WS Investor
10 Nov 2026, 15:58
Hesai Falls 1.7% as Profit Declines Despite Strong Revenue and Lidar Shipment Growth
Hesai Group (NASDAQ: HSAI) shares fell about 1.7% after the company reported strong third-quarter revenue and shipment growth but lower profitability compared with the prior year.
Third-quarter net revenue increased 34.3% year over year to RMB1.07 billion, while total lidar shipments rose 65.3% to 729,673 units. ADAS lidar shipments increased 67.6%, and robotics lidar shipments rose 51.1%.
Hesai also continued expanding its robotics and Physical AI businesses. Robotic actuation module shipments reached 23,405 units, up 96.8% sequentially, while its Strategic Growth Initiatives segment generated RMB90.5 million of revenue during the quarter.
However, profitability weakened. Gross margin declined to 41.0% from 42.1%, operating income fell 19.1% to RMB62.6 million, and net income dropped 68.5% to RMB80.8 million. Non-GAAP net income also declined 58.6% to RMB119.0 million.
The sharp decline in net income was partly due to a difficult comparison with the prior-year quarter, which included RMB185.1 million of one-time income from an equity investment disposal and intellectual property transfer. R&D spending also increased 27.8% as Hesai invested more heavily in its Strategic Growth Initiatives.
The 1.7% decline appears to reflect margin pressure and lower reported earnings, despite strong shipment growth, continued profitability in the core lidar business and increasing momentum in robotics and Physical AI.
Hesai Group (NASDAQ: HSAI) shares fell about 1.7% after the company reported strong third-quarter revenue and shipment growth but lower profitability compared with the prior year.
Third-quarter net revenue increased 34.3% year over year to RMB1.07 billion, while total lidar shipments rose 65.3% to 729,673 units. ADAS lidar shipments increased 67.6%, and robotics lidar shipments rose 51.1%.
Hesai also continued expanding its robotics and Physical AI businesses. Robotic actuation module shipments reached 23,405 units, up 96.8% sequentially, while its Strategic Growth Initiatives segment generated RMB90.5 million of revenue during the quarter.
However, profitability weakened. Gross margin declined to 41.0% from 42.1%, operating income fell 19.1% to RMB62.6 million, and net income dropped 68.5% to RMB80.8 million. Non-GAAP net income also declined 58.6% to RMB119.0 million.
The sharp decline in net income was partly due to a difficult comparison with the prior-year quarter, which included RMB185.1 million of one-time income from an equity investment disposal and intellectual property transfer. R&D spending also increased 27.8% as Hesai invested more heavily in its Strategic Growth Initiatives.
The 1.7% decline appears to reflect margin pressure and lower reported earnings, despite strong shipment growth, continued profitability in the core lidar business and increasing momentum in robotics and Physical AI.
