Uxin Q4 Earnings Call Highlights

Key Points

• Uxin posted rapid retail growth with 51,110 units in 2025 (+135% YoY) and 19,160 units in Q4 (+124% YoY), while expanding its superstore footprint (five stores at end‑2025, Tianjin opened March 2026) and targeting 4–6 new superstores in 2026 to exceed 10 by year‑end as it pursues a long‑term opportunity across >200 cities and an estimated >3 million annual retail market.
• Margins were pressured by promotional pricing and early ramp costs at new stores—Q4 gross margin fell to 6.8% with an adjusted EBITDA loss of RMB 27.2m—but full‑year gross margin held at 6.7% and adjusted EBITDA loss narrowed 28% YoY, and management expects gross margin to recover to above 7% as new stores mature over 6–9 months.
• For Q1 2026 Uxin guided retail volume of 16,200–16,500 units (>110% YoY) and revenue of RMB 1.05–1.07 billion, and expects ASP to trend higher (above RMB 61,000) with revenue growth outpacing transaction growth in 2026.

Uxin NASDAQ: UXIN highlighted rapid growth in retail used-car transactions and continued expansion of its “superstore” footprint during its earnings call for the fourth quarter and full-year ended Dec. 31, 2025. Founder and CEO Dai Kun and CFO John Lin also discussed margin dynamics tied to new store ramp-ups and provided first-quarter 2026 guidance.

Management frames a large, early-stage market opportunity

In prepared remarks, Dai described China’s used-car market as still relatively early in its development despite a large installed base of vehicles. Management said China’s vehicle ownership has approached 370 million units and that used-car transaction volume exceeded 20 million units in 2025 for the first time, representing about 5.5% of total vehicle ownership. Dai contrasted that with 10% to 15% levels typical of more mature markets, suggesting significant runway if China’s penetration rate rises.

Dai said consumers are increasingly focused on transparency in vehicle condition, fair pricing, professional service, and reliable after-sales support. He positioned Uxin’s strategy as a “modern retail approach” that uses self-operated reconditioning factories to support vehicle quality, paired with offline superstores and an online marketplace to offer a one-stop purchasing experience and after-sales services.

Full-year 2025: transaction growth and expansion of the superstore model

Uxin reported full-year 2025 retail transaction volume of 51,110 units, up 135% year-over-year, which management said marked the second consecutive year of more than 130% growth. Total revenue for 2025 was RMB 3.24 billion, up 79% year-over-year, while Dai added that inventory turnover days for vehicles available for sale remained stable at about 30 days as the company scaled.

On the footprint, Dai said Uxin expanded beyond its earlier superstores in Hefei and Xi’an, opening three new superstores in Wuhan, Zhengzhou, and Jinan during 2025. He said mature superstores in Xi’an and Hefei each achieved over 20% market share in their respective cities, and he described Wuhan as the first replicated store after the model was validated, with stronger sales growth and profitability than earlier superstores at the same stage. He added that Zhengzhou and Jinan further improved upon Wuhan’s performance.

Dai also outlined capabilities he said support the model, including a pricing system built on a growing dataset of “real transaction data” from self-operated used-car sales, as well as an “integrated factory warehousing retail” model where superstores are supported by reconditioning factories. He said the company has expanded into full-lifecycle services including financing, insurance, extended warranties, accessories, and repair and maintenance.

Dai cited a Net Promoter Score of 67 and said landmark superstores help build customer trust through in-store service, vehicle display, and experience design.

Fourth-quarter results: higher volume, ASP pressure, and margin impact from new stores

Lin said fourth-quarter 2025 retail transaction volume reached 19,160 units, up 37% sequentially and 124% year-over-year. He compared that to approximately 6% year-over-year growth for the overall China used-car market during the same period.

Retail revenue in the quarter was RMB 1.129 billion, up 38% sequentially and 104% year-over-year, according to Lin. He said retail average selling price (ASP) declined to RMB 59,000 from RMB 65,000 in the prior-year quarter, reflecting a shift toward a more affordable inventory mix, but increased slightly from RMB 58,000 in the prior quarter. Lin said the company believed pricing had “stabilized at a rational level” and expected ASP to remain relatively steady in the near term.

On wholesale activity, Lin said Uxin sold 2,474 units in the fourth quarter, up 31% sequentially and 180% year-over-year, generating wholesale revenue of RMB 38.2 million. Total fourth-quarter revenue, combining retail and wholesale, was RMB 1.198 billion, up 36% sequentially and 101% year-over-year.

Gross margin in the fourth quarter was 6.8%, down from 7.5% in the prior quarter. Lin attributed the sequential decline primarily to promotional activity in the new-car market that pressured used-car profitability, as well as the early-stage ramp of newly opened superstores in Zhengzhou (opened in September) and Jinan (opened in December). Operating expenses rose due to initial ramp-up investments in staffing and infrastructure at new superstores, and Lin reported an adjusted EBITDA loss of RMB 27.2 million for the quarter.

Profitability and cost structure: stable full-year margin, improved leverage

For full-year 2025, Lin reported retail revenue of RMB 3.021 billion and said total revenue was RMB 3.24 billion. He reported full-year gross margin of 6.7%, which he said was stable versus the prior year, as improving profitability at mature superstores offset lower margins during the ramp-up of new locations.

Lin said SG&A and R&D expenses totaled RMB 450 million, or 13.9% of total revenue, improving from 24.3% the prior year, which he attributed to cost control and operating leverage. Adjusted EBITDA loss for the full year was RMB 57.9 million, narrowing 28% year-over-year, and adjusted EBITDA margin improved to negative 1.8%, an improvement of 2.7 percentage points from last year.

Outlook: Q1 2026 guidance, margin recovery expectations, and store rollout plans

For the first quarter of 2026, Lin said Uxin expected retail transaction volume of 16,200 to 16,500 units, representing year-over-year growth of over 110%, with total revenue of RMB 1.05 billion to RMB 1.07 billion. He noted the first quarter is typically seasonally soft due to the Chinese New Year holiday.

In response to an analyst question on gross margin and ASP trends, Lin said fourth-quarter gross margin was pressured by competitive pricing at new stores during early ramp-up and the time required to increase penetration of value-added services. He said it generally takes about six to nine months for new stores to reach the gross margin levels of mature stores. Lin added that, based on first-quarter 2026 operating data, the company had already seen “meaningful improvement” in gross margins at Zhengzhou and Jinan, and that overall gross margin had begun to recover from the fourth quarter, with an expectation it would return to above 7%.

On pricing, Lin cited data from the China Automobile Dealers Association indicating the national average used-car transaction price began to recover in the fourth quarter of 2025, and he said Uxin saw a similar trend. Lin said Uxin’s retail ASP increased sequentially for two consecutive quarters to RMB 59,000 in the fourth quarter and expected ASP to exceed RMB 61,000 in the first quarter of 2026. He also said factors including rising raw material costs, the phase-out of purchase tax incentives and government subsidies, and regulatory guidance aimed at reducing excessive price competition could contribute to more stable new-car pricing in 2026, which he said would support used-car prices. Lin said the company expected retail ASP to show a stable-to-upward trend in 2026 versus 2025, and he said revenue growth was expected to outpace transaction volume growth given expectations for more than 100% year-over-year volume growth.

Dai reiterated expansion goals for 2026. He said Uxin had five superstores in operation at the end of 2025 and opened a new superstore in Tianjin in March 2026. He said the company planned to open four to six superstores in 2026 and aimed to have more than 10 stores in operation by the end of the year.

Discussing longer-term potential, Dai said the company evaluates store opportunity based on city vehicle ownership and targeted market share, and he outlined a framework in which cities with higher vehicle ownership could support larger inventory levels. He said that, over the long run, Uxin believes there are more than 200 cities across China where it could potentially operate, supporting annual retail transaction volume of more than three million units.

Customer acquisition: brand traffic, launch campaigns, and third-party channels

Asked about customer acquisition for new superstores, Lin said early traffic typically comes from three channels: existing brand awareness and user traffic on the Uxin app in a new city; marketing and PR campaigns around store openings, including collaborations with local governments and local media support; and partnerships with vertical automotive platforms and media to capture third-party leads. Lin said that as stores mature, walk-in traffic and referrals increase, and customer acquisition costs decline as more traffic is generated organically through product, service quality, and customer experience.

About Uxin NASDAQ: UXIN

Uxin Limited is a China-based online and offline used car e-commerce platform that connects vehicle buyers and sellers through an integrated digital marketplace. Headquartered in Beijing, the company operates a network of physical used-car malls alongside its proprietary online platform, enabling customers to browse, inspect and purchase pre-owned vehicles with transparency and convenience.

The company's core business activities encompass sourcing, quality assurance and distribution of used vehicles.

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