Xpeng Achieves Lowest Quarterly Net Loss in 5 Years, Approaches Non-GAAP Profit

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Xpeng Achieves Lowest Quarterly Net Loss in 5 Years, Approaches Non-GAAP Profit

Xpeng has recently reported its smallest quarterly net loss in five years, highlighting significant progress in vehicle deliveries and revenue. For the third quarter, the company recorded a net loss of RMB 380 million (approximately $50 million), which is a substantial improvement compared to losses from previous years.

Xpeng’s Financial Performance Overview

This quarterly net loss represents a decrease of nearly 79% from the RMB 1.81 billion net loss reported in the same period of 2024 and a 20% reduction from the RMB 480 million loss in the previous quarter. The third quarter marked the eighth consecutive quarter in which Xpeng has reduced its net losses.

Non-GAAP Results Indicate Progress Towards Profitability

Xpeng’s non-GAAP net loss narrowed to RMB 150 million, indicating a move towards breakeven. This is a clear improvement from RMB 1.53 billion in the year-ago quarter and RMB 390 million in the prior quarter of 2025.

Net Loss: RMB 380 million (Q3 2025)
Non-GAAP Net Loss: RMB 150 million (Q3 2025)
Year-on-Year Loss Reduction: 78.93% from Q3 2024
Quarterly Loss Reduction: 20.28% from Q2 2025

Vehicle Deliveries Surge

Xpeng achieved a record high by delivering 116,007 vehicles in the third quarter of 2025. This figure reflects a remarkable 149.3% increase year-on-year and a 12.4% rise compared to the previous quarter.

Revenue Growth Highlights

The company also saw its revenue soar to RMB 20.38 billion, more than doubling from RMB 10.1 billion in Q3 2024. This represents an 11.5% increase from the RMB 18.27 billion recorded in Q2 2025.

Third Quarter Revenue: RMB 20.38 billion
Vehicle Sales Revenue: RMB 18.05 billion
Year-on-Year Revenue Increase: 101.8% from Q3 2024

Service Revenue Boost

Xpeng’s service and other revenue reached RMB 2.33 billion, marking a 78.1% increase from RMB 1.31 billion in the same quarter of 2024. The rise in service revenue is largely attributed to after-sales and technical services offered to a collaborating automaker, presumably Volkswagen.

Operating Margins Rise

The gross margin for Xpeng peaked at 20.1%, up from 15.3% in Q3 2024. However, the vehicle margin saw a slight decline to 13.1% from a projected 14.3% in the previous quarter due to ongoing product transitions.

Gross Margin: 20.1% (Q3 2025)
Vehicle Margin: 13.1% (Q3 2025)
Service Business Margin: 74.6% (Q3 2025)

Future Guidance and Expectations

Xpeng is optimistic about its future performance, anticipating fourth-quarter vehicle deliveries between 125,000 and 132,000 units. This projection indicates a year-on-year growth ranging from 36.6% to 44.3%.

Projected Fourth Quarter Deliveries: 125,000 to 132,000 units
Expected Revenue: RMB 21.5 billion to RMB 23.0 billion
Revenue Growth Forecast: 33.5% to 42.8% year-on-year

As of September 30, 2025, Xpeng held approximately RMB 48.33 billion in cash and cash equivalents, providing a solid foundation for future growth as it approaches non-GAAP profitability. The company remains focused on expanding its product portfolio while managing expenses effectively.