NIO Q3 Loss Narrower Than Expected, Revenues Increase Y/Y

NIO Inc. NIO reported a loss per American Depositary Share (ADS) of 21 cents in the third quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 24 cents. The company had incurred a loss of 36 cents in the year-ago quarter.

This China-based electric vehicle maker posted revenues of $3.06 billion, which missed the Zacks Consensus Estimate of $3.26 billion but rose 15.1% year over year due to higher delivery volumes.

NIO Inc. Price, Consensus and EPS Surprise

NIO Inc. price-consensus-eps-surprise-chart | NIO Inc. Quote

Key Details of NIO’s Q2 Results

It delivered 87,071 vehicles in the third quarter, up 40.8% year over year, including 36,928 vehicles from NIO, 37,656 units from ONVO and 12,487 units from FIREFLY.

Revenues generated from vehicle sales amounted to $2.70 billion, up 13.4% year over year. The rise in sales was mainly attributable to an increase in delivery volume. Other sales of $364 million rose 29.3% on a year-over-year basis.

Gross profit was $424.9 million, up 48.6% year over year. Vehicle margin in the reported quarter rose to 14.7% from 13.1% in the third quarter of 2024 due to lower material cost per unit. Gross margin was 13.9%, up from 10.7% in the year-ago quarter. The company’s margin improved due to higher vehicle margins and stronger profitability from parts, accessories, and after-sales services, supported by cost reductions and greater operational efficiency.

Research & development costs amounted to $335.8 million, which fell 29% year over year. Selling, general & administrative costs were $587.8 million, which remained flat year over year. As of Sept. 30, 2025, cash and cash equivalents totaled $1.3 billion, and long-term debt amounted to $1.23 billion.

For fourth-quarter 2025, NIO projects deliveries in the range of 120,000-125,000 vehicles, implying a rise of 65.1-72% year over year. Revenues are estimated between $4,602 million and $4,781 million.

NIO’s Zacks Rank & Key Picks

NIO carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 21 cents and 38 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents and 11 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 3 cents and 8 cents, respectively, in the past 30 days. 

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This article originally published on Zacks Investment Research (zacks.com).

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