, with a 53% increase QoQ [1] - **Robotaxi Fare-Charging Revenues**: Up 300% YoY, driven by the ramp-up of the Robotaxi fleet [1] - **Gross Margin (GM)**: Improved to 16.1% from -0.3% in 2Q24, attributed to a mix upgrade and better unit economics [1][10] - **Operating Loss**: Reported at US$61 million, in line with estimates of US$58 million [1] - **Production of Gen-7 Robotaxis**: Over 200 units produced, with a target of 1,000 units by the end of 2025 [1][4] Operational Developments - **Driverless Commercial Robotaxi Services**: Permits received for operations in Shanghai, with services starting in four cities [1] - **Cost Efficiency**: Lower Bill of Materials (BOM) costs and reduced remote assistance costs are expected to enhance profitability [4] Revenue Breakdown - **Robotaxi Revenues**: Increased by 158% YoY to US$1.5 million, supported by strong fare-charging growth [5] - **Licensing and Applications Revenues**: Rose by 902% YoY to US$10.4 million, driven by new orders and deliveries [10] Earnings Forecast and Valuation - **Earnings Revision**: Opex ratio revised up by 6.2 percentage points for 2025E, reflecting higher R&D and fleet deployment expenses [8] - **Target Price**: Revised to US$24.5 from US$26.0, based on a discounted EV/EBITDA method with a 13.5x multiple for 2031E [12][15] - **Market Capitalization**: Approximately US$5.2 billion [15] Risks and Challenges - **Key Risks**: Include regulatory challenges, supply chain issues, market growth for Robotaxis, personal information concerns, infrastructure limitations, pricing competition, and product liability [13] Conclusion - **Investment Recommendation**: Maintain a "Buy" rating based on the positive outlook for the Robotaxi fleet ramp-up and improving unit economics [1][15]

Market Performance - The three major U.S. stock indices rose over 1%, with the S&P 500 and Nasdaq reaching new highs. The Dow Jones increased by 1.10% to 44,458.61 points, the Nasdaq rose by 1.39% to 21,681.90 points, and the S&P 500 gained 1.13% to 6,445.76 points [2][3]. CPI Data - The U.S. Labor Department reported that the Consumer Price Index (CPI) for July increased by 2.7% year-over-year, which is below the market expectation of 2.8%. The core CPI rose by 3.1%, exceeding both the previous month's 2.9% and the market expectation of 3% [7][8]. Federal Reserve Expectations - Following the CPI data release, market expectations for a Federal Reserve rate cut in September increased significantly, with a 93.4% probability of a 25 basis point cut and only a 6.6% chance of maintaining the current rate [8]. Technology Stocks - Major technology stocks experienced gains, with Intel rising over 5%, Meta increasing by over 3% (approaching a market cap of $2 trillion), and other tech giants like Apple, Microsoft, and Google rising over 1%. Notably, Meta and Nvidia reached new closing highs [5]. Chinese Stocks - The Nasdaq Golden Dragon China Index rose by 1.49%, with Tencent Music increasing nearly 12%, and other companies like Weibo, JD, and Alibaba rising over 3%. However, NIO fell nearly 9%, and XPeng dropped over 6% [5]. International Relations - U.S. President Trump is scheduled to meet with Russian President Putin on March 15 in Anchorage, Alaska, to discuss the resolution of the Russia-Ukraine conflict. The meeting will focus on listening to Putin's perspective [10]. National Debt - The total U.S. national debt has surpassed $37 trillion for the first time, attributed to the federal government accumulating debt at a record pace [12].

Group 1 - Xiaoma Zhixing's seventh-generation Robotaxi has entered mass production and road testing, with over 500 vehicles now in operation and more than 2 million kilometers of road testing completed, indicating a strong lead in the commercialization of autonomous driving [1] - The significant progress in Xiaoma Zhixing's Robotaxi deployment may enhance market confidence in the commercialization prospects of the autonomous driving sector, potentially attracting more long-term investments into the smart driving segment [1] Group 2 - Neta Auto's associated company, Hozon New Energy Automobile Co., Ltd., has been listed as a dishonest executor by the Guangzhou Haizhu District People's Court due to violations of property reporting regulations, indicating serious issues in financial transparency and legal compliance [2] - The multiple execution orders and equity freeze risks faced by Neta Auto suggest vulnerabilities in its financial chain and operational structure, which may lead other industry players to adopt a more cautious approach [2] Group 3 - Ford is recalling over 103,000 F-150 vehicles due to potential fatigue-related failures of rear axle hub bolts, which may impact market perceptions of its quality control capabilities [3] - This recall could prompt investors to reassess the supply chain management challenges faced by traditional automakers during their transition to electric vehicles, particularly those reliant on profits from gasoline vehicles [3] Group 4 - Tesla has launched the long-range rear-wheel-drive version of the Model 3, boasting a range of 830 kilometers and a starting price of 269,500 yuan, marking a comprehensive upgrade of its product lineup [4] - The introduction of the long-range Model 3 may strengthen Tesla's competitiveness in the mid-to-high-end electric vehicle market, putting pressure on similarly priced domestic competitors [4]

Core Insights - Pony AI's second-quarter earnings report met high expectations but resulted in a nearly 4% decline in stock price due to solid yet unimpressive performance [1] Financial Performance - Revenue increased by 76% year over year to just under $21.5 million, primarily driven by a more than tenfold rise in licensing and applications revenue, which reached $10.4 million compared to slightly over $1 million in the same quarter of 2024 [2] - Net loss widened to slightly over $46 million ($0.13 per share) on a non-GAAP basis, compared to a deficit of $30 million in the previous year [3] Operational Updates - Since the launch of mass production of robotaxis two months ago, over 200 Gen-7 models equipped with Pony AI technology have been produced, keeping the company on track to meet its target of 1,000 units by the end of the year [4]

[Executive Summary & Management Commentary](index=1&type=section&id=Executive%20Summary%20%26%20Management%20Commentary) [Q2 2025 Highlights](index=1&type=section&id=Q2%202025%20Highlights) Pony.ai reported strong Q2 2025 unaudited results, with significant Gen-7 Robotaxi production, robust revenue growth, and progress towards positive unit economics - Over **200 Gen-7 Robotaxi vehicles** produced since mass production started, targeting **1,000 vehicles by year-end**[2](index=2&type=chunk) - Robotaxi revenues **more than doubled**, with fare-charging revenues surging **over 300% year-over-year**[2](index=2&type=chunk) - Total revenues grew **76% year-over-year**, reflecting effective go-to-market execution[2](index=2&type=chunk) [Management Outlook](index=1&type=section&id=Management%20Outlook) Management highlighted large-scale production and deployment, solidifying Robotaxi leadership and progress towards positive unit economics - The company is strongly driving toward positive unit economics, accelerating growth with substantial improvements in remote assistance and vehicle insurance costs[2](index=2&type=chunk) - Pony.ai's leading position is built on **fully-driverless capability** and **scale**, achieved through extensive real-world operations[2](index=2&type=chunk) - Robust Robotaxi fare-charging revenue growth underscores progress in building a scalable, recurring monetization model, enhancing long-term business visibility[2](index=2&type=chunk) [Operational Highlights](index=1&type=section&id=Operational%20Highlights) [Robotaxi Scaling & Commercial Deployment](index=1&type=section&id=Robotaxi%20Scaling%20%26%20Commercial%20Deployment) Pony.ai accelerates commercial deployment and ecosystem expansion, partnering to deploy over 1,000 Gen-7 Robotaxis in Shenzhen - Entered a strategic partnership with Shenzhen Xihu Corporation Limited to deploy **over 1,000 Gen-7 Robotaxis** in Shenzhen over the coming years[4](index=4&type=chunk) - Launched fully-driverless commercial operations in Shanghai, making Pony.ai the only company commercially operating fully-driverless Robotaxi services across **all four tier-one cities in China**[5](index=5&type=chunk) [Technology & Production Milestones](index=1&type=section&id=Technology%20%26%20Production%20Milestones) Mass production of Gen-7 Robotaxis began, with over 200 vehicles produced and a target of 1,000 by year-end, improving operational efficiency - Mass production of GAC and BAIC Gen-7 Robotaxi models began, with **over 200 produced** and accelerating toward a **1,000-vehicle target by end of 2025**[6](index=6&type=chunk) - Initiated operations in **all four tier-one cities**, accumulating **over 2 million kilometers** of on-road autonomous driving mileage[6](index=6&type=chunk) - Significant progress in cost efficiency, driven by an improving remote assistant-to-vehicle ratio (confident of achieving **1:30 by end of 2025**) and lower vehicle insurance[6](index=6&type=chunk) [Service Expansion & User Growth](index=3&type=section&id=Service%20Expansion%20%26%20User%20Growth) Pony.ai expanded service availability and user base in Q2 2025, with surging registered users and 24/7 operations in some areas - Registered users on the platform surged by **136% year-over-year** in the second quarter[7](index=7&type=chunk) - Secured testing permits for Gen-7 Robotaxis in **all four tier-one cities**, laying a solid foundation for public-facing commercial deployment[7](index=7&type=chunk) - Extended Robotaxi services from 15 hours per day to full **24/7 coverage** in certain areas of Guangzhou and Shenzhen[7](index=7&type=chunk) [Global Expansion](index=3&type=section&id=Global%20Expansion) Pony.ai expands globally, with strategic collaborations in Dubai, nationwide permits in South Korea, and road testing in Luxembourg - Reached a strategic collaboration with Dubai's Roads and Transport Authority (RTA) to integrate autonomous driving technology, starting with supervised Robotaxi trials in late **2025**[11](index=11&type=chunk) - Advanced presence in South Korea by securing **nationwide permits**, enabling Robotaxi operations across the country, and launched nighttime and early-morning operations in Gangnam district, Seoul[11](index=11&type=chunk) - Launched road testing in Lenningen, Luxembourg, in partnership with Emile Weber, following a testing permit granted earlier in the year[11](index=11&type=chunk) [Unaudited Second Quarter 2025 Financial Results](index=3&type=section&id=Unaudited%20Second%20Quarter%202025%20Financial%20Results) [Revenues](index=3&type=section&id=Revenues) Total revenues significantly increased year-over-year, driven by strong Robotaxi and Licensing growth, offsetting a slight decrease in Robotruck services Revenues (USD thousands) | Category | Q2 2024 | Q2 2025 | YoY Change | H1 2024 | H1 2025 | YoY Change | | :-------------------- | :------ | :------ | :--------- | :------ | :------ | :--------- | | Robotaxi services | 592 | 1,526 | 157.8% | 1,168 | 3,256 | 178.8% | | Robotruck services | 10,568 | 9,520 | -9.9% | 18,035 | 17,300 | -4.08% | | Licensing and applications | 1,039 | 10,409 | 901.8% | 5,517 | 14,878 | 169.6% | | **Total revenues** | **12,199** | **21,455** | **75.9%** | **24,720** | **35,434** | **43.3%** | - Robotaxi services revenues increased by **157.8% YoY**, with fare-charging revenues surging **over 300%**, driven by expanding user adoption and increased fleet deployment[12](index=12&type=chunk) - Licensing and applications revenues increased significantly by **901.8% YoY**, mainly due to increased orders and deliveries of autonomous domain controller (ADC) products[13](index=13&type=chunk) [Cost of Revenues](index=4&type=section&id=Cost%20of%20Revenues) Total cost of revenues increased by 47.0% year-over-year in Q2 2025, reflecting the scaling of operations and production Cost of Revenues (USD thousands) | Metric | Q2 2024 | Q2 2025 | YoY Change | | :--------------- | :------ | :------ | :--------- | | Cost of revenues | 12,240 | 17,992 | 47.0% | [Gross Profit (Loss) and Gross Margin](index=4&type=section&id=Gross%20Profit%20%28Loss%29%20and%20Gross%20Margin) Pony.ai achieved positive gross profit and significant gross margin improvement in Q2 2025, driven by high-margin focus and Robotaxi unit economics optimization Gross Profit (Loss) and Gross Margin (USD thousands) | Metric | Q2 2024 | Q2 2025 | YoY Change | | :---------- | :------ | :------ | :--------- | | Gross (loss) profit | (41) | 3,463 | N/A | | Gross margin | -0.3% | 16.1% | +16.4 pp | - Gross margin improvement was mainly driven by prioritizing high-margin revenue sources within Robotaxi and Robotruck services and optimizing Robotaxi unit economics, particularly key cost items such as remote assistance and vehicle insurance[20](index=20&type=chunk) [Operating Expenses](index=4&type=section&id=Operating%20Expenses) Total operating expenses significantly increased in Q2 2025 due to investments in mass production, R&D for Gen-7 Robotaxis, and personnel for deployment Operating Expenses (USD thousands) | Metric | Q2 2024 | Q2 2025 | YoY Change | | :-------------------------- | :------ | :------ | :--------- | | Operating expenses (GAAP) | 36,967 | 64,731 | 75.1% | | Operating expenses (Non-GAAP) | 36,296 | 57,526 | 58.5% | - Increase in operating expenses was primarily driven by increased investments in mass production and employee expenses for strengthening Gen-7 Robotaxi R&D capacity[16](index=16&type=chunk) [Research and Development Expenses](index=4&type=section&id=Research%20and%20Development%20Expenses) R&D expenses increased due to investments in Gen-7 vehicle mass production and enhanced employee compensation and benefits Research and Development Expenses (USD thousands) | Metric | Q2 2024 | Q2 2025 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | R&D expenses (GAAP) | 29,011 | 49,030 | 69.0% | | R&D expenses (Non-GAAP) | 28,738 | 44,060 | 53.3% | - Increase mainly due to investments in mass production for Gen-7 vehicles and increased employee compensation and benefits to strengthen technological capabilities[21](index=21&type=chunk) [Selling, General and Administrative Expenses](index=4&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) SG&A expenses rose due to increased personnel costs for commercial deployment and higher professional service fees Selling, General and Administrative Expenses (USD thousands) | Metric | Q2 2024 | Q2 2025 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | SG&A expenses (GAAP) | 7,956 | 15,701 | 97.3% | | SG&A expenses (Non-GAAP) | 7,558 | 13,466 | 78.2% | - Increase primarily due to increased personnel expenses in preparation for large-scale commercial deployment and increased professional service fees[21](index=21&type=chunk) [Loss from Operations](index=4&type=section&id=Loss%20from%20Operations) Loss from operations increased in Q2 2025 (GAAP and Non-GAAP), reflecting higher operating expenses from scaling production and R&D investments Loss from Operations (USD thousands) | Metric | Q2 2024 | Q2 2025 | YoY Change | | :------------------------ | :------ | :------ | :--------- | | Loss from operations (GAAP) | 37,008 | 61,268 | 65.5% | | Loss from operations (Non-GAAP) | 36,337 | 54,063 | 48.8% | [Net Loss](index=4&type=section&id=Net%20Loss) Pony.ai's net loss widened in Q2 2025 compared to the prior year, consistent with increased operational investments and expenses Net Loss (USD thousands) | Metric | Q2 2024 | Q2 2025 | YoY Change | | :---------------- | :------ | :------ | :--------- | | Net loss (GAAP) | 30,946 | 53,263 | 72.1% | | Net loss (Non-GAAP) | 30,275 | 46,058 | 52.1% | [Basic and Diluted Net Loss per Ordinary Share](index=4&type=section&id=Basic%20and%20Diluted%20Net%20Loss%20per%20Ordinary%20Share) Despite increased net loss, basic and diluted net loss per ordinary share decreased significantly in Q2 2025 due to a substantial increase in outstanding shares Basic and Diluted Net Loss per Ordinary Share (USD) | Metric | Q2 2024 | Q2 2025 | YoY Change | | :---------------------------------------------------------------- | :------ | :------ | :--------- | | Basic and diluted net loss per ordinary share (GAAP) | (0.92) | (0.14) | -84.8% | | Basic and diluted net loss per ordinary share (Non-GAAP) | (0.91) | (0.13) | -85.7% | | Weighted average number of ordinary shares outstanding (Q2 2025) | 91,777,215 | 366,831,015 | 299.7% | [Balance Sheet and Cash Flow Summary](index=5&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Summary) As of June 30, 2025, Pony.ai held significant cash and investments, with Q2 2025 financing activities providing cash from employee share sales Cash and Investments (USD thousands) | Metric | As of Dec 31, 2024 | As of June 30, 2025 | | :---------------------------------------------------------------- | :----------------- | :------------------ | | Cash and cash equivalents, short-term investments, restricted cash and long-term debt instruments for wealth management | N/A | 747,700 | - Financing activities provided **US$33.1 million** in cash in Q2 2025, an increase from Q2 2024, primarily due to funds collected from employee share sales post-lock-up period[22](index=22&type=chunk) [Corporate Information & Disclosures](index=5&type=section&id=Corporate%20Information%20%26%20Disclosures) [Conference Call Details](index=5&type=section&id=Conference%20Call%20Details) Pony.ai scheduled a conference call for August 12, 2025, to discuss Q2 2025 financial results, with registration and replay information provided - A conference call was scheduled for **August 12, 2025**, at **8:00 AM U.S. Eastern Time** to discuss financial results[23](index=23&type=chunk) - Participants can register online to receive dial-in numbers and access PIN, with a replay accessible until **August 19, 2025**[24](index=24&type=chunk)[25](index=25&type=chunk) [Exchange Rate Information](index=5&type=section&id=Exchange%20Rate%20Information) The press release provides translations of RMB amounts to USD for convenience, using the rate of RMB7.1636 to US$1.00 as of June 30, 2025 - All translations from RMB to USD were made at the rate of **RMB7.1636 to US$1.00**, the noon buying rate in effect on **June 30, 2025**[26](index=26&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) Pony.ai uses non-GAAP measures, excluding share-based compensation and warrant liability changes, to clarify business trends, not as a GAAP substitute - Non-GAAP financial measures exclude **share-based compensation expenses** and **changes in fair value of warrants liability**[27](index=27&type=chunk) - These measures help identify underlying trends and enhance understanding of past performance and future prospects, but should not be considered in isolation from U.S. GAAP financial information[27](index=27&type=chunk)[28](index=28&type=chunk) [About Pony AI Inc.](index=6&type=section&id=About%20Pony%20AI%20Inc.) Pony.ai, founded in 2016, is a global leader in autonomous mobility commercialization, leveraging its Virtual Driver technology for mass production and deployment - Pony.ai is a global leader in achieving **large-scale commercialization of autonomous mobility**[30](index=30&type=chunk) - The company utilizes its **vehicle-agnostic Virtual Driver technology**, a full-stack autonomous driving solution, to enable mass production and deployment of vehicles[30](index=30&type=chunk) - Founded in **2016**, Pony.ai has expanded its presence across China, Europe, East Asia, the Middle East, and other regions[30](index=30&type=chunk) [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) The press release contains forward-looking statements subject to risks and uncertainties, not updated unless legally required - The press release contains forward-looking statements identifiable by terms such as 'will,' 'expects,' 'anticipates,' and similar statements[31](index=31&type=chunk) - Forward-looking statements involve inherent risks and uncertainties, and Pony.ai does not undertake any obligation to update them, except as required by applicable law[31](index=31&type=chunk) [Investor and Media Inquiries](index=6&type=section&id=Investor%20and%20Media%20Inquiries) Contact information for investor relations and media inquiries is provided - Investor Relations can be reached at **ir@pony.ai**, and media inquiries via Christensen Advisory at **pony@christensencomms.com**[32](index=32&type=chunk) [Appendix: Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Appendix%3A%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets and shareholders' equity from December 31, 2024, to June 30, 2025, while total liabilities increased Unaudited Condensed Consolidated Balance Sheets (USD thousands) | Metric | As of Dec 31, 2024 | As of June 30, 2025 | | :-------------------------------- | :----------------- | :------------------ | | Total current assets | 834,622 | 701,801 | | Total non-current assets | 216,199 | 289,245 | | **Total assets** | **1,050,821** | **991,046** | | Total current liabilities | 70,886 | 113,373 | | Total liabilities | 82,110 | 126,781 | | Total shareholders' equity | 968,711 | 864,265 | | Total liabilities and shareholders' equity | 1,050,821 | 991,046 | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The statement of operations shows significant revenue growth but increased operating expenses, leading to a higher net loss for Q2 and H1 2025 compared to prior year Unaudited Condensed Consolidated Statements of Operations (USD thousands) | Metric | Q2 2024 | Q2 2025 | H1 2024 | H1 2025 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Revenues | 12,199 | 21,455 | 24,720 | 35,434 | | Cost of revenues | (12,240) | (17,992) | (22,134) | (29,655) | | Gross (loss) profit | (41) | 3,463 | 2,586 | 5,779 | | Total operating expenses | (36,967) | (64,731) | (74,304) | (123,090) | | Loss from operations | (37,008) | (61,268) | (71,718) | (117,311) | | Net loss | (30,946) | (53,263) | (51,775) | (90,640) | | Net loss attributable to Pony AI Inc. | (30,719) | (53,098) | (51,317) | (96,086) | | Net loss per ordinary share, basic and diluted | (0.92) | (0.14) | (1.14) | (0.27) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement indicates increased cash usage in operating and investing activities for Q2 and H1 2025, with financing activities providing cash in Q2 2025 Unaudited Condensed Consolidated Statements of Cash Flows (USD thousands) | Metric | Q2 2024 | Q2 2025 | H1 2024 | H1 2025 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Net cash used in operating activities | (18,046) | (25,411) | (59,122) | (79,570) | | Net cash used in investing activities | (83,013) | (67,145) | (28,669) | (160,416) | | Net cash (used in)/provided by financing activities | (357) | 33,086 | (710) | 23,600 | | Net change in cash, cash equivalents and restricted cash | (99,148) | (60,637) | (91,205) | (217,431) | | Cash, cash equivalents and restricted cash at end of period | 335,000 | 318,741 | 335,000 | 318,741 | [Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results](index=10&type=section&id=Unaudited%20Reconciliation%20of%20U.S.%20GAAP%20and%20Non-GAAP%20Results) This section reconciles GAAP to Non-GAAP financial measures, adjusting for share-based compensation and warrant liability changes for alternative performance view Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results (USD thousands) | Metric | Q2 2024 (GAAP) | Q2 2025 (GAAP) | Q2 2024 (Non-GAAP) | Q2 2025 (Non-GAAP) | | :------------------------------------------ | :------------- | :------------- | :----------------- | :----------------- | | Research and development expenses | (29,011) | (49,030) | (28,738) | (44,060) | | Selling, general and administrative expenses | (7,956) | (15,701) | (7,558) | (13,466) | | Operating expenses | (36,967) | (64,731) | (36,296) | (57,526) | | Loss from operations | (37,008) | (61,268) | (36,337) | (54,063) | | Net loss | (30,946) | (53,263) | (30,275) | (46,058) | | Net loss attributable to Pony AI Inc. | (30,719) | (53,098) | (30,048) | (45,893) | | Net loss per ordinary share, basic and diluted | (0.92) | (0.14) | (0.91) | (0.13) | | Free cash flows (Non-GAAP) | N/A | N/A | (19,782) | (34,987) | - Non-GAAP adjustments primarily involve adding back **share-based compensation expenses** and **changes in fair value of warrants liability**[40](index=40&type=chunk) - Free Cash Flows (Non-GAAP) are defined as cash flows from operating activities less capital expenditures[42](index=42&type=chunk)