Hesai Group Reports Third Quarter 2025 Unaudited Financial Results

Core Insights - Hesai Group reported strong financial results for Q3 2025, achieving net revenues of RMB795.4 million (US$111.7 million), a 47.5% increase year-over-year, and net income of RMB256.2 million (US$36.0 million), marking a significant turnaround from a net loss in the same period last year [2][3][11]. Financial Performance - Quarterly net revenues reached RMB795.4 million (US$111.7 million), up from RMB539.4 million in Q3 2024, reflecting a 47.5% increase [11]. - Gross margin for Q3 2025 was 42.1%, down from 47.7% in Q3 2024, attributed to a decrease in high-margin service revenues [11][12]. - Net income for Q3 2025 was RMB256.2 million (US$36.0 million), compared to a net loss of RMB70.4 million in Q3 2024 [11][12]. - The company achieved a nine-month total net income of RMB283 million (US$40 million), surpassing its full-year target a quarter early [3][11]. Operational Highlights - Total lidar shipments for Q3 2025 were 441,398 units, a 228.9% increase from 134,208 units in Q3 2024 [10]. - ADAS lidar shipments were 380,759 units, up 193.1% from 129,913 units in the same period last year [10]. - Robotics lidar shipments reached 60,639 units, representing a 1311.9% increase from 4,295 units in Q3 2024 [10]. Business Developments - The company secured design wins from its top two ADAS customers, achieving 100% lidar adoption across all their 2026 models [3][6]. - New lidar supply agreements were signed with leading global autonomous driving companies, indicating strong demand and potential for future growth [4][6]. - The successful completion of the Hong Kong IPO raised US$614 million, enhancing the company's financial position [3][11]. Market Position - Hesai maintained a leading position in the long-range automotive lidar market with a 46% market share as of August 2025, significantly ahead of its competitors [3][6]. - The shift towards multi-lidar setups for Level 3 autonomous vehicles is expected to expand the company's addressable market significantly, with potential revenues of US$500–1,000 per vehicle [3][6].