Kandi Technologies Group NASDAQ: KNDI reported first-half 2026 revenue growth of 57.4% as higher off-road vehicle sales and contributions from its newly acquired Rawrr electric motorcycle business helped return the company to operating profitability.
Revenue for the six months ended June 30 rose to $57.1 million from $36.3 million in the prior-year period. Chief Financial Officer Alan Lim said the increase was driven primarily by greater off-road vehicle sales and revenue from Rawrr, which Kandi acquired in February 2026.
Net income increased 452.2% year over year to $9.4 million, or $0.10 per basic and diluted share, compared with $1.7 million, or $0.02 per share, a year earlier. Operating income was $5.5 million, compared with an operating loss of $1.9 million in the first half of 2025.
Revenue Growth Outpaces Operating Expenses
Gross profit increased to $20.8 million from $16.4 million a year earlier, while gross margin was 43.4%, compared with 45.2% in the prior-year period. Cost of goods sold increased 62.3% to $33.3 million, reflecting the higher sales volume, Lim said.
Total operating expenses rose 5.3% to $19.3 million. Research and development expense declined 3.5% to $2.4 million, while selling expense increased 10% to $5 million because of higher sales activity. General and administrative expense rose 5.4% to $11.9 million.
Lim said higher revenue and gross profit, coupled with operating expenses that remained “relatively stable and controllable,” drove the improvement in earnings.
As of June 30, Kandi had $285.7 million in cash and cash equivalents, restricted cash and certificates of deposit, up from $211.9 million at Dec. 31, 2025. Working capital stood at $189.5 million at the end of the period.
Core North American Business Gains Momentum
Chief Executive Officer Feng Chen said the company’s North American off-road electric vehicle business remains its core operation, spanning utility terrain vehicles, golf carts and other electric off-road products. Revenue from the core off-road electric vehicle business increased 59.4% to $54.2 million during the first half, including $6.1 million from Rawrr.
According to Chen, average monthly sales through Kandi’s U.S. dealer network doubled from the prior-year period. He attributed the growth to greater sales from existing dealers and the addition of new dealer partners.
The company continued clearing slow-selling and older vehicle inventory during the first half and expects to complete a transition to an all-new Kandi-branded product lineup in the fourth quarter. Management said it is coordinating inventory optimization, product launches and channel upgrades to offer dealers and retail partners a more competitive product mix.
Rawrr, which has more than 300 dealer partners, is contributing revenue and remains a focus of Kandi’s post-acquisition integration efforts. Chen said the company is combining Kandi’s research, manufacturing and supply-chain capabilities with Rawrr’s brand and distribution network to improve product development and sales execution in the U.S. market.
Rawrr expanded its team, refined its operating systems and promoted its brand through racing events, trade shows and social media during the first half, according to management. The business is developing a new product lineup planned for launch in 2027.
Battery Swapping Orders and Data Center Energy Expansion
Kandi said its battery-swapping equipment business has entered volume production. In July, subsidiary China Battery Exchange received its first batch order from CATL’s QIJI Energy subsidiary for heavy-duty truck battery-swapping-station equipment. Chen said the subsidiary received another batch order two months later.
The company expects the battery-swapping business to generate meaningful revenue in the second half of 2026. Management’s priorities include fulfilling orders, improving product quality and delivery efficiency, strengthening after-sales service and pursuing follow-on orders.
Kandi is also expanding into AI data center backup power and energy storage through Xinchu New Energy, in which it acquired a controlling stake during the third quarter. Xinchu became an authorized solutions reseller of Schneider Electric in July, according to the company.
Management said Xinchu will combine Schneider Electric’s uninterruptible power supply and data center infrastructure products with its own energy storage battery and battery management system capabilities to provide integrated backup-power and energy-storage solutions. The unit has begun receiving overseas orders and is expected to make a meaningful revenue contribution in 2026, Kandi said.
Second-Half Priorities and 2027 Outlook
For the second half, Chen outlined four operational priorities:
- Scale deliveries of battery-swapping equipment and support Xinchu New Energy’s pursuit of additional overseas orders.
- Maintain sales momentum in North American off-road electric vehicles while refining channels and updating the Kandi-branded lineup.
- Build Rawrr’s team, supply chain and distribution network ahead of its planned 2027 product launches.
- Continue research and development on application-specific intelligent robotics solutions.
Kandi’s intelligent robotics initiative remains in an early research-and-development stage, focused on autonomous quadruped robots for security patrol, inspection and logistics-park applications. Management said future investment decisions will be guided by customer needs, product fit and real-world validation.
Looking toward 2027, Chen said the company expects upgraded Kandi products, Rawrr’s new launches and emerging-business revenue to support stronger growth. He added that Kandi plans to maintain disciplined capital allocation, assessing investments, acquisitions and capacity expansion based on commercial progress, expected payback periods, risks and returns.
About Kandi Technologies Group (NASDAQ:KNDI)
Kandi Technologies Group, Inc is a China-based manufacturer and developer of electric vehicles and powersports products. Through its subsidiaries, the company offers electric passenger vehicles, utility vehicles, recreational vehicles, all-terrain vehicles, golf carts and related products.
The company also develops and sells electric off-road vehicles, including electric UTVs, ATVs and other recreational and utility models. Its product portfolio has included vehicles designed for personal transportation, property maintenance, recreation and other light-duty applications, as well as related parts and accessories.
Kandi Technologies was founded in 2002 and is headquartered in Jinhua, Zhejiang Province, China.
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