- Hesai's Q1 net revenues reached 680.6 million yuan, with total LiDAR shipments more than doubling year-on-year.
- Hesai becomes a strategic supplier for Mercedes-Benz L3 autonomous driving models and expands into spatial intelligence.
Chinese LiDAR maker Hesai Group (NASDAQ: HSAI) reported profit growth in the first quarter as shipments surged.
The company posted a net income of 18.3 million yuan ($2.7 million) for the three months ended March 31, marking Hesai's fourth consecutive quarter of GAAP profitability.
This compares with a net loss of 17.5 million yuan in the same period last year.
The company's net revenues for the first quarter grew 29.6% year-on-year to 680.6 million yuan.
The strong financial performance was driven by a massive increase in shipments. Total LiDAR shipments in the first quarter surged 140.9% to 471,723 units.
Among them, ADAS (Advanced Driver Assistance System) LiDAR shipments reached 353,441 units, up 141.9% year-on-year, while robotics LiDAR shipments stood at 118,282 units, an increase of 137.8% year-on-year.
Hesai CEO Li Yifan today announced a major business milestone. The company has become the strategic LiDAR partner and confirmed supplier for Mercedes-Benz models enabling L3 autonomy.
This new supply agreement will support Mercedes-Benz programs in Europe and China, with LiDAR production supported by Hesai's new Galileo manufacturing center in Thailand.
The company is undergoing a significant strategic evolution. Hesai announced it is expanding its business focus from "spatial perception" to "spatial intelligence."
To reflect this change, the company has refined its financial reporting structure into two main segments -- "LiDAR Business" and "Strategic Growth Initiatives (SGI)."
As part of the new strategy, Hesai unveiled its first spatial intelligence device, Kosmo, at its Tech Day in April 2026, designed to build real-world 3D data infrastructure for the physical AI era.
Management expects the strategic growth initiatives to contribute about 100 million yuan in net revenues this year. This entirely new revenue stream is expected to start materializing in the second quarter of 2026.
Despite the sharp growth in revenues and shipments, Hesai's gross margin for the first quarter declined to 39.1% from 41.7% in the same period last year. This was mainly attributable to a higher revenue contribution from products with relatively lower margins.
Furthermore, Hesai introduced Picasso, the world's first 6D full-color ultra-sensitive chip. This new technology will be applied to its high-end ETX LiDAR model. The model is expected to start mass production in the second half of 2026.
Looking ahead, Hesai remains optimistic about its second-quarter performance.
The company expects net revenues for the second quarter to be between 850 million yuan and 900 million yuan, representing a year-on-year increase of about 20% to 27%.
