WeRide NASDAQ: WRD reported second-quarter 2026 revenue growth of 82% from a year earlier and 103% sequentially, as the autonomous-driving company cited overseas expansion, an asset-light Robotaxi model and the initial mass production of its L2+/L3 advanced driver-assistance systems.
Revenue totaled RMB232 million for the quarter. CFO and Head of International Jennifer Li said overseas markets accounted for nearly 40% of group revenue, with overseas revenue up 164% year over year and about 170% from the prior quarter.
Gross profit increased 143% year over year to RMB87 million, while gross margin rose to 37.5% from 28.1% in the prior-year period. Li attributed the margin improvement to scaling in the company’s asset-light overseas autonomous-driving operations, rapid growth in its L2+/L3 business and a shift toward higher-value AI service-oriented revenue.
Losses Narrow as Revenue Outpaces Expenses
WeRide’s net loss narrowed 1% year over year to RMB401 million in the second quarter. EBITDA loss narrowed 8.1% to RMB335 million. Total operating expenses rose 9.2% to RMB533 million, a slower pace than revenue growth.
Research and development expense rose 36% to RMB434 million, reflecting investments in AI infrastructure and foundation models. General and administrative expense declined to RMB69 million, which Li said was mainly due to lower share-based compensation and professional fees. Selling expense increased to RMB29 million as the company expanded commercial activities.
As of June 30, WeRide had approximately RMB5.4 billion in cash and other liquid financial resources. Li said the company expects its shared technology platform to support L4, L2+/L3 and other product categories without costs scaling linearly with vehicle deployments. Management said it remains on track to target positive cash flow in a single quarter by 2028 and full-year break-even in 2029.
Robotaxi Fleet and Overseas Expansion
Founder, Chairman and CEO Tony Han said WeRide’s L4 fleet reached about 3,400 units, up 22% from the company’s April earnings release. The Robotaxi fleet increased by 500 vehicles to more than 1,800 units.
The company is pursuing an asset-light international approach in which it does not own operating vehicles. Instead, it works with local partners that deploy and operate fleets while WeRide provides localized autonomous-driving technology and receives recurring technology-service and mileage-based fees.
Han said the company estimates that annualized technology-service revenue per Robotaxi could exceed $50,000 under normalized driverless operations. Li, in response to an analyst question, described annualized recurring revenue per vehicle as exceeding $40,000 to $50,000, with potential upside as fleet density grows.
During the quarter, WeRide announced Robotaxi commercial partnerships in Madrid, Zurich and Copenhagen. In the Middle East, the company expanded driverless Robotaxi coverage in Abu Dhabi and Dubai to more than 70% of core urban areas, according to Han. Its Riyadh operating zone was extended to airport terminals and surrounding central business districts.
Li said WeRide’s overseas Robotaxi fleet roughly doubled from about 200 vehicles in the first quarter to around 400 vehicles in the second quarter. The company said it has active L4 operations in 12 countries and official autonomous-driving licenses in eight countries.
Management identified regulatory approvals, localized technology adaptation, local ecosystem integration and safety validation as central elements of its competitive position. Li said the company believes regulatory permits are a key factor in sustaining its role with fleet operators and ride-hailing platforms.
China Operations and ADAS Scaling
In China, WeRide expanded driverless operating zones in Guangzhou into areas of Tianhe District, including Pearl River New Town, and Haizhu District, including the Canton Fair Complex. Han said the expansion represented a nearly threefold increase in the company’s operating design domain compared with the end of 2026, though the timing reference was not further clarified on the call.
Average daily rides per vehicle in Guangzhou reached 21, up 24% sequentially, while peak daily rides per vehicle reached 28. Registered users of the company’s self-operated Robotaxi ride-hailing service in China grew nearly 35% from the prior quarter, and ride-hailing revenue rose 140% sequentially, Han said.
WeRide’s L4 revenue was RMB125 million, up 47% year over year, primarily driven by Robotaxi operations. Li said some other L4 businesses have seasonal revenue patterns, with negotiations generally completed in the first half and revenue recognized as deployment occurs during the second half.
The company’s L2+/L3 business generated revenue growth of approximately 26 times from a year earlier and 219% from the prior quarter. Han said WeRide delivered about 30,000 units of its one-stage end-to-end L2+/L3 solution during the quarter, while cumulative deliveries of vehicles equipped with the system exceeded 30,000 as of June 30.
Management expects vehicles powered by its solution to exceed 100,000 by year-end and cumulative deliveries to surpass 500,000 next year. WeRide also said it launched an L3 autonomous-driving proof-of-concept program with Mercedes-Benz.
AI Infrastructure Strategy
Han said WeRide formally launched its WITT physical-fact foundation model during the quarter. The model is designed to extract and verify physical facts from road-test data, while the company’s GENESIS world model uses validated information to reconstruct extreme conditions and long-tail scenarios through simulation.
According to Han, the models are intended to create a data, simulation and algorithm-iteration loop supporting both L4 autonomous driving and mass-produced L2+/L3 systems. He said the company’s objective is to use data from both businesses to improve its underlying models and reduce development resources required across product lines.
Looking ahead, management said its priorities include expanding Robotaxi fleets in existing overseas markets, pursuing additional OEM partnerships for its L2+/L3 systems, increasing installed vehicles and seeking adoption of its AI infrastructure among robotics and humanoid-robotics companies.
About WeRide (NASDAQ:WRD)
WeRide Inc NASDAQ: WRD is a developer of autonomous driving technology focused on providing Level 4 (L4) self-driving solutions for passenger mobility and logistics. The company's full-stack platform integrates sensors, computing hardware, software algorithms and vehicle controls to enable driverless taxis, shuttles and goods delivery vehicles. By combining perception, planning and controls in a turnkey system, WeRide aims to accelerate the commercialization of robotaxi services and autonomous fleet operations.
Founded in 2017 and headquartered in Guangzhou, China, WeRide maintains research and development centers in Silicon Valley and China.
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