Lotus Technology Inc. released its unaudited fourth‑quarter and full‑year 2025 financial results, showing a sharp rise in service revenue, a steep drop in vehicle deliveries, and a notable improvement in gross margin.
Total revenue for the year was $519 million, down 44% from $924 million in 2024, but service revenue grew 69% to $56 million, reflecting the company’s expanding intellectual‑property and R&D services business. Fourth‑quarter revenue was $163.34 million, a 40% decline from $272 million in Q4 2024. Gross margin improved to 9% for the year, up from 3% in 2024, and to 10% in Q4 2025, compared with a negative 11% margin in Q4 2024.
Operating loss narrowed 65% year‑over‑year in the quarter and 46% for the full year, bringing the 2025 operating loss to $X (not specified) from $786 million in 2024. The narrowing loss was driven by disciplined cost control and a shift toward higher‑margin models, offsetting the decline in vehicle volume.
CFO Daxue Wang said the global launch of the new plug‑in hybrid “For Me” would supercharge sales and revenue, and that focusing on revenue growth, product positioning, and margin expansion through cost reductions would move the business toward profitability. Management also noted that tariff headwinds, inventory destocking, and the phased rollout of upgraded models weighed on sales, while the growth in service revenue and the upcoming PHEV launch provided tailwinds.
The results also beat analyst expectations: fourth‑quarter EPS of –$0.14 surpassed the consensus estimate of –$0.16 by $0.02, and revenue of $163.34 million exceeded the expected $153.86 million by $9.48 million. Compared with 2024, vehicle deliveries fell from 12,134 units to 6,520, and revenue dropped from $924 million to $519 million, underscoring the company’s transition toward a higher‑margin, lower‑volume model mix.
Additional context includes a $23 million strategic equity investment from ECARX on December 23 2025, the UN R171.01 certification of the Eletre SUV on March 13 2026, and ongoing brand‑building initiatives such as the Lotus Cup racing series and participation in Milan Design Week. Lotus also unified its delivery data presentation starting in Q2 2025, which required adjustments to historical delivery figures.
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