• Xpeng reported a net loss of RMB 480 million in the second quarter, marking a new low since the third quarter of 2020.
• Xpeng achieved a record-high gross margin of 17.3 percent in the second quarter, compared to 14.0 percent in the same period of 2024 and 15.6 percent in the first quarter.

Xpeng (NYSE: XPEV) reported record quarterly revenue and further reduced its net loss to a five-year low, driven by strong growth in vehicle deliveries.

The company reported revenue of RMB 18.27 billion ($2.55 billion) for the second quarter, up 125.3 percent year-on-year and up 15.6 percent quarter-on-quarter, according to its unaudited financial results released today.

Notably, this marks Xpeng's highest quarterly revenue on record, though it still fell slightly short of Wall Street analysts' expectations of RMB 18.38 billion.

In the second quarter, Xpeng delivered a record 103,181 vehicles, within the guidance range of 102,000 to 108,000 vehicles, slightly below analysts' expectations of 105,000 vehicles.

Deliveries for the quarter increased by 241.58 percent year-on-year and up 9.76 percent quarter-on-quarter.

Xpeng's net loss for the second quarter was RMB 480 million, a new low since the third quarter of 2020, representing a year-on-year decrease of 62.81 percent and a quarter-on-quarter decrease of 28.05 percent.

Under non-GAAP, adjusted net loss for the second quarter was RMB 390 million, compared to RMB 1.22 billion in the same period of 2024 and RMB 430 million in the first quarter of 2025.

Xpeng's second-quarter revenues from vehicle sales was RMB 16.88 billion, up 147.6 percent year-on-year and up 17.5 percent quarter-on-quarter, primarily driven by increased vehicle deliveries.

Its second-quarter service and other revenue was RMB 1.39 billion, up 7.6 percent year-on-year but down 3.5 percent quarter-on-quarter.

The year-on-year increase was primarily attributable to growth in revenue from parts and accessories sales as cumulative vehicle sales increased. The quarter-on-quarter decrease was primarily attributable to fluctuations in revenue from technology R&D services, Xpeng said.

The company's gross margin for the second quarter was a record 17.3 percent, compared to 14.0 percent in the same period of 2024 and 15.6 percent in the first quarter.

The second-quarter vehicle margin reached a record 14.3 percent, compared to 6.4 percent in the same period of 2024 and 10.5 percent in the first quarter of 2025. These increases were primarily attributed to ongoing cost reductions and optimization of the vehicle model product mix, according to Xpeng.

The company's service and others margin for the second quarter was 53.6 percent, compared to 54.3 percent in the same period of 2024 and 66.4 percent in the first quarter. The sequential decline was primarily due to fluctuations related to technology R&D services.

The company's R&D expenses for the second quarter were RMB 2.21 billion, up 50.4 percent year-on-year and up 11.4 percent quarter-on-quarter, mainly due to increased expenses related to new vehicle models and technology development.

Sales, general and administrative expenses for the second quarter were RMB 2.17 billion, up 37.7 percent year-on-year and up 11.4 percent quarter-on-quarter. This was mainly due to increased franchisee commissions, marketing and advertising expenses.

As of June 30, 2025, the company held cash and cash equivalents, restricted cash, short-term investments, and time deposits totaling RMB 47.57 billion, compared to RMB 41.96 billion as of December 31, 2025.

Xpeng guided third-quarter vehicle deliveries to be between 113,000 and 118,000 units, representing a year-on-year increase of about 142.8 percent to 153.6 percent.

This guidance implies that Xpeng expects to deliver a cumulative total of 76,283 to 81,283 vehicles in August and September, considering the 36,717 vehicles delivered in July.

The company guided third-quarter revenue to be between RMB 19.6 billion and RMB 21.0 billion, representing a year-on-year increase of about 94.0 percent to 107.9 percent.