Li Auto reports lower Q1 revenue, weaker margins, and net loss despite modest growth in vehicle deliveries.
Stock Earnings Results
May 28, 2026
Table of Contents
May 28, 2026
Li Auto Inc. (NASDAQ: LI) reported first-quarter 2026 results with lower revenue, weaker margins, and a swing to net loss, despite slightly higher vehicle deliveries year-over-year.
Li Auto is a Chinese new energy vehicle company focused on smart electric SUVs, extended-range electric vehicles, charging infrastructure, and connected mobility technology.
The company reported a loss of $0.33 per ADS. Revenue came in at $3.33 billion, down 6.7%.
Li Auto delivered 95,142 vehicles in the first quarter, up 2.5% from 92,864 vehicles in the prior-year quarter.
Deliveries declined from 109,194 vehicles in the fourth quarter of 2025, showing weaker sequential demand.
Total revenue was RMB23.0 billion, or $3.3 billion, down 11.4% year-over-year and 20.1% sequentially.
Vehicle sales fell 12.7% year-over-year to RMB21.5 billion, mainly reflecting weaker pricing and margin pressure despite slightly higher deliveries.
Vehicle margin fell to 6.1% in the first quarter.
That compares with 19.8% in the first quarter of 2025 and 16.8% in the fourth quarter of 2025. Gross margin also dropped to 7.9%, compared with 20.5% a year earlier.
Li Auto reported a net loss of RMB2.3 billion, or $330.0 million.
That compares with net income of RMB646.6 million in the prior-year quarter and net income of RMB20.2 million in the fourth quarter of 2025. Non-GAAP net loss was RMB2.1 billion.
Net cash used in operating activities was RMB6.1 billion in the quarter.
Free cash flow was negative RMB7.4 billion, compared with negative RMB2.5 billion in the prior-year quarter and positive RMB2.5 billion in the fourth quarter of 2025.
In May 2026, Li Auto launched and began deliveries of the all-new Li L9.
The model is available in Ultra and Livis trims, with features including steer-by-wire, rear-wheel steering, Li Auto’s Magic Carpet Air Suspension, proprietary MAHE chips, LiDAR sensors, and a 72.7 kWh 5C battery.
Li Auto repurchased about 16.4 million Class A ordinary shares, including about 6.7 million ADSs, for roughly $139.7 million as of May 26, 2026.
The repurchases were made under its $1.0 billion share repurchase program announced in March.
Investors are likely to watch whether Li Auto can stabilize margins while rebuilding revenue momentum.
The key areas are:
Li Auto’s quarter showed that delivery growth alone was not enough.
The company delivered slightly more vehicles than last year, but revenue declined, margins compressed sharply, losses widened, and free cash flow turned deeply negative. The next test is whether the new Li L9 and future model launches can improve pricing, volume, and margins in China’s highly competitive EV market.
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