XPeng Posts Record 2025 Revenue Despite $1.6B Net Loss, Turns First-Ever Quarterly Profit in Q4

XPeng Inc.'s 2025 financial report shows total annual revenue of RMB 76.72 billion, an 87.7% year-over-year increase, with vehicle deliveries reaching 429,445 units—a surge of 125.9% compared to the prior year. Although the company reported a net profit of RMB 3.8 billion in Q4, marking its first-ever quarterly profit in history, it still posted a full-year net loss of RMB 1.14 billion. Gross margin improved to 21.3% in Q4 and reached 18.9% for the full year. Revenue from high-margin "services and other income"—including technology licensing, parts sales, and carbon credits—soared by 121.9% year-over-year to RMB 3.18 billion in Q4, making a significant contribution to overall performance. Total R&D investment for the year amounted to RMB 9.5 billion, of which RMB 4.5 billion was allocated to AI-related initiatives; AI investment is expected to rise to RMB 7 billion in 2026. However, the company forecasts that Q1 2026 deliveries will decline by nearly 30% year-over-year, with total revenue projected to drop by 16%–22.8% compared to the same period last year. XPeng is accelerating its strategic shift toward monetizing technology, with new jointly developed models with Volkswagen set to launch soon, though near-term profitability and cash flow pressures remain.