XPeng Q2 Revenue Rebounds as Net Loss Nearly Triples

XPeng second-quarter revenue rebounded strongly in the latest reporting period, but the improvement did not prevent a sharp increase in net losses. The company reported revenue of 19.74 billion yuan ($2.91 billion), representing an 8.0% year-over-year increase and a 51.5% sequential rise. The result landed within the company's previous guidance of 19.60 billion yuan to 20.80 billion yuan, although it was near the bottom of that range. Net loss reached 1.34 billion yuan, compared with 480 million yuan a year earlier, while the loss narrowed from 1.78 billion yuan in the first quarter.

The profitability picture was mixed despite stronger revenue. XPeng Inc reported a non-GAAP net loss of 1.24 billion yuan after excluding share-based compensation expenses and a fair-value gain on a derivative liability related to contingent consideration. That compared with losses of 390 million yuan in the year-ago quarter and 1.69 billion yuan in the first quarter. Gross margin improved to 20.7%, versus 17.3% a year earlier and 20.6% in the prior quarter. However, vehicle margin fell to 12.1% from 14.3% a year earlier and remained flat sequentially, with the company citing a product-generation transition.

Services and other operations provided a significant lift to the overall margin profile. Revenue from the segment climbed 93.9% year over year to 2.70 billion yuan, while its margin increased to 75.1% from 53.6% in the same period last year. XPeng Inc said the growth was mainly driven by technical research and development services supplied to an automaker and by higher parts and accessories revenue. The company did not identify the automaker, although the disclosure clearly referred to Volkswagen. Vehicle sales revenue reached 17.05 billion yuan, up 1.0% year over year and 55.0% sequentially.

Vehicle deliveries were essentially flat year over year but surged sequentially. XPeng delivered 103,295 vehicles during the second quarter, compared with 103,181 a year earlier and 62,682 in the first quarter of 2026. The quarterly history shows deliveries rising from 21,821 in the first quarter of 2024 to 30,207 in the second quarter, then reaching 46,533 in the third quarter and 91,507 in the fourth quarter. In 2025, deliveries reached 94,008 in the first quarter, 103,181 in the second, 116,007 in the third and 116,249 in the fourth, highlighting the scale reached before the latest quarterly result.

XPeng Quarterly Deliveries, 2024–2026

The quarterly delivery dataset shows how the company's vehicle volume expanded materially from 2024 through 2025 before the latest 2026 result. Second-quarter deliveries reached 103,295 units in 2026, slightly above the 103,181 units recorded in the corresponding quarter of 2025. The 2026 dataset contains only first- and second-quarter figures, so the third- and fourth-quarter cells remain unavailable rather than being estimated. This preserves the reported figures and avoids implying delivery volumes that the company has not provided.

Higher operating costs continued to pressure the bottom line. Research and development expenses increased 32.1% year over year to 2.91 billion yuan, mainly because of greater spending on new vehicle models and AI-related technologies. Selling, general and administrative expenses rose 15.2% to 2.50 billion yuan as marketing and advertising costs increased, while lower government subsidies also reduced other income. As of June 30, the company held 40.48 billion yuan in cash, cash equivalents, restricted cash, short-term investments and time deposits, down 1.61 billion yuan from the end of March.

The company expects further sequential growth in the third quarter. XPeng Inc guided for deliveries of 115,000 to 121,000 vehicles, implying year-over-year performance ranging from a 0.87% decline to a 4.30% increase and sequential growth of 11.33% to 17.14%. Third-quarter revenue is expected to reach 21.70 billion yuan to 23.40 billion yuan, representing year-over-year growth of 6.47% to 14.81% and sequential growth of 9.91% to 18.52%. After delivering 38,027 vehicles in July, the company needs 76,973 to 82,973 combined deliveries in August and September to meet its guidance.

Chairman and CEO He Xiaopeng said the back-to-back success of the GX and Mona L03 increased confidence in upcoming models, while the company expects mass production and commercialization of physical AI technologies to accelerate over the coming year. Separately, XPeng announced that its robotics subsidiary Dogotix had secured $900 million in conditional funding commitments at a post-money valuation of $6.3 billion. The transaction is intended to create a separate funding channel for the capital-intensive robotics business while allowing XPeng to retain control, adding a new financing structure alongside its automotive operations.

Frequently Asked Questions

What did XPeng report for the second quarter?
The company reported 19.74 billion yuan in revenue, up 8.0% year over year and 51.5% sequentially, while net loss increased to 1.34 billion yuan. Gross margin improved to 20.7%, but vehicle margin declined to 12.1% from the year-ago period. Vehicle deliveries reached 103,295 units, representing a 0.1% year-over-year increase and a 64.8% sequential rise. XPeng also guided for 115,000 to 121,000 third-quarter deliveries and revenue of 21.70 billion yuan to 23.40 billion yuan, indicating expectations for continued sequential growth.