Hesai Gr Q2 Results: Net profit rises 60%, revenue up 22%
Hesai Gr reported Q2 2026 revenue of RMB 861 million, up 22% YoY, with net profit rising 60% to RMB 71 million. LiDAR shipments grew nearly 80% to 628,000 units. The new SGI segment contributed RMB 45 million in revenue but operated at a loss, prompting a raise in full-year SGI guidance to RMB 200-300 million.
*this image is generated using AI for illustrative purposes only.
Hesai Gr (NASDAQ: HSAI) delivered robust financial performance in the second quarter of 2026, reporting total net revenues of RMB 861 million (US$127 million), representing a 22% increase year-over-year. The company’s GAAP net income climbed 60% to RMB 71 million (US$10 million), securing its fifth consecutive quarter of profitability. This growth underscores the scalability of its core LiDAR business while Strategic Growth Initiatives (SGI) began contributing to the top line for the first time.
Financial Performance
The company maintained a healthy gross margin of 40% despite increased investments in research and development. R&D expenses totaled RMB 231 million, primarily reflecting targeted investments in SGI opportunities such as robotic actuation modules and the Cosmo spatial intelligence platform. Operating expenses remained disciplined, with sales and marketing at RMB 15 million and general and administrative expenses at RMB 67 million.
| Metric | Q2 2026 | Change (YoY) |
|---|---|---|
| Total Revenue | RMB 861 million | +22% |
| Gross Margin | 40% | Stable |
| GAAP Net Income | RMB 71 million | +60% |
| LiDAR Shipments | 628,000+ units | +80% |
Segment Analysis
Hesai Gr now reports through two segments: Core LiDAR and Strategic Growth Initiatives (SGI). The core LiDAR business generated RMB 816 million in revenue and an operating profit of RMB 66 million, demonstrating strong cash-generating capacity. Total LiDAR shipments exceeded 628,000 units, driven by a 60% increase in ADAS shipments to over 485,000 units and a 193% surge in robotics LiDAR shipments to over 142,000 units.
SGI recorded its first revenue contribution of RMB 45 million, driven by early demand for robotic actuation modules. However, the segment posted an operating loss of RMB 64 million due to ongoing investments in product development and production capacity. Management raised full-year 2026 SGI revenue guidance from RMB 100 million to RMB 200-300 million, citing commercial momentum exceeding expectations.
What the Numbers Show
A significant divergence exists between the company’s top-line growth and its cost structure in new ventures. While consolidated net profit grew by 60%, the SGI segment incurred an operating loss of RMB 64 million against only RMB 45 million in revenue. This indicates that the current profitability is entirely dependent on the core LiDAR business, which generated RMB 66 million in operating profit. The SGI segment is currently a net drag on operating income, though management projects it to reach breakeven in 2027.
Outlook and Guidance
For the third quarter of 2026, Hesai Gr expects total revenue between RMB 1.1 billion and RMB 1.15 billion. LiDAR shipments are projected at 800,000 to 850,000 units for Q3. Full-year 2026 LiDAR shipment guidance remains unchanged at 3 to 3.5 million units. Management highlighted that non-ADAS LiDAR revenue is expected to approach or exceed half of total revenue in Q3, signaling a structural shift toward robotics and physical AI infrastructure.
How will the projected shift of non-ADAS LiDAR revenue to over 50% in Q3 impact Hesai's gross margins compared to its traditional automotive ADAS business?
Given the SGI segment's current operating loss of RMB 64 million, what specific operational milestones must be achieved for it to reach the projected breakeven point in 2027?
With LiDAR shipments surging 80% year-over-year, how is Hesai managing supply chain constraints and manufacturing scalability to meet the full-year guidance of 3.5 million units?
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