Uxin Limited (NASDAQ: UXIN) reported unaudited results for the quarter ended December 31 2025 and the full year, showing a 124% year‑over‑year increase in retail transaction volume to 19,160 units and revenue of RMB 1.198 billion (US$171.3 million). The company posted a non‑GAAP adjusted EBITDA loss of RMB 27.2 million (US$3.9 million) for the quarter, while the gross margin fell to 6.8% from 7.5% in the prior quarter.
For the full year, Uxin’s retail transaction volume reached 51,110 units, a 135% increase from 2024, and total revenue climbed to RMB 3.24 billion (US$463.3 million), a 79% year‑over‑year gain. The company’s full‑year gross margin was 6.7%, compared with 6.8% in 2024, and it recorded a non‑GAAP adjusted EBITDA loss of RMB 27.2 million for the year.
Management explained that the margin compression in Q4 was driven by "promotional activities in the new car market during the fourth quarter, which put pressure on profitability across the used car industry," and by the opening of new superstores in Zhengzhou and Jinan. "A newly opened superstore typically operates at lower gross margins during its early stages of ramp‑up," the CFO noted. "Gross margin for the full year was 6.7%, remaining stable compared with last year. Despite lower margins during the early ramp‑up stages of newly opened superstores, this continued improvement in profitability from our mature superstores enabled us to maintain stable margins while expanding rapidly."
Uxin’s guidance for 2026 signals strong confidence in continued growth. The company expects over 100% growth in retail volume and revenue, with Q1 2026 retail transaction volume projected between 16,200 and 16,500 units—an over‑110% year‑over‑year increase—and total revenue between RMB 1.05 billion and RMB 1.07 billion.
The market reacted positively, with the stock rising 3.65% in pre‑market trading and 1.34% on the day of the announcement, driven by the impressive volume and revenue growth and the outlook for continued expansion.
Management reiterated that "margin compression is expected to ease as newer superstores mature and inventory turnover improves," underscoring the company’s focus on scaling its superstore‑plus‑factory model while managing the short‑term cost impacts of expansion.
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