NIO Scores A Profit!

We have been covering NIO for more than 9 years. When it started out as a young, ambitious, small young company, it was clear the EV startup had big dreams. The company wanted to achieve great things and excite the world, as Tesla had done, on the benefits of a clean electric powertrain. However, NIO wasn’t just going to follow in footsteps. It was also keen to lead the way on EV battery swapping. And it has. No company in the world compares to NIO when it comes to battery swapping for electric cars.

The company has also done well to develop some of the best EV technology and designs, roll out new models regularly, and even roll out new brands. For sure, it’s not seen a straight path upward, with various drawbacks and difficult periods. However, overall, the company has progressed, progressed, and progressed. Lately, it has been achieving record sales again, and it looks like that is bringing the company to a major, critical, transformative milestone. NIO is achieving its first rounds of profitability.

The board of directors of the Company (the “Board”) wishes to inform shareholders and potential investors that, based on a preliminary assessment of the Company’s unaudited consolidated management accounts and the information currently available to the Board, the Company is expected to achieve an adjusted profit from operations (non-GAAP) in the range of approximately RMB700 million (approximately US$100 million)ⁱ to RMB1,200 million (approximately US$172 million) for the fourth quarter of 2025, which is defined as profit from operations excluding share-based compensation expenses, representing the first time the Company has recorded an adjusted profit from operations (non-GAAP) on a quarterly basis. In comparison, the Company recorded an adjusted loss from operations (non-GAAP) of RMB5,543.6 million in the fourth quarter of 2024.

“The expected adjusted profit from operations (non-GAAP) for the fourth quarter of 2025 was primarily attributable to (i) the Company’s sustained growth in sales volume in the fourth quarter of 2025; (ii) the optimization of vehicle margin driven by a favorable product mix; and (iii) the Company’s ongoing comprehensive cost reduction efforts and continued improvement in operational efficiency,” the company announced today.

“In addition, under the GAAP measures, the Company is expected to record a profit from operations of approximately RMB200 million (approximately US$29 million) to RMB700 million (approximately US$100 million) for the fourth quarter of 2025.

“As of the date of this press release, the Company is in the process of preparing and finalizing the financial results for the three months and full year ended December 31, 2025 (the ‘Q4 and FY2025 Results’). The information contained in this press release is only based on a preliminary review of the unaudited consolidated management accounts and the information currently available to the Board, and is not based on any figures or information which have been audited or reviewed by the Company’s independent auditor or the audit committee of the Board. The above data may therefore differ from the figures to be disclosed in the audited or unaudited consolidated financial statements in respect of the Q4 and FY2025 Results. Accordingly, the above figures are strictly for information only and not for any other purposes.”

We knew NIO was building toward this and planning for this. But plans and dreams are just that until they are achieved. It looks like the EV company did end 2025 well enough, and I expect 2026 to be a great year for the company. But we shall see. Reaching this great point in the company’s history does not mean the future will be rosy and bright. What is around the corner has surprised many a champion.

Naturally, NIO does provide an extra cautious disclosure for investors, in bold even. “Shareholders and potential investors are advised not to place undue reliance on the information disclosed herein and to exercise caution when dealing in the securities of the Company. Any shareholder or potential investor who is in doubt is advised to seek advice from professional advisors.“

Indeed. Anyway, though, congratulations to NIO! It is always uplifting to see a cleantech company, especially a cleantech leader, succeeding and showing that attractive, helpful, well designed clean technologies can win on the market, and the companies producing them as well.