Uxin Ltd (UXIN): Financial results for Q2 2026
Uxin Ltd (UXIN) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Uxin Reports Unaudited Financial Results for the Quarter Ended June 30, 2026 BEIJING, September 24, 2026 – Uxin Limited (“Uxin” or the “Company”) (Nasdaq: UXIN), China’s leading used car retailer, today announced its unaudited financial results for the quarter ended
How this was made
The 30-second read
Why it matters
The earnings release highlights strong sales volume growth but a sharp decline in gross margin, leading to a larger operating loss. Management projects margin recovery above 6% in Q3, which will be a key catalyst.
Market read
The report provides fresh financial data for a Nasdaq‑listed Chinese auto retailer, influencing both US‑listed investors and those tracking China’s automotive sector.
What to watch
Rising oil prices and aggressive new‑car pricing may be temporary; inventory realignment could improve profitability faster than indicated.
Uxin reported RMB1,151.2 million of revenue and 21,899 transaction units, while used-car price declines drove gross margin to -0.7% and net loss to RMB178.4 million.
Retail volume and revenue grew sharply year over year, supported by new superstores, but accelerated inventory sales amid declining used-car prices produced a gross loss, a -0.7% gross margin, and substantially wider operating and adjusted EBITDA losses.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Transaction volumeother | 21,899 units | 20.3% | 88.7% |
| Retail transaction volumeother | 19,610 units | 18.6% | 88.8% |
| Wholesale transaction volumeother | 2,289 units | 36.2% | 87.5% |
| Total revenuesGAAP | RMB1,151.2 million (US$169.7 million) | 7.2% | 74.9% |
| Cost of revenuesGAAP | RMB1,159.8 million (US$170.9 million) | – | – |
| Gross profit/(loss)GAAP | RMB8.6 million gross loss | – | – |
| Gross marginGAAP | -0.7% | – | – |
| Total operating expensesGAAP | RMB145.3 million (US$21.4 million) | – | – |
| Total operating expenses excluding the impact of share-based compensationnon-GAAP | RMB 135.3M | – | – |
| Sales and marketing expensesGAAP | RMB119.2 million (US$17.6 million) | 3.0% | 60.6% |
| General and administrative expensesGAAP | RMB22.0 million (US$3.2 million) | -6.0% | 13.0% |
| Research and development expensesGAAP | RMB4.1 million (US$0.6 million) | 40.4% | 33.1% |
| Other operating income, netGAAP | RMB2.0 million (US$0.3 million) | – | – |
| Loss from operationsGAAP | RMB151.9 million (US$22.4 million) | – | – |
| Interest expensesGAAP | RMB25.0 million (US$3.7 million) | – | – |
| Net loss, net of taxGAAP | RMB178.4 million (US$26.3 million) | – | – |
| Net loss attributable to ordinary shareholdersGAAP | RMB183.3 million (US$27.0 million) | – | – |
| Non-GAAP adjusted EBITDAnon-GAAP | loss of RMB119.8 million (US$17.7 million) | – | – |
| Non-GAAP adjusted net loss attributable to ordinary shareholdersnon-GAAP | RMB168.4 million (US$24.8 million) | – | – |
| Net loss per share for ordinary shareholders, basicGAAP | (0.00) | – | – |
| Net loss per share for ordinary shareholders, dilutedGAAP | (0.00) | – | – |
| Non-GAAP adjusted net loss to ordinary shareholders per share – basic and dilutednon-GAAP | (0.00) | – | – |
| Operating cash outflowGAAP | RMB 63.8M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Retail vehicle salesThe quarter-over-quarter increase was mainly due to the increase in retail transaction volume. The year-over-year increase was mainly due to the 88.8% increase in retail transaction volume, with growth primarily driven by new superstores in Wuhan, Zhengzhou, Jinan and Tianjin. | RMB1,080.8 million (US$159.3 million) | 6.5% | 77.9% |
| Wholesale vehicle salesWholesale transaction volume was 2,289 units, up 36.2% from 1,681 units last quarter and up 87.5% from 1,221 units in the same period last year. | RMB37.4 million (US$5.5 million) | – | – |
| Other revenueOther revenue was compared with RMB30.8 million in the last quarter and RMB20.8 million in the same period last year. | RMB33.0 million (US$4.9 million) | – | – |
For the three months ended September 30, 2026 outlook
- RevenueRMB1,160 million and RMB1,190 million
- Gross marginabove 6.0%
- NoteRetail transaction volume to range between 20,500 units and 21,000 units.
Capital returns
- On June 18, 2026, Uxin announced that Mr. Kun Dai intends to use his personal funds to purchase up to an aggregate of US$5.0 million of the Company’s American depositary shares during the 12-month period starting from June 25, 2026.
- As of June 30, 2026, the Company had received proceeds in aggregate of US$15.0 million from parties designated by NIO Capital in exchange for 1,573,976,915 Class A ordinary shares issued at a purchase price of US$0.00953 per share (equivalent to US$2.859 per American depositary share).
- By the date of this announcement, the Company received additional proceeds of US$4.0 million from the entity designated by NIO Capital under previously announced equity financings with NIO Capital. A further US$4.0 million remains to be funded under the Share Subscription Agreements.
What drove it
- Retail transaction volume increased 88.8% year over year and 18.6% sequentially to 19,610 units.
- The Tianjin superstore commenced trial operations in March 2026 and saw rapid increases in both inventory levels and sales.
- New superstores in Wuhan, Zhengzhou, Jinan and Tianjin commenced trial operations in February, September, December 2025 and March 2026, respectively.
- Short-term aggressive price reductions in the new-car sector drove a rapid downturn in used-vehicle market prices.
- Rising oil prices suppressed customer demand for gasoline cars and increased inventory turnover pressure.
- The Company accelerated inventory sales and adopted a new strategy for accelerating inventories turnover.
Concerns
- Gross margin was -0.7%, compared with 7.0% in the last quarter and 5.2% in the same period last year.
- Loss from operations was RMB151.9 million, compared with RMB66.6 million in the last quarter and RMB43.1 million in the same period last year.
- Non-GAAP adjusted EBITDA was a loss of RMB119.8 million, compared with a loss of RMB34.3 million in the last quarter and a loss of RMB16.5 million in the same period last year.
- The Company has incurred net losses since inception.
- The Company reported an accumulated deficit of RMB20.1 billion and current liabilities exceeded current assets by approximately RMB201.0 million as of June 30, 2026.
- The Company stated that planned equity and loan financings are among the plans considered in its liquidity assessment.
What to watch
- Whether retail transaction volume reaches the guided range of 20,500 units to 21,000 units for the three months ended September 30, 2026.
- Whether total revenues reach the guided range of RMB1,160 million to RMB1,190 million.
- Whether overall gross profit margin recovers to above 6.0% in the third quarter of 2026.
- The remaining US$4.0 million expected to be funded under the Share Subscription Agreements, subject to applicable closing conditions.
- The Shaoxing used car superstore project, launched July 20, 2026, which is expected to have capacity of more than 2,500 vehicles for display and sale.
Balance sheet and cash flow
- Cash balance was RMB82.6 million as of June 30, 2026.
- Inventory, net was RMB358,057 thousand as of June 30, 2026.
- Short-term borrowings from third parties were RMB318,514 thousand as of June 30, 2026.
- Long-term borrowings from third parties were RMB10,000 thousand as of June 30, 2026.
- Finance lease liabilities were RMB1,116,312 thousand as of June 30, 2026.
- Operating lease liabilities were RMB229,965 thousand as of June 30, 2026.
- Current liabilities exceeded current assets by approximately RMB201.0 million as of June 30, 2026.
- Accumulated deficit was RMB20.1 billion as of June 30, 2026.
- The Company incurred operating cash outflow of RMB63.8 million for the quarter ended June 30, 2026.
Analysis
Uxin delivered substantial volume growth in the quarter ended June 30, 2026. Total transaction volume was 21,899 units, up 20.3% from the last quarter and 88.7% from the same period last year. Retail transaction volume reached 19,610 units, increasing 18.6% sequentially and 88.8% year over year. Total revenues rose to RMB1,151.2 million, including RMB1,080.8 million of retail vehicle sales revenue. The revenue growth was mainly due to higher retail vehicle sales revenue and transaction volume.
Growth was supported by the superstore rollout. Management identified Wuhan, Zhengzhou, Jinan and Tianjin as contributors to retail sales-volume growth, and the Tianjin store, which commenced trial operations in March 2026, saw rapid increases in inventory levels and sales. Wholesale transaction volume also increased to 2,289 units from 1,681 units last quarter and 1,221 units in the same period last year. Retail revenue growth lagged retail unit growth sequentially, while wholesale and other revenue were RMB37.4 million and RMB33.0 million, respectively.
Profitability deteriorated sharply as automotive market prices declined and the Company accelerated sales of inventory affected by falling prices. Cost of revenues was RMB1,159.8 million against total revenues of RMB1,151.2 million, producing a RMB8.6 million gross loss and gross margin of -0.7%. This compared with gross margin of 7.0% in the last quarter and 5.2% in the same period last year. Operating expenses were RMB145.3 million, including RMB119.2 million of sales and marketing expenses. Loss from operations widened to RMB151.9 million and non-GAAP adjusted EBITDA loss widened to RMB119.8 million.
Liquidity remains a central focus. Uxin reported RMB82.6 million of cash balance, RMB63.8 million of operating cash outflow, RMB20.1 billion of accumulated deficit, and approximately RMB201.0 million by which current liabilities exceeded current assets. The Company received aggregate proceeds of US$15.0 million from parties designated by NIO Capital as of June 30, 2026, and disclosed US$4.0 million of additional proceeds by the announcement date, with a further US$4.0 million remaining to be funded under the Share Subscription Agreements. Management stated that its liquidity assessment considers planned equity and loan financings, volume and revenue growth, inventory and working-capital turnover, gross-margin improvement, value-added services, and potential operating-scale adjustments.
For the three months ended September 30, 2026, Uxin guided retail transaction volume of 20,500 units to 21,000 units, total revenues of RMB1,160 million to RMB1,190 million, and gross profit margin above 6.0%. The guide places gross-margin recovery at the center of the next quarter after the second-quarter inventory price adjustment. Management stated that market conditions began to stabilize and that the Company entered a new steady and efficient procurement-to-sales cycle.
Management, verbatim
Despite a sharp decline in used car prices during the second quarter of 2026, our retail transaction volume reached 19,610 vehicles, up 89% year over year and 19% sequentially.
Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin
While this put significant pressure on near-term profitability, it allowed us to realign our inventory more quickly with the new pricing environment.
Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin
The rapid decline in automotive market prices, together with our decision to accelerate inventory sales, weighed on profitability.
Feng Lin, Chief Financial Officer of Uxin
Not in the filing
stated, not guessed- Previous-period outlook was not provided; therefore, comparison of actual results with prior guidance is unavailable.
- Free cash flow was not reported.
- Cash flow from operations in the prior-year and prior-quarter periods was not reported.
- Dividend payments and Company share repurchases were not reported.
- A tax-rate metric was not reported.
- Prior-quarter total operating expenses were not reported.
- Percentage changes for cost of revenues, gross profit/(loss), total operating expenses, other operating income, loss from operations, interest expenses, net loss, and adjusted EBITDA were not reported.
- Prior-quarter figures for net loss attributable to ordinary shareholders, adjusted net loss attributable to ordinary shareholders, and per-share measures were not reported.
AlphAI 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
Uxin Ltd is China's leading used‑car retailer, listed on Nasdaq (UXIN). The company reported Q2 2026 results via an SEC Form 6‑K filing.
Ticker impact
Q2 2026 earnings show revenue up 7.2% YoY to $169.7M, but gross margin fell to -0.7% and adjusted EBITDA loss widened to $120M.
Potential short-term downside pressure as investors digest margin compression, with upside if Q3 margin guidance is met.
Negative margin and widening loss outweigh volume gains; market may penalize unless turnaround is demonstrated.
Market effects
Used‑car retail sector may see broader margin pressure if price declines persist.
China auto retail market could face short‑term earnings volatility.
Limited; primarily affects China‑focused investors and niche auto‑retail exposure.
Counterpoint
Volume surge and inventory turnover improvements could set the stage for a rapid margin rebound, presenting a buying opportunity.
Key entities
- ExecutiveKun Dai
Founder, Chairman and CEO of Uxin, provided commentary on volume growth and margin outlook.
- ExecutiveFeng Lin
Chief Financial Officer, detailed financial results and margin pressure.
