Hesai Posts Q3 Profit on Record Sales as Shares Fall 9% on Margin Slide

A sharp drop in non‑recurring engineering services compressed gross margin to 42.1%, cooling investor reaction to rapid top‑line gains.

Overview

Net revenues reached RMB795 million for Q3 2025, up 47% year over year.
Product revenues rose 57% on strong ADAS and robotics demand, with 441,000 lidar units shipped in the quarter and annual production surpassing one million units for the first time.
Gross margin declined to 42.1% from 47.7% a year earlier as non‑recurring engineering services revenue fell about 85% year over year.
Cost controls lowered operating expenses by 23% and R&D by nearly 10%, supporting a return to profitability with net income of RMB256 million and non‑GAAP net income of RMB287 million.
The stock dropped about 9% after the results, while a recent dual‑primary Hong Kong listing raised US$614 million to strengthen liquidity.