Lotus Technology (LOT) Q3 2025 earnings summary

Executive summary

• Delivered 4,612 vehicles and generated $356 million in revenue in the first nine months of 2025, with deliveries primarily in China and Europe and lifestyle vehicles making up 72% of total deliveries.

• Q3 2025 vehicle deliveries reached nearly 1,800, down 35% year-on-year but up 28% sequentially.

• Net loss narrowed by 68% in Q3 and 43% for the nine-month period year-over-year, reflecting improved profitability, cost discipline, and inventory optimization.

• Gross margin improved to 8% in Q3, up from 3% in the prior year quarter, driven by a favorable sales mix, upgraded models, and healthier inventory dynamics.

• Upcoming launch of a new PHEV model with a 900V hybrid platform and over 1,000km range, reinforcing a diversified energy strategy.

Financial highlights

• Q3 2025 revenue was $137 million, down 46% year-on-year but up 10% sequentially; nine-month revenue was $356 million, down 46% year-on-year.

• Gross profit for Q3 was $11 million, with a gross margin of 8%; nine-month gross profit was $29 million.

• Q3 operating loss was $94 million, a 41% improvement year-on-year; net loss was $65 million, a 68% improvement.

• Adjusted EBITDA loss for Q3 was $54 million, narrowed by 70% year-on-year; for nine months, adjusted EBITDA loss was $294 million, narrowed by 48%.

• Non-GAAP adjusted net loss for nine months was $2 million lower due to share-based compensation.

Outlook and guidance

• Full-year gross margin expected to remain in the high single-digit range, with further improvement projected next year due to new PHEV launches, BEV product penetration, and supply chain integration.

• Next year's gross margin is expected to be higher than this year's, supported by economies of scale and manufacturing integration.

• Preparing for the strategic acquisition of Lotus UK, expected to close in 2026, aiming to unify the brand and enhance operational efficiency.

• Focus remains on prudent resource allocation, margin enhancement, and readiness for a dynamic operating environment.

• Plans to enter new markets and expand global distribution channels.