NIO Q1 Earnings Call Highlights

Key Points

• NIO posted sharp Q1 growth, with deliveries up 98.3% year over year to 83,465 vehicles and revenue more than doubling to RMB 25.5 billion. The company also reported a much smaller operating loss and generated positive operating cash flow.
• Margins improved materially as vehicle margin rose to 18.8% and overall gross margin reached 19%, helped by a more favorable product mix. Management still expects vehicle margins of about 17% to 18% in Q2 and for the full year, but warned that rising input costs could pressure profitability.
• New models are driving the outlook, with the ES8 showing strong momentum and the flagship ES9 set to launch on May 27. NIO also highlighted continued expansion at ONVO and Firefly, and said it is targeting positive non-GAAP operating profit for full-year 2026.

NIO NYSE: NIO reported sharply higher first-quarter deliveries and revenue, with management pointing to stronger margins, a broader product cycle and continued investment in battery-electric vehicle technology as key themes for 2026.

On the company’s earnings call, William Li, NIO’s founder, chairman and chief executive officer, said the company delivered 83,465 smart electric vehicles in the first quarter, up 98.3% from a year earlier. By brand, the NIO brand delivered 58,543 vehicles, ONVO delivered 13,339 vehicles and Firefly delivered 11,583 vehicles.

Li said the NIO brand maintained its leadership in China’s battery-electric vehicle segment priced above RMB 300,000, while Firefly ranked first in China’s high-end small car segment. He also said April deliveries totaled 29,356 vehicles, up 22.8% year over year.

Looking ahead, Li said the company’s three brands have entered an “intensive product launch and delivery cycle” beginning in the second quarter, which he said is expected to support continued delivery growth. According to the call transcript, management said it expects second-quarter deliveries to range between 11,000 and 11,500 units, representing year-over-year growth of 52.7% to 59.6%.

Revenue More Than Doubles as Margins Improve

Stanley Qu, NIO’s chief financial officer, said total first-quarter revenue reached RMB 25.5 billion, up 112.2% year over year but down 26.3% from the prior quarter. Vehicle sales were RMB 22.8 billion, up 129.2% from a year earlier and down 27.9% sequentially.

Qu attributed the year-over-year increase in vehicle sales to higher deliveries and a higher average selling price, driven by a favorable product mix. The sequential decline was mainly due to fewer deliveries.

Vehicle margin rose to 18.8%, compared with 10.2% in the prior-year quarter and 18.1% in the fourth quarter. Overall gross margin increased to 19%, compared with 7.6% a year earlier and 17.5% in the previous quarter. Qu said the margin gains were driven by a more favorable product mix.

Other sales, which include services and community-related businesses, generated RMB 2.7 billion in revenue, up 31.2% year over year. The margin for other sales reached 20.6%, which Qu described as a record high for the past four years.

NIO reported a loss from operations of RMB 0.3 billion, compared with an operating loss of RMB 6.4 billion in the same quarter last year and operating profit of RMB 0.8 billion in the prior quarter. Excluding share-based compensation, adjusted operating profit was RMB 66.8 million. Adjusted net profit was RMB 43.5 million.

Qu said NIO generated positive operating cash flow in the quarter and ended the period with RMB 48.2 billion in cash and cash equivalents, restricted cash, short-term investments and long-term time deposits.

ES8 Momentum and ES9 Launch in Focus

Li highlighted the performance of the all-new ES8, saying it reached 100,000 deliveries in 215 days after deliveries began in late September 2025. He said the vehicle set a delivery record among passenger vehicles priced above RMB 400,000 in China and had remained No. 1 in both the large SUV segment and the passenger vehicle segment priced above RMB 400,000 for five consecutive months as of April.

NIO is preparing to launch and begin deliveries of the ES9, its flagship executive SUV, on May 27. Li said the ES9 integrates “multiple industry first technologies” and is intended to set a new benchmark in China’s flagship executive SUV market priced above RMB 500,000.

In response to an analyst question, Li said NIO does not usually disclose specific order intake, but said the ES9 has been well received since pre-launch and test drives began May 11. He added that the ES9 has not cannibalized demand for the ES8. Instead, Li said ES8 order intake rose 30% week over week after ES9 test drives began, and that ES8 order intake in the first 20 days of May reached a new high since the model’s launch last year.

ONVO and Firefly Expand Product Lineups

For ONVO, Li said the L90 continued to perform strongly in the first quarter, ranking No. 1 in the large SUV segment priced between RMB 200,000 and RMB 300,000. The 2026 L90 has been launched and delivered, with upgrades including NIO’s in-house NX9031 smart driving chip, NIO World Model and SkyOS full-domain operating system.

Li also discussed the ONVO L80, a large five-seat SUV launched and delivered on May 15. He said the L80 has the largest cargo capacity among five-seat SUVs in China and is designed around space and lifestyle use cases. In the Q&A session, Li said the L80’s order intake was meeting expectations, though he noted that ONVO’s main challenge remains brand awareness because it has been delivering vehicles for about 20 months.

Firefly, NIO’s high-end small car brand, has begun deliveries of a refreshed model in the second quarter. Li said the refresh includes upgrades to powertrain performance and smart experiences, and the brand will continue to introduce limited-edition models.

Cost Pressures Temper Margin Outlook

Qu said NIO expects vehicle margin to be around 17% to 18% in the second quarter and for the full year. He noted that the broader auto industry is facing rising costs for memory chips, lithium carbonate, NCM materials, copper and aluminum. Starting in the second quarter and beyond, Qu said the average cost impact per unit is more than RMB 10,000.

To offset those pressures, Qu said NIO plans to increase the contribution of higher-priced, higher-margin models such as the ES8 and ES9, maintain stable pricing and promotional policies for other models, and work with suppliers on engineering improvements, efficiency initiatives and commercial negotiations.

Li said NIO’s strategy is to stabilize prices while dialing back some discounts and promotions, rather than sacrificing margins for volume. He said the company is targeting reasonable volume growth while improving margin and EBIT performance.

Technology, Charging Network and Profit Targets

Li said NIO has rolled out a major version of its NIO World Model, which supports its smart driving system. Within one quarter of the rollout, urban Navigate on Pilot mileage increased 92% quarter over quarter, while the proportion of smart driving usage time increased 116%, he said. Another major upgrade for NIO and ONVO users is planned for June.

Li also said NIO’s in-house NX9031 intelligent driving chip has shipped more than 250,000 units and that more than 80% to 85% of the company’s vehicles are expected to be equipped with the chip in the second half of the year.

NIO operates 168 NIO Houses, 389 NIO Spaces, 430 ONVO stores, 408 service centers and 90 delivery centers. The company also has 3,916 Power Swap Stations worldwide, along with more than 28,000 Power Chargers and destination chargers. Li said NIO aims to build more than 1,000 Power Swap Stations this year, with fifth-generation stations expected to roll out at scale beginning in the third quarter.

For 2026, Qu said NIO’s financial target is to achieve positive non-GAAP operating profit for the full year. He said the company expects non-GAAP research and development spending of about RMB 2 billion to RMB 2.5 billion per quarter, while aiming for selling, general and administrative expenses to be around 10% of revenue over time, though quarterly levels may vary due to product launch activity.

About NIO NYSE: NIO

NIO Inc is a pioneer in the premium electric vehicle (EV) segment, dedicated to the design, development and manufacture of smart, high-performance EVs. Established in November 2014 and headquartered in Shanghai, China, the company focuses on integrating cutting-edge electric propulsion, advanced connectivity and autonomous driving technologies into its automotive platforms. NIO's vision centers on creating a holistic user experience that extends beyond the vehicle itself, encompassing energy services and digital solutions.

The company's product lineup includes flagship SUVs and sedans such as the ES8, ES6, EC6, ET7 and ET5, each engineered to deliver strong performance, long range and a suite of intelligent driver-assistance features.

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