Pony AI (NasdaqGS:PONY) Q3 2025 Earnings Call November 25, 2025 07:00 AM ET Company ParticipantsBen Wang - DirectorTiancheng Lou - CTOLeo Wang - CFOJames Peng - Chairman and CEOGeorge Shao - Head of Capital Market and Investor RelationsKyle Wu - Research Data ScientistSerena Li - Senior ManagerConference Call ParticipantsPurdy Ho - Chief Analyst for Overseas TechnologyNone - Analyst 2Ming Hsun Lee - Managing Director and Equity Research AnalystXinyu Fang - Research AnalystNone - AnalystOperatorHello, ladies ...

Pony AI (NasdaqGS:PONY) Q3 2025 Earnings Call November 25, 2025 07:00 AM ET Company ParticipantsBen Wang - DirectorTiancheng Lou - CTOLeo Wang - CFOJames Peng - Chairman and CEOGeorge Shao - Head of Capital Market and Investor RelationsKyle Wu - Research Data ScientistSerena Li - Senior ManagerConference Call ParticipantsPurdy Ho - Chief Analyst for Overseas TechnologyNone - Analyst 2Ming Hsun Lee - Managing Director and Equity Research AnalystXinyu Fang - Research AnalystNone - AnalystOperatorHello, ladies ...

Core Insights - Pony AI Inc. has achieved significant milestones in the commercialization of autonomous mobility, including a dual primary listing on the Hong Kong Stock Exchange and the launch of its seventh generation Robotaxi [2][5][28] - The company reported a robust revenue growth of 72.0% year-over-year in Q3 2025, driven by strong performance in Robotaxi services and Licensing & Applications [12][19] - The Gen-7 Robotaxi has reached city-wide unit economics breakeven in Guangzhou, indicating a viable business model for future expansion [6][19] Financial Performance - Total revenues for Q3 2025 were US$25.4 million (RMB181.1 million), up from US$14.8 million (RMB105.5 million) in Q3 2024 [12][34] - Robotaxi services revenues increased by 89.5% year-over-year to US$6.7 million (RMB47.7 million), with fare-charging revenues surging over 200% [12][19] - Licensing and applications revenues saw a significant increase of 354.6% year-over-year, reaching US$8.6 million (RMB61.0 million) [12][19] Cost and Profitability - Cost of revenues in Q3 2025 was US$20.8 million (RMB147.9 million), reflecting a 54.7% increase from US$13.4 million in Q3 2024 [10][34] - Gross profit for Q3 2025 was US$4.7 million (RMB33.2 million), with a gross margin of 18.4%, up from 9.2% in Q3 2024 [19][34] - Operating expenses rose to US$74.3 million (RMB529.2 million), a 76.7% increase from US$42.1 million in Q3 2024 [14][34] Operational Highlights - The company has expanded its Robotaxi operations in major tier-one cities in China, including Shanghai and Shenzhen, with significant user engagement [4][7] - The fleet consists of 961 Robotaxi vehicles, including 667 Gen-7 units, with plans to exceed 1,000 vehicles by year-end [6][19] - The Gen-7 Robotaxi has received positive user feedback, with daily average orders per vehicle reaching 23 [19] Strategic Initiatives - Pony AI has raised over US$800 million through its Hong Kong IPO to support mass production, commercialization, and R&D innovation [5][21] - The company is pursuing an asset-light strategy through partnerships, enabling faster fleet expansion and market entry [11][28] - The launch of the Gen-4 Robotruck is anticipated in 2026, with significant cost savings in production [11][12]

WeRide (WRD.O/0800.HK) Conference Call Summary Company Overview - **Company**: WeRide - **Ticker**: 0800.HK (H-share), WRD.O (ADR) - **Founded**: 2017 - **Industry**: Autonomous Driving - **Global Presence**: Operations in over 30 cities across 11 countries, with permits in seven markets including China, Saudi Arabia, UAE, Singapore, France, Belgium, and the US [16][21] Key Points Coverage Initiation - **Rating**: Initiated coverage on WeRide-H with a Buy/High Risk rating - **Target Price**: HKD39.6 for H-share and US$15.3 for ADR, adjusted from US$18.2 due to share dilution from H-share listing [1][4] Market Forecast - **Robotaxi Market Growth**: - Fleet size expected to grow from 3.8k units in 2025 to 538k units in 2030 and 2.3 million units in 2035 - CAGR of 169% from 2025 to 2030 and 34% from 2030 to 2035 - Total addressable market for robotaxis in China projected to reach US$15 billion in 2030 and US$68 billion in 2035, with a CAGR of 229% from 2025 to 2030 [2] Cost Reduction - **Vehicle Cost**: Anticipated decline in full vehicle cost per Robotaxi to US$32.4k in 2030 and US$28.2k in 2035, with a CAGR of -6% from 2025 to 2030 and -3% from 2030 to 2035 [2] Major Milestones - **Expansion**: Launched Robotaxi and Robobus pilots in Ras Al Khaimah, UAE, marking the third emirate of operation [3][10] Financial Projections - **EPS Forecast**: Updated EPS forecast for 2025-27E to Rmb -4.44/-3.89/-2.82, down from Rmb -5.34/-4.68/-3.39 due to share dilution [4] - **Free Cash Flow**: Expected outflow of Rmb1.58 billion in 2025, Rmb1.16 billion in 2026, and Rmb1.14 billion in 2027, with potential refinancing needed in 2027 [9] Valuation Metrics - **Valuation Methodology**: DCF valuation with a WACC of 17.1% and a terminal growth rate of 2% - **Target Price Implications**: Implies 13x 2027E PS and 1.3x 2030E PS/9.0x 2030E PE, with current trading around 8x 2027E PS and 0.8x 2030E PS/5.6x 2030E PE [4][18] Investment Strategy - **High-margin Overseas Business**: Significant milestones achieved overseas, with partnerships with Uber and Grab to accelerate deployment of L4 robotaxis [17][22] - **Cost Advantages**: Latest robotaxi model GXR priced at USD 40k with advanced computing power of 2,000 TOPS, expected fleet size of 1k units by end-2025 [17][22] Risks - **High Risk Rating**: Due to loss-making status and uncertainties in robotaxi development - **Key Risks**: Include technological challenges, business model uncertainty, safety concerns, competition, regulatory risks, cash shortages, and limited operating history [19][24] Conclusion - WeRide is positioned as a leader in the autonomous driving sector with significant growth potential in the robotaxi market, supported by strategic partnerships and cost advantages. However, the company faces substantial risks that could impact its future performance.

Summary of Pony AI Research Call Company Overview - **Company**: Pony AI Inc. (PONY.O/2026.HK) - **Founded**: 2016 - **Industry**: Autonomous Mobility and Robotaxi Services - **Key Markets**: Operates in four tier-1 cities in China (Beijing, Shanghai, Guangzhou, Shenzhen) [15][20] Core Insights - **Coverage Initiation**: Citi initiates coverage on Pony AI with a Buy/High Risk rating and a target price of HKD190.9 for H-shares and US$24.5 for ADRs, reflecting share dilution post-H-share listing [1][3] - **Market Growth**: The China Robotaxi fleet is projected to grow from 3.8k units in 2025 to 538k units in 2030 and 2.3 million units by 2035, with a total addressable market expected to reach US$15 billion in 2030 and US$68 billion in 2035 [1] - **Market Share**: Pony AI is expected to capture 20% of the domestic Robotaxi fleet market share by 2030, with a fleet size of 109.2k units [1] Financial Projections - **Earnings Forecast**: Updated EPS forecast for 2025-2027 is US$-0.58/-0.59/-0.35, improved from previous estimates due to share dilution [3] - **Valuation Metrics**: Target price implies 38x 2027E PS and 28.0x 2030E PE, with current trading around 25x 2027E PS [3][17] Cost Dynamics - **Cost Reduction**: Full vehicle cost per Robotaxi is expected to decline at -6% CAGR to US$32.4k in 2030 and -3% CAGR to US$28.2k in 2035 due to scale effects and technology improvements [1] Regulatory Milestones - **Regulatory Approvals**: Pony AI has secured significant regulatory milestones, including city-wide permits for fully-driverless commercial Robotaxi operations in Shenzhen [2][9] Competitive Advantages - **Regulatory Edge**: Pony AI holds a dominant position in obtaining domestic robotaxi licenses across major cities, providing a competitive advantage [16][21] - **Technological Leadership**: Focus on Level 4 autonomous driving technology enhances safety and reliability compared to competitors [16][21] - **Cost Efficiency**: The 7th-generation robotaxi has a vehicle cost of US$38k, significantly lower than both domestic and US competitors [16][21] Risks - **High-Risk Rating**: The company is rated as High Risk due to loss-making status and uncertainties in the robotaxi sector [3][18] - **Key Risks Identified**: Include technological challenges, business model uncertainties, safety concerns, competition, regulatory risks, cash shortages, and evolving technology uncertainties [18][23] Conclusion - **Investment Recommendation**: Pony AI is positioned as a leading player in the autonomous mobility sector with significant growth potential, but investors should be aware of the inherent risks associated with the industry [1][3][18]

Core Insights - VisionWave Holdings, Inc. is set to begin field testing of its Varan UGV in December 2025 in Europe, in collaboration with a major defense industry partner, following all necessary regulatory approvals [1] - The Varan UGV represents a significant advancement in defense technology, addressing the evolving battlefield dynamics where inexpensive drones can counter heavily armored vehicles [2] - The Varan is designed for exceptional mobility, adaptability, and modularity, featuring a proprietary drive train that combines the agility of robotic platforms with the speed of wheeled vehicles and the terrain dominance of tracked systems [3] Technology and Features - The Varan is powered by advanced 4D radar and a proprietary autonomous navigation engine, enabling it to operate individually or in swarms while navigating complex terrains and detecting threats in real time [4] - Its modular design allows for rapid reconfiguration with various payloads, including counter-UAS modules, active protection systems, remote weapon systems, troop transport, and casualty evacuation configurations [5][8] - The platform is available in electric and hybrid variants, optimized for stealth, endurance, and rapid deployment, offering cost efficiency compared to other systems in development [5] Development and Leadership - Developed by VisionWave's UK engineering team, the Varan is built using scalable and interoperable architecture to support mass production and multi-domain integration [6] - The CEO of VisionWave emphasized that the Varan is not just a vehicle but a living system of automation and adaptability, marking a new generation of battlefield intelligence [6][10] - The Varan is the first in a series of next-generation ground autonomy systems currently under development by VisionWave [11] Market Positioning - The upcoming European field trials will showcase the Varan's capabilities in swarm coordination, modular payload integration, and all-terrain endurance, positioning VisionWave as a leader in autonomous multi-domain defense innovation [10] - The Varan is seen as a pivotal development in unmanned warfare, with the potential to lead the next evolution of ground-based autonomous systems [9]

Core Viewpoint - Pony AI Inc. is launching its initial public offering (IPO) in Hong Kong, offering 41,955,700 Class A ordinary shares, with a dual-primary listing on the Hong Kong Stock Exchange under the stock code "2026" [1] Offering Details - The Hong Kong IPO consists of a public offering of 4,195,600 Class A ordinary shares and an international offering of 37,760,100 Class A ordinary shares, starting on October 28, 2025 [1] - The initial allocation for the Hong Kong Public Offering and the International Offering represents 10% and 90% of the total shares available, respectively, with potential adjustments based on oversubscription [2] - The maximum offering price for the Hong Kong Public Offering is set at HK$180.0 (approximately US$23.17) per Class A ordinary share [3] Investment Agreements - The Company has secured cornerstone investment agreements with certain investors, committing to subscribe for shares at the International Offering Price for a total of US$120.0 million [4][5] Use of Proceeds - The net proceeds from the IPO will be utilized for market strategies, research and development of Level 4 autonomous driving technology, and general working capital [6] Underwriters and Coordinators - The IPO is being managed by several financial institutions, including Goldman Sachs, Merrill Lynch, Deutsche Bank, and Huatai, serving various roles such as joint sponsors and global coordinators [7] Company Overview - Pony AI Inc. is recognized as a leader in the commercialization of autonomous mobility, focusing on developing a sustainable business model for mass production and deployment of autonomous vehicles [11]

Core Insights - Pony AI and Stellantis have signed a non-binding memorandum of understanding to accelerate the development of robo taxi solutions in Europe [1] - The partnership aims to combine Pony's autonomous driving software with Stellantis' medium van platform for urban mobility solutions [1] - Testing is set to begin in the coming months, with broader deployment planned for 2026 [1] Company Developments - Pony AI operates a fleet of over 500 robo taxis and over 170 robo trucks [2] - The company is listed on NASDAQ under the ticker symbol PY [2] Strategic Goals - The collaboration focuses on validating safety, performance, and regulatory compliance during trials [1] - Pony AI's CEO emphasized the importance of Stellantis' European presence and brand portfolio in accelerating growth in the market [1]

Core Insights - WeRide launched its Robotaxi GXR and Robobus pilot services in Ras Al Khaimah, marking its first deployment in the emirate and expansion into its third UAE market [1] - The pilot integrates WeRide's autonomous vehicles into the public transport system of Ras Al Khaimah, making WeRide the sole partner in the emirate's smart mobility strategy [1][4] - The Robobus will initially operate across nine stops on Al Marjan Island, while the Robotaxi GXR will serve the city center, with commercial operations expected to start in early 2026 [3] Company Developments - His Highness Sheikh Saud bin Saqr Al Qasimi became the first passenger to ride the Robobus on public roads, highlighting the significance of the launch [2] - WeRide signed a Memorandum of Understanding with RAKTA to provide advanced technology, operational support, and training for the safe deployment of autonomous vehicles [4] - Despite the international expansion, WeRide's stock has underperformed, dropping over 27% year-to-date compared to rival Pony AI's over 60% returns [4] Regulatory Environment - A new policy from Beijing will require Chinese exporters of pure electric passenger vehicles to secure licenses starting January 1, 2026, tightening oversight of EV exports [5] - This regulatory change comes as WeRide pursues global growth, including securing a Dubai permit for Robotaxi trials and plans to scale its fleet from 50 to 1,000 Robotaxis by 2030 [6] Market Performance - WeRide's stock was trading higher by 2.71% to $10.60 premarket following the news of the pilot launch [6]

Core Insights - The global robotaxi market is projected to grow from $400 million in 2023 to $45.7 billion by 2030, representing a compound annual growth rate (CAGR) of 91.8% [1][2][3] Market Dynamics - The growth is driven by economic factors, technological advancements, and changing urban mobility trends [4] - Major ride-hailing companies face high driver compensation costs, consuming 60-80% of gross revenues, which robotaxis aim to eliminate [5] - The shift to robotaxis could reduce per-mile costs by 40-60% and enhance profit margins for operators deploying autonomous fleets [6] Competitive Landscape - Five major companies dominate the robotaxi market, attracting significant investment from automotive OEMs like Ford, Volkswagen, Toyota, and General Motors [7] Market Segmentation - **Vehicle Type**: Autonomous cars will lead in market share and growth, while vans and shuttles are emerging for public transit and goods delivery [9] - **Autonomy Level**: Level 4 autonomous vehicles will dominate near-term deployments due to lower regulatory barriers [10] - **Propulsion**: Electric vehicles are expected to account for over 95% of robotaxi deployments, aligning with emission reduction goals and lower operating costs [11][13] Regional Insights - The Asia Pacific region is expected to capture the largest market share, bolstered by supportive regulatory frameworks in China [14][15] - North America benefits from advanced testing infrastructure and permissive regulations, particularly in states like California, Arizona, and Nevada [16] Challenges - Despite optimistic forecasts, challenges such as technical complexity and capital requirements for operating robotaxi fleets remain significant [17]