Pony Ai(PONY) - 2025 Q2 - Quarterly Results

Executive Summary & Management Commentary Q2 2025 Highlights 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] - Robotaxi revenues more than doubled, with fare-charging revenues surging over 300% year-over-year[2] - Total revenues grew 76% year-over-year, reflecting effective go-to-market execution[2] Management Outlook 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] - Pony.ai's leading position is built on fully-driverless capability and scale, achieved through extensive real-world operations[2] - Robust Robotaxi fare-charging revenue growth underscores progress in building a scalable, recurring monetization model, enhancing long-term business visibility[2] Operational Highlights Robotaxi Scaling & Commercial Deployment 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] - 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] Technology & Production Milestones 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] - Initiated operations in all four tier-one cities, accumulating over 2 million kilometers of on-road autonomous driving mileage[6] - 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] Service Expansion & User Growth 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] - Secured testing permits for Gen-7 Robotaxis in all four tier-one cities, laying a solid foundation for public-facing commercial deployment[7] - Extended Robotaxi services from 15 hours per day to full 24/7 coverage in certain areas of Guangzhou and Shenzhen[7] Global Expansion 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] - 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] - Launched road testing in Lenningen, Luxembourg, in partnership with Emile Weber, following a testing permit granted earlier in the year[11] Unaudited Second Quarter 2025 Financial Results 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] - Licensing and applications revenues increased significantly by 901.8% YoY, mainly due to increased orders and deliveries of autonomous domain controller (ADC) products[13] Cost of Revenues 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 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] Operating Expenses 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] Research and Development Expenses 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] Selling, General and Administrative Expenses 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] Loss from Operations 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 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 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 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] Corporate Information & Disclosures Conference Call Details 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] - Participants can register online to receive dial-in numbers and access PIN, with a replay accessible until August 19, 2025[24][25] Exchange Rate Information 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] Non-GAAP Financial Measures 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] - 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][28] About Pony AI Inc. 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] - The company utilizes its vehicle-agnostic Virtual Driver technology, a full-stack autonomous driving solution, to enable mass production and deployment of vehicles[30] - Founded in 2016, Pony.ai has expanded its presence across China, Europe, East Asia, the Middle East, and other regions[30] Safe Harbor Statement 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] - 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] Investor and Media Inquiries 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] Appendix: Unaudited Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Balance Sheets 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 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 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 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] - Free Cash Flows (Non-GAAP) are defined as cash flows from operating activities less capital expenditures[42]