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NIO has published its first quarter financials. There’s good news and less good news. The company was able to achieve an adjusted operational profit (non-GAAP) for the second quarter in a row, as well as an adjusted net profit (non-GAAP). However, the company didn’t achieve a GAAP operational profit or GAAP net profit, and the stock (NYSE:NIO) took a hit as a result, quite a big hit. The stock price dropped 7.14% in the past day, and it is down 14.33% across five days.
As we can see, compared to Q1 2025, last quarter was a massive improvement. Sales were up 129.2%, total revenues were up 112.2%, gross profit was up 428.4%, and gross margin jumped from 7.6% to 19.0%. Also, the company went from a huge non-GAAP operational loss and huge non-GAAP net profit in the first quarter of last year to the aforementioned non-GAAP operational profit and non-GAAP net profit.
However, compared to the 4th quarter, things don’t look so bright. In the 4th quarter of 2025, NIO actually made a GAAP profit from operations and a GAAP net profit, and much higher non-GAAP operational profit and net profit than in the 1st quarter of 2026. All of that said, the 1st quarter of the year is always much worse than the 4th quarter, and that’s especially true this year due to incentive changes — naturally, people were going to rush to buy cars in the 4th quarter before subsidies went away and then were less likely to buy them in the 1st quarter.
