XPeng reported a second-quarter net loss of 1.34 billion yuan ($199 million) on Monday, nearly triple the 480 million yuan loss a year earlier, as flat vehicle deliveries and a narrower vehicle margin left the carmaker leaning on engineering fees for half its gross profit.
Deliveries were 103,295, an increase of 0.1% from 103,181 in the same quarter of 2025.
Total revenues rose 8.0% to 19.74 billion yuan ($2.91 billion), below the 20.57 billion yuan analysts had expected. The non-GAAP loss per American depositary share of 1.29 yuan compared with a consensus estimate of 0.29 yuan.
The company will hold its earnings call at 8:00am US Eastern time on Monday.
Where the Profit Came From
XPeng’s gross margin improved to 20.7% from 17.3% a year earlier, but the improvement did not come from selling cars.
Vehicle margin fell to 12.1% from 14.3%, which the company attributed to product generation transition.
Services and others margin rose to 75.1% from 53.6%, driven by technical research and development services rendered to a car manufacturer XPeng identifies only as “the Manufacturer,” following the achievement of certain key milestones in the quarter, and by parts and accessories sales.
Vehicle sales generated 2.06 billion yuan of gross profit on 17.05 billion yuan of revenue.
Services generated 2.02 billion yuan on 2.70 billion yuan. Services accounted for 13.7% of revenue and 49.6% of gross profit.
Services revenue rose 93.9% year on year. Vehicle sales revenue rose 1.0%.
The Quarter in Numbers
Cost of sales was 15.66 billion yuan, up 3.7% year on year.
Research and development expenses reached 2.91 billion yuan, up 32.1% from a year earlier and flat against the first quarter, which XPeng attributed to new vehicle models and AI-related technologies.
Selling, general and administrative expenses were 2.50 billion yuan, up 15.2%, on higher marketing and advertising spending and higher commissions to franchised stores.
Other income fell 42.2% to 140 million yuan, which the company attributed to lower government subsidies.
Loss from operations was 1.14 billion yuan, against 930 million yuan a year earlier. On a non-GAAP basis, excluding share-based compensation and a fair value gain on the DiDi contingent consideration, the operating loss was 1.04 billion yuan.
Net loss per ADS was 1.40 yuan, against 0.50 yuan a year earlier.
The Balance Sheet
Cash stood at 40.48 billion yuan ($5.97 billion) at June 30, down from 42.09 billion yuan three months earlier.
Short-term borrowings more than doubled over the six months to June, reaching 10.07 billion yuan from 4.28 billion yuan at the end of December.
Finance lease liabilities rose to 4.65 billion yuan from 740 million yuan over the same period.
Inventory increased 32.3% to 13.73 billion yuan, against deliveries that were flat year on year.
Total assets fell to 101.59 billion yuan from 103.16 billion yuan at the end of December, while total liabilities rose to 74.58 billion yuan from 72.79 billion yuan.
Shareholders’ equity declined 11.1% to 27.01 billion yuan. The accumulated deficit widened to 45.91 billion yuan from 42.77 billion yuan.
Guidance
XPeng expects third-quarter deliveries of 115,000 to 121,000 vehicles, a range spanning a 0.87% decline to a 4.30% increase against the 116,007 delivered in the third quarter of 2025.
Revenue guidance is 21.7 billion to 23.4 billion yuan, an increase of 6.47% to 14.81% year on year.
The company gave no full-year figure in Monday’s release.
The Annual Target
XPeng set an internal target of 550,000 to 600,000 global deliveries for 2026, first reported by 36Kr in January, representing growth of 28.1% to 39.7% over the 429,445 vehicles delivered in 2025.
Deliveries reached 38,027 in July, taking the year-to-date total to 204,004 through July 31, a decline of 12.8% from the 233,906 delivered over the same period of 2025.
That leaves the company at 37.1% of the lower bound and 34.0% of the upper with five months remaining.
Reaching the floor would require 345,996 vehicles from August through December, an average of 69,199 a month. The upper bound would require 395,996, or 79,199 a month.
XPeng has never delivered 69,000 vehicles in a month. Its third-quarter guidance implies a Q4 requirement of between 230,996 and 274,996 units.
The Robot Subsidiary Is Named
The filing identifies the entity behind Monday’s separate robotics financing.
Dogotix Inc., a subsidiary, entered into a share purchase agreement under which subscribers conditionally agreed to subscribe for newly issued shares at an aggregate purchase price of $900 million.
XPeng announced the same transaction separately at a post-money valuation above $6.3 billion, describing it as the largest single private capital raise in China’s embodied AI industry, led by IDG Capital with participation from Gaorong Ventures and support from Tencent and Alibaba as strategic investors.
Management Commentary
He attributed confidence in upcoming models to what he called “the back-to-back success of the GX and MONA L03.”
Vice Chairman and Co-President Brian Gu said operations remained resilient despite industry-wide cost pressures and that gross margin continued to exceed 20%, adding that he expected physical AI commercialisation to accelerate over the coming year.
XPeng operated 740 stores across 257 cities at the end of June, and 3,780 self-operated charging stations including 2,720 ultra-fast sites.
The company held the global launch of the MONA L03, which it describes as a next-generation AI SUV coupe, in Munich on July 16.
