H1 2026
Filed Aug 27, 2026Lotus Technology Reports Unaudited Half Year 2026 Financial Results
Revenue, deliveries and gross margin improved year over year, while operating and net losses narrowed materially. The company nonetheless remained loss-making, carried a total shareholders’ deficit, and its reported operating-loss improvement included a one-off license fee refund.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $268 million | – | 23% |
| Sales of goodsGAAP | US$ 263,256 thousand | – | – |
| Service revenuesGAAP | US$ 4,843 thousand | – | – |
| Cost of revenuesGAAP | US$ (241,807) thousand | – | 21% |
| Gross profitGAAP | $26 million | – | 47% |
| Gross marginGAAP | 10% | – | – |
| Research and development credit (expenses)GAAP | US$ 1,565 thousand | – | – |
| Selling and marketing expensesGAAP | US$ (82,932) thousand | – | – |
| General and administrative expensesGAAP | US$ (46,176) thousand | – | – |
| Other operating incomeGAAP | US$ 3,839 thousand | – | – |
| Impairment of long-lived assetsGAAP | US$ - thousand | – | – |
| Total operating expensesGAAP | US$ (123,704) thousand | – | – |
| Operating lossGAAP | $97 million | – | (63)% |
| Operating loss excluding the one-off license fee refundother | $195 million | – | 26% |
| Interest expensesGAAP | US$ (34,300) thousand | – | – |
| Interest incomeGAAP | US$ 15,202 thousand | – | – |
| Investment (loss) income, netGAAP | US$ (453) thousand | – | – |
| Foreign currency exchange (losses) gains, netGAAP | US$ (21,817) thousand | – | – |
| Changes in fair values of liabilities, excluding impact of instrument-specific credit riskGAAP | US$ (9,948) thousand | – | – |
| Income tax credit (expense)GAAP | US$ 664 thousand | – | – |
| Share of results of equity method investmentsGAAP | US$ (2,878) thousand | – | – |
| Net lossGAAP | $151 million | – | (52)% |
| Net loss attributable to ordinary shareholdersGAAP | US$ (150,942) thousand | – | – |
| Loss per ordinary share — Basic and dilutedGAAP | US$ (0.23) | – | – |
| Weighted average number of ordinary shares outstanding used in computing net loss per ordinary share — Basic and dilutedGAAP | 645,541,822 | – | – |
| Adjusted net lossnon-GAAP | $149 million | – | (52)% |
| Adjusted EBITDAnon-GAAP | a loss of $104 million | – | (57)% |
| Total deliveriesother | 3,904 units | – | 39% |
| Lifestyle vehicles contribution to total deliveriesother | 77% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Lifestyle SUV and Sedan deliveriesThe successful launch of the new PHEV model, Eletre X, accelerated the product mix transition. | 3,008 units | – | 57% |
| Sports Cars deliveriesThe Company maintained stable performance in its sports car segment. | 896 units | – | 1% |
| China deliveriesChina experienced strong growth in total deliveries. | 2,248 units | – | 60% |
| Europe deliveriesEletre X became available to order in mainland Europe on June 3. | 716 units | – | – |
| Americas deliveriesEletre EVs debuted in the Canadian market on April 23. | 631 units | – | – |
| Rest of the World deliveriesRegional deliveries were reported for Rest of the World. | 309 units | – | – |
What drove it
- Total revenues were driven by strong momentum in the China market.
- Gross margin expanded to 10%, supported by an optimized product mix.
- The Eletre X launch contributed to 39% YoY growth in deliveries and expanded the brand’s reach into new segments.
- Operating loss reflected disciplined financial management, improving operating leverage, and a one-off refund of the license fee in connection with adjustments to the product pipeline.
- The Company completed the acquisition of 100% equity interest of Lotus UK on August 21, integrating all businesses and operations under One Lotus.
Concerns
- The Company reported a net loss of $151 million and an operating loss of $97 million.
- Excluding the one-off license fee refund, operating loss in the first half of 2026 was $195 million.
- Total shareholders' deficit was US$ (1,328,767) thousand as of June 30, 2026.
- Europe deliveries were 716 units in Half Year 2026, compared with 858 units in Half Year 2025.
- Foreign currency exchange (losses) gains, net were US$ (21,817) thousand, compared with US$ 40,525 thousand in 2025.
What to watch
- Customer deliveries of Eletre X in mainland Europe are expected to commence in the fourth quarter of 2026.
- Deliveries of Eletre X in the UK are expected to begin in mid-2027.
- The integration of Lotus UK is expected to create a unified brand, streamlined governance, and enhanced synergies.
- The Type 135 mid-engine V8 hybrid supercar is scheduled for release in 2028.
- Continued funding support from major shareholders and strategic partners.
Balance sheet and cash flow
- Cash and cash equivalents: US$ 80,378 thousand as of June 30, 2026; US$ 73,431 thousand as of December 31, 2025.
- Restricted cash, current assets: US$ 269,593 thousand as of June 30, 2026; US$ 375,865 thousand as of December 31, 2025.
- Restricted cash, non-current assets: US$ 209,490 thousand as of June 30, 2026; US$ 100,981 thousand as of December 31, 2025.
- Short-term borrowings – third parties: US$ 402,744 thousand as of June 30, 2026; US$ 479,419 thousand as of December 31, 2025.
- Short-term borrowings – related parties: US$ 863,776 thousand as of June 30, 2026; US$ 784,288 thousand as of December 31, 2025.
- Convertible notes - related parties: US$ 207,075 thousand as of June 30, 2026; US$ 126,203 thousand as of December 31, 2025.
- Convertible notes - third parties: US$ 61,972 thousand as of June 30, 2026; US$ 73,226 thousand as of December 31, 2025.
- Long-term borrowings: US$ 204,644 thousand as of June 30, 2026; US$ 98,254 thousand as of December 31, 2025.
- Total liabilities: US$ 3,232,813 thousand as of June 30, 2026; US$ 3,282,994 thousand as of December 31, 2025.
- Total shareholders' deficit: US$ (1,328,767) thousand as of June 30, 2026; US$ (1,330,246) thousand as of December 31, 2025.
- During the first half of 2026, the Company secured $128 million in funding from Geely.
Analysis
Lotus Tech reported improved first-half scale and unit economics. Total revenues were $268 million, up 23% YoY, while total deliveries rose 39% YoY to 3,904 units. The Eletre X PHEV launch was the central volume driver, and lifestyle SUV and Sedan deliveries increased 57% YoY to 3,008 units. China deliveries increased 60% YoY to 2,248 units, while the lifestyle-vehicle share of deliveries reached 77%.
The reported product mix improvement translated into a gross margin of 10%, versus 8% in the first half of 2025, and gross profit rose to $26 million from $18 million. Sales of goods were US$ 263,256 thousand, while service revenues were US$ 4,843 thousand versus US$ 20,841 thousand in the comparable period. The company cited an optimized product mix as the support for margin expansion.
Losses narrowed substantially, but the quality of the operating-loss improvement merits attention. Operating loss was $97 million, narrowed by 63% YoY, and net loss was $151 million, narrowed by 52% YoY. The company attributed the operating result to cost discipline, improving operating leverage and a one-off license fee refund. Excluding that refund, it stated that operating loss was $195 million and narrowed 26% YoY. Adjusted EBITDA was a loss of $104 million, narrowed by 57% YoY.
Liquidity and capital structure remain material considerations. The company reported $128 million in first-half funding from Geely, cash and cash equivalents of US$ 80,378 thousand, and current and non-current restricted cash of US$ 269,593 thousand and US$ 209,490 thousand, respectively. Total liabilities were US$ 3,232,813 thousand and total shareholders' deficit was US$ (1,328,767) thousand at June 30, 2026. The company also completed its Lotus UK acquisition on August 21 and expects the integration to support brand management and operating efficiency.
No quantitative financial guidance was issued. Operationally, management expects Eletre X customer deliveries in mainland Europe to commence in the fourth quarter of 2026 and UK deliveries to follow in mid-2027. Europe delivered 716 units in the first half of 2026 versus 858 units in the prior-year period, making the international rollout and the pace of new-model deliveries important reported milestones.
Management, verbatim
Our first-half performance demonstrates clear progress in executing our transformational Focus 2030 strategy. The strong demand for our new PHEV validates our multi-powertrain approach and expands our addressable market. We are encouraged by the improvement in both scale and operating performance, and remain focused on delivering sustainable, long-term value.
Mr. Qingfeng Feng, Chief Executive Officer
We are seeing tangible results from our disciplined financial management and improving operating leverage. Margin expansion and significant reduction in operating loss highlight the effectiveness of our product strategy and cost control. With continued support from our shareholders, we are well positioned to further strengthen our financial performance in the coming periods.
Dr. Daxue Wang, Chief Financial Officer
Not in the filing
stated, not guessed- Quantitative forward revenue, gross-margin, operating-expense, tax-rate, delivery, profitability, or cash-flow guidance.
- Prior-release outlook for comparison with actual results.
- Operating cash flow.
- Free cash flow.
- Capital-return activity, including share repurchases and dividends.
- Quarterly-period financial results and quarter-over-quarter comparisons.
- Revenue by operating segment or by geographic region.
- Non-GAAP earnings per share.
- A reported tax rate.
- Detailed terms of the $128 million funding from Geely.
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.