#Vehicle Sales Drive Quarterly Performance
XPeng Inc. (NYSE: XPEV) reported a net profit for the fourth quarter of 2025, marking its first profitable quarter on record, as revenue and vehicle deliveries increased year over year.
The China-based electric vehicle manufacturer posted quarterly net income of RMB0.38 billion, compared with a net loss of RMB1.33 billion in the same period of 2024. Total revenue for the quarter reached RMB22.25 billion, up 38.2% from a year earlier.
The results come amid continued competition in China’s electric vehicle market, where automakers have focused on pricing, scale, and technology differentiation to improve margins and reach profitability.
#Revenue Growth and Margin Expansion
Vehicle sales remained the primary driver of XPeng’s performance. Revenue from vehicle sales totaled RMB19.07 billion in the fourth quarter, representing a 30% increase year over year. The company attributed the growth primarily to higher delivery volumes.
XPeng delivered 116,249 vehicles during the quarter, up from 91,507 units in the same period a year earlier. For the full year, deliveries reached 429,445 vehicles, representing a 125.9% increase from 2024.
Margins also improved during the quarter. Gross margin rose to 21.3%, compared with 14.4% a year earlier, while vehicle margin increased to 13.0% from 10.0%. The company said the margin expansion was supported by cost reductions and changes in product mix.
Revenue from services and other segments totaled RMB3.18 billion, more than doubling from the prior year period. XPeng linked the increase to technical research and development services, parts sales, and carbon credit trading.
Operating expenses increased alongside business expansion. Research and development expenses rose 43.2% year over year to RMB2.87 billion, reflecting continued investment in new vehicle models and technologies. Selling, general, and administrative expenses also increased due to higher sales-related commissions and marketing costs.
#Full-Year Performance and Financial Position
For the full year 2025, XPeng reported total revenue of RMB76.72 billion, an increase of 87.7% from the previous year. Vehicle sales accounted for RMB68.38 billion of that total.
Despite achieving a profitable quarter, the company recorded a full-year net loss of RMB1.14 billion, an improvement from a loss of RMB5.79 billion in 2024. On a non-GAAP basis, the full-year net loss narrowed to RMB0.46 billion.
XPeng ended the year with a cash position of RMB47.66 billion, compared with RMB41.96 billion at the end of 2024. The company stated that its liquidity includes cash equivalents, restricted cash, and short-term investments.
The company’s retail and charging infrastructure also expanded. As of December 31, 2025, XPeng operated 721 retail stores across 255 cities and maintained 3,159 charging stations.
#Outlook and Industry Context
XPeng expects first-quarter 2026 vehicle deliveries to range between 61,000 and 66,000 units, representing a projected year-over-year decline of roughly 30% to 35%. The company also forecasts revenue between RMB12.20 billion and RMB13.28 billion for the period.
The outlook reflects current market conditions and is subject to change, the company said.
The broader electric vehicle sector in China has experienced rapid growth in recent years, accompanied by intensified competition and pricing pressure. Many manufacturers have prioritized scale and cost efficiencies as they work toward sustained profitability.
XPeng’s fourth-quarter profit may indicate progress in that direction, though the company continues to invest heavily in research and development, including advanced driver-assistance systems and next-generation technologies.
In company commentary, management referenced ongoing efforts in areas such as autonomous driving and artificial intelligence applications, though these initiatives remain subject to development timelines and commercialization risks.
As the EV market evolves, companies like XPeng face uncertainties related to demand trends, regulatory developments, and technological adoption. Future performance will depend on execution across production, pricing, and innovation strategies.