Li Auto Reports RMB 1.704 Billion Net Loss in Q2 FY2026, Swings from Profit to Loss Year-over-Year

Li Auto Inc. released its unaudited financial results for the second fiscal quarter of 2026 (April to June 2026) on August 26, 2026. Total net revenues for the quarter amounted to RMB 25.667 billion, representing a 15.1% year-over-year decrease and an 11.7% quarter-over-quarter increase. Gross profit was RMB 2.836 billion, down 53.3% year-over-year but up 56.9% quarter-over-quarter, resulting in a gross margin of 11%. Net loss attributable to ordinary shareholders was RMB 1.704 billion, shifting from a net profit in the same period last year to a net loss this quarter, though the loss narrowed by 25.1% compared to the previous quarter. Basic and diluted earnings per share were both -RMB 0.85. Total vehicle deliveries in Q2 2026 reached 98,330 units, a 11.5% year-over-year decline but a 3.35% increase from 95,142 units in Q1 2026. Net cash generated from operating activities amounted to RMB 150.25 million, turning from a net outflow to a net inflow. Free cash flow was negative RMB 13.01 billion, down 66.1% year-over-year but up 82.4% quarter-over-quarter. In June 2026, Li Auto launched the all-new Li L8 and commenced deliveries; in July, it unveiled and began delivering the next-generation Li L6, completing a comprehensive refresh of its L-series lineup. As of June 30, 2026, the company operated 495 retail stores and 536 service and repair centers across 160 cities, and had deployed 4,097 ultra-fast charging stations. During the quarter, the company completed share repurchases totaling approximately HKD 2.1 billion (approximately RMB 1.805 billion) and USD 151 million (approximately RMB 1.017 billion). Cumulatively, the company has repurchased approximately USD 632 million (approximately RMB 4.258 billion) worth of shares. For the third quarter of 2026, the company expects vehicle deliveries to range between 95,000 and 100,000 units, representing a year-over-year increase of 1.9% to 7.3%. Total revenue is expected to be between RMB 26.6 billion and RMB 28.0 billion, reflecting a year-over-year change of -2.8% to +2.3%.