Key Takeaways:
Hesai Group reported a 29.6 percent rise in first-quarter revenue and swung to a profit as the lidar maker saw robust demand for its advanced driver-assistance systems and robotics products, sending its U.S.-listed shares up nearly 7 percent in pre-market trading.
“We kicked off 2026 with strong momentum, delivering another quarter of robust growth with year-over-year gains in scale and profitability,” Andrew Fan, Hesai’s Chief Financial Officer, said. “This marks our fourth consecutive quarter of GAAP profitability and sixth consecutive quarter of non-GAAP profitability.”
For the quarter ended March 31, Hesai’s net revenue climbed to RMB680.6 million ($98.7 million) from RMB525.3 million a year earlier. The company posted a net income of RMB18.3 million, or RMB0.12 per share, a significant turnaround from the RMB17.5 million net loss recorded in the first quarter of 2025. Total lidar shipments jumped 140.9 percent to 471,723 units.
The results underscore Hesai's expanding footprint in the automotive and robotics sectors, fueled by new partnerships and technology. The company guided for second-quarter revenue between RMB850 million and RMB900 million, representing year-over-year growth of approximately 20 to 27 percent.
While revenue grew, Hesai’s gross margin narrowed to 39.1 percent from 41.7 percent in the prior-year period, which the company attributed to a higher contribution from products with relatively lower margins.
The company has reorganized its reporting into two segments: "Lidar Business" and "Strategic Growth Initiatives (SGI)." The core lidar business generated an operating profit of approximately RMB42 million. The new SGI segment, which includes the recently unveiled Kosmo spatial intelligence device, is expected to contribute around RMB100 million in revenue this year, starting in the second quarter.
Hesai highlighted several key operational achievements during the quarter, reinforcing its market leadership. The company was announced as a strategic lidar partner and confirmed supplier for Mercedes-Benz models that enable Level 3 autonomy. It also secured its first design win with a Japanese automaker, GAC Toyota, for its 2026 bZ3X model.
The company’s technology was featured in 56 vehicle models at the recent Beijing Auto Show, including those from Li Auto, Xiaomi, and Geely. In robotics, Hesai secured a design win to supply 200,000 lidar units to Zelos and expanded its partnership with Neolix.
Looking ahead, Hesai is pioneering what it calls the "6D full-color lidar" era with its new Picasso SPAD-SoC, an application-specific integrated circuit that fuses color and depth data at the chip level. This technology will debut in its high-end ETX lidar model, which is scheduled for mass production in the second half of 2026.
The strong quarterly performance and positive outlook suggest Hesai's growth is set to continue, supported by its expanding customer base and new technology pipeline. Investors will be watching for the successful ramp-up of the SGI business and margin trends in the upcoming quarters.
This article is for informational purposes only and does not constitute investment advice.
