Q2 FY2026
Filed Aug 18, 2026Hesai Group Reports Second Quarter 2026 Unaudited Financial Results
Net revenues increased 21.9%, total lidar shipments increased 78.4%, and net income increased 60.0% year-over-year. Gross margin declined to 40.1% and GAAP income from operations declined to RMB2.2 million as the Company increased investment in Strategic Growth Initiatives.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenuesGAAP | RMB860.8 million (US$126.9 million) | – | 21.9% |
| Product revenuesGAAP | RMB859.7 million (US$126.7 million) | – | 22.9% |
| Service revenuesGAAP | RMB1.1 million (US$0.2 million) | – | (84.3%) |
| Cost of revenuesGAAP | RMB515.6 million (US$76.0 million) | – | 27.0% |
| Gross profitGAAP | RMB345,249 thousand (US$50,883 thousand) | – | – |
| Gross marginGAAP | 40.1% | – | – |
| Sales and marketing expensesGAAP | RMB49.6 million (US$7.3 million) | – | 17.2% |
| General and administrative expensesGAAP | RMB67.0 million (US$9.9 million) | – | 5.1% |
| Research and development expensesGAAP | RMB231.2 million (US$34.1 million) | – | 16.0% |
| Total operating expensesGAAP | RMB343,054 thousand (US$50,559 thousand) | – | – |
| Income from operationsGAAP | RMB2.2 million (US$0.3 million) | – | (90.4%) |
| Non-GAAP income from operationsnon-GAAP | RMB33.0 million (US$4.9 million) | – | (36.7%) |
| Net incomeGAAP | RMB70.6 million (US$10.4 million) | – | 60.0% |
| Non-GAAP net incomenon-GAAP | RMB101.3 million (US$14.9 million) | – | 38.3% |
| Net income per ordinary share, basicGAAP | RMB0.06 (US$0.01) | – | 50.0% |
| Net income per ordinary share, dilutedGAAP | RMB0.05 (US$0.01) | – | 25.0% |
| Non-GAAP net income per ordinary share, basicnon-GAAP | RMB0.08 (US$0.01) | – | 14.3% |
| Diluted non-GAAP net income per ordinary sharenon-GAAP | RMB0.08 (US$0.01) | – | 14.3% |
| ADAS lidar shipmentsother | 485,904 units | – | 60.1% |
| Robotics lidar shipmentsother | 142,371 units | – | 193.4% |
| Total lidar shipmentsother | 628,275 units | – | 78.4% |
| Six months ended June 30 net revenuesGAAP | RMB1,541,382 thousand (US$227,172 thousand) | – | – |
| Six months ended June 30 net incomeGAAP | RMB88,865 thousand (US$13,097 thousand) | – | – |
| Cash reserveother | RMB7,050.6 million (US$1,039.1 million) | – | – |
| Cash and cash equivalents as of June 30, 2026GAAP | RMB1,510,094 thousand (US$222,560 thousand) | – | – |
| Short-term borrowings as of June 30, 2026GAAP | RMB395,490 thousand (US$58,288 thousand) | – | – |
| Long-term borrowings as of June 30, 2026GAAP | RMB242,006 thousand (US$35,667 thousand) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| LidarIncreased deliveries of both ADAS and Robotics lidar products driven by robust demand, both in China and globally, partially offset by a decrease in average selling prices. | RMB815,884 thousand | – | – |
| Strategic Growth InitiativesSGI recorded its first revenue contribution, led by early commercial traction for robotic actuation modules. | RMB44,943 thousand | – | – |
third quarter of 2026 outlook
- Revenuebetween RMB1,100 million (US$162 million) and RMB1,150 million (US$169 million), representing a year-over-year increase of approximately 38% to 45%
- NoteFull-year 2026 SGI revenue guidance: a range of RMB200-300 million
- NoteSGI is expected to reach approximately US$100 million in revenues in 2027 and achieve breakeven in the same year.
- NoteKosmo initial revenues expected in the third quarter of 2026.
- NoteRobotic actuation module shipments expected to reach six-digit level in 2027.
What drove it
- ADAS lidar shipments increased 60.1% and Robotics lidar shipments increased 193.4% year-over-year.
- Product revenue growth was driven by increased deliveries of ADAS and Robotics lidar products amid robust demand in China and globally.
- Hesai secured a major global design win with Volkswagen covering multiple vehicle models under its China joint ventures.
- Strategic Growth Initiatives generated their first revenue contribution, led by robotic actuation modules.
- Kosmo delivered initial prototypes in July 2026 and secured orders from leading humanoid robotics companies, including Galbot.
Concerns
- Gross margin declined to 40.1% from 42.5%, mainly because products with relatively lower margins represented a higher revenue contribution.
- Income from operations declined to RMB2.2 million from RMB22.9 million, while non-GAAP income from operations declined to RMB33.0 million from RMB52.1 million.
- Research and development expenses increased 16.0%, reflecting incremental investment in SGI.
- Service revenues decreased 84.3%, mainly driven by lower revenues from non-recurring engineering services.
- Foreign exchange loss, net was RMB23,182 thousand in the second quarter of 2026, compared with foreign exchange income, net of RMB6,936 thousand in the second quarter of 2025.
What to watch
- Third-quarter net revenue delivery against guidance of between RMB1,100 million (US$162 million) and RMB1,150 million (US$169 million).
- Kosmo's expected initial revenues in the third quarter of 2026.
- Progress toward full-year 2026 SGI revenue guidance of RMB200-300 million.
- Gross-margin performance as product mix shifts toward relatively lower-margin products.
- Commercial ramp of robotic actuation modules, whose production line was fully operational and had delivered over 10,000 units by the end of the second quarter of 2026.
Balance sheet and cash flow
- Cash reserve was RMB7,050.6 million (US$1,039.1 million) as of June 30, 2026, compared with RMB7,231.7 million as of March 31, 2026.
- Short-term investments were RMB5,139,710 thousand (US$757,500 thousand) as of June 30, 2026, compared with RMB3,091,856 thousand as of December 31, 2025.
- Total assets were RMB11,004,162 thousand (US$1,621,813 thousand) as of June 30, 2026, compared with RMB11,261,278 thousand as of December 31, 2025.
- Total liabilities were RMB2,053,471 thousand (US$302,645 thousand) as of June 30, 2026, compared with RMB2,302,524 thousand as of December 31, 2025.
- Total shareholders’ equity was RMB8,950,691 thousand (US$1,319,168 thousand) as of June 30, 2026, compared with RMB8,958,754 thousand as of December 31, 2025.
Analysis
Hesai reported Q2 2026 net revenues of RMB860.8 million (US$126.9 million), up 21.9% from RMB706.4 million. Product revenues rose 22.9% to RMB859.7 million (US$126.7 million), while service revenues declined 84.3% to RMB1.1 million (US$0.2 million), primarily due to lower non-recurring engineering services. Lidar volumes materially outpaced revenue growth: total lidar shipments rose 78.4% to 628,275 units, comprising 485,904 ADAS lidar shipments and 142,371 Robotics lidar shipments. The Company attributed the product-revenue increase to greater ADAS and Robotics lidar deliveries, partially offset by lower average selling prices.
The mix and investment profile weighed on operating profitability. Gross margin fell to 40.1% from 42.5%, which the Company attributed to a higher revenue contribution from products with relatively lower margins. Cost of revenues increased 27.0% to RMB515.6 million (US$76.0 million), exceeding revenue growth. Research and development expenses rose 16.0% to RMB231.2 million (US$34.1 million), reflecting incremental SGI investment. As a result, GAAP income from operations declined 90.4% to RMB2.2 million (US$0.3 million), and non-GAAP income from operations declined 36.7% to RMB33.0 million (US$4.9 million).
Below operating income, interest income of RMB58,950 thousand and investment income of RMB36,566 thousand supported net income. GAAP net income increased 60.0% to RMB70.6 million (US$10.4 million), while non-GAAP net income increased 38.3% to RMB101.3 million (US$14.9 million). The Company described Q2 2026 as its fifth consecutive quarter of GAAP profitability. For the first six months, net revenues were RMB1,541,382 thousand (US$227,172 thousand) and net income was RMB88,865 thousand (US$13,097 thousand), while the six-month operating result remained a loss from operations of RMB6,366 thousand (US$938 thousand).
SGI generated RMB44,943 thousand of Q2 revenue but recorded an operating loss of RMB64,041 thousand. Management identified robotic actuation modules as the first SGI revenue contributor and said Kosmo prototype deliveries occurred in July 2026, with initial Kosmo revenues expected in Q3. The Company raised full-year 2026 SGI revenue guidance from RMB100 million to a range of RMB200-300 million. The Lidar segment produced RMB815,884 thousand of Q2 revenue and RMB66,236 thousand of operating income, while management also highlighted design wins with Great Wall Motor, GAC Toyota and Volkswagen.
Liquidity remained substantial, with cash reserve of RMB7,050.6 million (US$1,039.1 million) as of June 30, 2026, versus RMB7,231.7 million as of March 31, 2026. The Company guided Q3 2026 net revenues to between RMB1,100 million (US$162 million) and RMB1,150 million (US$169 million), representing a year-over-year increase of approximately 38% to 45%. The key reported execution points are the Q3 revenue ramp, the first Kosmo revenue contribution, SGI commercialization, and whether expanding scale and product mix support gross margin and operating income.
Management, verbatim
The second quarter of 2026 marked a defining milestone as Hesai has evolved into a full-stack infrastructure platform for Robotics and Physical AI – empowering them to see, understand, and act.
Dr. Yifan “David” Li, Co-Founder and CEO
Hesai’s performance in the 2026 second quarter provides strong validation of our next chapter of growth. Our core lidar business continued to deliver profitable scale and strong cash generation, while SGI began translating technological leadership into commercial momentum.
Mr. Andrew Fan, CFO
This quarter also marked SGI’s first revenue contribution, led by strong early commercial traction for our industry-leading robotic actuation modules.
Mr. Andrew Fan, CFO
Not in the filing
stated, not guessed- Prior-quarter revenue, gross margin, operating income, net income, EPS, segment revenue and shipment comparisons
- Operating cash flow
- Free cash flow
- Capital expenditure
- Share repurchases
- Dividends
- Guidance for gross margin, operating expenses and tax rate
- Prior release outlook for comparison
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.