China-based Pony AI (NASDAQ:PONY) stock gained on Tuesday after it reported its third-quarter results.
Sales of the autonomous driving technology developer grew 72.0% year-over-year (Y/Y) to $25.44 million (181.1 million Chinese yuan), mainly driven by rapid growth in Robotaxi services and Licensing and Applications revenues.
Robotaxi services revenue climbed 89.5% Y/Y to $6.7 million in the quarter, primarily attributable to expanding user adoption, growing demand in tier-one cities, and an increased fleet of deployed Robotaxi vehicles.
Also Read: Pony AI Uses Robotaxi Tech To Build Smarter Driverless Trucks
Meanwhile, Robotruck services revenue rose 8.7% Y/Y to $10.2 million.
Gross profit of $4.7 million increased from $1.4 million Y/Y.
Gross margin was 18.4% compared to 9.2% Y/Y, driven by its focused strategy on prioritizing high-margin revenue sources within Robotaxi and Robotruck services.
Adjusted EPS loss of 14 cents per share, compared to $3.50 in the prior year's quarter.
As of September 30, 2025, cash and cash equivalents, short-term investments, and restricted cash stood at $587.7 million.
Commercial Scale-Up
Pony AI Chairman and CEO Dr. James Peng said the company achieved a major milestone with its dual primary listing on the Hong Kong Stock Exchange, securing long-term capital to scale commercialization.
He noted that the launch of the seventh-generation Robotaxi across major tier-one Chinese cities advances fully driverless mobility.
Pony AI said its fleet now includes 961 Robotaxis, with 667 Gen-7 vehicles, keeping it on track to exceed 1,000 vehicles by year-end and progress toward 3,000 vehicles by the end of 2026.
Gen-7 Robotaxis have achieved city-wide unit economics breakeven, confirming a viable business model and paving the way for scalable expansion in China and internationally.
It also reduced Gen-7 ADK bill-of-materials costs by another 20% for 2026 production compared to the 2025 baseline.
During the earnings call, Dr. Tiancheng Lou, CTO of Pony AI, emphasized the company's mission of “autonomous mobility everywhere.”
Price Action: PONY shares were trading higher by 14.06% to $14.36 premarket at last check Tuesday.
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