After years of burning through cash, Xpeng has finally done it. The company logged its first-ever net profit in the fourth quarter of 2025, a massive financial milestone that’s got everyone in the industry talking. This isn’t just a small beat; it’s a significant turnaround from where they were just a year ago.
Let’s dive into the numbers. Xpeng reported a GAAP net profit of 380 million yuan ($50 million) for Q4 2025. Compare that to a staggering net loss of 1.33 billion yuan in the same period the previous year. Even on a non-GAAP basis, which strips out certain expenses, the picture is bright: a profit of 510 million yuan ($70 million) versus a loss of 1.39 billion yuan in Q4 2024. This kind of swing is rare, and frankly, impressive.
Revenue also saw a healthy bump, hitting 22.25 billion yuan, up 38.2% year-on-year. Vehicle sales accounted for 19.07 billion yuan of that, showing solid growth even from the previous quarter. But here’s where it gets really interesting: Xpeng’s gross margin climbed to 21.3%, a jump of nearly 7 percentage points from the prior year. That’s a huge improvement in profitability per car sold.
What’s driving this margin expansion? A big chunk comes from their
