NIU Q2 2026 Earnings: Revenue Growth Came With Margin Pressure

Niu Technologies (NASDAQ: NIU) reported Q2 2026 revenue of RMB 1,440.4 million, up 14.7% year over year, while diluted net loss per ADS was RMB 1.26 versus diluted net income per ADS of RMB 0.07 a year earlier. Higher e-scooter volume supported revenue, but lower revenue per vehicle, supply-chain cost pressure and rising operating expenses pushed the company from profit to loss.

Core earnings data

NIU’s e-scooter sales volume increased 24.2%, but revenue grew more slowly because revenue per scooter declined 8.6%. Gross profit consequently fell despite the higher top line, while operating expenses rose 28.6% and consumed 23.6% of revenue, up from 21.1% a year earlier.

The following figures cover the three months ended June 30, 2026. Adjusted net loss is a non-GAAP measure that excludes share-based compensation.

The GAAP net loss margin was 7.1%, compared with a 0.5% net income margin in Q2 2025. The adjusted net loss margin was 6.8%, versus an adjusted net income margin of 1.1%.

Business and segment performance

China remained NIU’s main growth driver and accounted for 91.9% of total e-scooter revenue. Domestic volume increased faster than domestic revenue because product mix reduced revenue per scooter, while the international business posted low-single-digit growth.

Revenue per e-scooter fell 8.6% to RMB 3,029. In China, the figure declined 9.2% to RMB 3,010 due primarily to product mix, while international revenue per scooter decreased 0.5% to RMB 3,270. Including accessories, parts and services, blended revenue per scooter was RMB 3,314, down 7.6%.

Accessories, spare parts and services were the fastest-growing revenue category, rising 29.0% and representing 8.6% of total revenue. However, their smaller contribution meant they could not offset the profitability pressure in vehicle sales.

Higher volume did not translate into higher gross profit

NIU’s disclosed cost per scooter decreased 2.9% to RMB 2,784, but revenue per scooter fell by a larger 8.6%. That mismatch reduced the amount of gross profit generated per unit even as total sales volume increased.

Total cost of revenue rose 20.6% to RMB 1,210.0 million, faster than revenue growth of 14.7%. Management attributed the gross-margin decline to China product mix, higher upstream supply-chain costs and lower margins on international kick-scooters. As a result, gross profit declined to RMB 230.4 million and gross margin contracted by 4.1 percentage points.

Profitability and balance sheet

Selling and marketing expense increased 18.0% to RMB 238.6 million. The increase included RMB 21.9 million of additional advertising and promotional expense in China and RMB 12.2 million of depreciation and amortization. Research and development expense rose 17.8% to RMB 51.5 million, mainly because of higher design, testing and staff-related costs.

General and administrative expense increased 165.2% to RMB 50.5 million. The main factor was a RMB 44.2 million year-over-year foreign-exchange swing: NIU recorded a RMB 19.0 million foreign-exchange loss in Q2 2026, compared with a RMB 25.3 million gain in Q2 2025. Share-based compensation declined to RMB 4.0 million from RMB 7.9 million, but that reduction was not enough to prevent the adjusted result from turning negative.

As of June 30, 2026, cash and cash equivalents, term deposits and short-term investments totaled RMB 1,475.8 million. NIU also held RMB 217.9 million of restricted cash and had RMB 220.0 million of short-term bank borrowings. Inventory increased to RMB 724.0 million from RMB 652.6 million at the end of 2025, while accounts payable rose to RMB 1,181.4 million from RMB 704.1 million.

Earnings guidance

NIU issued Q3 2026 revenue guidance calling for continued year-over-year growth. The outlook addresses revenue but does not provide quantitative expectations for margin or profitability.

Management commentary

CEO Yan Li said NIU continued to expand AI-enabled riding features across a broader range of everyday use cases in China, supporting its connected smart-mobility strategy. Internationally, management maintained a selective approach and sought to align products with local demand to support operational stability.

Recent insider transactions

The available transaction record identifies one direct insider sale during the period. The transaction alone does not establish the insider’s view of NIU’s future performance.

Separate six-month aggregate data showed 45,000 shares purchased and 22,113 shares sold by insiders, resulting in net purchases of 22,887 shares. The provided data did not identify the buyer or transaction date for the aggregate purchase figure.

Risks investors should monitor

• Product mix and unit revenue: China volume rose 26.2%, but domestic revenue per scooter fell 9.2%. Continued mix pressure could limit the profit contribution from higher unit sales.
• Supply-chain and product costs: Higher upstream costs and lower international kick-scooter margins contributed to the 4.1-percentage-point decline in gross margin.
• Operating expense growth: Operating expenses increased faster than revenue, with marketing investment and higher design and testing costs adding to the pressure on operating profit.
• Foreign-exchange volatility: The shift from a foreign-exchange gain to a loss was a major reason for the increase in general and administrative expense.
• Revenue guidance does not address margins: NIU expects Q3 revenue to grow 10% to 20%, but the outlook does not indicate whether unit economics or profitability will improve.

Summary

NIU generated double-digit Q2 2026 revenue growth through higher e-scooter volume, particularly in China, but lower revenue per vehicle, supply-chain costs and faster expense growth caused gross profit to decline and produced a substantial net loss. Q3 guidance points to continued revenue expansion, while the central issue for investors is whether NIU can convert volume growth into better gross margins and tighter operating leverage.