Kandi Technologies Group Q4 Earnings Call Highlights

Key Points

• Revenue down 31.5% to $87.4 million in 2025 and net loss widened to $95.6 million ($1.12 per share), driven mainly by anti-dumping duty expenses, higher litigation costs and weaker demand for EV and recreational vehicle products.
• Margins and liquidity improved: gross margin rose to 42.6% from 30.8%, Kandi generated $96.8 million in net cash from operations and ended the year with $211.9 million in cash despite the revenue decline.
• 2026 "dual-engine" growth plan focuses on North American off-road EVs (UTVs, golf carts and the Rawrr acquisition) alongside battery-swap equipment and intelligent robotics — including CATL qualification and a three-year cooperation for heavy-truck swap stations and a JV with HawkRobo targeting a robotics demo by June 2026.

Kandi Technologies Group NASDAQ: KNDI used its full-year 2025 earnings call to emphasize operational and balance sheet improvements despite a sharp decline in revenue and a wider annual net loss. Management described 2025 as a “pivotal year” and outlined a dual-engine strategy for 2026 focused on North American off-road electric vehicles and new businesses in battery swapping equipment and intelligent robotics.

Management cites stronger margins, cash flow and liquidity

Chief Executive Officer Feng Chen, speaking through an interpreter, said the company has been operating amid “a challenging macro backdrop marked by evolving geopolitics, shifting trade policies and uneven demand across our end markets,” which weighed on performance. Even so, Chen said Kandi made “meaningful improvements in operating quality, a stronger cash flow profile, and a materially healthier balance sheet.”

Chen highlighted margin and cash flow progress, noting that gross margin improved to 42.6% in 2025 from 30.8% in 2024. He also said the company generated $96.8 million in net cash from operating activities and ended the year with $211.9 million in cash on hand. “These results reflect our commitment to high-quality earnings, more sustainable cash flows, and stronger returns on invested capital,” he said.

2025 financial results: revenue down, net loss wider

Chief Financial Officer Alan Lim reported net revenue of $87.4 million for 2025, down 31.5% from $127.6 million in 2024. Lim attributed the decline primarily to “reduced demand for EV products in the PRC market and fewer sales of crossover golf carts and other vehicle models.” He also pointed to macro and policy factors, saying “ongoing trade uncertainties, including the potential tariffs and trade restrictions, together with persistent inflation and elevated interest rates,” hurt consumer demand for higher-priced recreational vehicles and reduced sales to Kandi’s major retail customers and distributors.

Cost of goods sold fell to $50.1 million from $88.3 million, which Lim said was primarily due to the decrease in sales. Gross profit was $37.3 million compared with $39.3 million a year earlier. Gross margin rose to 42.6% from 30.8%; Lim said the margin improvement was “primarily driven by increased sales of the previously impaired inventory.”

Total operating expenses declined 12.6% to $91.5 million from $108.1 million. Within operating expenses:

• Research and development increased to $7.6 million from $5.0 million, up 52.6%, which Lim attributed mainly to “the completion of research and development projects during the current period.”
• Selling and marketing decreased to $16.7 million from $21.2 million, down 21.5%, driven by lower freight and commission expenses in line with lower revenue.
• General and administrative declined to $54.4 million from $57.7 million, down 5.7%, which Lim said was mainly due to reduced depreciation and amortization following a “material impairment of long-term assets provision in 2024.”

Loss from operations narrowed to $57.2 million from $68.8 million. However, net loss widened to $95.6 million from $51.0 million in 2024. Lim attributed the change primarily to higher expenses tied to anti-dumping duty expenses and increased litigation costs compared with the prior year. Basic and diluted net loss per share was $1.12, versus $0.59 in 2024.

Dual-engine strategy for 2026: North American off-road EVs and new growth businesses

Chen said that after reassessing “business boundaries, growth trajectory, and long-term overall direction,” the company will enter a “new phase of growth” starting in 2026, anchored around two core engines.

The first engine is Kandi’s off-road electric vehicle business focused on North America, spanning UTVs, golf carts and other electric off-road products. Chen described this segment as Kandi’s “core franchise,” supporting stable cash flows and a developed distribution network. He said the “core business remained stable” in the first quarter, with progress in distribution expansion and improved per-dealer sales performance. Looking into 2026, Chen said Kandi is advancing its North American UTV business across four dimensions: next-generation model development, enhanced product experience, improved channel efficiency and strengthened supply chain capabilities.

Chen added that Kandi has set internal sales targets “meaningfully above historical levels” and has engaged an external automotive design team “with proven mass production experience” to help design next-generation UTV products, with a stated aim to improve competitiveness in outdoor recreation and low-carbon mobility markets.

The second engine combines battery swapping equipment and intelligent robotics. Chen characterized battery swapping equipment as the company’s “most important breakthrough opportunity in 2026.” He said that in August 2025, the company’s subsidiary China Battery Exchange was qualified as a battery swap equipment supplier within CATL’s supply chain and secured its first order for heavy truck battery swap station equipment. In January 2026, Chen said China Battery Exchange entered a three-year strategic cooperation agreement with a CATL subsidiary covering mass production and delivery of heavy truck battery swap station equipment. “Based on our current order visibility and production schedule, we are confident in achieving meaningful revenue growth in 2026,” Chen said.

Rawrr acquisition and robotics milestone targets

Chen also discussed a deal to expand Kandi’s North American product portfolio. He said that in December 2025, the company signed an agreement to acquire Rawrr, which he described as a premium U.S.-based electric off-road motorcycle brand. With Rawrr, Chen said Kandi aims to establish electric off-road motorcycles as a “meaningful new growth category” in North America by 2026. He cited potential synergies with Kandi’s distribution network, supply chain and product lineup, and said integration priorities include “brand alignment, channel coordination, supply chain optimization, and product development,” with an emphasis on turning the acquisition into “meaningful, measurable revenue contribution.”

On intelligent robotics, Chen said the company is targeting deployments of autonomous quadruped robots in security, patrol and logistics parking environments. He said Kandi entered a strategic partnership with HawkRobo Systems LLC to form a joint venture, KH Robotics, aimed at developing localized testing, validation and commercial operations capabilities in North America. Chen said the company expects to complete a first functional demo “by approximately June 2026,” followed by field testing and initial pilot deployments in the second half of the year, while refraining from near-term revenue guidance given the early stage of deployment.

Chen said Kandi intends to maintain a disciplined approach to capital allocation, arguing that the company’s cash position is meant to preserve flexibility in an uncertain environment. He added that future investments, acquisitions or capacity expansion would be evaluated against benchmarks including “commercial progress, cash payback cycles, and risk-adjusted returns.”

About Kandi Technologies Group NASDAQ: KNDI

Kandi Technologies Group, Inc is a China-based manufacturer focused on the design, development and production of electric vehicles (EVs), batteries and charging infrastructure. The company offers a range of small, neighborhood electric vehicles (NEVs) under its own brand and supplies key components—including battery packs and electric drive systems—to automotive partners. In addition to vehicle manufacturing, Kandi is engaged in the development and operation of charging stations and battery-swap facilities intended to support EV adoption in urban environments.

Founded in 2002 and headquartered in Jinhua, Zhejiang Province, Kandi began its operations producing all-terrain vehicles (ATVs) and recreational off-road products.

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