XPeng Logs First-Ever Net Profit on Strong Margin Growth

XPeng recorded its first net profit since inception, marking a major financial milestone for the Chinese electric vehicle (EV) maker.

The company reported a net profit of 380 million yuan ($50 million) for the fourth quarter of 2025. By comparison, it posted a net loss of 1.33 billion yuan in the same period of 2024.

US-listed XPeng shares rose 2.2% in premarket trading, erasing earlier losses.

Financial performance under non-GAAP measures also showed significant improvement. Its non-GAAP net profit for the quarter reached 510 million yuan.

In the fourth quarter of 2024, this non-GAAP figure was a loss of 1.39 billion yuan, underscoring the company's massive turnaround in profitability.

The company still posted an operating loss, though it narrowed substantially.

Operating loss for the fourth quarter was 40 million yuan, far below the 1.56 billion yuan operating loss recorded in the same period of 2024.

This shift to profitability aligns with management's previous financial guidance. The company had set a financial target to break even in the fourth quarter during its third-quarter earnings call.

XPeng's gross margin stood at 21.3% in the fourth quarter, an increase of 6.9 percentage points from the same period in 2024.

XPeng guided first-quarter vehicle deliveries to be between 61,000 and 66,000 units, representing a year-on-year decline of about 29.79% to 35.11%.

It guided first-quarter total revenue to be between RMB 12.2 billion and RMB 13.28 billion, representing a year-on-year decline of about 16.01% to 22.84%.

This guidance implies that XPeng expects March deliveries to range from 25,733 to 30,733 units.

The sustained improvement in its financial position provides solid funding support for XPeng's future technology investments. The company is now more determined to pour resources into the research and development of physical AI.

This includes accelerating the technological development and mass production of its second-generation VLA model, robotaxis, and humanoid robots.