Hesai Group Reports Third Quarter 2026 Unaudited Financial Results

Lidar operating income grew 88.0%, while increased investment in newer businesses accompanied a decline in group operating income.

Rhea-AI Summary

Hesai Group (HSAI) reported third-quarter 2026 revenue of RMB1,068.3 million, up 34.3% year over year, alongside lower net income.

Net income fell 68.5% to RMB80.8 million; the prior-year quarter included RMB185.1 million of one-time income. Operating income declined 19.1% to RMB62.6 million, and gross margin narrowed to 41.0% from 42.1%. Lidar shipments rose 65.3% to 729,673 units. Robotic actuation module shipments increased 96.8% sequentially to 23,405 units.

The lidar segment generated RMB145.5 million in operating income, up 88.0%. Strategic Growth Initiatives generated RMB90.5 million in quarterly revenue, with nine-month revenue exceeding the original RMB100 million full-year target. Hesai reaffirmed 2026 SGI revenue guidance of RMB200 million–RMB300 million. ET-series design wins represent an order book exceeding 1 million units, while the newly launched Kosmo platform has begun generating revenue.

14 points · 0 major

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Positive

• Moderate pointQ3 2026 net revenues increased 34.3% year over year to RMB1,068.3 million.
• Moderate pointQ3 lidar segment operating income rose 88.0% year over year to RMB145.5 million.
• Moderate pointQ3 ADAS lidar shipments increased 67.6% year over year to 638,055 units.
• Moderate pointQ3 robotics lidar shipments increased 51.1% year over year to 91,618 units.
• Moderate pointET-series design wins with five global automakers represent a combined order book of over 1 million units.

9 minor points

• Minor pointQ3 robotic actuation module shipments rose 96.8% sequentially to 23,405 units.
• Minor pointSGI generated RMB90.5 million in Q3 revenue; nine-month revenue exceeded its original RMB100 million full-year target.
• Minor point. Forward-looking: it has not happened yet and may not happen.Hesai reaffirmed 2026 SGI revenue guidance of RMB200 million to RMB300 million.
• Minor pointFT-series design wins secured with Leapmotor and a top European automaker.
• Minor pointAT-series design win with Wuling expands participation in mass-market vehicle models.
• Minor point. Forward-looking: it has not happened yet and may not happen.Design wins with seven automakers, including Chery, cover potential export vehicle programs.
• Minor pointKosmo began generating revenue through hardware sales, platform subscriptions and its 3D asset library.
• Minor pointRobotic actuation module monthly capacity scaled to 10,000 units.
• Minor point. Forward-looking: it has not happened yet and may not happen.Hesai expects annual robotic actuation module shipments to reach six digits in 2027.

Negative

• Moderate pointQ3 net income fell 68.5% year over year to RMB80.8 million; Q3 2025 included RMB185.1 million one-time income.
• Moderate pointQ3 operating income declined 19.1% year over year to RMB62.6 million.
• Minor pointQ3 gross margin narrowed to 41.0% from 42.1% a year earlier.
• Minor pointQ3 basic earnings per ordinary share fell 73.9% year over year to RMB0.06.
• Minor pointQ3 diluted earnings per ordinary share fell 72.7% year over year to RMB0.06.

5 minor points

• Minor pointQ3 cost of revenues increased 36.8% year over year to RMB630.1 million.
• Minor pointQ3 research and development expenses increased 27.8% year over year to RMB254.0 million, reflecting incremental SGI investment.
• Minor pointQ3 general and administrative expenses increased 27.5% year over year to RMB93.6 million.
• Minor pointQ3 sales and marketing expenses increased 21.4% year over year to RMB53.0 million.
• Minor pointQ3 lidar service revenue decreased 18.9% year over year to RMB4.3 million.

News Explained

At September 30, 2026, Hesai reported a cash reserve of RMB6,977.1 million, down from RMB7,050.6 million at June 30, 2026; the company defines this measure as cash and cash equivalents, restricted cash, short-term investments excluding stock investment, and long-term time deposits.

Key Figures

Net revenues: RMB1,068.3 million; up 34.3% year-over-year Total lidar shipments: 729,673 units; up 65.3% year-over-year Robotic actuation module shipments: 23,405 units; up 96.8% sequentially +5 more

Net revenues

RMB1,068.3 million; up 34.3% year-over-year

Third quarter 2026

Total lidar shipments

729,673 units; up 65.3% year-over-year

Third quarter 2026

Robotic actuation module shipments

23,405 units; up 96.8% sequentially

Third quarter 2026

Net income

RMB80.8 million; down 68.5% year-over-year

Third quarter 2026

Gross margin

41.0%

Third quarter 2026; compared with 42.1% in Q3 2025

SGI revenue versus original target

Nine-month revenue surpassed RMB100 million

First nine months of 2026; exceeded the original full-year target

2026 SGI revenue guidance

RMB200 million to RMB300 million

Reaffirmed full-year 2026 guidance

Net revenue outlook

RMB1,100 million to RMB1,150 million

Fourth quarter 2026

Previous Earnings Reports

2 past events · Latest: Aug 18

Same Type 2 events

1. Aug 18

   Quarterly earnings

   24h Move

   -5.3%

   Q2 revenue and net income grew; SGI guidance was raised to RMB200–300 million.

2. Nov 11

   Quarterly earnings

   24h Move

   -9.9%

   Q3 2025 revenue and lidar shipments increased, with net income of RMB256.2 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

lidar, adas, non-gaap, 3d gaussian splatting, +1 more

5 terms

lidar technical

"Quarterly lidar shipments were 729,673 units"

Lidar, which stands for Light Detection and Ranging, is a technology that uses laser beams to create detailed, three-dimensional maps of the environment. It works like a sophisticated eye that measures distances by bouncing light off objects, helping machines see and understand their surroundings. For investors, lidar is important because it enables advancements in autonomous vehicles, robotics, and mapping, which can drive innovation and growth in related industries.

adas technical

"Q3 2026 ADAS lidar shipments were 638,055 units"

Advanced Driver Assistance Systems (ADAS) are electronic systems in vehicles that assist the driver with safety tasks. Examples include automatic emergency braking, lane keeping assist, and adaptive cruise control. These systems use sensors and cameras to improve vehicle safety.

non-gaap financial

"Excluding share-based compensation expenses, non-GAAP income from operations"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

3d gaussian splatting technical

"generates 3D Gaussian Splatting (3DGS), mesh, and depth data"

A 3D Gaussian splatting method represents a three-dimensional scene as many overlapping, semi-transparent Gaussian-shaped blobs (each with position, size, color and orientation) instead of traditional polygons or voxels. Algorithms fit those Gaussians to collections of photos or depth data so the scene can be rendered or relit quickly: the blobs are projected into an image and composited to produce view-dependent pixel colors, which makes reconstruction and real-time novel-view rendering efficient but can blur fine geometric edges and requires tuning the number and scale of Gaussians for detail versus speed.

bill of materials technical

"typically account for over 50% of a humanoid’s bill of materials"

A bill of materials is a detailed checklist that lists every part, raw material and subassembly needed to build a product, like a recipe listing ingredients and quantities for a dish. Investors use it to gauge how much it costs and how complex production is, because the items and quantities affect profit margins, supply‑chain risks and the company’s ability to scale or meet demand.

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Quarterly net revenues were RMB1,068.3 million (US$159.3 million)¹

Quarterly lidar shipments were 729,673 units

Quarterly robotic actuation module shipments were 23,405 units

Quarterly net income was RMB80.8 million (US$12.1 million)

SHANGHAI, China, Nov. 10, 2026 (GLOBE NEWSWIRE) -- Hesai Group (Nasdaq: HSAI; HKEX: 2525) (“Hesai” or the “Company”), a Physical AI infrastructure company, today announced its unaudited financial results for the three months and nine months ended September 30, 2026.

Management Remarks

“The third quarter of 2026 marked another step in Hesai’s evolution into a full-stack infrastructure platform for Robotics and Physical AI,” said Dr. Yifan “David” Li, Hesai’s Co-Founder and CEO. “Our lidar business remains a scaled, profitable cash engine, with growth fueled by premium ET-series lidar wins with five leading global OEMs, including a top European automaker and Cadillac; rising adoption of multi-lidar configurations in China and overseas; and new programs with Wuling and Chery that expand lidar into high-volume mass-market vehicles and export markets. Meanwhile, in robotics, Hesai ranked No.1 globally in the 2025 robotaxi lidar market with a 62% share, according to Yole Group. We also partnered with JD.com, China’s largest retailer by revenues, leveraging our 6D full-color lidar and advanced perception capabilities to support its ambition to build the world’s largest robotics fleet.”

Dr. Li continued, “Our Strategic Growth Initiatives (SGI) are rapidly taking shape as Hesai’s next growth engine, unlocking new opportunities across the data and hardware infrastructure layers of Robotics and Physical AI. Launched globally in October, Kosmo, our 3D world data engine, transforms real-world environments into high-fidelity, editable, AI-ready 3D assets. Within just months of demo shipments, this category-defining innovation has already begun generating revenues and securing real-world deployments with best-in-class global players, including Pixar’s RenderMan. Commercial traction spans robotics training, film and entertainment, cultural heritage, spatial navigation, and beyond. Our robotic actuation modules—the robotic motion engine—also ramped up in volume sharply, with full-body modules joining robotic hands in mass production and Q3 shipments surging 97% sequentially to 23,405 units. We’re just getting started in Physical AI.”

“The third quarter of 2026 marked further progress in our growth strategy, as our core lidar business continued to scale profitably and SGI gained commercial momentum. Third-quarter net revenues grew approximately 34% year-over-year to RMB1,068 million, supported by quarterly shipments of 729,673 lidar units and 23,405 robotic actuation modules, despite headwinds in the broader automotive market. SGI is scaling ahead of plan, with revenues for the first nine months already surpassing our original full-year target of RMB100 million,” said Mr. Andrew Fan, Hesai’s CFO. “Robotic actuation modules, which typically account for over 50% of a humanoid’s bill of materials, are ramping up rapidly, with cumulative shipments reaching 35,295 units by Q3 quarter-end. Together with the new revenue stream from Kosmo, this supports our reaffirmed 2026 SGI revenue guidance of RMB200 million to RMB300 million. As we gain further customer validation, we are stepping up investment in SGI while maintaining financial discipline. We delivered net income of RMB81 million and our sixth consecutive quarter of GAAP profitability. Our core lidar business, in particular, reported income from operations of RMB145 million in the third quarter, up 88% year-over-year. Our ambition is clear: to become a leading infrastructure platform for the era of Robotics and Physical AI.”

_____________________________
1 All translations from RMB to USD for the third quarter of 2026 were made at the exchange rate of RMB6.7045 to US$1.00, the exchange rate on September 30, 2026, set forth in the H.10 statistical release of the Federal Reserve Board.

• Lidar Business Updates:
  • Captured a 43% share of China’s long-range ADAS lidar market in September 2026, maintaining the No. 1 position for the 20th consecutive month, according to Gasgoo.
    • Premium lidar adoption: Secured ET-series main lidar design wins with five leading global OEMs, including a top European automaker, Cadillac, Geely, Great Wall Motor, and a leading NEV automaker, representing a combined order book of over 1 million units.
    • Multi-lidar adoption: Secured FT-series blind-spot lidar design wins with Leapmotor and a top European automaker, underscoring growing adoption of multi-lidar configurations in China and overseas.
    • Mass market penetration: Secured an AT-series main lidar design win with Wuling, expanding into its high-volume, mass-market vehicle models.
    • Global expansion: Secured design wins with seven leading OEMs, including Chery, for potential export vehicle programs across multiple overseas markets, positioning Hesai to capture growing demand as Chinese automakers expand globally.
  • Ranked No. 1 globally in the 2025 robotaxi lidar market with a 62% share, according to Yole Group.
  • Partnered with JD.com, leveraging Hesai's 6D full-color lidar and advanced perception technologies to support its ambition to build the world’s largest robotics fleet, with plans to deploy more than 4 million robots, robovans, and other intelligent machines over the next five years.
• Strategic Growth Initiatives (SGI) Updates:
  • Kosmo: the 3D World Data Engine
    • Successfully launched Kosmo globally on October 14, 2026, an integrated hardware-software platform that transforms physical environments into high-fidelity, AI-ready 3D data assets:
      • Kosmo One: The world’s first 8K AI spatial camera², integrating Hesai’s ultra-high spatial resolution lidar to deliver 3D reconstruction with photorealistic visual quality and millimeter-level geometric accuracy.
      • Kosmo World: An AI-powered cloud platform that generates 3D Gaussian Splatting (3DGS), mesh, and depth data in a single reconstruction, at up to 5x the speed of comparable 3DGS solutions and up to 200x the speed of manual 3D modeling.
    • Within just months of initial demo shipments in July 2026, Kosmo began generating revenues under a business model spanning hardware sales, platform subscriptions, and its 3D asset library. It has also secured real-world deployments with global industry-leading players and gained strong commercial traction in China and overseas. Key applications include:
      • Film and entertainment: Established a landmark partnership with Pixar’s RenderMan, a cornerstone of Hollywood visual effects, to bring photorealistic AI-generated content and reusable 3D scenes to film production—cutting VFX costs by up to 80%. In October 2026, Pixar released an official tutorial showcasing a workflow built around Kosmo for its upcoming version of RenderMan. Kosmo is also powering AI-generated films from other leading studios.
      • Embodied AI: Established strategic partnerships with Galbot and Dexmal to build Kosmo-powered 3D robotic training environments, where captured spaces are transformed into editable 3D worlds with interactive objects that simulate real-world interactions. A single reconstruction can generate over 10,000 training trajectories.
      • Generative AI: In discussions with leading Large Language Models (LLM) and video generation model developers on potential collaborations to improve spatial consistency in AI-generated images and videos.
      • Immersive experiences: Partnered with Amap, China’s leading digital mapping and navigation platform under Alibaba Group, to enable scalable spatial commerce across tourism and offline retail. The initial pilot covers 1,000 locations, including premium malls, retail outlets, restaurants, hotels, and brand stores.
    • Published the Spatial Intelligence White Paper, establishing a framework for this emerging field, charting its evolution, and outlining Kosmo’s strategic role and transformative commercial potential. The white paper is available on the Company’s official website at https://www.hesaitech.com/whitepaper/2026-spatial-intelligence-white-paper/.
  • Robotic Actuation Modules: the Robotic Motion Engine
    • Quarterly robotic actuation module shipments reached 23,405 units, up 97% sequentially, with cumulative shipments of 35,295 units and monthly capacity scaled to 10,000 units. Annual shipments are expected to reach six digits in 2027.
    • Achieved sustained commercial validation with our anchor customer, Sharpa, a global frontrunner in AI robotics. Sharpa’s newly unveiled D01, its first integrated tactile-sensing full-body robot, and W02, a next-generation, fully tactile, ultra-compact, lightweight dexterous hand, are both powered by Hesai’s robotic actuation modules, which feature proprietary designs for reducers, motors, and other key components.

_____________________________
2 As of October 2026, based on publicly available product information, Kosmo One is the world's first AI spatial camera with an integrated 8K imaging system.

Operational Highlights

	Three months ended September 30, 2026		Nine months ended September 30, 2026
ADAS lidar shipments	638,055		1,477,400
Robotics lidar shipments	91,618		352,271
Total lidar shipments	729,673		1,829,671
Robotic actuation module shipments	23,405		35,295

• Q3 2026 ADAS lidar shipments were 638,055 units, representing an increase of 67.6% from 380,759 units in the corresponding period of 2025.
• Q3 2026 Robotics lidar shipments were 91,618 units, representing an increase of 51.1% from 60,639 units in the corresponding period of 2025.
• Q3 2026 Total lidar shipments were 729,673 units, representing an increase of 65.3% from 441,398 units in the corresponding period of 2025.
• Q3 2026 Robotic actuation module shipments were 23,405 units, representing an increase of 96.8% from 11,890 units in the second quarter of 2026.
  
  

Financial Highlights for the Third Quarter of 2026

(in RMB millions, except for per ordinary share data and percentage)

	Q3 2026		Q3 2025		% Change
Net revenues	1,068.3		795.4		34.3	%
Gross margin	41.0%		42.1%			/
Income from operations	62.6		77.4		(19.1	%)
Non-GAAP3 income from operations	100.8		108.9		(7.4	%)
Net income	80.8		256.2		(68.5	%)
Non-GAAP net income	119.0		287.7		(58.6	%)
Net income per ordinary share – basic4	0.06		0.23		(73.9	%)
Net income per ordinary share – diluted	0.06		0.22		(72.7	%)
Non-GAAP net income per ordinary share	0.09		0.26		(65.4	%)
Diluted non-GAAP net income per ordinary share	0.09		0.25		(64.0	%)

• Net revenues were RMB1,068.3 million (US$159.3 million) for the third quarter of 2026, representing an increase of 34.3% from RMB795.4 million for the same period of 2025. Net revenues from lidar segment were RMB977.8 million (US$145.8 million), representing an increase of 22.9% from RMB795.4 million for the same period of 2025. Net revenues from SGI segment were RMB90.5 million (US$13.5 million).
  
  Product revenues were RMB1,051.5 million (US$156.8 million) for the third quarter of 2026, representing an increase of 33.1% from RMB790.1 million for the same period of 2025. Product revenues from lidar segment were RMB973.5 million (US$145.2 million), representing an increase of 23.2% from RMB790.1 million for the same period of 2025. The year-over-year increase was mainly attributable to higher deliveries of both ADAS and Robotics lidar products, driven by robust demand in China and overseas, as well as contributions from the SGI business. Product revenues from SGI segment were RMB78.0 million (US$11.6 million).
  
  Service revenues were RMB16.8 million (US$2.5 million) for the third quarter of 2026, representing an increase of 217.0% from RMB5.3 million for the same period of 2025. Service revenues from lidar segment were RMB4.3 million (US$0.6 million), representing a decrease of 18.9% from RMB5.3 million for the same period of 2025. The year-over-year decrease was mainly driven by lower revenues from extended warranty services. Service revenues from SGI segment were RMB12.5 million (US$1.9 million) which was derived from revenues from manufacturing and support services.
• Cost of revenues was RMB630.1 million (US$94.0 million) for the third quarter of 2026, representing an increase of 36.8% from RMB460.5 million for the same period of 2025.
• Gross margin was 41.0% for the third quarter of 2026, compared with 42.1% for the same period of 2025. The year-over-year decrease in gross margin was mainly attributable to a higher revenue contribution from products with relatively lower margins.
• Sales and marketing expenses were RMB53.0 million (US$7.9 million) for the third quarter of 2026, representing an increase of 21.4% from RMB43.6 million for the same period of 2025. The increase was mainly driven by an increase in payroll expenses of RMB5.6 million (US$0.8 million).
• General and administrative expenses were RMB93.6 million (US$14.0 million) for the third quarter of 2026, representing an increase of 27.5% from RMB73.4 million for the same period of 2025. The increase was mainly driven by an increase in professional service fees of RMB9.8 million (US$1.5 million) and an increase in payroll expenses of RMB6.9 million (US$1.0 million).
• Research and development expenses were RMB254.0 million (US$37.9 million) for the third quarter of 2026, representing an increase of 27.8% from RMB198.9 million for the same period of 2025. The year-over-year increase was mainly due to an increase in payroll expenses of RMB26.2 million (US$3.9 million), an increase in outsourcing development and testing expenses of RMB10.2 million (US$1.5 million), and an increase in cost of materials of RMB9.0 million (US$1.3 million), reflecting our incremental investment in SGI.
• Income from operations was RMB62.6 million (US$9.3 million) for the third quarter of 2026, compared with income from operations of RMB77.4 million for the same period of 2025. Excluding share-based compensation expenses, non-GAAP income from operations was RMB100.8 million (US$15.0 million) for the third quarter of 2026, compared with non-GAAP income from operations of RMB108.9 million for the same period of 2025. Income from operations of the lidar segment was RMB145.5 million (US$21.7 million) for the third quarter of 2026, representing an increase of 88.0% from RMB77.4 million for the same period of 2025.
• Net income was RMB80.8 million (US$12.1 million) for the third quarter of 2026, representing a decrease of 68.5% from RMB256.2 million for the same period of 2025. The decrease was mainly attributable to one-time income of RMB185.1 million (US$27.6 million) from the disposal of an equity investment and the transfer of intellectual properties in the third quarter of 2025. Excluding share-based compensation expenses, non-GAAP net income was RMB119.0 million (US$17.8 million) for the third quarter of 2026, representing a decrease of 58.6% from RMB287.7 million for the same period of 2025.
• Net income attributable to ordinary shareholders of the Company was RMB80.8 million (US$12.1 million) for the third quarter of 2026, representing a decrease of 68.5% from RMB256.2 million for the same period of 2025. Excluding share-based compensation expenses, non-GAAP net income attributable to ordinary shareholders of the Company was RMB119.0 million (US$17.8 million) for the third quarter of 2026, representing a decrease of 58.6% from RMB287.7 million for the same period of 2025.
• Basic and diluted net income per ordinary share were RMB0.06 (US$0.01) and RMB0.06 (US$0.01), respectively, for the third quarter of 2026. Excluding share-based compensation expenses, non-GAAP basic and diluted net income per ordinary share were RMB0.09 (US$0.01) and RMB0.09 (US$0.01), respectively, for the third quarter of 2026.
• Cash reserve⁵ was RMB6,977.1 million (US$1,040.7 million) as of September 30, 2026, compared with RMB7,050.6 million as of June 30, 2026.

_____________________________
3 See “Use of Non-GAAP Financial Measures” included in this announcement for further details.
4 On July 10, 2026, the Company implemented share subdivision of the Company on the basis that every one existing issued and unissued share with a par value of US$0.0001 each be subdivided into eight subdivided shares with a par value of US$0.0000125 each (the "Share Subdivision"). The Company accounted for Share Subdivision on a retrospective basis pursuant to ASC 260, Earnings Per Share. All issued and outstanding common stock, stock option awards, restricted share units, exercise prices and per share data have been adjusted in these consolidated financial statements, on a retrospective basis, to reflect the Share Subdivision for all periods presented.
5 Cash reserve represents cash and cash equivalents, restricted cash, short-term investments (excluding stock investment) and long-term time deposits.

Business Outlook

For the fourth quarter of 2026, the Company expects net revenues to be between RMB1,100 million (US$164 million) and RMB1,150 million (US$172 million).

The above outlook is based on current market conditions and reflects the Company’s preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Conference Call

The Company’s management will host an earnings conference call at 7:00 AM U.S. Eastern Time on November 10, 2026 (8:00 PM Beijing/ Hong Kong Time on November 10, 2026).

For participants who wish to join the call by phone, please access the link provided below to complete the pre-registration process and dial in 5 minutes prior to the scheduled call start time. Upon registration, each participant will receive dial-in details to join the conference call.

Event Title:	Hesai Group Third Quarter 2026 Earnings Conference Call
Pre-registration Link:	https://s1.c-conf.com/diamondpass/10057354-vjhodq.html

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://investor.hesaitech.com.

A replay of the conference call will be accessible approximately an hour after the conclusion of the call until November 17, 2026, by dialing the following telephone numbers:

United States:	+1-855-883-1031
International:	+61-7-3107-6325
Hong Kong, China:	800-930-639
China Mainland:	400-120-9216
Replay PIN:	10057354

About Hesai

Hesai Technology (Nasdaq: HSAI; HKEX: 2525) is a Physical AI infrastructure company. With a product portfolio spanning lidar, Kosmo spatial intelligence platform, and robotic actuation modules, Hesai is the only company in the industry covering the full robotics chain of "see, understand, and act" while achieving commercialization at scale. Leveraging full-stack proprietary ASIC capabilities and an integrated R&D-manufacturing approach, Hesai has established industry-leading positions across core physical AI domains, including autonomous mobility, spatial intelligence, embodied AI, and commercial robots, and holds a leading share of the global lidar market. Hesai has established offices in Shanghai, Palo Alto, and Stuttgart, and operates in-house factories in China and Thailand, with customers spanning more than 40 countries.

Use of Non-GAAP Financial Measures

To supplement Hesai’s consolidated financial results presented in accordance with GAAP, Hesai uses the following measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission (the “SEC”): income/loss from operations excluding share-based compensation expenses, net income excluding share-based compensation expenses, net income attributable to ordinary shareholders excluding share-based compensation, and per ordinary share net income attributable to ordinary shareholders excluding share-based compensation. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Hesai believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. Hesai believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Hesai’s historical performance and liquidity. Hesai believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that they exclude share-based compensation expenses that have been and will continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP financial measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB6.7045 to US$1.00, the exchange rate on September 30, 2026, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred to could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s goals and strategies; the Company’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; the trends in, expected growth and the market size of the ADAS and Robotics industries; the market for and adoption of lidar and related technology; the Company’s ability to produce high-quality products with wide market acceptance; the success of the Company’s customers in developing and commercializing products using its solutions, and the market acceptance of those products; the Company’s ability to introduce new products that meet its customers’ requirements; the Company’s expectations regarding the effectiveness of its marketing initiatives and the relationship with its third-party partners; competition in the Company’s industry; the Company’s ability to recruit and retain qualified personnel; relevant government policies and regulations relating to the Company’s industry; the Company’s ability to protect its systems and infrastructures from cyber-attacks; general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this announcement and in the attachments is as of the date of this announcement, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. In the event of any inconsistency between the English version of this earnings release and its Chinese translation, the English version of this document shall prevail unless otherwise stated.

For investor and media inquiries, please contact:

Hesai Group
Capital Markets Department
Email: ir@hesaitech.com

Christensen Advisory
Tel: +86-10-5900-1548
Email: hesai@christensencomms.com

Source: Hesai Group

HESAI GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share and per share data or otherwise noted)
		As of
		December 31, 2025		September 30, 2026
		RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		1,663,492		3,135,226		467,630
Restricted cash		4,014		13,297		1,983
Short-term investments		3,091,856		3,857,955		575,428
Notes receivables		94,697		73,604		10,978
Accounts receivable, net		1,262,220		1,471,926		219,543
Amounts due from related parties		-		164,338		24,512
Inventories		670,453		1,088,013		162,281
Prepayments and other current assets, net		282,431		415,174		61,925
Total current assets		7,069,163		10,219,533		1,524,280
Non-current assets:
Property and equipment, net		1,099,283		1,146,766		171,044
Long-term investments		2,781,670		60,000		8,949
Intangible assets, net		95,507		87,641		13,072
Land-use rights, net		39,015		38,367		5,723
Right-of-use assets		109,318		85,125		12,697
Other non-current assets		67,322		113,087		16,867
Total non-current assets		4,192,115		1,530,986		228,352
TOTAL ASSETS		11,261,278		11,750,519		1,752,632
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings		448,233		667,910		99,621
Note payable		150,199		276,623		41,259
Accounts payable		592,560		830,300		123,842
Contract liabilities		21,019		14,504		2,163
Accrued warranty liability		77,672		98,279		14,659
Income tax payable		27,157		27,034		4,032
Accrued expenses and other current liabilities		578,495		466,600		69,596
Total current liabilities		1,895,335		2,381,250		355,172
Non-current liabilities
Operating lease liabilities		85,555		59,654		8,898
Long-term borrowings		278,727		247,165		36,866
Other non-current liabilities		42,907		41,549		6,196
Total non-current liabilities		407,189		348,368		51,960
TOTAL LIABILITIES		2,302,524		2,729,618		407,132
Shareholders’ equity
Class A Ordinary shares		17		17		2
Class B Ordinary shares		90		90		14
Additional paid-in capital		11,925,963		12,033,273		1,794,805
Accumulated other comprehensive income (loss)		6,529		(208,291	)	(31,067	)
Accumulated deficit		(2,973,845	)	(2,804,188	)	(418,255	)
TOTAL SHAREHOLDERS’ EQUITY		8,958,754		9,020,901		1,345,500
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		11,261,278		11,750,519		1,752,632

HESAI GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(All amounts in thousands, except share and per share data or otherwise noted)
		Three months ended September 30,
		2025		2026
		RMB		RMB		US$
Net revenues (including revenue from a related party of nil, and RMB90,323 for three months ended September 30, 2025 and 2026, respectively)		795,395		1,068,293		159,340
Cost of revenues		(460,496	)	(630,085	)	(93,980	)
Gross profit		334,899		438,208		65,360
Operating expenses:
Sales and marketing expenses		(43,646	)	(52,977	)	(7,902	)
General and administrative expenses		(73,372	)	(93,576	)	(13,957	)
Research and development expenses		(198,862	)	(254,049	)	(37,892	)
Other operating income, net		58,347		24,976		3,725
Total operating expenses		(257,533	)	(375,626	)	(56,026	)
Income from operations		77,366		62,582		9,334
Interest income		27,993		49,822		7,431
Interest expenses		(3,234	)	(4,568	)	(681	)
Investment loss		-		(8,111	)	(1,210	)
Foreign exchange income/(loss), net		8,732		(18,943	)	(2,825	)
Other income, net		172,867		13		2
Net income before income tax and share of loss in equity method investments		283,724		80,795		12,051
Income tax expenses		(27,500	)	(3	)	(1	)
Share of loss in equity method investment		(51	)	-		-
Net income		256,173		80,792		12,050
Net income attributable to ordinary shareholders of the Company		256,173		80,792		12,050
Net income per share:
Basic		0.23		0.06		0.01
Diluted		0.22		0.06		0.01
Weighted average ordinary shares used in calculating net income per share:
Basic		1,091,100,032		1,255,348,244		1,255,348,244
Diluted		1,148,064,496		1,305,172,825		1,305,172,825
Net income		256,173		80,792		12,050
Other comprehensive loss:
Foreign currency translation adjustments		(21,774	)	(51,718	)	(7,714	)
Comprehensive income		234,399		29,074		4,336

HESAI GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(All amounts in thousands, except share and per share data or otherwise noted)
		Nine months ended September 30,
		2025		2026
		RMB		RMB		US$
Net revenues (including revenue from a related party of nil, and RMB135,266 for nine months ended September 30, 2025 and 2026, respectively)		2,027,085		2,609,675		389,242
Cost of revenues		(1,172,473	)	(1,560,198	)	(232,709	)
Gross profit		854,612		1,049,477		156,533
Operating expenses:
Sales and marketing expenses		(136,503	)	(144,052	)	(21,486	)
General and administrative expenses		(191,179	)	(213,320	)	(31,817	)
Research and development expenses		(581,387	)	(689,895	)	(102,900	)
Other operating income, net		121,227		54,006		8,055
Total operating expenses		(787,842	)	(993,261	)	(148,148	)
Income from operations		66,770		56,216		8,385
Interest income		69,481		165,601		24,700
Interest expenses		(14,786	)	(14,502	)	(2,163	)
Investment income		-		28,455		4,244
Foreign exchange income/(loss), net		16,692		(66,315	)	(9,891	)
Other income, net		172,154		210		31
Net income before income tax and share of loss in equity method investments		310,311		169,665		25,306
Income tax expense		(27,527	)	(8	)	(1	)
Share of loss in equity method investment		(74	)	-		-
Net income		282,710		169,657		25,305
Net income attributable to ordinary shareholders of the Company		282,710		169,657		25,305
Net income per share:
Basic		0.26		0.14		0.02
Diluted		0.25		0.13		0.02
Weighted average ordinary shares used in calculating net income per share:
Basic		1,067,499,120		1,252,519,263		1,252,519,263
Diluted		1,125,279,232		1,304,237,652		1,304,237,652
Net income		282,710		169,657		25,305
Other comprehensive income/(loss):
Foreign currency translation adjustments		8,471		(214,820	)	(32,041	)
Comprehensive income/(loss)		291,181		(45,163	)	(6,736	)

HESAI GROUP
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share and per share data or otherwise noted)
	For the three months ended September 30,
	2025			2026
	RMB			RMB		US$
Income from operations	77,366			62,582		9,334
Add: Share-based compensation expenses	31,550			38,254		5,706
Non-GAAP income from operations	108,916			100,836		15,040
Net income	256,173			80,792		12,050
Add: Share-based compensation expenses	31,550			38,254		5,706
Non-GAAP net income	287,723			119,046		17,756
Net income attributable to ordinary shareholders of the Company	256,173			80,792		12,050
Add: Share-based compensation expenses	31,550			38,254		5,706
Non-GAAP net income attributable to ordinary shareholders of the Company	287,723			119,046		17,756
Weighted average shares used in calculating net earnings per share
Basic	1,091,100,032			1,255,348,244		1,255,348,244
Diluted	1,148,064,496			1,305,172,825		1,305,172,825
Non-GAAP net earnings per share
Basic	0.26			0.09		0.01
Diluted	0.25			0.09		0.01

HESAI GROUP
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share and per share data or otherwise noted)
	For the nine months ended September 30,
	2025		2026
	RMB		RMB		US$
Income from operations	66,770		56,216		8,385
Add: Share-based compensation expenses	86,933		98,460		14,686
Non-GAAP income from operations	153,703		154,676		23,071
Net income	282,710		169,657		25,305
Add: Share-based compensation expenses	86,933		98,460		14,686
Non-GAAP net income	369,643		268,117		39,991
Net income attributable to ordinary shareholders of the Company	282,710		169,657		25,305
Add: Share-based compensation expenses	86,933		98,460		14,686
Non-GAAP net income attributable to ordinary shareholders of the Company	369,643		268,117		39,991
Weighted average shares used in calculating net earnings per share
Basic	1,067,499,120		1,252,519,263		1,252,519,263
Diluted	1,125,279,232		1,304,237,652		1,304,237,652
Non-GAAP net earnings per share
Basic	0.35		0.21		0.03
Diluted	0.33		0.21		0.03

HESAI GROUP
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(All amounts in thousands, except share and per share data or otherwise noted)
	For the three months ended September 30, 2026
	Lidar		Strategic Growth Initiatives		Total
	RMB		RMB		RMB
Net revenues	977,784		90,509		1,068,293
Cost of revenues and total operating expenses	(832,314	)	(173,397	)	(1,005,711	)
Income/(loss) from operations	145,470		(82,888	)	62,582
Interest income					49,822
Interest expense					(4,568	)
Investment loss					(8,111	)
Foreign exchange loss, net					(18,943	)
Other income, net					13
Net income before income tax					80,795
Income tax expense					(3	)
Net income					80,792

HESAI GROUP
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(All amounts in thousands, except share and per share data or otherwise noted)
	For the nine months ended September 30, 2026
	Lidar		Strategic Growth Initiatives		Total
	RMB		RMB		RMB
Net revenues	2,474,223		135,452		2,609,675
Cost of revenues and total operating expenses	(2,220,573	)	(332,886	)	(2,553,459	)
Income/(loss) from operations	253,650		(197,434	)	56,216
Interest income					165,601
Interest expense					(14,502	)
Investment income					28,455
Foreign exchange loss, net					(66,315	)
Other income, net					210
Net income before income tax					169,665
Income tax expense					(8	)
Net income					169,657

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Hesai's Q3 2026 revenue and net income?

Hesai reported RMB1,068.3 million in revenue and RMB80.8 million in net income for the third quarter of 2026. Revenue increased 34.3% year over year, while net income decreased 68.5%. The prior-year quarter included RMB185.1 million of one-time income from an equity investment disposal and an intellectual property transfer.

What is Hesai's 2026 revenue guidance for Strategic Growth Initiatives?

Hesai reaffirmed 2026 SGI revenue guidance of RMB200 million to RMB300 million. Revenue for the first nine months had already exceeded its original full-year target of RMB100 million. SGI includes the Kosmo 3D data platform and robotic actuation modules.