Chinese electric vehicle maker Xpeng has reported its first quarterly profit, supported by higher deliveries, stronger revenue and improved gross margin.
For the fourth quarter of 2025, the company recorded net profit of 383.2m yuan ($55.5m), swinging from a net loss of 1.33bn yuan in the same period a year earlier.
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Total revenue for the quarter reached 22.25bn yuan, up 38.2% year on year.
Revenue generated from vehicle sales amounted to 19.07bn yuan in the quarter, an increase of 30% compared with the fourth quarter of 2024.
Xpeng’s gross margin for the period rose to 21.3%, from 14.4% a year earlier.
Deliveries totalled 116,249 vehicles during the quarter, compared with 91,507 in the prior-year period.
As of 31 December 2025, the company’s physical retail network comprised 721 stores across 255 cities.
Dr. Hongdi Brian Gu, vice chairman and co-president of xpeng, said: “In the fourth quarter of 2025, Xpeng’s gross margin reached 21.3%, reaching a new record high, with net profit hitting 0.38bn yuan. By leveraging a business model driven by technological leadership, we have established a profitability path that sets us apart from traditional automakers.”
On a full-year basis, Xpeng continued to report a loss for the year ended 31 December 2025, posting a net loss of 1.14bn yuan, narrower than the 5.79bn yuan loss recorded in the previous year.
Annual revenue increased to 76.72bn yuan, up 87.7% from 40.87bn yuan a year earlier.
Vehicle sales revenue for 2025 rose 90.8% to 68.38bn yuan, compared with 35.83bn yuan in the prior year.
Gross margin for the full year improved to 18.9%, from 14.3% a year earlier.
Xiaopeng He, chairman and CEO of Xpeng, said: “In 2025, Xpeng delivered a total of 429,445 vehicles, representing a 125.9% year-over-year increase. We continue to push the boundaries of Physical AI, accelerating the mass production and commercialization of product innovations as we expand our global footprint.
“I believe Xpeng is at a historical inflection point for Physical AI applications. Our goal is not only to grow our global market share of AI-defined vehicles and bridge the gap from L2+ assisted driving to L4 autonomous driving, but also to bring our second-generation VLA model to international markets and achieve scale production of advanced humanoid robots.”
