Horizon Robotics (9660) H2 2025 earnings summary

Executive summary

• Achieved record revenue of CNY 3.8 billion (RMB3,758 million) in 2025, up 57.7% year-over-year, driven by strong automotive solutions and mass production of advanced NOA products.

• Secured leading market share in China's intelligent assisted driving sector, with 47.7% in ADAS and 44% in NOA for domestic brands, and 44.2% in advanced NOA for vehicles under RMB200,000.

• Advanced SoC shipments exceeded 4 million units, with a 39% year-over-year increase and a significant shift toward higher-value products.

• Horizon SuperDrive (HSD) entered mass production, surpassing 22,000 units and becoming a key differentiator, with 83% of relevant model sales equipped with HSD.

• Automotive business contributed 94.6% of total revenue, with a gross margin of 67.2%.

Financial highlights

• Total revenue reached CNY 3.8 billion, up 57.7% year-over-year.

• Product solutions revenue surged 144% to CNY 1.6 billion, driven by mass production of Journey 6 hardware and HSD urban NOA solutions.

• Licensing and service revenue increased 17.4% to CNY 1.9 billion, supported by new IP licensing deals.

• Gross margin remained strong at 64.5%, with automotive business at 67.2%.

• Adjusted operating loss was CNY 2.4 billion, mainly due to increased R&D investment; net loss of CNY 10.5 billion, impacted by fair value changes in convertible bonds and preferred shares.

Outlook and guidance

• Confident in sustaining 60% average annual revenue growth over the next three years, up from previous 50% guidance.

• HSD shipments projected to reach 400,000 units in 2026.

• Launching HSD 2.0 and Agentic Car SoC/OS in 2026, targeting further market share gains and cockpit-driving fusion.

• Preparing for L4 Robotaxi pilot operations in partnership with ecosystem players, targeting Q3 2026.

• Introduction of Riemann Architecture BPU and Journey 7 hardware platform to benchmark global leaders in autonomous driving.