Q3 2025: Revenue and Deliveries Set New Records as Gross Margin Surpasses 20%
XPENG's latest quarterly results tell a compelling story of acceleration: the company delivered 116,007 vehicles in Q3 2025—an increase of 149.3% compared to a year ago—while revenue soared to RMB20.38 billion (US$2.86 billion), up 101.8% year-over-year and 11.5% sequentially. Notably, XPENG’s gross margin exceeded 20% for the first time, highlighting a positive shift in the company’s operational efficiency and profitability trajectory.
Profitability Improving with Sharply Narrowing Net Loss
While XPENG remains in the red, the gap continues to narrow significantly. The Q3 net loss attributable to ordinary shareholders dropped to RMB0.38 billion (US$0.05 billion) from RMB1.81 billion in Q3 2024, and improved from RMB0.48 billion in Q2 2025. On a non-GAAP basis (excluding share-based compensation and derivative-related impacts), the net loss was just RMB0.15 billion (US$0.02 billion) — a dramatic 90.1% improvement year-over-year.
| Metric | Q3 2025 | Q2 2025 | Q3 2024 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Vehicle Deliveries | 116,007 | 103,181 | 46,533 | +149.3% | +12.4% |
| Total Revenues (RMB Bn) | 20.38 | 18.27 | 10.10 | +101.8% | +11.5% |
| Gross Margin | 20.1% | 17.3% | 15.3% | +4.8 pts | +2.8 pts |
| Vehicle Margin | 13.1% | 14.3% | 8.6% | +4.5 pts | -1.2 pts |
| Non-GAAP Net Loss (RMB Bn) | 0.15 | 0.39 | 1.53 | -90.1% | -60.6% |
Strategic Expansion: XPENG Scales its Retail and Charging Footprint
The surge in deliveries reflects both product momentum and the rapid expansion of XPENG’s infrastructure. The company operated 690 stores in 242 cities and managed 2,676 self-operated charging stations (including 1,623 ultra-fast S4/S5 stations) by the end of September 2025. These investments are laying the groundwork for even faster future growth as XPENG aims to capture a larger slice of China’s—and eventually the global—EV market.
Research and Technology Investment Drives New Opportunities
Research and development (R&D) spending grew 48.7% year-over-year, underlining XPENG’s commitment to staying at the forefront of smart EV and AI innovation. This quarter also saw substantial revenue gains from technical R&D services, reflecting XPENG’s expanding business lines beyond vehicle sales. In November, the company hosted its 2025 AI Day, highlighting advancements in Robotaxi technology, humanoid robots, and next-generation vehicle autonomy.
Strong Balance Sheet Supports Ambitious Growth Plans
XPENG finished Q3 with a robust RMB48.33 billion (US$6.79 billion) in cash, restricted cash, short-term investments, and time deposits. This positions the company to invest aggressively in technology and expansion, supporting its vision to become a leader in physical AI and autonomous mobility. XPENG’s CEO emphasized that with this war chest, the company is “developing a comprehensive portfolio of technologies and products, alongside a thriving business ecosystem.”
Q4 2025 Outlook: Further Growth Projected
Management expects Q4 vehicle deliveries to land between 125,000 and 132,000 units—a year-over-year growth rate of up to 44.3%. Total revenue is projected in the range of RMB21.5 to RMB23.0 billion, continuing the company’s rapid expansion. This upbeat outlook, supported by operational gains and strategic execution, suggests XPENG’s momentum is likely to carry forward into 2026.
Takeaway: XPENG’s Momentum Shows No Signs of Slowing
For investors and EV enthusiasts alike, XPENG’s Q3 performance signals robust health and strategic execution in an industry often marked by intense competition and rapid change. With gross margin breaching 20% and losses narrowing fast—even as R&D investments ramp up—XPENG is not just keeping pace; it’s setting the standard for China’s next-generation mobility leaders. With further product innovation and expanding delivery capacity on the horizon, XPENG remains a company to watch in the evolving electric vehicle landscape.
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