XPENG posts best-ever quarterly revenue, gross margin in Q2 2025

Shanghai (Gasgoo)- On August 19, XPENG released its second-quarter (Q2) and interim 2025 results, posting record highs in quarterly deliveries, revenue, and gross margin. The company also reported its strongest-ever cash reserves by the end of the quarter, while issuing record delivery guidance for the third quarter.

Total revenue for Q2 2025 reached RMB 18.27 billion (US$2.5 billion), up 125.3% year-on-year. Vehicle sales contributed RMB 16.88 billion, a year-on-year surge of 147.6%, while services and other revenue came in at RMB 1.39 billion, a 7.6% increase from the previous year.

Photo credit: XPENG

The sharp revenue increase was closely tied to surging sales. XPENG delivered around 103,000 vehicles in Q2, up 241.6% from a year earlier. First-half deliveries totaled about 197,000 units, marking a 279% year-on-year spike.

Greater scale helped narrow losses. XPENG reported a net loss of RMB 480 million, a 62.6% improvement from the RMB 1.285 billion shortfall in the same period last year. Gross margin rose to a record high of 17.3%, up 3.3 percentage points year-on-year and 1.7 percentage points quarter-on-quarter. Vehicle gross margin hit 14.3%, a gain of 7.9 percentage points from 2024 and the eighth straight quarter of improvement.

Despite progress, the company remains in the red, in part due to rising investments in R&D. In Q2, its R&D spending shot up 50.4% year-on-year to RMB 2.21 billion, while sales, general, and administrative costs grew 37.7% from a year earlier to RMB 2.17 billion. Net other income fell to RMB 240 million, down 14.9% year-on-year.

As of June 30, XPENG's cash, restricted cash, short-term investments, and term deposits stood at RMB 47.57 billion,.

For the third quarter of 2025, XPENG guided deliveries of between 113,000 units and 118,000 units, representing year-on-year spike of 143% to 154%. Revenue is projected to reach between RMB 19.6 billion and RMB 21 billion, up 94% to 108% from the year-ago period.

Speaking on the earnings call, Mr. He confirmed that the All-new P7 sedan will hit the market on August 27. He expressed confidence the model could quickly rank among the top three best-selling pure electric sedans priced under RMB 300,000, and projected monthly deliveries would steadily exceed 40,000 units from September onward.