Nasdaq

nasdaqNIO's Margins Nearly Doubled. The Stock Fell Anyway.

Vehicle margin nearly doubled year-over-year and adjusted net profit turned positive for the first time. The stock closed lower the following day.

NIO's Margins Nearly Doubled. The Stock Fell Anyway.
Illustration: finance sector, not the company's own operations. European Central Bank - building under construction - Frankfurt - Germany - 14 — Norbert Nagel, CC BY-SA 3.0, via Wikimedia Commons.

One year ago, NIO kept about ten cents of every dollar it collected from vehicle sales. In the second quarter of 2026, it kept nearly nineteen.

NIO Inc. American depositary shares, each representing one NYSE: NIO

Vehicle margin reached 18.5% in the quarter, against 10.3% a year earlier, according to unaudited results NIO released on September 1. Gross profit more than tripled year-over-year to about US$870 million. The company says the improvement came from a more favourable product mix, with higher-margin models making up a larger share of deliveries.

For shareholders who have been waiting for NIO to stop losing money, the quarter produced a first: stripped of share-based compensation, adjusted net profit came in at about US$3.8 million. Under standard accounting NIO still reported a loss — US$77.8 million — but a year earlier that quarterly loss was close to RMB5 billion, and the gap has closed quickly.

Deliveries reached 107,658 vehicles, up 49% from a year earlier, split across the flagship NIO line, the ONVO family brand, and the FIREFLY compact-car range. The company says each brand grew in both volume and average transaction price.

Shares closed 4.14% lower at $4.0550 on September 2, on dollar volume of about $327 million.

Cash stood at about US$8.4 billion at the end of June. For the third quarter, NIO guides for 108,000 to 111,000 deliveries. The adjusted profit of US$3.8 million arrived on revenues of about US$4.7 billion — a thin enough margin that CFO Stanley Yu Qu flagged "rising cost pressures" as something the company had to work around to hold it.

Written by the PennyStocks.News desk from company filings and releases. Figures as reported by the company; no guarantee of accuracy or completeness. Nothing here is investment advice.