Hesai Group reported Q3 2025 revenue of RMB795.4 million (US$111.7 million), up 47% from RMB530.5 million in the same quarter last year. Net income rose to RMB256.2 million (US$36.0 million) from a net loss of RMB70.4 million in Q3 2024, giving a non‑GAAP earnings per share of $0.28, a beat of $0.17 over consensus. The company shipped 441,398 LiDAR units, surpassing the one‑million‑unit annual production milestone it reached in September, and maintained a gross margin of 42% after a 5.7‑percentage‑point decline from 47.7% in Q3 2024. Operating expenses fell 23% year‑over‑year, reflecting disciplined cost management.
Revenue fell short of analyst expectations by $5.02 million, a shortfall that the company attributes to a shift in its revenue mix away from high‑margin non‑recurring engineering services toward its core ADAS and robotics product lines. While demand for LiDAR in automotive and robotaxi markets remained strong, the mix shift and modest pricing pressure in some segments tempered top‑line growth.
The 5.7‑percentage‑point drop in gross margin is largely driven by the reduced contribution of non‑recurring engineering services, which had a higher margin profile in the prior year. The company’s focus on scaling its core product lines and investing in AI‑driven cost efficiencies has helped offset the margin compression, and operating expenses were trimmed by 23% through automation and supply‑chain optimization.
Guidance for the remainder of the year has been raised. Hesai now projects GAAP net income of RMB350 million to RMB450 million for 2025, up from the previous range of RMB250 million to RMB350 million, and forecasts Q4 revenue of RMB1,000 million to RMB1,200 million, a lift that signals confidence in continued demand and the effectiveness of its cost‑control program.
CFO Andrew Fan said the quarter was “another outstanding one, with strong momentum in both scale and execution.” He added that the company’s cost‑control measures “have delivered a record net income of RMB256 million, bringing our nine‑month total to RMB283 million, already achieving our full‑year target a quarter earlier than planned.” CEO Dr. Yifan “David” Li highlighted the firm’s leadership in long‑range automotive LiDAR, noting a 46% market share in August and the company’s role in driving LiDAR adoption in top ADAS customers’ 2026 models.
Hesai’s market position is reinforced by recent strategic developments, including new supply agreements with Motional and Pony.ai and a dual‑primary listing in Hong Kong that raised US$614 million. The company also reported that it has achieved 100% LiDAR adoption in its top ADAS customers’ 2026 models, underscoring its growing influence in the autonomous driving ecosystem.
Industry trends point to LiDAR becoming a standard feature in advanced driver‑assist systems and a key component of multi‑LiDAR setups for Level 3 autonomous driving. While the company faces headwinds from pricing pressure in certain segments and the need to balance high‑margin services with volume growth, its strong demand base, cost discipline, and expanding market share position it well for continued profitability.
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