Lotus Technology Q2 2025 Earnings Report

Lotus Technology EPS Results

• Actual EPS: -$0.20
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Lotus Technology Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Lotus Technology Announcement Details

• Quarter: Q2 2025
• Date: 8/29/2025
• Time: Before Market Opens
• Conference Call Date: Friday, August 29, 2025
• Conference Call Time: 8:00AM ET

Lotus Technology (NASDAQ:LOT) Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.

Lotus Technology Q2 2025 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: In Q2, Lotus delivered 1,400 vehicles, down 49% year-over-year, and reported revenue of $126 million, marking a ~45% drop amid model transition, tariffs, and destocking.
• Positive Sentiment: Despite margin pressure, gross margin remained positive at 5% in Q2 and 8% for H1, while operating expenses have been cut for seven consecutive quarters, improving efficiency.
• Positive Sentiment: Lotus secured up to $300 million in convertible notes funding and a master credit facility with Geely, strengthening liquidity and financial flexibility.
• Positive Sentiment: The product pipeline includes a hyper-hybrid 900V plug-in SUV launching in Q1 next year and an internal Vision X model slated for 2027, showcasing advanced range and charging technology.
• Positive Sentiment: The planned consolidation of Lotus Tech with Lotus Cars UK under the "One Lotus" strategy aims to integrate operations and unlock synergies in technology and manufacturing.

Presentation

[Operator]

Good day and thank you for standing by. Welcome to Lotus Technology Inc. First Half and Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session.

[Operator]

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Michelle Ma, Head of Investor Relations at Lotus Technology. Please go ahead.

[Executive]

Thank you, Maggie. Good morning and good evening, everyone. We appreciate you joining us as we review Lotus Tech's financial results for the first half and second quarter twenty twenty five. Our financial results and the conference call materials were published earlier today and are available on our Investor Relations website. We are also broadcasting this call via webcast.

[Executive]

Joining us today are CEO, Mr. Qing Feng Feng and the CFO, Doctor. Dashie Wang. Before we continue, please be reminded that today's discussion will contain forward looking statements pursuant to the Safe Harbor provisions of The U. S.

[Executive]

Private Securities Litigation Reform Act of 1995. Forward looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in relevant filings of Lotus Tech with the U. S.

[Executive]

Securities and Exchange Commission. The company undertakes no obligation to update any forward looking statement, except as required under applicable law. Please also note that our earnings press release and this conference call will include disclosure of unaudited GAAP financial information as well as unaudited non GAAP financial measures. You can find a reconciliation of these figures in the press release available on our Investor Relations website at ir.rooklotus.com. With that, I'd like to turn the call over to our CFO, Doctor. Wang, please.

[Daxue Wang, CFO at Lotus Technology]

Good morning, good day and good evening, all of the shareholders, analysts and friends from the media. Thank Thank you very much for joining our first half and second quarter twenty twenty five earnings release. My name is Daxi Wang, the Chief Financial Officer of Lotus. It's my privilege to briefly walk you through the company's audited interim financial results. In the second quarter, the company delivered over 1,400 vehicles to distributors, a decrease of 49% year on year.

[Daxue Wang, CFO at Lotus Technology]

As a result, total deliveries for the first half of the year exceeded 2,800 units, down by 43% compared to the same period last year. These figures reflect a scheduled transition period as upgraded models began deliveries in Q2, the impact of The U. S. Tariff policies as well as ongoing destocking activities of the company. Revenue narrowed to US126 million dollars in the second quarter and US218 million dollars for the first half, down 4445% year on year respectively.

[Daxue Wang, CFO at Lotus Technology]

Gross margin for the Q2 stood at 5%, down four percentage points from the same quarter last year. Although quarterly gross margin decreased by five percentage points on a year on year basis, we achieved a first half gross margin of 8%, remaining are safely in the positive territory. Now let me break down our sales by category and by region. By category, lifestyle vehicles accounted for 83% of the total deliveries in the Q2, up from 36% in Q1. As a result, they contributed 68% of total deliveries in the first half of the year.

[Daxue Wang, CFO at Lotus Technology]

By region, deliveries in China showed notable growth following the start of the deliveries of the upgraded Eletras HyperXUVs in the second quarter. In fact, it has become a leading model in China's premium battery electric SUV segment during this period. In The UK, our battery electric lifestyle vehicles demonstrated significant year on year improvement. Deliveries of the Emera to North America were disrupted in Q2 due to tariff disputes, but already resumed in July. In terms of sales channels, the total number and regional composition of our retail stores remained stable throughout the first half of the year.

[Daxue Wang, CFO at Lotus Technology]

Now turn to the key financials. I've already covered deliveries, revenues and gross margin. Now let me move to other financial metrics. The cost of revenues decreased by 42% year on year to US199 million dollars in Q2 and US200 million dollars in the first half of the year. This result in a gross profit of US7 million dollars for the first quarter for the second quarter and US80 million dollars for the half.

[Daxue Wang, CFO at Lotus Technology]

We reported operating loss of US160 million dollars in the Q2, a 22% improvement year on year. Net loss for the quarter was $130,000,000 down 36%. For the first half of the year, operating loss was $263,000,000 a 40% year on year decrease, while the net loss narrowed to $313,000,000 down by 32%. For reference, on a non GAAP adjusted basis, net loss for the quarter was $2,000,000 lower, primarily due to the impact of share based compensation. Beyond these numbers, I would like to emphasize that we have now reduced operating expenses for seven consecutive quarters, underscoring the company's strong commitment to enhancing the operational efficiency and continuing to deliver values.

[Daxue Wang, CFO at Lotus Technology]

Our first half operating expense has lowered by 42% year on year. Despite challenges posed by market volatility and policy uncertainties, we have achieved several key milestones. Our CEO, Ms. Feng, will elaborate on this shortly. With that, I will now turn the floor over to Ms. Feng. Thank you.

[Qingfeng Feng, CEO & Director at Lotus Technology]

Hello, everyone. This is Qing Feng Feng, CEO of Lotus Technology. Let me brief you on the latest achievements and then recent developments. First, let me begin with new funding arrangements of the company. So on 08/19/2025, we have entered into a security purchase agreement with ATW Partners, pursuant to which the company agrees to issue and sell convertible notes for up to an aggregated principal amount of US300 million dollars Present to this agreement, Lotus has issued already notes in the original principal amount of US10 million dollars on the date of August 19.

[Qingfeng Feng, CEO & Director at Lotus Technology]

And on the other side, we have also secured funding commitments from our strategic partner, Geely. So on 07/28/2025, Lotus has also entered into a master credit facility framework agreement with Geely. On the marketing front, in July, we have proudly announced our official return to Goodwood Festival by unveiling the Emera Cup race car at the event. And we have also exhibited our concept vehicle, Series one with also the full lineup including the HyperCar Evaya, the HyperGTE EMEA, the HyperSUV Eletra and also our proud sports car, Emera, as well as several legacy race cars to numerous goodwill to visitors. And then we have also seen a positive result in terms of our U.

[Qingfeng Feng, CEO & Director at Lotus Technology]

K. Market sales. And on the AI side, the Lotus Robotics, a wholly owned subsidiary of the company, which are focused on AI and autonomous driving. The company has entered into MOU with a strategic partner in The Middle East to pursue a strategic collaboration in terms of AI and autonomous driving technologies, including the exploration of a robotaxi in Saudi Arabia. A few words on the product pipeline, beginning with our sports car, Emera.

[Qingfeng Feng, CEO & Director at Lotus Technology]

So we are rolling out the model year 2026 next month globally. And then in terms of our future plan for Emera, we're going to upgrade our powertrain in 2027 to comply with EU7. That includes also the potential consideration of a V six engine and then also alternative plug in hybrid solutions.

And

[Qingfeng Feng, CEO & Director at Lotus Technology]

the model year '26, Electra and MEA are being delivered to the market globally. And also as most of our friends are concerned, the plug in hybrid vehicle, we are in good progress. We're going to start our production of that model end of this year and then begin to market entry deliveries quarter one next year, beginning with China market. And then for the future, we'll also roll out to Europe and some other markets. And then we have also a new model, internal project code, we call it Vision X.

[Qingfeng Feng, CEO & Director at Lotus Technology]

That project, we are foreseeing to launch into the market in 2027. And also a brief introduction of the hyper hybrid technology, which Lotus possess. Some highlights of the 900 volt hyper hybrid EV technology. So we can with this technology, we can deliver the combined driving range of over 1,000 kilometers. And also the highlights of the technology includes the industry leading dual hypercharging technology, meaning that we enjoy the ultrafast plug in charging and also the ultrafast on the drive charging.

[Qingfeng Feng, CEO & Director at Lotus Technology]

The ultrafast plug in charging speed is leading the industry, very similar to a battery swap. And then also on the drive charging, we can achieve the rate of five times the power consumption of the typical driving. And also, we can provide uninterrupted electric driving performance in any of the situations, including acceleration at very high speeds and also in extreme cold weather. So with this technology, Lotus will be unveiling this technology into our first plug in hybrid model this year. The deliveries of the model, which I have previously introduced, will beginning in twenty twenty six quarter one.

[Qingfeng Feng, CEO & Director at Lotus Technology]

And also, I would like to mention a few words on our intelligent chassis system, which will be also equipped in our first plug in hybrid model launching end of this year. So with this technology, we are able to achieve a dual mode of driving function driving mode. So on a comfort mode that we're tuning this vehicle to allow the comfort of the daily use. And also, we can tune to the performance mode while the drivers, our users can enjoy in the extreme conditions, extreme performance. So with this technology previously without this technology previously that comfort and the performance is always hard to balance.

[Qingfeng Feng, CEO & Director at Lotus Technology]

But with this technology equipped in our vehicle and with the fine tuning of our chassis performance team, they will be able to elaborate, we will be able to perform the vehicle of two very different driving modes. We can enjoy the comfort in daily use and also we can enjoy the performance the performance driving mode. And then some of our global market strategy. So in China market, the sales network, we have also planned to strategically phase out some of the underperforming outlets, while we continue to broaden our urban coverage. We also developed a very customized and tailor made pricing and product strategies aligned with every single market and every single user demands that we enter into across the globe.

[Qingfeng Feng, CEO & Director at Lotus Technology]

Whilst we are strategically prioritizing the tariff advantage to markets and then the premium EV markets with growth potential. This is supported by an U. K.-anchored brand hub for expansion into the Europe. We're actively collaborating with multiple strategic partners to architect a localized market entry solution, leveraging the JD's global ecosystem synergy. As according to our plan, the regional share of our deliveries is balanced.

[Qingfeng Feng, CEO & Director at Lotus Technology]

So North America enjoyed 20%, Europe enjoyed 38% ROW, 13% while China enjoyed 29%. A few words on our AI front. So as we previously introduced the Lotus Robotics, it does not only provide intelligent driving solutions to Lotus, but also to other global leading auto partners. It is a one stop provider of intelligent driving and also providing the R and D and engineering solutions to our customers. So it provides intelligent driving software and hardware R and D and including the procurement services.

[Qingfeng Feng, CEO & Director at Lotus Technology]

We're leading one model algorithm and then also providing the L2 and L2 plus ADAS software and its upgrades over the year. We have the global coverage. So to date, the ADAS and PaaS solution fully delivered across Europe, Asia, GCC, North America, Asiana and so on, with the latest highway assist functions upgraded in Europe and well received by the market. Our clients include multiple brands from the JD ecosystem, but also to emphasize as well as other clients, external clients such as a leading European conglomerate, a top Japanese Tier one supplier and few others. On the future growth in the next two or three years, we are planning to equip to provide the services to another 10 different models, including passenger vehicles and also the commercial vehicles.

[Qingfeng Feng, CEO & Director at Lotus Technology]

And we are actively seeking an upgrade of our technology solution using the large model algorithm to be able to enable the company to deliver a level four or level five solutions to the globe. And also, we introduced previously, we have entered into a strategic partnership to allow us to explore the robotaxi project expansion in Saudi Arabia.

Thank you.

[Executive]

Thank you, Mr. Zhong and Doctor. Wang. This concludes our opening comments. And we will now move to the Q and A portion of the call. Operator, please.

[Operator]

Thank you. You. Just a moment for our first question. First question comes from Edison Yu from Deutsche Bank U. S. Please go ahead.

[Laura Li, Equity Research Associate at Deutsche Bank]

Hey, this is Laura on for Edison. Thanks for taking our question. Could you share more details about the company's product roadmap and the future business outlook? How should we think about the upcoming product launches and the growth trajectory, etcetera? Thank you.

[Qingfeng Feng, CEO & Director at Lotus Technology]

So as we introduced earlier that the powertrain technology, I'll say a few more on the powertrain technology. So we will actively promoting our hyper hybrid technology. And then the first vehicle to equip will be SUV launching into the market, begin delivery to the customer starting from quarter one next year. So and also you can see in the presentation deck that we have another vehicle. It's a new type of vehicle.

[Qingfeng Feng, CEO & Director at Lotus Technology]

Also will be equipped with the hyper hybrid technology. It will have the strong embedded Lotus DNA inside with the performance targeted product definition. So as a global brand, every single product that we develop, we are developing into global standards and global compliance. So basically, that's for Eletra and MEA, we have the homologation of majority of the markets, including The U. S.

[Qingfeng Feng, CEO & Director at Lotus Technology]

However, that we have seen The U. S. Tariff fluctuations throughout this year. So we expect that with the ease expect if the tension is eased, then we will be hoping to deliver those vehicles into The United States again. In terms of our proud Emera sports car, So we are having a facelift in the 2027 due to the EU7 kicking.

[Qingfeng Feng, CEO & Director at Lotus Technology]

So for that, we are planning to have an upgrade on our V six engine and also plugging hybrid as an alternative.

Thank you.

[Operator]

Thank you. Just a moment for our next question please. Next we have Eugene Hsin from Macquarie Capital. Please go ahead.

[Eugene Hsiao, Head of A-share Thematic Research at Macquarie Capital]

Thank you, management, for, taking my question. I'd like to ask, about the put option that was exercised, I think, in, early July and the expected merger with Lotus UK. Could you please help explain the One Lotus strategy and then how you plan to integrate this business and any expected synergies? Thank you.

[Qingfeng Feng, CEO & Director at Lotus Technology]

So on the One Lotus, so basically as per current status, so we have the Lotus cars in The UK who develop and manufacture sports car and we have a Lotus tech to develop and manufacture the lifestyle vehicles. So in terms of consolidation plan that we see big room for efficiency improvement, while we consolidate a lot of the functions together, so including the technology synergies. So basically that we introduced the Emera. Once we have done the consolidation of One Lotus, so Lotus UK will be also enjoying the Lotus tax hyper hybrid plug in hybrid solution. And then we have also ambitious goals for the Lotus Class operation in the future that we will focus on the very high performance attributes and also the high performance engineering services that we can seek external clients.

[Qingfeng Feng, CEO & Director at Lotus Technology]

And then as per the Lotus Tech operation in China that we will focus on the intelligence and then also electrification engineering and development in China, while we have the synergies between both. Because the company has delivered all the prerequisites of the port option in 2024. So we are and then also the consolidation plan has been officially approved by the Board. So we are now in the process of closing. We are targeting to close the deal by end of this year nor latest by quarter one next year.

Okay. Thank you.

[Operator]

You. Due to time constraint, we will conclude the Q and A session. I will now pass back to Michelle for closing remarks.

[Executive]

Great. All right. And with that, I think we are all done for today. If you have any questions, please feel free to contact our IR team through the contact information on our website. We look forward to talking to you next quarter. Thank you very much, and goodbye.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Daxue Wang, CFO
• Qingfeng Feng, CEO & Director

Analysts

• Executive
• Laura Li, Equity Research Associate at Deutsche Bank
• Eugene Hsiao, Head of A-share Thematic Research at Macquarie Capital