Leapmotor Posts First Full-Year Profit.

Leapmotor reported its first full-year profit in 2025 as both revenue and deliveries more than doubled, underscoring its emergence as one of China’s strongest EV startups. Revenue surged 101.3% year-on-year to RMB 64.73 billion ($9.31 billion), while vehicle deliveries jumped 103.1% to 596,555 units. Net profit reached RMB 540 million ($77.65 million), with gross margin improving from 8.4% in 2024 to 14.5%. The company’s cash reserves climbed nearly 55% to RMB 37.88 billion, and R&D spending rose 47.9% to RMB 4.29 billion as Leapmotor doubled down on technology and platforms. However, cost of sales also grew sharply—up 87.7% to RMB 55.32 billion—highlighting the ongoing challenge of improving efficiency and cost control even as the company posts four straight profitable quarters.

In 2025, expanded coverage across segments and strong performance from the B-series (B10, B01) and C-series (C10, C11, C16) underpinned sales, with the three C models alone exceeding 300,000 units and accounting for over half of total deliveries. For 2026, Leapmotor plans a broader “ABCD” product matrix spanning RMB 100,000–300,000 with new D19 and D99 flagships and mass-market A10 and A05 models, the latter priced below RMB 100,000 and already equipped with LiDAR. The company is maintaining a full-stack in-house ADAS strategy and expects a notable increase in R&D investment. Beyond vehicle sales, revenue diversification is accelerating: “services and other sales” jumped 413.2% to RMB 2.72 billion, driven by carbon credit trading and technology licensing, including a key partnership with FAW that will yield an overseas model entering mass production in the third quarter. Overseas expansion is another major pillar, with South America—particularly Brazil—targeted alongside Asian markets as Leapmotor aims for 100,000–150,000 overseas sales in 2026, prioritizing scale and market share over immediate profit. Despite the strong 2025 turnaround, the company faces a demanding 2026 as it tries to sustain growth, fill potential product gaps in the second half, and push its higher-end D-series to lift the brand’s ceiling.