Lotus Technology Inc. reported its third‑quarter 2025 results, showing revenue of $137 million, a 46% decline from $257 million in the same period last year. The drop reflects weaker demand for legacy models amid tariff pressures and a broader destocking trend in the automotive market. Despite the revenue decline, the company’s gross margin expanded to 8% from 3% in Q3 2024, driven by a shift toward higher‑margin upgraded models and more efficient inventory management.
Deliveries fell 35% YoY to 1,799 units, but the company posted a 10% quarter‑over‑quarter increase in revenue and a 28% rise in deliveries compared with Q2 2025. The sequential gains suggest that the product mix is improving and that the company is regaining momentum in its core segments, even as overall market demand remains subdued.
Net loss narrowed sharply to $65.42 million from $205.80 million a year earlier, and the adjusted EBITDA loss fell to $54 million. The loss reduction is largely attributable to the margin expansion and disciplined cost control, offsetting the revenue shortfall. Management highlighted progress in the intelligent‑driving business and emphasized that the company is investing in new PHEV models to capture future growth.
The company reiterated its guidance for the remainder of the fiscal year, maintaining a cautious outlook that reflects ongoing tariff headwinds and inventory challenges. Management expressed confidence that the upcoming PHEV launch and the planned acquisition of Lotus UK will strengthen the company’s competitive position and provide new revenue streams.
Headwinds such as tariff impacts and destocking activities continue to weigh on short‑term performance, but the company’s focus on higher‑margin products, improved inventory dynamics, and strategic expansion into the UK market signal a path toward recovery and long‑term growth.
Overall, Lotus Technology’s Q3 results illustrate a company in transition: revenue and deliveries are down, but margins and loss metrics are improving, and strategic initiatives are positioned to drive future performance.
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