SenseTime Group (20) H2 2025 earnings summary

Executive summary

• Revenue grew 32.9% year-over-year to RMB5,014.6 million, driven by generative AI demand and industrial solutions.

• Net loss narrowed by 58.6% to RMB1,782.0 million; adjusted net loss reduced by 54.3% to RMB1,956.1 million.

• EBITDA loss reduced by 85.0% year-over-year; second half EBITDA turned positive for the first time since listing.

• Operating cash flow turned positive in the second half of 2025; cash and cash equivalents rose to RMB10,887.1 million.

• Major advances in multimodal large models, with SenseNova and NEO architectures achieving industry-leading benchmarks.

Financial highlights

• Gross profit increased 27.0% to RMB2,056.4 million; gross margin slightly decreased to 41.0%.

• Cost of sales rose 37.4% to RMB2,958.2 million, mainly due to hardware and AIDC operation costs.

• R&D expenses decreased by 8.6% to RMB3,775.4 million; selling and administrative expenses also declined.

• Net finance income dropped 78.9% to RMB56.8 million due to prior year one-off gains.

• No dividend declared for 2025.

Outlook and guidance

• Plans to deepen native multimodal architecture and expand global leadership in AI and spatial intelligence.

• Focus on cost optimization, domestic substitution, and scaling AI applications in verticals like office, education, and marketing.

• New foundational model based on NEO architecture to launch in Q2 2026, targeting further efficiency gains.