Revenue growth has turned negative with a 32.4% year-over-year decline in 2025Q4, while gross margins have eroded to 17.8% from their 23.5% peak in 2023Q4.
| Sales/Revenue | 109.25B | 144.52B | 123.83B | 46.08B | 26.66B | 8.94B | 283.6M | 0 |
| Revenue Growth % | -24.4% | 16.71% | 168.73% | 72.85% | 198.2% | 3052.47% | - | - |
| Cost of Goods Sold | 88.84B | 114.85B | 96.34B | 37.28B | 21.11B | 7.55B | 380.73M | 89.7M |
| COGS % of Revenue | 81.32% | 79.47% | 77.8% | 80.89% | 79.18% | 84.49% | 134.25% | - |
| Gross Profit | 20.41B | 29.67B | 27.49B | 8.81B | 5.55B | 1.39B | -97.13M | -89.7M |
| Gross Margin % | 18.68% | 20.53% | 22.2% | 19.11% | 20.82% | 15.51% | -34.25% | - |
| Gross Profit Growth % | -31.2% | 7.91% | 212.22% | 58.61% | 300.45% | 1527.35% | -8.29% | - |
| Operating Expenses | 21.38B | 23.31B | 20.35B | 12.52B | 6.56B | 1.99B | 1.74B | 1.09B |
| OpEx % of Revenue | 19.57% | 16.13% | 16.43% | 27.18% | 24.59% | 22.26% | 612.99% | - |
| Selling, General & Admin | 10.37B | 12.23B | 9.77B | 5.68B | 3.37B | 993.17M | 612.01M | 280.87M |
| SG&A % of Revenue | 9.5% | 8.47% | 7.89% | 12.33% | 12.62% | 11.11% | 215.8% | - |
| Research & Development | 0 | 11.08B | 10.58B | 6.84B | 3.19B | 997.3M | 1.13B | 804.46M |
| R&D % of Revenue | - | 7.66% | 8.55% | 14.85% | 11.97% | 11.15% | 397.2% | - |
| Other Operating Expenses | 11.01B | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -967.65M | 6.36B | 7.14B | -3.72B | -1B | -604.08M | -1.84B | -1.18B |
| Operating Margin % | -0.89% | 4.4% | 5.77% | -8.07% | -3.77% | -6.76% | -647.24% | - |
| Operating Income Growth % | -115.22% | -10.97% | 292.03% | -270.37% | -66.23% | 67.09% | -56.22% | - |
| EBITDA | 3.67B | 9.42B | 8.92B | -2.48B | -421.4M | -247.02M | -1.68B | -1.09B |
| EBITDA Margin % | 3.36% | 6.52% | 7.21% | -5.39% | -1.58% | -2.76% | -591.78% | - |
| EBITDA Growth % | -61.06% | 5.53% | 459.28% | -489.44% | -70.6% | 85.28% | -54.63% | - |
| D&A (Non-Cash Add-back) | 4.64B | 3.06B | 1.78B | 1.24B | 582.75M | 357.06M | 157.3M | 89.7M |
| EBIT | 1.43B | 9.51B | 10.54B | -2.09B | -88.41M | -112.92M | -2.17B | -1.11B |
| Net Interest Income | -163.5M | 1.63B | 2B | 977.83M | 668.42M | 177.74M | -4.03M | 8.57M |
| Interest Income | 0 | 1.82B | 2.08B | 1.09B | 730.85M | 241M | 79.42M | 74.51M |
| Interest Expense | 163.5M | 187.83M | 86.24M | 108.21M | 62.43M | 63.26M | 83.44M | 65.94M |
| Other Income/Expense | 2.23B | 2.96B | 3.31B | 1.52B | 853.32M | 425.51M | -575.77M | -35.72M |
| Pretax Income | 1.26B | 9.32B | 10.45B | -2.2B | -150.83M | -178.57M | -2.41B | -1.21B |
| Pretax Margin % | 1.15% | 6.45% | 8.44% | -4.77% | -0.57% | -2% | -850.27% | - |
| Income Tax | 153.41M | 1.27B | -1.36B | -129.24M | 166.46M | -21.6M | 0 | 0 |
| Effective Tax Rate % | 12.16% | 13.64% | -12.99% | 5.88% | -110.36% | 12.1% | 0% | 0% |
| Net Income | 1.09B | 8.04B | 11.7B | -2.05B | -317.29M | -159.79M | -2.43B | -1.59B |
| Net Margin % | 1% | 5.56% | 9.45% | -4.44% | -1.19% | -1.79% | -857.53% | - |
| Net Income Growth % | -86.39% | -31.33% | 671.54% | -545.32% | -98.56% | 93.43% | -52.75% | - |
| Net Income (Continuing) | 1.11B | 8.05B | 11.81B | -2.07B | -317.29M | -156.97M | -2.41B | -1.21B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | -2.83M | -20.61M | -381.34M |
| Minority Interest | 520.82M | 445.5M | 432.6M | 327.61M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.04 | 7.54 | 11.06 | -2.10 | -0.34 | -0.85 | -3.62 | -2.12 |
| EPS Growth % | -86.21% | -31.83% | 626.67% | -517.65% | 60% | 76.52% | -70.75% | - |
| EPS (Basic) | 1.12 | 8.06 | 11.90 | -2.10 | -0.34 | -0.85 | -3.62 | -2.12 |
| Diluted Shares Outstanding | 1.07B | 1.06B | 1.06B | 970.62M | 926.66M | 904.96M | 904.96M | 904.96M |
| Basic Shares Outstanding | 1.01B | 996.6M | 983.93M | 970.62M | 926.66M | 904.96M | 904.96M | 904.96M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Revenue contraction and margin erosion
As reported in recent financial filings, Li Auto's revenue growth has shifted into negative territory, with the company recording a 32.4% year-over-year decline in 2025Q4, signaling a significant departure from the robust expansionary trends observed in previous fiscal periods throughout the 2023 and 2024 calendar years.
The sharp deceleration in top-line performance suggests that the company's core L-series SUV lineup may be reaching market saturation or facing intensified competitive pressure from domestic rivals. Investors should monitor whether this contraction reflects a temporary cyclical lull or a more permanent loss of pricing power in the premium segment.
Based on the latest income statement data, Li Auto's gross margin has contracted to 17.8% in 2025Q4, down from the 23.5% peak achieved in 2023Q4, indicating that the company is struggling to maintain its historical premium pricing advantage in an increasingly crowded Chinese automotive market.
The erosion of gross margins appears to be a direct consequence of the ongoing price wars within the Chinese EV sector, which force manufacturers to sacrifice profitability to defend market share. This trend warrants further investigation into whether the company's EREV architecture can continue to provide a cost-efficient buffer against pure BEV competitors.
According to the provided quarterly figures, Li Auto's operating margin has deteriorated to -1.9% in 2025Q4, a stark reversal from the 8.0% operating margin reported in 2024Q4, demonstrating that the company's fixed cost structure is currently failing to scale effectively against declining revenue volumes.
The inability to maintain positive operating income suggests that the company's heavy investment in R&D and sales infrastructure is becoming a drag on profitability during this period of revenue contraction. This negative operating leverage may indicate that the current expense base is misaligned with the company's immediate growth trajectory.
As evidenced by the 2025Q4 data, Li Auto's net income has plummeted to a near-zero $6.4 million, a significant decline from the $5.5 billion reported in 2023Q4, raising concerns about the underlying quality and sustainability of the company's earnings in the current competitive environment.
The reliance on non-operating items or potential accounting adjustments to maintain even marginal profitability suggests that the core business is under severe pressure. Short-term investors should be wary of the potential for further earnings volatility if the company continues to struggle with the transition to new product segments like the MEGA MPV.
Quick answers to the most common questions about buying LI stock.
For fiscal year 2025, Li Auto Inc. (LI) reported total revenue of $109.25B.
Li Auto Inc. (LI) is profitable, generating $1.09B in net income for the fiscal year ending 2025 with a net profit margin of 1.0%.
Li Auto Inc. (LI) reported an operating income of $-967.6M, resulting in an operating profit margin of -0.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Li Auto Inc. (LI) generated $20.41B in gross profit for the year, representing a gross profit margin of 18.7%. This demonstrates the company's core pricing power and production efficiency.