Uxin Shares Rise as Q2 Revenue Increases 74.9% and Company Issues Q3 Guidance

Uxin Limited (NASDAQ:UXIN) shares rose 11.93% on Thursday after the used-car retailer reported a 74.9% year-on-year increase in second-quarter revenue, while its gross margin turned negative and its adjusted EBITDA loss widened.

For the quarter ended June 30, 2026, Uxin reported revenue of RMB1.15 billion ($169.7 million), compared with RMB658.3 million in the same period a year earlier.

Retail vehicle sales revenue increased 77.9% year-on-year to RMB1.08 billion, supported by an 88.8% increase in retail transaction volume to 19,610 vehicles.

Gross Margin Turns Negative

Uxin reported a gross margin of negative 0.7% for the second quarter, compared with positive 5.2% in the prior-year period.

The company’s adjusted EBITDA loss widened to RMB119.8 million ($17.7 million) from a loss of RMB16.5 million a year earlier.

Uxin attributed the decline in gross margin to reductions in new-car prices that affected used-vehicle pricing, as well as higher oil prices, which the company said reduced demand for gasoline-powered vehicles.

Operating expenses totalled RMB145.3 million during the quarter. Sales and marketing expenses increased 60.6% year-on-year to RMB119.2 million, which the company attributed to higher employee compensation.

“Despite a sharp decline in used car prices during the second quarter of 2026, our retail transaction volume reached 19,610 vehicles, up 89% year over year and 19% sequentially,” said Kun Dai, Founder, Chairman and Chief Executive Officer. “While this put significant pressure on near-term profitability, it allowed us to realign our inventory more quickly with the new pricing environment.”

The comments regarding pricing conditions and inventory represent management’s assessment of the factors affecting the quarter.

Uxin Forecasts Q3 Revenue of RMB1.16 Billion to RMB1.19 Billion

For the third quarter, Uxin expects retail transaction volume of between 20,500 and 21,000 vehicles.

The company forecasts total revenue of RMB1.16 billion to RMB1.19 billion. The midpoint of the range is RMB1.175 billion, above the RMB1.151 billion reported for the second quarter.

Management also expects gross margin to recover to above 6.0% during the third quarter, compared with negative 0.7% in the second quarter.

The third-quarter figures represent management’s current expectations and do not constitute achieved financial results.

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