LI
Breakeven, but make it underwhelming
Li Auto’s latest quarter came in basically flat on the bottom line — not exactly the kind of headline that gets investors doing cartwheels. The company reported breakeven earnings for Q4 2025, down sharply from 45 cents a share a year earlier and below Wall Street’s 5-cent expectation.
Revenue took the scenic route downward
Sales landed at $4.1 billion, missing estimates and sliding from $6.1 billion in the year-ago quarter. The culprit was lower vehicle deliveries, which is a fancy way of saying fewer cars left the lot. Vehicle sales came in at $3.9 billion, and the margin picture got a little squishier too.
Margins: the silent mood killer
Gross margin fell to 17.8% from 20.3%, while vehicle margin dipped to 16.8% from 19.7%. Operating expenses also climbed to $797 million, which helped push operating income into a $63.3 million loss after a $507.4 million profit a year ago.
Cash is still the adult in the room
To be fair, Li Auto isn’t exactly strapped for cash. It ended Dec. 31, 2025 with $14.5 billion in cash, cash equivalents, restricted cash and investments, plus just $471.8 million in long-term borrowings. Big picture: the balance sheet can absorb some wobble, but investors are clearly watching whether delivery growth and margins can get back on speaking terms.