On the evening of May 13th, WeRide Inc. (WRD) released its first-quarter financial report. The company's total revenue for Q1 increased by 57.6% year-on-year to RMB 114.1 million. Product revenue surged by 115.8% to RMB 20.5 million, primarily driven by growth in Robotaxi and other L4 vehicle sales. Service revenue grew by 49.0% to RMB 93.7 million, benefiting from strong performance in smart data services and ADAS services.
Corresponding to the revenue growth, the company's Q1 operating costs were RMB 74.5 million, compared to RMB 47.1 million in the same period last year. Gross profit for the quarter was RMB 39.6 million, with a gross margin of 34.7%, essentially flat compared to 35.0% a year ago.
In terms of profitability, the operating loss for Q1 was RMB 431 million, narrowing by 1.2% year-on-year. The net loss was RMB 389.1 million, compared to RMB 385.1 million in the prior-year period, representing a widening of 1.04%. The adjusted net loss under non-IFRS measures was RMB 326.2 million, versus RMB 294.6 million a year ago.
Regarding operating expenses, the company's Q1 operating expenses totaled RMB 469.1 million, slightly higher than RMB 463.5 million in the same period last year. R&D expenses were RMB 363.3 million. Excluding share-based compensation, this represented a 15.9% year-on-year increase, primarily due to higher material consumption, depreciation, and R&D service fees. Administrative expenses were RMB 83.1 million. Excluding share-based compensation, this was a 17.5% year-on-year decrease, mainly attributed to reduced professional service fees. Sales and marketing expenses were RMB 22.7 million. Excluding share-based compensation, this increased by 81.0% year-on-year, aligning with the business expansion trend.
Citibank noted that WeRide's Q1 revenue grew 58% year-on-year but declined 64% sequentially, largely influenced by normal seasonal factors. The performance met the median market expectations. The bank anticipates sequential revenue growth in Q2 and Q3 of 2026, with the long-term growth outlook remaining unchanged.
In reality, the autonomous driving industry has long faced high-cost pressures. For Robotaxi players, costs involve vehicle procurement, sensors, safety operator expenses, cloud computing power expenditures, and complex post-deployment operations and dispatching systems. This has led to a common structural issue in the industry: revenue growth often does not translate into synchronized profitability improvements.
To address this challenge, leading Robotaxi companies like WeRide and Pony.ai have adopted multi-line layout strategies. WeRide employs a diversified "full-scenario coverage" strategy encompassing Robotaxi, Robobus, and technical services. Pony.ai's main business consists of three pillars: Robotaxi, Robotruck, and technology licensing and applications.
Industry analysis suggests this diversification strategy aims, on one hand, to share per-unit R&D and operational costs and alleviate profitability pressure through economies of scale. On the other hand, it continuously feeds back into the core technology platform during actual operations, accelerating the validation of a commercialized closed loop.
Currently, the Robotaxi field is experiencing a new wave of competition. Beyond dedicated Robotaxi firms, autonomous driving suppliers and vehicle manufacturers are also accelerating their deployments, pushing the industry into a stage of diversified competition.
In this context, Han Xu, founder and CEO of WeRide, believes that new entrants need to possess at least 100 fully driverless Robotaxi vehicles and have them operating publicly for at least six months without major incidents to qualify for discussing Robotaxi competition.
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