Autohome NYSE: ATHM reported second-quarter revenue of CNY1.2 billion and an operating profit of CNY130 million, while outlining expansion plans in online vehicle retailing, offline franchise services, artificial intelligence and used-car exports.
Chief Financial Officer Craig Yan Zeng said the company’s innovative businesses continued to advance during the quarter as it seeks to develop a broader automotive service ecosystem. The company reported CNY19.36 billion in cash, cash equivalents, short-term investments and other long-term investments as of June 30, along with CNY261 million in operating cash flow for the quarter.
Second-Quarter Financial Results
Autohome’s media services revenue was CNY280 million in the second quarter, while lead generation services generated CNY560 million and online marketplace and other revenue totaled CNY357 million.
Cost of revenue declined to CNY274 million from CNY503 million a year earlier, lifting gross margin to 77.1% from 71.4%. Sales and marketing expense fell to CNY552 million from CNY630 million, product development expense declined to CNY223 million from CNY253 million, and general and administrative expense decreased to CNY96 million from CNY133 million.
Despite the lower operating costs, operating profit fell from CNY297 million in the prior-year quarter. Adjusted net income attributable to Autohome was CNY277 million, compared with CNY476 million a year earlier. Non-GAAP diluted earnings per ADS were CNY2.46, down from CNY4.04 in the prior-year period.
New Retail Network Expands
Zeng described new retail as an important strategic initiative intended to connect Autohome’s online demand generation with offline vehicle delivery and service capabilities.
In late April, the company began piloting an online vehicle-purchase model with authorized dealers in Shenzhen and Xi’an. Dealers post pricing through the company’s mall, customers select vehicles and make deposits online, and contracts and delivery are completed offline. More than 400 dealers joined the two-city pilot, offering more than 1,000 models, and the program completed more than 1,000 transactions in 70 days, according to Zeng.
Autohome expanded the model during the second quarter to Suzhou, Jinan and Shijiazhuang. The five-city program is focused primarily on higher-tier cities.
The company also introduced Autohome Good Car, an offline franchise chain aimed at lower-tier cities. The franchise program launched at the end of June and had attracted more than 100 stores as of the call. Zeng said the Autohome app will remain central to online customer acquisition, while franchisees and authorized dealer stores will handle delivery.
AI Products and User Traffic
In early July, Autohome launched a public beta of Cheese Car Butler, its proprietary automotive-focused intelligent agent product. The product uses the company’s automotive content, product database, MCN ecosystem and offline service network to offer vehicle comparisons, purchase guidance and maintenance-related services.
Zeng said Cheese Car Butler had entered a feedback-collection phase and received an initially positive market response. The company plans to improve its underlying model capabilities, refine the user experience and add more offline service resources.
Autohome also introduced an intelligent-driving channel that profiles the intelligent-driving capabilities of nearly 200 mainstream vehicle models. Separately, its mini program became the exclusive provider of comprehensive automotive services for Alipay’s Auto Live Channel in June. According to QuestMobile data cited by management, Autohome’s daily active users reached 76.5 million in June, rising year over year.
Used-Car Export and Industry Conditions
Autohome formally received used-car export qualifications in the second quarter and completed its first export transaction in early July. The company has established a multilingual international website and an offline fulfillment network, with business leads spanning more than 100 countries.
Zeng said the company sees an advantage in its brand recognition, access to used-vehicle supply, standardized inspection systems and digital services such as around-the-clock customer support and multilingual tools. Autohome recently expanded its vehicle inspection checklist to 265 items from 128, including 82 additional assessments designed for new-energy vehicles.
Management said it will focus next on securing higher-quality vehicle supply, expanding overseas customer acquisition and improving the export platform’s operating efficiency.
On the broader market, Zeng said domestic passenger-vehicle retail sales fell 20% year over year in the first seven months of 2026, while domestic new-vehicle sales declined 22% in the second quarter. He cited a China Passenger Car Association forecast for full-year passenger-vehicle retail sales to decline 16% year over year to fewer than 20 million units.
However, management pointed to continued new-energy vehicle penetration and export growth. Passenger-vehicle exports rose 74% year over year in the first seven months, Zeng said, with new-energy vehicles accounting for more than half of export volume. He said the company expects some recovery in the second half for its media business, citing the traditional September and October auto-sales period and multiple planned vehicle launches.
Capital Returns
Autohome completed its previously authorized $200 million ADS repurchase program ahead of schedule, repurchasing about 10.63 million ADS as of July 30. On July 28, the board authorized a new $400 million ADS repurchase program to be executed over 12 months. As of Aug. 14, the company had repurchased about 1.9 million ADS under the new authorization for approximately $43.6 million.
The company also distributed a CNY500 million cash dividend for the first half of 2026 at the end of July. Zeng said Autohome remains committed to paying at least CNY1.5 billion in cash dividends for the full year.
About Autohome (NYSE:ATHM)
Autohome Inc NYSE: ATHM operates one of China’s leading online destinations for automobile consumers, offering a comprehensive suite of digital platforms and services throughout the vehicle ownership lifecycle. Headquartered in Beijing, the company’s core website and mobile applications deliver news, reviews, pricing information, photos, videos and interactive tools to help prospective buyers evaluate new and used vehicles. By aggregating rich editorial content with user-generated ratings and expert analyses, Autohome seeks to guide consumers through research, purchase and after-sales decision-making.
In addition to its consumer-facing properties, Autohome provides automakers, dealers and service providers with integrated digital marketing and e-commerce solutions.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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