Leapmotor Swings from Profit to Loss in Q1 2026 Despite Record Deliveries and Revenue

[Financial Performance] Leapmotor reported record-high revenue for Q1 2026, but its net loss widened to RMB 390 million.

Key Developments: Dual Growth in Deliveries and Revenue, Reversal in Profitability

Deliveries reached 110,155 units, up 25.8% year-over-year, driving revenue to a record RMB 10.82 billion for the same period in history. However, due to a higher proportion of lower-priced models and reduced strategic partnership income, gross margin declined to 9.4%, causing the company to swing from profit to loss, with net loss widening to RMB 390 million (compared to RMB 130 million in the same period of 2025).

Strategic Fundamentals: Downward Shift in Product Mix and Rising Expenses Weigh on Profits

Management attributed the loss primarily to a decline in gross profit and increased operating expenses. Although the company achieved a full-year net profit of RMB 540 million in 2025—becoming the second new-energy vehicle startup to turn profitable—average selling price per vehicle came under pressure in Q1 2026, further straining the profitability model amid an ongoing price war.

Industry Impact: Full-Year Targets Hinge on New Models and Overseas Expansion

The company maintains its annual targets of 1 million vehicles sold and RMB 5 billion in net profit, with success dependent on the ramp-up of new models and the effectiveness of its overseas expansion.