Hesai Technology turns profitable in Q3, lidar shipment volume surges more than twofold year-on-year, full-year net profit forecast raised | Earnings Report News

Hesai Technology turns profitable in Q3, lidar shipment volume surges more than twofold year-on-year, full-year net profit forecast raised | Earnings Report News

Hesai Technology turned profitable in the third quarter, further consolidating its position as the domestic leader in LiDAR.

Hesai Technology’s net income in the third quarter increased by 47.5% year-on-year, with net profit reaching a record high of 250 million yuan. The company’s management raised the full-year net profit guidance and emphasized the continued penetration of LiDAR in ADAS and robotics, with significant enhancements in business scale and execution efficiency.

Driven by strong performance, Hesai’s US shares rose nearly 8% pre-market, with gains over the past year exceeding fourfold.

Key financial highlights are as follows:

Performance:

  • Q3 net income was 795 million yuan (+47.5% y/y), net profit 256 million yuan (compared to a net loss of 70.4 million yuan in the same period last year), reaching full-year net profit target one quarter ahead of schedule
  • Gross margin 42.1% (down 5.6 percentage points year-on-year), operating expenses decreased by 23% year-on-year
  • Cash reserves of 7.37 billion yuan, with further financial strength from $614 million raised during Hong Kong listing

Core Business Progress:

  • LiDAR shipments were 441,400 units (+228.9% y/y), becoming the world’s first LiDAR company with annual output exceeding 1 million units
  • ADAS LiDAR shipments were 380,800 units (+193.1% y/y), robot LiDAR shipments were 60,600 units (+1311.9% y/y)
  • Ranked first in automotive main LiDAR market share for seven consecutive months, market share reached 46% in August

Performance Guidance:

  • Q4 net income guidance 1-1.2 billion yuan (up 39%-67% y/y), full-year net profit guidance raised to 350-450 million yuan

The Story Behind the Revenue Surge

The robust revenue growth was mainly fueled by rapid expansion in the core application scenarios of ADAS and robotics.

Q3 net income was 795 million yuan, up 47.5% year-on-year. Of this, product revenue was 790 million yuan, up 57% year-on-year. Notably, service revenue fell from 36.3 million yuan in the same period last year to 5.3 million yuan, a decline of 85.4%, mainly due to decreased non-recurring engineering service income.

Looking at shipment data, ADAS LiDAR shipments reached 380,800 units, up 193.1% year-on-year, reflecting rapid market penetration. Even more striking, robot LiDAR shipments reached 60,600 units, an explosive growth of 1311.9% year-on-year, signaling an evident acceleration in the commercialization of autonomous driving.

Remarkable Cost Control and Improved Financials

Despite gross margin dropping to 42.1% from 47.7% a year earlier, mainly due to reduced non-recurring engineering service income with higher margins, the company performed outstandingly in cost control.

Operating expenses fell 23% year-on-year, with R&D expenses dropping from 220 million yuan to 199 million yuan. Both sales & marketing and general & administrative expenses also declined, reflecting improved operational efficiency from refined cost management.

Successfully raised $614 million from Hong Kong listing, with cash, cash equivalents, restricted cash and short-term investments reaching 7.37 billion yuan by the end of Q3, a sharp increase from 2.85 billion yuan at the end of Q2. Ample cash reserves provide strong support for technology R&D, capacity expansion, and global deployment.

Further Consolidation of Market Position

According to data from Gasgoo Auto Research Institute, Hesai has held the top industry position in automotive main LiDAR for seven consecutive months, with a market share of 46% in August. This reflects Hesai’s comprehensive advantages in technology, products, and client relationships. The company has secured cooperation on all models from its top two ADAS customers for 2026, achieving 100% LiDAR standard configuration, which offers strong visibility for future revenue growth.

Incremental market opportunities from L3 autonomous driving deserve close attention. Management estimates each L3 vehicle will be equipped with 3-6 LiDAR units, with per-vehicle value of about $500-1,000, greatly expanding potential market size. The high-performance LiDAR product ETX has been selected for mass production by China’s top three emerging automakers, with relevant models also set to be equipped with multiple FTX blind-spot LiDARs. Mass production is expected to start by end-2026 or early 2027.

The company has signed new LiDAR supply agreements with Motional and other leading autonomous driving firms in North America, Asia, and Europe. These projects represent strategic partnerships worth tens of millions of dollars. In the robotics sector, collaborations with leading companies such as Pony.ai, Hello, and JD Logistics show accelerating commercialization progress.

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