NIO (NYSE:NIO) reported second-quarter 2026 vehicle deliveries of 107,658, up 49.4% from a year earlier, as revenue rose 69.1% to RMB32.1 billion and the company narrowed its operating and net losses.
Founder, Chairman and Chief Executive Officer William Li said all three of the company’s brands—NIO, ONVO and Firefly—recorded year-over-year and sequential increases in sales volume and average transaction prices during the quarter. NIO delivered 60,945 vehicles, ONVO delivered 29,124, and Firefly delivered 17,589.
Revenue Growth and Improved Margins
Chief Financial Officer Stanley Qu said vehicle sales totaled RMB29.1 billion, an 80.1% year-over-year increase, driven by higher deliveries and a more favorable product mix that lifted average selling prices. Other sales increased 7.2% to RMB3.1 billion, supported by parts, accessories and after-sales services, partly offset by lower used-car and technical R&D-service revenue.
Vehicle margin was 18.5%, compared with 10.3% a year earlier and 18.8% in the first quarter. Overall gross margin was 18.4%, up from 10% in the prior-year quarter but slightly below 19% in the preceding quarter.
Qu said the year-over-year margin improvement reflected the product mix, while the modest sequential decline resulted from margins in vehicle sales, power solutions, and parts and after-sales services.
- R&D expense was RMB2.1 billion, down 28.7% year over year but up 13.8% sequentially.
- SG&A expense was RMB4.4 billion, up 11.6% from a year earlier and 22.5% from the first quarter, reflecting product-launch marketing activity and higher personnel-related costs.
- Operating loss narrowed 92.9% year over year to RMB300 million.
- On a non-GAAP basis, adjusted profit from operations was RMB200 million.
- Net loss was RMB500 million, while adjusted net profit, excluding share-based compensation, was RMB26.1 million.
NIO said it generated positive operating cash flow and free cash flow during the quarter. Its cash balance, including cash equivalents, restricted cash, short-term investments and long-term time deposits, rose to RMB56.7 billion.
Cost Pressures and Margin Outlook
Management said rising costs for memory chips, batteries and other materials increased average vehicle costs by about RMB14,000 in the second quarter compared with late 2025. Li said NIO expects an additional RMB2,000 to RMB3,000 per-vehicle cost increase in the second half.
Despite those pressures, Li said the company aims to maintain vehicle gross margin in the third and fourth quarters at about the second-quarter level. NIO intends to offset cost inflation through stable pricing, supply-chain optimization, commercial negotiations and value-analysis/value-engineering measures.
Li said the ES8 and ES9 are important to the company’s margin profile, noting that both models generate vehicle margins above 20%, according to management. He also cited strong demand for the flagship SUVs, with certain ES9 variants carrying delivery wait times of more than three months.
For operating expenses, Qu said NIO expects non-GAAP R&D spending to remain around RMB2.5 billion per quarter in 2026, subject to project timing. The company expects non-GAAP SG&A as a percentage of revenue to decline to 10% to 11% in the second half from roughly 13% in the first half. Qu attributed about RMB500 million of second-quarter SG&A to one-time launch-related spending.
Brand, Technology and Network Expansion
Li said ONVO faces more intense competition than the NIO and Firefly brands, but management views brand awareness—not product conversion—as its principal challenge. ONVO’s average transaction price exceeded RMB240,000 in the first half, according to Li. The company plans to expand awareness through collaborations, offline events, community engagement and additional shared “Sky” stores serving NIO, ONVO and Firefly customers.
NIO said it plans new products from its NIO 5 and 6 series next year, along with a strategic new ONVO model. Firefly will retain a single-model strategy while introducing special editions and technology upgrades.
The company also highlighted an expanded smart-driving software release on June 18, which it said reached more than 700,000 NIO and ONVO users. Li said Urban NOP+ mileage increased 92.8% among NIO users and 127.8% among ONVO users after the update.
NIO currently offers five years of complimentary smart-driving service for new NIO and ONVO vehicles. For used-car customers, the company charges RMB380 per month, and Li said adoption among that group is near 20%. He said the business currently generates subscription revenue in the tens of millions of RMB annually.
Battery-Swap Investment and Cash Plans
NIO had 4,123 battery-swap stations and 30,294 chargers and destination charging points worldwide. Its first fifth-generation station began operation Aug. 7 and can support vehicles from all three brands. Qu said the station itself costs about RMB1.4 million, excluding batteries and high-voltage power infrastructure, or roughly RMB100,000 less than a fourth-generation station.
The company expects full-year capital expenditures of RMB6 billion to RMB7 billion, broadly in line with last year, primarily for vehicle development and sales-and-service network expansion. NIO still plans to build 1,000 swap stations this year, with management saying partner funding is expected to cover the year’s new charging and swapping infrastructure projects.
Qu said NIO expects to sustain positive operating and free cash flow in the third and fourth quarters and believes its cash position can continue to improve in the second half.
About NIO (NYSE:NIO)
NIO Inc is a pioneer in the premium electric vehicle (EV) segment, dedicated to the design, development and manufacture of smart, high-performance EVs. Established in November 2014 and headquartered in Shanghai, China, the company focuses on integrating cutting-edge electric propulsion, advanced connectivity and autonomous driving technologies into its automotive platforms. NIO’s vision centers on creating a holistic user experience that extends beyond the vehicle itself, encompassing energy services and digital solutions.
The company’s product lineup includes flagship SUVs and sedans such as the ES8, ES6, EC6, ET7 and ET5, each engineered to deliver strong performance, long range and a suite of intelligent driver-assistance features.
