Pony AI (PONY) Reports Strong Revenue Growth, Net Loss Shrinks

On Tuesday, Pony AI Inc. (NASDAQ:PONY) reported Q1 2025 results, which were better than street expectations. Going into the results, the market was expecting clarity on two things: one, growth in Robotaxis, and second, a roadmap to profitability.

Results were positive on both these fronts. While total revenue for the quarter grew 12% year-over-year to $14 million, Robotaxi Services revenue more than tripled to $1.73 million, primarily driven by expanding its public-facing fare-charging operations in Tier-one cities in China. Robotruck Services and Licensing business, which currently makes up almost 90% of total revenue, together grew 3%.

The company is in a rapid growth phase, which keeps its profitability in check. Despite the investments continuing in the quarter, the company’s adjusted net loss narrowed to $0.1 per share from $0.28 in Q1 2024. Interestingly, the company plans to expand its robotaxi fleet to 1,000 vehicles by the year-end, with its recently unveiled seventh-generation autonomous driving system, which enables the company to cut costs significantly. Pony is already working with partners like Uber Technologies Inc. (NYSE:UBER), Singapore’s ComfortDelGro Corp., and Tencent Holdings (OTC:TCEHY) to expand its robotaxi services.

With a disruptive business model, the company is expected to grow significantly in the coming years as it plans a large-scale expansion of services later in 2025. According to Bloomberg data, analysts expect the company to reach breakeven on each new robotaxi added by 2026 and become profitable by 2029. In a note published in April, Purdy Ho, an analyst at Huatai Securities, estimated that Pony AI’s robotaxi service could achieve a 12% penetration in China’s first-tier city ride-hailing market by 2030 and should achieve revenue of around $3.4 billion.

Pony AI Inc. (NASDAQ:PONY) is an autonomous driving technology company focused on developing self-driving solutions for both passenger and commercial transportation. Its AI-driven mobility offerings include robotaxi services and autonomous freight transport, aiming to revolutionize the future of mobility.

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Disclosure: None.