Li Auto Inc. (LI): Financial results for Q2 2026
Li Auto Inc. (LI) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Li Auto Inc. Announces Unaudited Second Quarter 2026 Financial Results Quarterly total revenues reached RMB25.7 billion (US$3.8 billion) 1 Quarterly deliveries were 98,330 vehicles BEIJING, China, August 26 , 2026 — Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq:
How this was made
The 30-second read
Why it matters
The earnings release shows a sharp decline in revenue and profitability, suggesting near‑term price pressure.
Market read
First‑hand earnings data for a major Chinese EV firm; material for traders focusing on EV sector and China‑related ADRs.
What to watch
Cash burn reduction and modest operating expense decline may signal early steps toward cost control.
Quarterly total revenues reached RMB25.7 billion (US$3.8 billion); quarterly deliveries were 98,330 vehicles.
Revenue, deliveries, gross profit and margins declined year over year, and Li Auto remained loss-making. Sequential revenue, margins, operating cash flow and free cash flow improved, while third-quarter delivery guidance calls for year-over-year growth but revenue guidance ranges from a decline to modest growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Deliveriesother | 98,330 vehicles | – | (11.5)% |
| Vehicle salesGAAP | RMB24.1 billion (US$3.5 billion) | 11.8% | (16.7)% |
| Other sales and servicesGAAP | RMB1.6 billion (US$235.9 million) | 10.4% | 17.6% |
| Total revenuesGAAP | RMB25.7 billion (US$3.8 billion) | 11.7% | (15.1)% |
| Cost of salesGAAP | RMB22.8 billion (US$3.4 billion) | 7.8% | (5.6)% |
| Vehicle marginGAAP | 9.4% | 3.3 pts | (10.0)pts |
| Gross profitGAAP | RMB2.8 billion (US$418.0 million) | 56.9% | (53.3)% |
| Gross marginGAAP | 11.0% | 3.1 pts | (9.1)pts |
| Operating expensesGAAP | RMB5.1 billion (US$757.1 million) | 6.9% | (2.0)% |
| Research and development expensesGAAP | RMB2.8 billion (US$409.1 million) | 2.0% | (1.2)% |
| Selling, general and administrative expensesGAAP | RMB2.3 billion (US$335.7 million) | 11.2% | (16.2)% |
| Loss from operationsGAAP | RMB2.3 billion (US$339.1 million) | (23.3)% | – |
| Operating marginGAAP | negative 9.0% | 4.0 pts | (11.7)pts |
| Non-GAAP loss from operationsnon-GAAP | RMB2.1 billion (US$308.6 million) | – | – |
| Net lossGAAP | RMB1.7 billion (US$251.3 million) | (25.1)% | – |
| Non-GAAP net lossnon-GAAP | RMB1.5 billion (US$220.9 million) | (28.9)% | – |
| Diluted net loss per ADS attributable to ordinary shareholdersGAAP | RMB1.69 (US$0.25) | (25.2)% | – |
| Non-GAAP diluted net loss per ADS attributable to ordinary shareholdersnon-GAAP | RMB1.49 (US$0.22) | (28.7)% | – |
| Net cash provided by operating activitiesGAAP | RMB15.0 million (US$2.2 million) | – | – |
| Capital expendituresother | RMB1.3 billion (US$193.9 million) | – | – |
| Free cash flownon-GAAP | negative RMB1.3 billion (US$191.7 million) | (82.4)% | (66.1)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Vehicle salesThe year-over-year decrease was primarily due to lower vehicle deliveries and a lower average selling price due to a different product mix. The sequential increase was primarily attributable to a higher average selling price due to a different product mix and increased vehicle deliveries. | RMB24.1 billion (US$3.5 billion) | 11.8% | (16.7)% |
| Other sales and servicesThe increase was mainly due to increased provision of services and sales of accessories, in line with higher accumulated vehicle sales. | RMB1.6 billion (US$235.9 million) | 10.4% | 17.6% |
third quarter of 2026 outlook
- Revenuebetween RMB26.6 billion (US$3.9 billion) and RMB28.0 billion (US$4.1 billion), representing a year-over-year change of -2.8% to +2.3%
- NoteDeliveries of vehicles to be between 95,000 and 100,000 vehicles, representing a year-over-year increase of 1.9% to 7.3%.
Capital returns
- Under its US$1.0 billion share repurchase program, the Company repurchased 41,232,100 Class A ordinary shares at an aggregate consideration of HK$2.1 billion on the HKEX in the second quarter of 2026.
- The Company repurchased 9,487,026 ADSs, representing 18,974,052 Class A ordinary shares, at an aggregate consideration of US$150.9 million on the Nasdaq in the second quarter of 2026.
- As of the date of the press release, the Company had repurchased approximately 91.7 million Class A ordinary shares, including approximately 23.7 million ADSs, for an aggregate consideration of approximately US$631.5 million.
What drove it
- Vehicle revenue declined year over year primarily because of lower deliveries and a lower average selling price from a different product mix.
- Sequential vehicle revenue growth reflected a higher average selling price from a different product mix and increased vehicle deliveries.
- Vehicle margin and gross margin changed mainly because of product mix.
- Selling, general and administrative expenses declined year over year primarily due to decreased employee compensation, while they increased sequentially primarily due to marketing and promotional activities.
- Operating cash flow improved due to timing differences between cash received from customers and payments for inventory purchases.
- The Company launched and commenced deliveries of the all-new Li L8 in June 2026 and the new Li L6 in July 2026.
Concerns
- Deliveries decreased 11.5% year over year and vehicle sales decreased 16.7% year over year.
- Gross margin was 11.0%, compared with 20.1% in the second quarter of 2025.
- Li Auto reported a RMB2.3 billion loss from operations and a RMB1.7 billion net loss.
- Free cash flow remained negative RMB1.3 billion.
- Third-quarter total-revenue guidance implies a year-over-year change of -2.8% to +2.3%.
What to watch
- Third-quarter deliveries guidance of between 95,000 and 100,000 vehicles.
- Third-quarter total-revenue guidance of between RMB26.6 billion (US$3.9 billion) and RMB28.0 billion (US$4.1 billion).
- Management expects further margin expansion in the second half of the year as product mix optimizes, including a higher sales contribution from the Livis trim and the launch of refreshed BEV models and Li i9.
- Order flow for the new Li L6 and the refresh of the Company's BEV lineup.
- The balance between marketing and promotional activities and the Company's focus on operational efficiency.
Balance sheet and cash flow
- Cash position was RMB87.5 billion (US$12.9 billion) as of June 30, 2026.
- Cash and cash equivalents were RMB40,117,782 thousand (US$5,912,629 thousand) as of June 30, 2026.
- Restricted cash was RMB14,782 thousand (US$2,179 thousand) as of June 30, 2026.
- Time deposits and short-term investments were RMB45,474,274 thousand (US$6,702,079 thousand) as of June 30, 2026.
- Long-term investments were RMB2,976,994 thousand (US$438,755 thousand) as of June 30, 2026.
- Short-term borrowings were RMB286,205 thousand (US$42,181 thousand) as of June 30, 2026.
- Long-term borrowings were RMB6,863,999 thousand (US$1,011,628 thousand) as of June 30, 2026.
- Total assets were RMB140,679,600 thousand (US$20,733,608 thousand) as of June 30, 2026.
- Total liabilities were RMB74,717,985 thousand (US$11,012,070 thousand) as of June 30, 2026.
- Total shareholders' equity was RMB65,961,615 thousand (US$9,721,538 thousand) as of June 30, 2026.
- Net cash provided by operating activities was RMB15.0 million (US$2.2 million).
- Net cash provided by investing activities was RMB2,919,510 thousand (US$430,283 thousand).
- Net cash used in financing activities was RMB5,487,924 thousand (US$808,820 thousand).
Analysis
Li Auto's second quarter showed a sequential recovery but a materially weaker year-over-year earnings profile. Total revenues were RMB25.7 billion (US$3.8 billion), down 15.1% from RMB30.2 billion in the second quarter of 2025 but up 11.7% from RMB23.0 billion in the first quarter of 2026. Deliveries were 98,330 vehicles, a year-over-year decrease of 11.5%. Vehicle sales fell 16.7% year over year, with the Company attributing that decline to lower deliveries and a lower average selling price from a different product mix.
Product mix supported sequential improvement. Vehicle sales increased 11.8% sequentially, which the Company attributed to a higher average selling price from a different product mix and higher deliveries. Vehicle margin improved to 9.4% from 6.1% in the first quarter of 2026, while gross margin improved to 11.0% from 7.9%. Both remained substantially below their respective second-quarter 2025 levels of 19.4% and 20.1%. Other sales and services reached RMB1.6 billion (US$235.9 million), increasing both year over year and sequentially, driven by services and accessories.
Profitability remained negative despite the sequential gross-profit improvement. Gross profit was RMB2.8 billion (US$418.0 million), down 53.3% year over year, while operating expenses were RMB5.1 billion (US$757.1 million). The Company reported a RMB2.3 billion loss from operations and a RMB1.7 billion net loss. Research and development expenses remained relatively stable, while sequential growth in selling, general and administrative expenses was primarily related to marketing and promotional activities.
Cash conversion improved sharply from the prior periods but free cash flow remained negative. Net cash provided by operating activities was RMB15.0 million (US$2.2 million), versus cash used in operating activities in both comparison periods, due mainly to timing differences between customer receipts and inventory payments. Free cash flow was negative RMB1.3 billion (US$191.7 million). Li Auto reported a cash position of RMB87.5 billion (US$12.9 billion) and continued to deploy capital under its US$1.0 billion repurchase program.
For the third quarter, Li Auto expects deliveries of between 95,000 and 100,000 vehicles and total revenues of between RMB26.6 billion (US$3.9 billion) and RMB28.0 billion (US$4.1 billion). The delivery outlook calls for year-over-year growth of 1.9% to 7.3%, while revenue guidance spans a year-over-year change of -2.8% to +2.3%. Management expects further second-half margin expansion from a more favorable product mix, a higher contribution from the Livis trim, and launches of refreshed BEV models and Li i9.
Management, verbatim
Amid intense market competition and a major model refresh cycle, Li Auto remained the best-selling domestic automotive brand in China’s RMB200,000-and-above NEV market in the first half of 2026.
Mr. Xiang Li, chairman and chief executive officer of Li Auto
In the second quarter of 2026, our gross margin improved sequentially to 11.0%, benefiting from the launch of the all-new Li L9.
Mr. Tie Li, chief financial officer of Li Auto
Not in the filing
stated, not guessed- Prior-period business outlook for comparison with actual results
- Third-quarter gross margin guidance
- Third-quarter operating expense guidance
- Third-quarter tax rate guidance
- Reported income tax rate
- Dividend declaration or dividend guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Li Auto is a Nasdaq‑listed Chinese EV manufacturer that reports quarterly results via SEC Form 6‑K.
Ticker impact
Li Auto disclosed Q2 2026 results showing 15% revenue decline, a 53% drop in gross profit and a net loss of RMB1.7 bn.
Potential downside of 5‑8% over the next few trading sessions.
The release contains fresh, material financial data for a large‑cap Chinese EV maker; the negative trend in margins and cash flow is a clear bearish catalyst.
Market effects
Highlights weakness in the Chinese new‑energy vehicle sector, may pressure peers such as NIO and XPEV.
Negative earnings could weigh on broader Chinese equity sentiment in Hong Kong and ADR markets.
Adds to concerns about EV demand slowdown, potentially affecting global supply chains.
Counterpoint
The launch of the new Li L8 and L6 models could revive demand, offering a longer‑term upside if margins improve.
Key entities
- companyLi Auto Inc.
Nasdaq‑listed EV maker reporting Q2 2026 results.
