- Xpeng recorded its first-ever net profit of 380 million yuan ($50 million) in the fourth quarter of 2025.
- The company's gross margin reached 21.3% in the fourth quarter, up 6.9 percentage points from the same period in 2024.
Xpeng logged its first net profit since inception, marking a major financial milestone for the Chinese electric vehicle (EV) maker.
In the fourth quarter of 2025, Xpeng reported a GAAP net profit of 380 million yuan ($50 million), according to financial results released today. That compares with a net loss of 1.33 billion yuan in the same period of 2024.
Financial performance under non-GAAP measures also showed significant improvement. Its non-GAAP net profit reached 510 million yuan ($70 million) for the quarter. In the fourth quarter of 2024, this non-GAAP figure was a loss of 1.39 billion yuan.
Xpeng's fourth-quarter revenue reached 22.25 billion yuan, representing a 38.2% increase from 16.11 billion yuan a year earlier.
Revenue from vehicle sales was 19.07 billion yuan in the fourth quarter, up 30.0% year-on-year and up 5.6% from the third quarter of 2025.
Xpeng delivered 116,249 vehicles in the fourth quarter, missing the lower end of its previous guidance of 125,000 to 132,000 units. Deliveries grew 27.04% year-on-year and were largely flat compared to 116,007 units in the third quarter.
Xpeng's gross margin stood at 21.3% in the fourth quarter. This was up 6.9 percentage points from 14.4% in the same period of 2024.
Services and other revenues surged 121.9% year-on-year to 3.18 billion yuan. This was primarily driven by technical research and development services provided to a car manufacturer.
Xpeng did not name the automaker, though it is apparently German auto giant Volkswagen.
The company still posted an operating loss under GAAP standards, although the figure has narrowed substantially. The fourth-quarter operating loss was 40 million yuan, far below the 1.56 billion yuan operating loss in the same period of 2024.
Xpeng reported a non-GAAP operating profit of 80 million yuan in the fourth quarter, compared with a loss of 1.62 billion yuan a year earlier and a loss of 520 million yuan in the third quarter of 2025.
Despite the strong fourth quarter, Xpeng issued soft guidance for the first quarter of 2026 as the Chinese auto market enters its traditional slow season early in the year.
It guided for first-quarter vehicle deliveries between 61,000 and 66,000 units, representing a year-on-year decline of about 29.79% to 35.11%. The guidance implies Xpeng expects March deliveries of 25,733 to 30,733 vehicles.
Total revenue for the first quarter is projected to be between 12.2 billion yuan and 13.28 billion yuan, representing a year-on-year drop of about 16.01% to 22.84%.
