WeRide (WRD) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached RMB 232 million, up 82% year-over-year and 103% quarter-over-quarter, driven by overseas acceleration, asset-light scaling, and rapid L2+/L3 commercialization.

• Overseas revenue surged 164% year-over-year, with new Robotaxi deployments in Europe, the Middle East, and Asia, expanding into 13 countries.

• L2+/L3 business entered mass production, with revenue up nearly 2,600% year-over-year and 219% quarter-over-quarter, and cumulative deliveries exceeding 30,000 units.

• Gross margin reached a record 38%, up 10 percentage points year-over-year, reflecting a shift to higher-margin, service-oriented revenue.

• Operating leverage improved, with expenses growing slower than revenue and EBITDA/net loss narrowing.

Financial highlights

• Q2 revenue: RMB 232 million, up 82% year-over-year and 103% quarter-over-quarter.

• L4 revenue: RMB 125 million, up 47% year-over-year, mainly from Robotaxi.

• L2+/L3 revenue increased 2,594% year-over-year and 219% quarter-over-quarter, with 30,000 units delivered.

• Gross profit: RMB 87 million, up 143% year-over-year; gross margin: 37.5%, up 9.4 percentage points.

• Net loss narrowed 1% year-over-year to RMB 401 million; EBITDA loss narrowed 8.1% to RMB 335 million.

• Cash and liquid resources: RMB 5.4 billion as of June 30.

Outlook and guidance

• Expect L2+/L3 equipped vehicles to exceed 100,000 by year-end and 500,000 next year.

• Overseas expansion to drive meaningful growth, with profitability targeted in overseas markets by end of 2026.

• Aim for positive cash flow in a single quarter by 2028 and break-even for full year 2029.

• Management expects continued rapid revenue growth and improved cash generation, with the asset-light model supporting scalable overseas expansion.