NIO Inc (NYSE:NIO) reported first quarter results which showed a return to adjusted profitability and sharply higher revenue, driven by stronger vehicle sales and improved margins.
The Chinese electric vehicle maker posted adjusted earnings per share of RMB 0.02 (about US$0.003), compared with analyst expectations for a loss of RMB 0.34 per share.
Revenue for the quarter rose 112.2% year over year to RMB 25.53 billion (about US$3.7 billion), broadly in line with consensus estimates of RMB 25.57 billion.
Vehicle deliveries totaled 83,465 units in the first quarter, an increase of 98.3% from a year earlier but down 33.1% from the previous quarter. Deliveries included 58,543 vehicles from the NIO brand, 13,339 from ONVO, and 11,583 from FIREFLY.
Gross margin expanded to 19%, compared with 7.6% in the same period last year and 17.5% in the fourth quarter of 2025. The company attributed the improvement to better cost efficiency and a more favorable product mix.
On a non-GAAP basis, NIO reported a modest adjusted net profit of RMB 43.5 million, compared with a loss in the prior-year period. The company posted a net loss of RMB 332.1 million under IFRS accounting.
Cash and cash equivalents, including short-term investments and deposits, stood at RMB 48.2 billion as of March 31.
Vehicle sales revenue came in at RMB 22.78 billion, up 129.2% year over year, while gross profit increased 428.4% to RMB 4.86 billion.
“We are encouraged by the continued improvement across all key operating metrics,” NIO chief financial officer Stanley Yu Qu said in a statement.
“Looking ahead, we will further enhance cost and operational efficiency while strengthening our sustainable business capabilities.”
For the second quarter, NIO expects deliveries between 110,000 and 115,000 vehicles, representing growth of roughly 53% to 60% year over year, with revenue projected between RMB 32.78 billion and RMB 34.44 billion.
NIO’s US-listed shares were down about 1.8% on Thursday afternoon, as investors weighed concerns over a return to a GAAP net loss, buyer backlash related to its sub-brand pricing, and rising raw material costs.