NIO Inc. (NIO.US) released its Q3 2025 financial results, surpassing market expectations with record-high core metrics and an optimistic Q4 outlook. The company delivered 87,071 vehicles in Q3, marking a 40.8% year-over-year and 20.8% quarter-over-quarter increase. Driven by robust delivery growth, revenue reached RMB 21.79 billion, up 14.7% sequentially, setting new historical highs for both deliveries and revenue.

For Q4, NIO projects deliveries between 120,000 and 125,000 vehicles, with revenue expected to hit RMB 32.758 billion to RMB 34.039 billion. This guidance not only breaks the company's previous records but also positions NIO at the top among EV startups that have disclosed earnings, demonstrating strong growth momentum and industry leadership amid broader market pressures.

**Operational Excellence: Key Metrics Hit New Highs** NIO's Q3 performance showcased significant improvements across key financial indicators. Vehicle margin rebounded to 14.7%, while gross margin stood at 13.9%. Both operating cash flow and free cash flow turned positive, and cash reserves grew to RMB 36.65 billion, reflecting a quarter-over-quarter surge. These improvements underscore NIO's enhanced operational efficiency and cost management, with positive operating cash flow signaling sustainable self-funding capabilities.

**Q4 Revenue Guidance Leads EV Startups** The market was particularly impressed by NIO's above-consensus Q4 guidance. Founder, Chairman, and CEO William Li stated during the earnings call, "We aim to achieve around 18% vehicle margin in Q4, with a significant ramp-up in deliveries for the new ES8, which will exceed 20% margin. Total gross profit is expected to grow substantially compared to Q3." This outlook, coupled with strong revenue projections, has bolstered investor confidence.

**Multi-Brand Strategy Gains Traction** NIO's three-brand strategy—NIO, Onvo, and Firefly—demonstrated synergies in Q3. October deliveries remained steady: NIO brand (17,143 vehicles), Onvo (17,342), and Firefly (5,912), effectively covering diverse price segments. CFO Yu Qu highlighted, "Margin improvement was driven by volume-based supply chain cost reductions and the launch of Onvo's high-margin L90 model." The mass delivery of the new ES8 in Q4 is expected to further optimize product mix and support profitability goals.

**Energy Network Strengthens Competitive Edge** As of November 25, 2025, NIO operates 8,386 power facilities nationwide, including 3,581 battery swap stations and 4,805 charging stations with 27,446 chargers—the largest network in the industry. Notably, NIO built over 1,000 highway swap stations in just 2,429 days, averaging one every 2.5 days. Its "chargeable, swappable, upgradable" energy ecosystem remains a key differentiator, with 3-minute battery swaps alleviating range anxiety and outperforming traditional refueling experiences.

**Outlook: Path to Profitability** Looking ahead, Li affirmed, "Our goal for next year is full-year profitability," targeting a 20% gross margin in 2026 through product optimization and operational efficiency. As EV adoption grows, NIO's early-mover advantage in premium and large vehicle segments, combined with sustained R&D and service investments, is expected to maintain its leadership among EV startups.

NIO's stellar Q3 results and industry-leading Q4 guidance reflect its transition from growth-focused to quality-driven development, reinforcing its position as a frontrunner in the EV sector.