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Image source: The Motley Fool. Wednesday, August 26, 2026 at 8:00 a.m. ET Investor Relations Director - Janet Chang Chairman and Chief Executive Officer - Xiang Li Chief Financial Officer - Johnny Tie Li President - Donghui Ma Chief Technology Officer - Yan Xie Operator: Hello, ladies and gentlemen. Thank you for standing by for Li Auto's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. I will now turn the call over to your host, Ms. Janet Chang, Investor Relations Director of Li Auto. Please go ahead, Janet. Janet Chang: Thank you, operator. Good evening, and good morning, everyone. Welcome to Li Auto's Second Quarter 2026 Earnings Conference Call. The company's financial and operating results were published in a press release earlier today and were posted on the company's IR website. On today's call, we will have our Chairman and CEO, Mr. Xiang Li; and our CFO, Mr. Johnny Tie Li, to begin with prepared remarks. Our President, Mr. Donghui Ma; and CTO, Mr. Yan Xie, will join for the Q&A discussion. Before we continue, please be reminded that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in certain company filings with the SEC and the Stock Exchange of Hong Kong Limited. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that Li Auto's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to Li Auto's disclosure documents on the IR section of our website, which contain a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. Our CEO will start his remarks in Chinese. There will be English translation after he finishes all his remarks. With that, I will now turn the call over to our CEO, Mr. Xiang Li. Please go ahead. Xiang Li: [Interpreted] Hi, everyone. This is Li Xiang, and thank you for joining our earnings conference call today. In the first half of this year, in the midst of intense market competition and a complete product refresh, Li Auto remains the top-selling Chinese automotive brand in the RMB 200,000 and above NEV market. The continued rollout of our dual energy strategy has resulted in a healthy product mix with EREV and BEV each accounting for 50% of total sales. Since Q2, we have updated the entire Li L-Series showcasing our latest technologies. Key updates include our in-house MACH M100 chip running MACH VLA model, 800-volt active suspension and drive-by-wire chassis, and our third-generation range extender with 5C supercharging battery. The hardware and software upgrades set new standards for the technology and user experience once again. Turning over to our BEV lineup. The Li i6 has been one of our top 3 selling models priced over RMB 200,000 for 6 consecutive months. Li i6 and the L6 are the top sellers in their respective segments, further solidifying our leadership in the RMB 200,000 to RMB 300,000 SUV market. Upgrades to our BEV lineup is also underway. In late July, we launched the rear-wheel drive long-range version of Li i8. Based on user feedback, we added features such as power frunk and zero gravity driver and passenger seats. These updates bolstered our product competitiveness and translated to a notable sales uplift. The new generation Li MEGA is scheduled for launch on September 2. We further polished its pioneering design and completely revamped the interior, the cabin experience, intelligent platform, and ride quality. Additionally, the all-new flagship BEV SUV Li i9 will also be launched in mid-September, further enriching Li Auto's BEV product lineup. We anticipate BEV models to account for an even larger share of total sales over time. With new models launching and ramping up in the second half of this year, we're confident in maintaining a top 3 position among all brands in China's passenger vehicle market priced above RMB 200,000. By developing core technologies in-house, we're continuously deepening our competitive moat, steadily translating these technological advancements into tangible user value and commercial efficiency. 5C supercharging has become a prerequisite in user purchase decisions, and the proprietary supercharging network stands as one of our key competitive advantages. On batteries, we're able to develop cell BMS, and pack fully in-house, completing the final piece of the electric powertrain puzzle following electric motors and control units. Through integrated design with the overall vehicle system, combined with the technology and experience we have accumulated in 5C supercharging, we're confident that Li Auto's in-house battery will deliver industry-leading performance in... Apologies for the breakup, to continue with the CEO's remarks. Through integrated design with the overall vehicle system, combined with the technology and experience we have accumulated in 5C supercharging, we're confident that Li Auto's in-house battery will deliver industry-leading performance in quality, safety, and service life. Our in-house batteries are already deployed on our all-new Li L8, the new Li L6, and the Li i8. Within the next few months, all of our models will be equipped with our proprietary batteries. We firmly believe that batteries and chips are going to be the most critical technological barriers in the embodied AI industry. In May, we started shipping our full stack ADAS solution based on the MACH M100 chips. To date, shipments of the MACH M100 chip have exceeded 50,000 units, maintaining an excellent quality track record. Beyond chips, we're also making R&D breakthroughs across models, controllers, and software. These achievements have steadily translated into product experience. In late July, with OTA 9.1, overall MACH VLA performance improved by 20%, and user mileage penetration nearly doubled compared to the previous generation computing platform. In September, we will also roll out MACH VLA to cars with NVIDIA Thor and Orin-X chips. Building on the data we have accumulated, we will accelerate model training and iterations to fully leverage the compute advantage on our chips. The July OTA 9.1 update allows VLA to match and surpass human drivers in reaction speed. The October OTA 9.2 update will enable VLA to fully adopt 3D Vision Transformer, providing long range and better precision. And the year-end OTA 9.3 update will see VLA model parameters scale exponentially, significantly enhancing text comprehension and reasoning capabilities in complex scenarios. Faster reactions, sharper vision, and stronger reasoning are the 3 most crucial upgrades for the MACH M100 and MACH VLA this year. Going forward, building embodied AI vehicles will remain at the core of our strategy. Through full stack in-house development across hardware and software with continuous iteration, our vision is that vehicles will become true intelligent agents that can not only look after human beings, but also complete tasks independently more efficiently than human beings. With that, I'll turn the call over to our CFO, Johnny, to walk you through our financial performance. Tie Li: Thank you, Li. Hello, everyone. Given time constraints, my remarks today will be limited to our second quarter financial highlights. All figures will be quoted in RMB unless otherwise stated. For further details, including the corresponding U.S. dollar amounts, we encourage you to refer to our earnings press release. Total revenues in the second quarter were RMB 25.7 billion, down 15.1% year-over-year and up 11.7% quarter-over-quarter. This included RMB 24.1 billion from vehicle sales, down [ 16.7% ] year-over-year and up 11.8% quarter-over-quarter. The year-over-year decrease was mainly driven by reduced vehicle deliveries and a lower average selling price due to a different product mix. The sequential increase was mainly attributable to a higher average selling price due to a different product mix and increased vehicle deliveries. Cost of sales in the second quarter was RMB 22.8 billion, down 5.6% year-over-year and up 7.8% quarter-over-quarter. Gross profit in the second quarter was RMB 2.8 billion, down 53.3% year-over-year and up 56.9% quarter-over-quarter. Vehicle margin in the second quarter was 9.4% versus 19.4% in the same period last year and 6.1% in the prior quarter. The year-over-year and sequential changes were mainly due to a different product mix. Gross margin in the second quarter was 11.0% versus 20.1% in the same period last year and 7.9% in the prior quarter. Operating expenses in the second quarter were RMB 5.1 billion, down 2.0% year-over-year and up 6.9% quarter-over-quarter. R&D expenses in the second quarter were RMB 2.8 billion, down 1.2% year-over-year and up 2.0% quarter-over-quarter. SG&A expenses in the second quarter were RMB 2.3 billion, down 16.2% year-over-year, mainly on lower employee compensation, and up 11.2% quarter-over-quarter, mainly on higher marketing and promotion spending. Loss from operations in the second quarter was RMB 2.3 billion versus RMB 827 million income from operations in the same period last year and RMB 3.0 billion loss from operations in the prior quarter. Operating margin in the second quarter was negative 9.0% versus 2.7% in the same period last year and negative 13.0% in the prior quarter. Net loss in the second quarter was RMB 1.7 billion versus RMB 1.1 billion net income in the same period last year and RMB 2.3 billion net loss in the prior quarter. Diluted net loss per ADS attributable to ordinary shareholders was RMB 1.69 in the second quarter versus diluted net earnings of RMB 1.03 in the same period last year and diluted net loss of RMB 2.26 in the prior quarter. Now turning to our cash flow and balance sheet. Net cash provided by operating activities in the second quarter was RMB 15.0 million versus RMB 3.0 billion used in the same period last year and RMB 6.1 billion used in the prior quarter. Free cash flow was negative RMB 1.3 billion in the second quarter versus negative RMB 3.8 billion in the same period last year and negative RMB 7.4 billion in the prior quarter. Our quarter-end cash position remained robust at RMB 87.5 billion. This solid cash position gives us the flexibility to invest in product and technology innovation while also returning value to our shareholders through share repurchases. To date, we have repurchased a total of 91.7 million Class A ordinary shares, including 23.7 million ADSs, for a total consideration of about $631.5 million. And now for our business outlook. For the third quarter of 2026, the company expects deliveries to be between 95,000 and 100,000 vehicles, and quarterly total revenues to be between RMB 26.6 billion and RMB 28.0 billion. This business outlook reflects the company's current and preliminary view on its business situation and market conditions, which is subject to change. That concludes our prepared remarks. I will now turn the call over to the operator to start our Q&A session. Thank you. Operator: [Operator Instructions] Your first question comes from Tim Hsiao with Morgan Stanley. Tim Hsiao: [Foreign Language] I have 2 questions. First question is about L-Series. With the multiyear update for the L -- Li L Series now completed, could management provide an update on its market performance so far since launch? That's my first question. Xiang Li: [Interpreted] This year, we have completed the full refresh of the L-Series from L9, L8 to L6 have all transitioned to the latest platform, which includes the MACH M100 chips, 5C range extension, and other core technologies. And on Livis models, we also carry our latest fully drive-by-wire chassis. With these, we have completed coverage of the RMB 200,000 to RMB 500,000 range-extended SUV market. Since we started delivery, we have seen a few trends. First of all, our high-end models have exceeded users' and our expectations. Since launch, the L9 Livis account -- the Livis version of the L9 accounts for over 85% of all sales. Many users are willing to pay for this fully drive-by-wire chassis as well as high-end ADAS systems as well as other core technologies. This also solidified our leadership in the RMB 400,000 to RMB 500,000 family SUV market. And since the launch of the L8 Ultra version has been the key sales driver, and the conversion ratios in our storefronts have been performing very well. Secondly, the new generation L6 has successfully retained the user base from the previous generation, with the previous generation laying a very good foundation by delivering almost 400,000 units. And the new generation has addressed key user feedback such as EV range, charging speed, key intelligence platforms, and also completed the offering with 2 zero gravity seats in the front row and a 29-inch panoramic screen, which also enhanced user experience. So since launch, we have seen very good reception on L6, and we're hopeful that there will be a 10,000 units per month demand level steadily going forward. So this is a core pillar for our sales in the RMB 200,000 to RMB 300,000 market. In the meantime, we have honestly seen some temporary disruptions caused by the model refresh cycle, including clearing old inventory, ramping up new models, and sales policy transitions have all created short-term operational headwinds. We're currently working very hard to optimize our processes and address these challenges. Going forward, we will focus on 2 things. The first is to further enhance product value through OTAs. The all-new L-Series has a very robust and industry-leading hardware as a basis. So moving forward, we'll continue to unlock these hardware capabilities and AI features through OTA updates. Secondly, we will continue to build out our 5C supercharging network, increasing both density and coverage. As of the end of July, we have already 4,141 charging stations in operation and over 22,800 charging stalls. We have now a 9 x 9 grid covering 18 national-level highways and covering more than 300 cities. So our in-house charging network as well as 5C charging capability have become a prerequisite for many of our users in their car purchase decisions. So with the L-Series refresh complete, it will now complement our I-Series BEVs to jointly drive overall business growth. Currently, EREV and BEV each account for half of our total sales, and we expect BEV share to rise further as we launch more BEV models later this year. Tim Hsiao: [Foreign Language] My second question is about Li MEGA. Following today's release of the preview video for the new Li MEGA, could you share the key highlights of this refresh and your sales expectation? Xiang Li: [Interpreted] As many of you have noted, we have today officially released the first batch of teaser information on our new generation Li MEGA. This new generation is really based on user feedback, real user feedback from the previous generation Li MEGA, and to address the important feedback and product shortcomings of the previous generation. And they mainly fall into 3 categories. The first is improvements in the chassis and handling experience. Many view MPVs as very large and cumbersome in cities. So the new generation Li MEGA will be equipped with rear-wheel steering, drive-by-wire system, as well as active anti-roll bars, which will greatly reduce the turning radius and reduce body roll in cornering, and also make the car more flexible and agile in cities. And second is upgrades to the intelligent platform. We improved the entire autonomous driving system with our in-house MACH M100 chips. We've also completed the [ LiDAR ] rear sensors to improve City NOA and handling complex intersections and auto parking. On the cabin side, we've also been upgrading to the latest Qualcomm chips to bring better interactive and entertainment experience. And thirdly is improvements in the cabin and details to further drive the positioning as a family MPV. We've made significant upgrades in the second and third row, including the interior atmosphere interactions to better serve the needs of large families. Li MEGA is very clearly positioned as the flagship SUV over RMB 500,000. So this new generation has really addressed user feedback and has completely revamped the product and improved the product. Obviously, the sales performance will depend on many things, including sales conversion, including product ramp-up as well as changes in the market, but we will make sure to focus on delivery, store experience, as well as user operations, and we'll keep updating everyone on the sales performance as we launch the product. Operator: Your next question comes from Paul Gong with UBS. Paul Gong: [Foreign Language] So my first question is regarding the impact of commodity cost inflation. How much can you quantify in terms of the impact in Q2 and moving towards Q3? And what would be your strategy to counter for such cost inflation challenges and the margin pressure? Xiang Li: [Interpreted] This year, we've seen cyclical fluctuations in upstream raw materials and core components, which has created temporary cost pressures for both the industry and our company, which has further impacted our gross margin. To look at this in more detail, on the AI side, because of the development in the AI sector, this has driven demand for chips and PCBs, pushing prices up. On the memory side, memory chip prices have also risen. But with our early volume commitments and long-term procurement agreements, the price impact on us is less than the industry average. And on the battery front, lithium carbonate prices have also experienced cyclical fluctuations this year. And to navigate the cyclical cost fluctuations, we're taking a two-pronged approach. On the one hand, we're continuously driving cost reductions through more efficient operations. And on the other hand, we're leveraging our full stack in-house technology and proprietary supply chain to build long-term structural cost advantages. So specifically, first, on the electric drivetrain front, we continue to be committed to owning and driving the R&D and supply chain of the 3 key electric systems to solidify our dual mode and technology and cost. On the electric drive side, we have achieved in-house development and manufacturing of motors, controllers, and silicon carbide chip modules, which ensures our control over the critical components. By leveraging our integrated architecture, we're continuously optimizing energy consumption and iterating on our technological solutions, which has steadily amortized the hardware cost per vehicle. And in terms of battery systems, we develop in tandem and deeply integrate our battery packs with the overall vehicle architecture, which allows us to achieve the best possible balance between energy consumption, thermal management, safety, and packaging efficiency, which further delivers an exceptional user experience while maintaining strict cost control. We have established -- the in-house R&D capabilities in core areas, which includes cell, pack, thermal management, and BMS algorithms. We're accelerating the deployment of our proprietary battery systems across a broader range of models, establishing a strong competitive edge in quality, performance, and cost. And secondly, is in-house developed chips. We're building a strong competitive advantage across technology and cost, again. The proprietary MACH M100 chip is built on an innovative data flow structure, which integrates hardware and software customization and delivers a structural advantage in compute performance and also cost. So overall, in the short term, we're trying to smooth out the temporary cost fluctuations and pressures on our business through volume commitments and refined operations. And in the medium to long term, we're relying on scale deployment of our in-house technologies to stabilize the gross margin and support the company's high-quality sustainable growth. Paul Gong: [Foreign Language] So if we're considering the raw material costs as well as the commoditized competition, what would be our latest gross margin target? Xiang Li: [Interpreted] As we can observe this year, we have seen a very big increase in the cost of batteries and memory chips, which is a common challenge for everyone in the industry. And because Li Auto's products are more intelligent, which makes them consume more memory and semiconductors, so we're more impacted. And apart from the impact on BOM, we are also experiencing amortization and depreciation on our tooling and production equipment. We follow more strict rules as well as the treatment to end-of-production items. As we launch new products this year over time, we already are seeing improvements in gross margin, but we must also face the increase in chip and PCB as well as other semiconductor, the cost increase. We must face this as well. We have made a decision not to pass the price increase over to our customers. But instead, we will continue to leverage our integrated design and supply chain, such as deepening our in-house R&D and deployment of our batteries to make our system more self-sufficient. And secondly, we will build better cost control, cost management capabilities. And thirdly, on the sales front, we have -- through our sales partner program, we have benefited from lower sales costs, better operational mindset, and increase in efficiency. So all of these lower prices and lower costs will be transformed to actual benefits that our users can receive. In the long term, my view is that a healthy margin for the company will be somewhere between 15% to 20% gross margin, with the main driver here being the raw material costs. Operator: Your next question comes from Wenzuo Qiao with Citic. Wenzuo Qiao: [Foreign Language] So my first question is about i9. What information could you please share about the upcoming Li Auto i9? Xiang Li: [Interpreted] There are 3 things about the Li i9 that I would like to share. First of all, product positioning. i9 is designed for large families as a flagship 6-seater SUV, which continues our core DNA to build products for large families. In terms of product matrix, i9 will complement Li MEGA, one being a flagship SUV, the other being the flagship MPV. It will both together satisfy the needs of large families who want to buy an electric vehicle. As i9 lands, i9 will also be an important addition to our EV flagship BEV product line as well as it will also complement the L-Series with our independent range-extended and BEV product lines. So these all will complete our coverage of the RMB 200,000 to RMB 500,000 high-end new energy vehicle market. Second thing I'd like to share is the technological foundation. i9 will be equipped with an 800-volt 5C high-voltage charging platform. It will be powered by our latest generation in-house developed electric motors, which also relies on our national 5C charging network to provide a very good charging experience for our users. On the intelligence front, i9 will carry the MACH M100 ADAS chip to power not only autonomous driving, but also embodied AI capabilities going forward. On the cabin front, we also carry the latest Qualcomm high-performance cabin chip as well to support multitask parallel processing as well as AI -- intelligent agents. And thirdly, in terms of users, i9 will be focusing on large families traveling together. So our focus will be on the interior experience, comfort for each family member as well as a spatial interactive experience, in order to provide a flagship-level experience for every member of the family. In terms of release timeline, the Li i9 will be launched in mid-September. Unfortunately, due to disclosure regulations, I can't say too much about pricing and specific trim levels. We will be releasing the complete information in the official launch event. Please stay tuned. Thank you. Wenzuo Qiao: [Foreign Language] So my second question is about the autonomous driving. So could you please update us on the progress of the co-optimization between M100 chip and autonomous driving models? And what are the key milestones and quantitative metrics for autonomous driving algorithm upgrades in the second half of the year? Yan Xie: This is Yan. Let me answer your question. Our in-house MACH M100 chip began mass production with the all-new L9 in Q2 and is now deployed across the all-new L9, L8, and L6. Currently, the chip production capacity is sufficient to meet market demand. Our ADAS system powered by our in-house MACH M100 chip has been delivered to customers with the all-new Li L9 since May. Leveraging the strong capabilities of the MACH platform, we expect to continue making significant improvements to our models. OTA 9.1 began rolling out at the end of July, further reducing end-to-end latency. We also introduced the 2 new speed preference modes for our MACH VLA model, efficient and comfort, improving responsiveness across a broad range of driving scenarios. The upcoming OTA 9.1 will represent a major architecture upgrade. And on the model side, we are evolving towards a full 3D Vision Transformer architecture with 3x the parameter count and 4.6x the compute. This upgrade will deliver systematic improvements across key dimensions of ADAS, including safety, comfort, efficiency, and navigation. In Q4, our goal is to further enhance perception and decision-making capabilities of MACH VLA. Specifically, firstly, a longer-range perception. The effective perception range will exceed 250 meters, enabling early speed adjustment and path planning. We expect this to reduce undesirable behaviors such as hard braking, hesitation, and unnecessary lane changes by more than 30%. Secondly, higher perception accuracy. 3D spatial perception accuracy for key objects will improve to within 5 centimeters, increasing success rates in challenging scenarios such as narrow road driving, passing through gates, and other tight clearance maneuvers by 50%. Thirdly, a stronger scene understanding. Rather than simply recognizing individual objects, the system will be able to infer intent based on the broader traffic context. In scenarios such as yielding on narrow roads and navigating around construction zones and making unprotected turns, it will make more decisive yield or proceed decisions, reducing unnecessary standstills and hesitations by more than 20%. Additionally, MACH VLA 2.0 for NVIDIA Orin and Thor platforms will launch in early September. The share of driving mileage completed with ADAS engaged is a key metric for us at this stage. On the MACH platform, ADAS mileage penetration in urban scenarios has nearly doubled from previous levels. As deliveries of MACH-powered vehicles continue to ramp up, our all-scenarios MPI has increased by 25% in recent months. Operator: Your next question comes from Jing Chang with CICC. Jing Chang: [Foreign Language] So my only question is about the cash flow. We see the operating cash flow nearly turned positive in the second quarter, but free cash flow remained negative. And also, we see some cash position decline. So could you share your outlook on the second half, whether our free cash flow will turn positive and our overview of the cash position? Tie Li: Thank you. This is Tie Li. I will take this question. From the third quarter, with the delivery of our new models, we expect to maintain a stable operating cash flow on a quarterly basis. At present, we have ample cash on hand, which provides strong support for our product innovation, technology breakthroughs, and global expansion. This year, we remain committed to R&D investments and CapEx, including our supercharging network. We expect our full-year CapEx to be around RMB 6.0 billion. For the full year, achieving positive operating cash flow and free cash flow will largely depend on our fourth quarter deliveries. One thing is certain that our overall cash flow performance this year will be stronger than last year. Jing Chang: [Foreign Language] So my following question is about the intelligent driving. What key contributions do you think our self-developed chips and also software and hardware integration can deliver to advancing our intelligent driving capabilities? Yan Xie: This is Yan. Let me answer this question. The rapid progress we have made in intelligent driving, both in terms of performance and speed of delivery, is driven by the close integration of our in-house chip and full stack system capabilities. Firstly, we have streamlined our organizational structure so that the chip and model teams can work much more closely together and jointly design model architectures that can fully leverage the computing capabilities of MACH M100. From a hardware interface perspective, MACH M100 gives our model algorithm and operating system significant design flexibility, allowing the chip, algorithm, and system software to be optimized together for the best overall performance. And secondly, optimization of data and training. With our in-house chip as the foundation, we are able to explore and optimize the training process at a much deeper level. In particular, our reinforcement learning approach built around the MACH platform has significantly enhanced the model capabilities within our world model framework. In addition, the data management and shadow data system built on the MACH platform enable faster model iteration and improvement. Thirdly, system-level optimization through our in-house Halo OS. Halo OS enables deep integration between upper-layer applications and the underlying chip, improving both resource utilization and overall system performance. At the system level, this also helps improve engineering quality and accelerate development cycles. Together, the chip, model, and OS form a tightly integrated full stack architecture, creating a complete technology loop for our intelligent driving system. The value of our in-house chip is now expanding beyond intelligent driving into embodied intelligence. In a vehicle equipped with dual MACH M100 chips, we are able to run a full multimodal -- fully multimodal foundation model entirely on device, supporting inputs across voice, language, and video. The model is capable of general-purpose problem understanding, environmental understanding, and task planning. And this means the vehicle is no longer limited to executing predefined functions. It can increasingly understand user intention and the physical world, then plan and execute tasks towards a given objective. We believe this will significantly expand the capability boundary of the vehicle as an embodied intelligent agent and represents an important new direction enabled by our integrated hardware-software architecture. Thank you. Operator: Your next question comes from Ming-Hsun Lee with BofA. Ming-Hsun Lee: [Foreign Language] So my first question, could you update your overseas market development strategy and also the progress? And the second question is to develop your embodied humanoid robot product. Will you continue to invest high R&D amid the current competition background? Xiang Li: [Interpreted] Overseas expansion has been our long-term strategy, and we have made some steady progress in market expansion and product deployment. Overall, the progress has been on track and within our expectations. In terms of regional strategy, for Middle East and Central Asia, we will be focusing on our L-Series range-extended models as the key offering. In July, we launched the all-new Li L9 in Kazakhstan and Uzbekistan. In September, we're planning to launch in Dubai and to kick off our sales in the Middle Eastern market. In the meantime, we have already formed a strategic partnership with Allur, a leading local car group in Kazakhstan, to drive the local assembly of our vehicles. By pushing forward the local adaptation and the local assembly of our current models, we're steadily building out a complete global presence across R&D, products, manufacturing, sales, and service. In Europe, we will be prioritizing BEV models. The Li i6 will be launching at the October Paris Motor Show and officially start selling in the European market in Q4. For right-hand drive markets, in addition to launching Li MEGA in Hong Kong SAR and Singapore by the end of this year, we'll also be rolling out the right-hand drive version of the Li i6 to complete our model lineup in the right-hand drive market. With all that being said, expanding overseas comes with its own set of challenges, particularly uncertainties around the geopolitical environment and market regulations. We aim to position Li Auto as a premium brand in overseas markets as well, and we will carefully manage our pace, tailoring our approach to our strengths and the unique dynamics of each market. And at the same time, ensure the products are compliant, build after-sales service networks, and continue to build our brand. Thank you. Next, I'll answer the question on R&D. If you look at the history of Li Auto, the first 10 years is really our startup phase. And going forward, the next stage is going to be continued investment in R&D to build our competitive barrier. And among all of this, developing chips in-house is a core strategy, a long-term strategy that we have established from a very long time ago. And we will remain committed to keep investing and to improve and iterate on our in-house chips over time. So if we look at chips as a core competitive advantage, AI is going to be -- the model is going to be the competitiveness. Other than chips or AI, we have also been investing in the core components of the electric powertrain. Taking batteries as an example, we have in-house developed our cells, pack, BMS, and even including thermal management systems, this entire offering, including pairing and adaptation to our actual vehicle products. With an integrated R&D approach, we have accumulated a ton of experience around 5C charging and technologies, which makes us confident in terms of our in-house batteries' quality, safety, and life expectancy. So starting from the second half of this year, we will be rolling out Li Auto branded batteries across all of our vehicles. And I need to emphasize, by choosing to develop these components in-house doesn't mean that our suppliers' products aren't great. We develop our in-house MACH M100 chips. That doesn't make NVIDIA any less respectable as the best chip company in the world. As we develop our in-house batteries, that doesn't make CATL any less respectable as the best battery company. Well, CATL as well as many other brands, which are all great battery brands. That doesn't make them any less respectable. We believe that in the era of embodied AI, chips and batteries are going to be the most important competitive advantage. And electric powertrain and great products will be the key to our competitiveness, our product competitiveness. So choosing to develop these technologies in-house only shows that we want to be like companies like Apple and Huawei to really hold the key components of our competitiveness in our own hands. Thank you. Operator: As we are reaching the end of our conference call now, I'd like to turn the call back over to the company for closing remarks. Ms. Janet Chang, please go ahead. Janet Chang: Thank you once again for joining us today. If you have further questions, please feel free to contact Li Auto's Investor Relations team. This concludes this conference call. You may now disconnect your lines. Thank you. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.] Before you buy stock in Li Auto, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Li Auto wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $437,097!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,355,077!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 2, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Li Auto (LI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Revenues: RMB25.7 billion in Q2 2026, down 15.1% year over year and up 11.7% quarter over quarter. Vehicle Sales Revenue: RMB24.1 billion, down 16.7% year over year and up 11.8% quarter over quarter. Gross Profit: RMB2.8 billion, down 53.3% year over year and up 56.9% quarter over quarter. Vehicle Margin: 9.4% in Q2 2026, versus 19.4% in the same period last year and 6.1% in the prior quarter. Gross Margin: 11% in Q2 2026, versus 20.1% in the same period last year and 7.9% in the prior quarter. Operating Expenses: RMB5.1 billion in Q2 2026, down 2% year over year and up 6.9% quarter over quarter. R&D Expenses: RMB2.8 billion in Q2 2026, down 1.2% year over year and up 2% quarter over quarter. SG&A Expenses: RMB2.3 billion in Q2 2026, down 16.2% year over year and up 11.2% quarter over quarter. Loss from Operations: RMB2.3 billion in Q2 2026, versus RMB827 million income from operations in the same period last year. Operating Margin: Negative 9% in Q2 2026, versus 2.7% in the same period last year. Net Loss: RMB1.7 billion in Q2 2026, versus RMB1.1 billion net income in the same period last year. Diluted Net Loss per ADS: RMB1.69 in Q2 2026, versus diluted net earnings of RMB1.03 in the same period last year. Net Cash Provided by Operating Activities: RMB15 million in Q2 2026, versus RMB3 billion used in the same period last year. Free Cash Flow: Negative RMB1.3 billion in Q2 2026, versus negative RMB3.8 billion in the same period last year. Cash Position: RMB87.5 billion at quarter-end. Share Repurchase: Repurchased 91.7 million class A ordinary shares, including 23.7 million ADS, for a total consideration of about RMB631.5 million. Business Outlook: Q3 2026 delivery expected between 95,000 and 100,000 vehicles, with quarterly total revenue between RMB26.6 billion and RMB28 billion. Warning! GuruFocus has detected 4 Warning Signs with LI. Is LI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Li Auto Inc (NASDAQ:LI) maintained its position as the top-selling Chinese automotive brand in the RMB200,000 and above NEV market, with a balanced product mix of 50% EREV and 50% BEV. The company successfully completed a full refresh of its L series, with high-end models like the L9 Ultra exceeding expectations, accounting for over 85% of L9 sales. Li Auto Inc (NASDAQ:LI) is making significant progress in its overseas expansion, with plans to launch in Dubai, Europe, and right-hand drive markets, and has formed a strategic partnership for local assembly in Kazakhstan. The company's in-house MACH M100 chip has shipped over 50,000 units, and its ADAS system, MACH VLA, has shown a 20% performance improvement and nearly doubled mileage penetration in urban scenarios. Li Auto Inc (NASDAQ:LI) maintains a robust cash position of RMB87.5 billion, providing flexibility for investments in technology and shareholder returns through share repurchases. The upcoming launches of the new Li MEGA and Li i9 are expected to enrich the BEV lineup and drive further growth, with BEV models anticipated to account for a larger share of sales. Li Auto Inc (NASDAQ:LI) experienced a significant decline in vehicle margin to 9.4% in Q2 2026, down from 19.4% year-over-year, due to product mix and cost pressures. The company reported a net loss of RMB1.7 billion in Q2 2026, a sharp reversal from a net income of RMB1.1 billion in the same period last year. Rising costs for raw materials, including lithium carbonate, memory chips, and PCBs, have created temporary cost pressures, impacting gross margins. The model refresh cycle caused temporary operational headwinds, including clearing old inventory and ramping up new models, which disrupted sales. Free cash flow remained negative at RMB1.3 billion in Q2 2026, and the company's ability to achieve positive free cash flow for the full year depends on Q4 delivery performance. The company faces uncertainties in overseas markets due to geopolitical risks and regulatory challenges, which could impact its expansion plans. Q: What is the company's latest gross margin target, and how is it addressing cost inflation from raw materials and semiconductors?A: CEO Xiang Li stated that the company's long-term healthy gross margin target is between 15% and 20%, with the main driver being raw material costs. He acknowledged that Li Auto is more impacted by rising memory chip and PCB costs due to its highly intelligent products. The company has decided not to pass these price increases to customers. Instead, it will leverage integrated design and supply chain, deepen in-house R&D (especially batteries), improve cost management, and benefit from lower sales costs through its sales partner program to mitigate pressure. Q: Could you provide an update on the market performance of the refreshed L series and the key trends observed since launch?A: CEO Xiang Li reported that the full refresh of the L series (L9, L8, L6) is complete, covering the RMB200,000 to RMB500,000 range-extended SUV market. Key trends include the L9 Ultra accounting for over 85% of L9 sales, solidifying leadership in the RMB400,000-500,000 segment. The new L6 has successfully retained its user base and is expected to reach a steady demand level of 10,000 units per month. While the refresh caused temporary operational headwinds, the company will focus on OTA updates and expanding its 5C supercharging network (4,141 stations and 22,800 stalls as of end of July) to drive growth. Q: What are the key highlights and sales expectations for the new generation Li MEGA?A: CEO Xiang Li explained that the new MEGA addresses user feedback from the previous generation in three categories: 1) Improved chassis and handling with rear-wheel steering, drive-by-wire, and active anti-roll bars for better city agility; 2) Upgraded intelligent platform with in-house MACH M100 chips and enhanced sensors for better city driving and parking; 3) Significant cabin upgrades for the second and third rows to better serve large families. While sales performance depends on various factors, the company will focus on delivery, store experience, and user operations. Q: What information can you share about the upcoming Li Auto i9 flagship BEV SUV?A: CEO Xiang Li shared three key points: 1) Positioning: The i9 is a flagship six-seater SUV for large families, complementing the Li MEGA and completing coverage of the RMB200,000-500,000 NEV market. 2) Technology: It will feature an 800-volt 5C high-voltage charging platform, latest in-house electric motors, MACH M100 chip for embodied AI, and the latest Qualcomm cabin chip. 3) User focus: It prioritizes ride comfort and spatial interactive experience for every family member. The i9 will launch in mid-September, with pricing details to be revealed at the official launch event. Q: What are the key milestones and quantitative metrics for autonomous driving algorithm upgrades in the second half of the year?A: CTO Yan Xie detailed the roadmap: OTA 9.1 (late July) reduced end-to-end latency and introduced new speed preference modes. The upcoming OTA 9.2 will be a major architectural upgrade to a full 3D vision transformer with three times the parameter count and 4.6 times the compute. In Q4, goals include extending effective perception range beyond 250 meters (reducing hard braking and hesitation by 30%), improving 3D spatial perception accuracy to within 5 cm (increasing success in tight maneuvers by 50%), and enhancing scene understanding to reduce unnecessary standstills by 20%. MACH VLA 2.0 for NVIDIA Orin X and Thor platforms will launch in early September. Q: What is the outlook for free cash flow and the overall cash position in the second half of the year?A: CFO Tie Li stated that with new model deliveries in Q3, the company expects to maintain stable operating cash flow. Full-year CapEx is expected to be around RMB6 billion, including investments in the supercharging network. Achieving positive operating and free cash flow for the full year will depend on Q4 deliveries, but the company is certain that overall cash flow performance this year will be stronger than last year. The quarter-end cash position remains robust at RMB87.5 billion. Q: What are the key contributions of self-developed chips and software-hardware integration to advancing intelligent driving capabilities?A: CTO Yan Xie explained that the rapid progress is driven by close integration of in-house chips and full-stack capabilities. This includes: 1) Streamlined organizational structure allowing chip and model teams to jointly design architectures; 2) Deeper optimization of data and training, particularly reinforcement learning within the world model framework; 3) System-level optimization through the in-house Li OS, enabling deep integration between applications and the underlying chip. The value is expanding beyond ADAS into embodied intelligence, where dual M100 chips can run a fully multimodal foundation model on-device, enabling the vehicle to understand user intention and plan tasks. Q: Could you update on the overseas market development strategy and the company's commitment to R&D investment in areas like humanoid robots?A: CEO Xiang Li stated that overseas expansion is a long-term strategy. In the Middle East and Central Asia, the focus is on L-series EREVs, with launches in Kazakhstan, Uzbekistan, and Dubai (September). A strategic partnership with Allure in Kazakhstan will drive local assembly. In Europe, the i6 will launch at the October Paris Motor Show. For right-hand drive markets, the MEGA will launch in Hong Kong SAR and Singapore, with a right-hand drive i6 to follow. Regarding R&D, the company remains committed to investing in core technologies like in-house chips and batteries, viewing them as critical competitive advantages in the embodied AI era. The company will roll out Li Auto-branded batteries across all vehicles starting in the second half of this year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Li Auto Inc. Sponsored ADR? Here are five stocks we like better. Li Auto swung to a second-quarter loss as revenue fell 15.1% year over year to RMB25.7 billion and vehicle margins dropped to 9.4% from 19.4%, although both revenue and margins improved sequentially. The company is investing in growth through new battery-electric models, including the Li MEGA and flagship Li L9, expanded charging infrastructure, proprietary chips and driver-assistance software. It also plans overseas launches and European sales later this year. Li Auto forecast third-quarter deliveries of 95,000–100,000 vehicles and revenue of RMB26.6 billion–RMB28 billion, while noting that full-year positive cash flow will depend heavily on fourth-quarter deliveries. Lumentum Just Delivered the AI Growth Investors Wanted Li Auto (NASDAQ:LI) reported a second-quarter net loss as revenue and vehicle margins declined from a year earlier, while management outlined plans for new battery-electric vehicle launches, continued investment in proprietary technology and expansion into overseas markets. Total revenue for the second quarter was RMB25.7 billion, down 15.1% from a year earlier but up 11.7% sequentially. Vehicle sales revenue was RMB24.1 billion, falling 15.7% year over year and rising 11.8% from the first quarter. Chief Financial Officer Johnny Tie Li said the annual decline reflected lower vehicle deliveries and a lower average selling price resulting from product mix, while the sequential improvement was driven by higher deliveries and a more favorable mix. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects AI Cold War Catches Light: Federal Friction in the Server Rack The company recorded a net loss of RMB1.7 billion, compared with net income of RMB1.1 billion in the prior-year period and a RMB2.3 billion loss in the first quarter. Loss from operations was RMB2.3 billion, compared with operating income of RMB827 million a year earlier. Diluted net loss per ADS was RMB1.69, versus earnings of RMB1.03 per ADS in the second quarter of 2025. Li Auto’s vehicle margin was 9.4%, down from 19.4% a year earlier but up from 6.1% in the first quarter. Overall gross margin was 11%, compared with 20.1% a year earlier and 7.9% in the preceding quarter. Gross profit totaled RMB2.8 billion, down 53.3% year over year and up 56.9% sequentially. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? 3 Photonics Companies Making Quantum Tech Possible President Ma Donghui said cyclical increases in costs for raw materials and components, including chips, printed circuit boards, memory products and batteries, had created temporary pressure on the company and the broader industry. He said Li Auto had reduced some exposure through advance volume commitments and long-term procurement agreements. Chairman and CEO Xiang Li said the company does not plan to pass higher costs directly to customers. Instead, it intends to pursue cost control, integrated vehicle design, supply-chain management and broader deployment of internally developed technologies. He said that, over the long term, Li Auto views a gross margin of 15% to 20% as healthy, with raw-material costs serving as a major determinant. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding Research and development expense was RMB2.8 billion, down 1.2% from a year earlier, while selling, general and administrative expense was RMB2.3 billion, down 16.2% year over year. The company ended the quarter with RMB87.5 billion in cash. Operating cash flow was positive RMB15 million, while free cash flow was negative RMB1.3 billion. Li said the company has repurchased 91.7 million Class A ordinary shares, including 23.7 million ADSs, for approximately $631.5 million. Management said Li Auto completed a refresh of its L Series range-extended lineup, incorporating the company’s Mach M100 chip, 5C range-extender technology and drive-by-wire chassis features. Ma said the Li L9 version accounted for more than 85% of sales of the model since its launch, while the refreshed L6 had been well received. He said the company hopes the L6 can sustain demand of approximately 10,000 units per month. The company is scheduled to launch the new-generation Li MEGA on Sept. 2 and the all-new flagship battery-electric Li L9 in mid-September. Management said the L9 will be positioned as a flagship six-seat SUV for large families and will include an 800-volt, 5C charging platform, internally developed electric motors, Mach M100 driver-assistance chips and Qualcomm cabin chips. Li said battery-electric models and extended-range electric vehicles each represented roughly 50% of total sales, and the company expects the battery-electric share to increase as additional models launch. He said Li Auto aims to maintain a top-three position among all brands in China’s passenger-vehicle market above RMB200,000 as new products ramp during the second half. As of the end of July, Li Auto operated 4,141 charging stations and more than 22,800 charging stalls. Ma said the network covered 18 national-level highways and more than 300 cities. Li Auto said it had shipped more than 50,000 Mach M100 chips since beginning deliveries of its full-stack advanced driver-assistance solution in May. The company’s OTA 9.1 update, released in late July, improved Mach VLA performance by 20%, according to management, while urban driver-assistance mileage penetration nearly doubled versus the prior computing platform. Chief Technology Officer Yan Xie said the company plans further software updates during the second half, including a 3D vision transformer architecture and expanded perception and decision-making capabilities. Li Auto also plans to deploy Mach VLA 2.0 for NVIDIA Orin and Thor platforms in early September. Internationally, Ma said the company launched the all-new Li L9 in Kazakhstan and Uzbekistan in July and plans to begin sales in Dubai in September. Li Auto has also formed a partnership with Kazakhstan-based automotive group Allur for local vehicle assembly. In Europe, the company plans to introduce the Li L6 at the Paris Motor Show in October and begin European sales in the fourth quarter. It also expects to launch the Li MEGA in Hong Kong and Singapore by year-end. For the third quarter, Li Auto forecast deliveries of 95,000 to 100,000 vehicles and total revenue of RMB26.6 billion to RMB28 billion. The company expects to maintain stable quarterly operating cash flow from the third quarter, though Li said full-year positive operating and free cash flow will depend largely on fourth-quarter deliveries. Li Auto Inc is a Chinese automotive company that develops, manufactures and sells smart electric vehicles, with an early focus on range-extended electric SUVs designed for family use. The company is headquartered in China and serves the domestic market through a combination of online channels and a network of retail/showroom locations. Li Auto was founded to address range-anxiety in electric vehicle buyers by integrating a small internal-combustion engine as a range extender alongside a large battery, enabling longer driving range while retaining electric driving characteristics. The company's product lineup centers on multi‑occupant SUVs that combine electric propulsion, advanced in‑vehicle connectivity and driver‑assistance features. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Li Auto Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Quarterly total revenues reached RMB25.7 billion (US$3.8 billion)1Quarterly deliveries were 98,330 vehicles BEIJING, China, Aug. 26, 2026 (GLOBE NEWSWIRE) -- Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced its unaudited financial results for the quarter ended June 30, 2026. Operating Highlights for the Second Quarter of 2026 Total deliveries for the second quarter of 2026 were 98,330 vehicles, representing an 11.5% year-over-year decrease. As of June 30, 2026, in China, the Company had 495 retail stores in 160 cities, 536 servicing centers and Li Auto-authorized servicing shops operating in 220 cities, and 4,097 super charging stations in operation equipped with 22,593 charging stalls. Financial Highlights for the Second Quarter of 2026 Vehicle sales were RMB24.1 billion (US$3.5 billion) in the second quarter of 2026, representing a decrease of 16.7% from RMB28.9 billion in the second quarter of 2025 and an increase of 11.8% from RMB21.5 billion in the first quarter of 2026. Vehicle margin2 was 9.4% in the second quarter of 2026, compared with 19.4% in the second quarter of 2025 and 6.1% in the first quarter of 2026. Total revenues were RMB25.7 billion (US$3.8 billion) in the second quarter of 2026, representing a decrease of 15.1% from RMB30.2 billion in the second quarter of 2025 and an increase of 11.7% from RMB23.0 billion in the first quarter of 2026. Gross profit was RMB2.8 billion (US$418.0 million) in the second quarter of 2026, representing a decrease of 53.3% from RMB6.1 billion in the second quarter of 2025 and an increase of 56.9% from RMB1.8 billion in the first quarter of 2026. Gross margin was 11.0% in the second quarter of 2026, compared with 20.1% in the second quarter of 2025 and 7.9% in the first quarter of 2026. Operating expenses were RMB5.1 billion (US$757.1 million) in the second quarter of 2026, representing a decrease of 2.0% from RMB5.2 billion in the second quarter of 2025 and an increase of 6.9% from RMB4.8 billion in the first quarter of 2026. Loss from operations was RMB2.3 billion (US$339.1 million) in the second quarter of 2026, compared with RMB827.0 million income from operations in the second quarter of 2025 and RMB3.0 billion loss from operations in the first quarter of 2026. Operating margin was negative 9.0% in the second quarter of 2026, compared with 2.7% in the second quarter of 2025 and negative 13.0% in the first quarter of 2026. Net loss was RMB1.7 billion (US$251.3 million) in the second quarter of 2026, compared with RMB1.1 billion net income in the second quarter of 2025 and RMB2.3 billion net loss in the first quarter of 2026. Non-GAAP net loss3 was RMB1.5 billion (US$220.9 million) in the second quarter of 2026, compared with RMB1.5 billion non-GAAP net income in the second quarter of 2025 and RMB2.1 billion non-GAAP net loss in the first quarter of 2026. Diluted net loss per ADS4 attributable to ordinary shareholders was RMB1.69 (US$0.25) in the second quarter of 2026, compared with RMB1.03 diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025 and RMB2.26 diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026. Non-GAAP diluted net loss per ADS attributable to ordinary shareholders was RMB1.49 (US$0.22) in the second quarter of 2026, compared with RMB1.37 non-GAAP diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025 and RMB2.09 non-GAAP diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026. Net cash provided by operating activities was RMB15.0 million (US$2.2 million) in the second quarter of 2026, compared with RMB3.0 billion net cash used in operating activities in the second quarter of 2025 and RMB6.1 billion net cash used in operating activities in the first quarter of 2026. Free cash flow5 was negative RMB1.3 billion (US$191.7 million) in the second quarter of 2026, compared with negative RMB3.8 billion in the second quarter of 2025 and negative RMB7.4 billion in the first quarter of 2026. Recent Developments Delivery Update In July 2026, the Company delivered 30,468 vehicles. As of July 31, 2026, in China, the Company had 490 retail stores in 159 cities, 536 servicing centers and Li Auto-authorized servicing shops operating in 219 cities, and 4,141 super charging stations in operation equipped with 22,841 charging stalls. Product Refresh In June 2026, the Company launched and commenced deliveries of its all-new Li L8. This model is available in two trims: Ultra and Livis. Both trims come standard with four zero-gravity seats, a 72.7 kWh 5C battery, Li Auto’s third-generation range extender, and the Qualcomm Snapdragon 8797 chip, alongside steer‑by‑wire and rear‑wheel steering. Li L8 Ultra features Li Auto’s third‑generation dual‑chamber, dual‑valve Magic Carpet Air Suspension and a proprietary MACH M100 chip, while Li L8 Livis features a proprietary 800V active suspension system, electro-mechanical brake, and dual MACH M100 chips. The Li L8 Ultra and Li L8 Livis are priced at RMB369,800 and RMB429,800, respectively. In July 2026, the Company launched and commenced deliveries of the new Li L6. The model features a new-generation all-aluminum suspension and dual-valve CDC for its chassis, the MACH M100 chip and fully upgraded perception hardware for its assisted driving system, and an EREV-dedicated 51 kWh LFP super charging battery. The new Li L6 is priced at RMB249,800. Livis Day In June 2026, the Company hosted Livis Day, a launch event for software and embodied AI, systematically showcasing Li Auto’s new-generation cabin interaction experience alongside a series of proprietary breakthroughs. These included the language intelligence models MACH Mind-Pro and MACH Mind-Edge, the machine intelligence model MACH VLA, and the world’s first dynamic dataflow AI chip, the MACH M100. US$1.0 Billion Share Repurchase Program Pursuant to its US$1.0 billion share repurchase program announced on March 24, 2026, the Company repurchased a total of 41,232,100 Class A ordinary shares at an aggregate consideration of HK$2.1 billion on the HKEX and a total of 9,487,026 ADSs (representing 18,974,052 Class A ordinary shares) at an aggregate consideration of US$150.9 million on the Nasdaq in the second quarter of 2026. As of the date of this press release, the Company has repurchased a total of approximately 91.7 million Class A ordinary shares (including approximately 23.7 million ADSs) for an aggregate consideration of approximately US$631.5 million. CEO and CFO Comments Mr. Xiang Li, chairman and chief executive officer of Li Auto, commented, “Amid intense market competition and a major model refresh cycle, Li Auto remained the best-selling domestic automotive brand in China’s RMB200,000-and-above NEV market in the first half of 2026. We have completed the upgrade of Li L series and are now refreshing our BEV lineup. Notably, the new Li L6 generated robust order flow, and we are confident that it will carry on the success of the Li i6 and reinforce our leading position in the RMB200,000-to-300,000 SUV market. Our enhanced product portfolio positions us well for growth. Backed by our unwavering user-centric product philosophy and leading in-house technologies, we will continue to pursue product excellence, expand our global footprint, and forge a sustainable path toward long-term value creation.” Mr. Tie Li, chief financial officer of Li Auto, added, “In the second quarter of 2026, our gross margin improved sequentially to 11.0%, benefiting from the launch of the all-new Li L9. We anticipate further margin expansion for the second half of the year as our product mix optimizes, with a higher sales contribution from the Livis trim and the launch of refreshed BEV models and Li i9. Coupled with a sustained focus on operational efficiency, we expect our bottom-line to improve gradually. Balancing growth and profitability through disciplined capital allocation, we will steadfastly execute our core strategies in product innovation, technological advancement, and global expansion to secure our future competitiveness.” Financial Results for the Second Quarter of 2026 Revenues Total revenues were RMB25.7 billion (US$3.8 billion) in the second quarter of 2026, representing a decrease of 15.1% from RMB30.2 billion in the second quarter of 2025 and an increase of 11.7% from RMB23.0 billion in the first quarter of 2026. Vehicle sales were RMB24.1 billion (US$3.5 billion) in the second quarter of 2026, representing a decrease of 16.7% from RMB28.9 billion in the second quarter of 2025 and an increase of 11.8% from RMB21.5 billion in the first quarter of 2026. The decrease in revenue from vehicle sales over the second quarter of 2025 was primarily due to the decrease in vehicle deliveries and a lower average selling price due to a different product mix. The increase in revenue from vehicle sales over the first quarter of 2026 was primarily attributable to a higher average selling price due to a different product mix and the increase in vehicle deliveries. Other sales and services were RMB1.6 billion (US$235.9 million) in the second quarter of 2026, representing an increase of 17.6% from RMB1.4 billion in the second quarter of 2025 and an increase of 10.4% from RMB1.4 billion in the first quarter of 2026. The increase in revenue from other sales and services over the second quarter of 2025 and the first quarter of 2026 was mainly due to increased provision of services and sales of accessories, which is in line with higher accumulated vehicle sales. Cost of Sales and Gross Margin Cost of sales was RMB22.8 billion (US$3.4 billion) in the second quarter of 2026, representing a decrease of 5.6% from RMB24.2 billion in the second quarter of 2025 and an increase of 7.8% from RMB21.2 billion in the first quarter of 2026. The decrease in cost of sales over the second quarter of 2025 was primarily due to the decrease in vehicle deliveries. The increase in cost of sales over the first quarter of 2026 was primarily attributable to a higher average cost of sales due to a different product mix and the increase in vehicle deliveries. Gross profit was RMB2.8 billion (US$418.0 million) in the second quarter of 2026, representing a decrease of 53.3% from RMB6.1 billion in the second quarter of 2025 and an increase of 56.9% from RMB1.8 billion in the first quarter of 2026. Vehicle margin was 9.4% in the second quarter of 2026, compared with 19.4% in the second quarter of 2025 and 6.1% in the first quarter of 2026. The change in vehicle margin over the second quarter of 2025 and the first quarter of 2026 was mainly attributable to a different product mix. Gross margin was 11.0% in the second quarter of 2026, compared with 20.1% in the second quarter of 2025 and 7.9% in the first quarter of 2026. The change in gross margin over the second quarter of 2025 and the first quarter of 2026 was mainly due to the change in vehicle margin. Operating Expenses Operating expenses were RMB5.1 billion (US$757.1 million) in the second quarter of 2026, representing a decrease of 2.0% from RMB5.2 billion in the second quarter of 2025 and an increase of 6.9% from RMB4.8 billion in the first quarter of 2026. Research and development expenses were RMB2.8 billion (US$409.1 million) in the second quarter of 2026, representing a decrease of 1.2% from RMB2.8 billion in the second quarter of 2025 and an increase of 2.0% from RMB2.7 billion in the first quarter of 2026. Research and development expenses remained relatively stable compared with the second quarter of 2025 and the first quarter of 2026. Selling, general and administrative expenses were RMB2.3 billion (US$335.7 million) in the second quarter of 2026, representing a decrease of 16.2% from RMB2.7 billion in the second quarter of 2025 and an increase of 11.2% from RMB2.0 billion in the first quarter of 2026. The decrease in selling, general and administrative expenses over the second quarter of 2025 was primarily due to decreased employee compensation. The increase in selling, general and administrative expenses over the first quarter of 2026 was primarily due to increased expenses related to marketing and promotional activities. Income/(Loss) from Operations Loss from operations was RMB2.3 billion (US$339.1 million) in the second quarter of 2026, compared with RMB827.0 million income from operations in the second quarter of 2025 and RMB3.0 billion loss from operations in the first quarter of 2026. Operating margin was negative 9.0% in the second quarter of 2026, compared with 2.7% in the second quarter of 2025 and negative 13.0% in the first quarter of 2026. Non-GAAP loss from operations was RMB2.1 billion (US$308.6 million) in the second quarter of 2026, compared with RMB1.2 billion non-GAAP income from operations in the second quarter of 2025 and RMB2.8 billion non-GAAP loss from operations in the first quarter of 2026. Net Income/(Loss) and Net Earnings/(Loss) Per Share Net loss was RMB1.7 billion (US$251.3 million) in the second quarter of 2026, compared with RMB1.1 billion net income in the second quarter of 2025 and RMB2.3 billion net loss in the first quarter of 2026. Non-GAAP net loss was RMB1.5 billion (US$220.9 million) in the second quarter of 2026, compared with RMB1.5 billion non-GAAP net income in the second quarter of 2025 and RMB2.1 billion non-GAAP net loss in the first quarter of 2026. Basic and diluted net loss per ADS attributable to ordinary shareholders were both RMB1.69 (US$0.25) in the second quarter of 2026, compared with RMB1.09 and RMB1.03 basic and diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025, respectively, and RMB2.26 basic and diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026. Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders were both RMB1.49 (US$0.22) in the second quarter of 2026, compared with RMB1.46 and RMB1.37 non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025, respectively, and RMB2.09 non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026. Cash Position, Operating Cash Flow and Free Cash Flow Cash position7 was RMB87.5 billion (US$12.9 billion) as of June 30, 2026. Net cash provided by operating activities was RMB15.0 million (US$2.2 million) in the second quarter of 2026, compared with RMB3.0 billion net cash used in operating activities in the second quarter of 2025 and RMB6.1 billion net cash used in operating activities in the first quarter of 2026. The change in net cash provided by operating activities over the second quarter of 2025 and the first quarter of 2026 was mainly due to the timing differences between cash received from customers and payments for inventory purchases. Free cash flow was negative RMB1.3 billion (US$191.7 million) in the second quarter of 2026, compared with negative RMB3.8 billion in the second quarter of 2025 and negative RMB7.4 billion in the first quarter of 2026. Business Outlook For the third quarter of 2026, the Company expects: Deliveries of vehicles to be between 95,000 and 100,000 vehicles, representing a year-over-year increase of 1.9% to 7.3%. Total revenues to be between RMB26.6 billion (US$3.9 billion) and RMB28.0 billion (US$4.1 billion), representing a year-over-year change of -2.8% to +2.3%. This business outlook reflects the Company’s current and preliminary views on its business situation and market conditions, which are subject to change. Conference Call Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on Wednesday, August 26, 2026 (8:00 p.m. Beijing/Hong Kong Time on August 26, 2026) to discuss financial results and answer questions from investors and analysts. For participants who wish to join the call, please complete online registration using the link provided below prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, passcode, and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference instantly. Participant Online Registration: https://s1.c-conf.com/diamondpass/10056444-vrf1u8.html A replay of the conference call will be accessible through September 2, 2026, by dialing the following numbers: Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.lixiang.com. Non-GAAP Financial Measures The Company uses non-GAAP financial measures, such as non-GAAP cost of sales, non-GAAP research and development expenses, non-GAAP selling, general and administrative expenses, non-GAAP income/(loss) from operations, non-GAAP net income/(loss), non-GAAP net income/(loss) attributable to ordinary shareholders, non-GAAP basic and diluted net earnings/(loss) per ADS attributable to ordinary shareholders, non-GAAP basic and diluted net earnings/(loss) per share attributable to ordinary shareholders and free cash flow, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for financial information prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance. For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this press release. Exchange Rate Information This press release contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi are made at a rate of RMB6.7851 to US$1.00, the exchange rate on June 30, 2026, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. About Li Auto Inc. Li Auto Inc. is a leader in China’s new energy vehicle market. The Company designs, develops, manufactures, and sells premium smart electric vehicles. Its mission is: Be Proactive, Change the World. Through innovations in product, technology, and business model, the Company provides families with safe, convenient, and comfortable products and services. Li Auto is a pioneer in successfully commercializing extended-range electric vehicles in China. While firmly advancing along this technological route, it builds platforms for battery electric vehicles in parallel. The Company leverages technology to create value for users. It concentrates its in-house development efforts on proprietary range extension systems, innovative electric vehicle technologies, and smart vehicle solutions. The Company started volume production in November 2019. It offers high-tech flagship family MPVs, Li L series extended-range electric SUVs, and Li i series battery electric SUVs. The Company will continue to expand its product lineup to target a broader user base. For more information, please visit: https://ir.lixiang.com. Safe Harbor Statement This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “likely to,” “challenges,” and similar statements. Li Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “HKEX”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Li Auto’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Li Auto’s strategies, future business development, and financial condition and results of operations; Li Auto’s limited operating history; risks associated with extended-range electric vehicles and high-power charging battery electric vehicles; Li Auto’s ability to develop, manufacture, and deliver vehicles of high quality and appeal to customers; Li Auto’s ability to generate positive cash flow and profits; product defects or any other failure of vehicles to perform as expected; Li Auto’s ability to compete successfully; Li Auto’s ability to build its brand and withstand negative publicity; cancellation of orders for Li Auto’s vehicles; Li Auto’s ability to develop new vehicles; and changes in consumer demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Li Auto’s filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and Li Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: Li Auto Inc.Investor RelationsEmail: [email protected] Christensen AdvisoryTel: +86-10-5900-1548Email: [email protected] ______________________________1 All translations from Renminbi (“RMB”) to U.S. dollars (“US$”) are made at a rate of RMB6.7851 to US$1.00, the exchange rate on June 30, 2026 as set forth in the H.10 statistical release of the Federal Reserve Board. 2 Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only. 3 The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this press release. 4 Each ADS represents two Class A ordinary shares. 5 Free cash flow represents operating cash flow less capital expenditures, which is considered a non-GAAP financial measure. 6 Except for vehicle margin, gross margin, and operating margin, where absolute changes instead of percentage changes are presented. 7 Cash position includes cash and cash equivalents, restricted cash, time deposits and short-term investments, and long-term time deposits and financial instruments included in long-term investments. 8 Non-GAAP items have no tax impact for all the periods presented.

Li Auto (NASDAQ:LI) reported second-quarter revenue above market expectations, although weaker-than-anticipated guidance for the third quarter overshadowed the result and sent the Chinese electric vehicle maker’s shares lower in premarket trading. The company recorded a second-quarter loss per share of RMB1.49, slightly worse than analysts’ forecast for a RMB1.47 loss. Revenue reached RMB25.67 billion, exceeding the RMB25.07 billion consensus estimate. Revenue nevertheless declined 15.1% from the same period last year, although it improved 11.7% compared with the first quarter. Li Auto shares were down 1.3% in US premarket trading at 05:25 ET. Li Auto delivered 98,330 vehicles during the quarter, representing an 11.5% decline from a year earlier. Vehicle sales generated RMB24.1 billion in revenue, down 16.7% year-over-year but 11.8% higher than in the previous quarter. “Amid intense market competition and a major model refresh cycle, Li Auto remained the best-selling domestic automotive brand in China’s RMB200,000-and-above NEV market in the first half of 2026,” said Xiang Li, chairman and CEO of Li Auto. The figures reflect the competitive pressures facing China’s electric vehicle industry as manufacturers introduce refreshed models and compete aggressively for market share. Li Auto’s vehicle margin stood at 9.4% in the second quarter, sharply below the 19.4% recorded a year earlier. However, it improved from 6.1% during the first quarter. Gross margin followed a similar pattern, falling to 11.0% from 20.1% a year ago but recovering from 7.9% in the previous quarter. Operating margin remained negative at 9.0%. That represented an improvement from the negative 13.0% reported in the first quarter but compared with a positive operating margin of 2.7% in the second quarter of last year. Investor attention was primarily focused on Li Auto’s outlook for the current quarter, which came in substantially below analysts’ expectations. The company forecast third-quarter revenue of between RMB26.6 billion and RMB28 billion, compared with a consensus estimate of RMB32.28 billion. Li Auto expects to deliver between 95,000 and 100,000 vehicles during the quarter, representing year-over-year growth of approximately 1.9% to 7.3%. While the second-quarter revenue beat and sequential margin improvement provided some positive signals, the cautious revenue forecast indicates that competitive pressures and the company’s ongoing model transition could continue to constrain near-term growth. Li Auto stock price

BEIJING, China, Aug. 11, 2026 (GLOBE NEWSWIRE) -- Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced that it will report its unaudited financial results for the second quarter of 2026 before the U.S. market opens on Wednesday, August 26, 2026. The Company’s management will hold an earnings conference call on Wednesday, August 26, 2026, at 8:00 A.M. U.S. Eastern Time or 8:00 P.M. Beijing/Hong Kong Time on the same day. For participants who wish to join the call, please complete online registration using the link provided below prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, passcode, and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference instantly. Participant Online Registration: https://s1.c-conf.com/diamondpass/10056444-vrf1u8.html A replay of the conference call will be accessible through September 2, 2026, by dialing the following numbers: A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.lixiang.com. About Li Auto Inc. Li Auto Inc. is a leader in China’s new energy vehicle market. The Company designs, develops, manufactures, and sells premium smart electric vehicles. Its mission is: Be Proactive, Change the World. Through innovations in product, technology, and business model, the Company provides families with safe, convenient, and comfortable products and services. Li Auto is a pioneer in successfully commercializing extended-range electric vehicles in China. While firmly advancing along this technological route, it builds platforms for battery electric vehicles in parallel. The Company leverages technology to create value for users. It concentrates its in-house development efforts on proprietary range extension systems, innovative electric vehicle technologies, and smart vehicle solutions. The Company started volume production in November 2019. It offers high-tech flagship family MPVs, Li L series extended-range electric SUVs, and Li i series battery electric SUVs. The Company will continue to expand its product lineup to target a broader user base. For more information, please visit: https://ir.lixiang.com. For investor and media inquiries, please contact: Li Auto Inc.Investor RelationsEmail: [email protected] Christensen Advisory Roger Hu Tel: +86-10-5900-1548 Email: [email protected]

Interested in Arteris, Inc.? Here are five stocks we like better. Record Q2 performance: Revenue rose 46% year over year to $24.1 million, while ACV plus royalties increased 44% to $99.5 million and remaining performance obligations reached $135 million. AI and automotive demand strengthened: Large hyperscaler and custom-ASIC wins helped drive growth in AI infrastructure, while Li Auto began paying royalties on vehicles using Arteris-designed autonomous-driving chips. 2026 outlook raised: Arteris increased its full-year revenue forecast to $95 million–$98 million and expects to potentially reach non-GAAP operating profitability as early as Q4 2026. The company also raised $72 million through its at-the-market equity program and ended the quarter with $123 million in cash and no debt. 3 Humanoid Robot ETFs to Ride a Speculative Trend Arteris (NASDAQ:AIP) reported record second-quarter results for 2026, with revenue, annual contract value plus royalties, royalty revenue and remaining performance obligations all reaching new highs. Management said demand was supported by large license agreements across enterprise computing, automotive, aerospace and defense, communications, consumer electronics and industrial markets. Revenue for the quarter ended June 30 rose 46% year over year to $24.1 million, exceeding the high end of the company’s guidance. Annual contract value, or ACV, plus royalties reached $99.5 million at quarter-end, up 44% from a year earlier. Remaining performance obligations, representing contracted future revenue, rose to $135 million, with Arteris expecting just over half of that balance to be recognized during the 12 months beginning July 1. → 3 Drone Stocks That Should Soar After the Summer Slump GE Vernova Just Sent a Mixed AI Signal to Investors Chief Executive Officer Charlie Janac said the company’s customers reported a 21% year-over-year increase in design starts over the trailing 12 months ended June 30. The majority of customer design starts in the second quarter supported artificial intelligence or high-performance computing use cases, he said. Janac said data-center chip and chiplet development remained a key revenue driver, with enterprise computing accounting for an average of 29% of ACV plus royalties over the past four quarters. He said AI infrastructure represented some of the company’s largest deals in the second quarter. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The AI Trade Is Getting Harder to Pick, But These 3 ETFs Take a Different Route Among those wins, Arteris said one of the world’s largest hyperscale cloud companies selected its infrastructure silicon system intellectual property for next-generation data centers. The company also cited a large win with a U.S. semiconductor design house that is developing custom ASICs for hyperscalers. That customer is using Arteris’ FlexGen smart network-on-chip, or NoC, IP for data movement in chiplets and multi-die chips supporting high-end AI computing. During the question-and-answer session, Janac said the U.S. semiconductor design house was an existing but previously smaller customer. He said hyperscalers use a mix of commercial chips, internally developed accelerators and chips developed by outside design partners. → Jersey Mike's Serves Fresh Gains After IPO Stumble Automotive and other physical AI applications also contributed to demand, according to management. Arteris said Li Auto has deployed internally designed autonomous-driving chips in its newest SUV model, with multiple Arteris-designed chips used in each vehicle. Janac said the chips provide about 2,560 trillion operations per second for autonomous driving and other advanced driving tasks. Chief Financial Officer Nick Hawkins said Li Auto had begun making royalty payments. He said automotive royalty streams generally ramp over their first three years before plateauing for an extended period, though he added that the eventual scale of the Li Auto opportunity remains uncertain. Arteris also highlighted progress in semiconductor cybersecurity assurance following its acquisition of Cycuity earlier in 2026. The company announced an expanded partnership with Arm, whose engineering teams are using Cycuity technology during the design of selected CPUs and intend to broaden use across additional next-generation processors. Janac characterized the Arm relationship as a “greenfield opportunity,” saying there are relatively few commercial solutions serving the same hardware-security-assurance function. He said Cycuity currently operates under a non-royalty-bearing, software electronic design automation model, although Arteris sees potential future opportunities to combine cybersecurity weakness identification with technologies that could address those weaknesses. Management said security had a solid second quarter, including government-related work. Hawkins noted that government contracts carry lower gross margins than Arteris’ traditional business and commercial Cycuity operations. Arteris also announced a collaboration with IC-Link by imec, under which its technology will be used in efforts to accelerate development of high-performance computing chiplets and ASICs. Janac said FlexGen customer adoption continued to expand, with multiple seven-figure FlexGen agreements closed with major semiconductor customers during the first half of 2026. On a non-GAAP basis, Arteris reported gross profit of $21 million and a gross margin of 87%. GAAP gross profit was $20.5 million, or an 85% margin. Non-GAAP operating loss was $4.6 million, while GAAP operating loss was $13.9 million. Non-GAAP net loss was $4.7 million, or $0.10 per diluted share. GAAP net loss totaled $14.1 million, or $0.30 per diluted share. Hawkins said non-GAAP operating income was affected by $1.7 million in unexpectedly high French employer payroll taxes associated with employee restricted stock unit vesting. The expense reflected a higher Arteris share price during the June quarter. Higher sales and field-engineering commissions tied to strong deal flow also increased expenses. The company generated $8.6 million in free cash flow during the quarter, bringing trailing-12-month free cash flow to positive $6.8 million. Arteris ended the quarter with $123 million in cash equivalents and investments and no financial debt. Arteris completed its at-the-market equity program during the quarter, raising approximately $72 million in net proceeds at an average price above $35 per share. Janac said the proceeds will support investments in system IP products, global customer support and potential tuck-in acquisitions. For the third quarter, Arteris forecast ACV plus royalties of $99 million to $103 million, revenue of $24 million to $25 million, and a non-GAAP operating loss of $3 million to $1 million. The company raised its full-year revenue outlook to $95 million to $98 million, an increase of $3.5 million from its previous forecast. At the midpoint, the revised revenue range would represent 37% year-over-year growth. Arteris maintained its expectation for year-end ACV plus royalties of $102 million to $106 million and non-GAAP free cash flow of positive $5 million to positive $9 million. Management forecast a full-year non-GAAP operating loss of $10 million to $7 million and said it expects to report non-GAAP operating profit for a period as early as the fourth quarter of 2026. Hawkins, who is retiring, said Saurabh Sinha will become Arteris’ CFO on Sept. 8. Sinha previously served at Aeva Technologies, where Arteris said he helped manage financial operations, capital allocation and investor relations. Arteris, Inc is a fabless semiconductor intellectual property (IP) company specializing in on-chip interconnect solutions and system IP for advanced integrated circuits. The company's core products include its FlexNoC network-on-chip (NoC) fabrics, Ncore cache coherent interconnect IP, and CodaCache memory subsystem IP. These technologies enable semiconductor and systems companies to design scalable, energy-efficient chips for applications ranging from automotive and artificial intelligence (AI) to 5G communications and high-performance computing. Founded in 2003 and headquartered in Santa Clara, California, Arteris serves a global customer base across North America, Europe, and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Arteris Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Over the last 7 days, the United States market has dropped by 2.5%, yet it has risen by 23% over the past year, with earnings expected to grow by 17% annually in the coming years. In this context of fluctuating performance and anticipated growth, stocks with high insider ownership can be appealing as they often signal confidence from those closest to the company's operations and potential for substantial earnings growth. Click here to see the full list of 176 stocks from our Fast Growing US Companies With High Insider Ownership screener. Below we spotlight a couple of our favorites from our exclusive screener. Simply Wall St Growth Rating: ★★★★★☆ Overview: ImmunityBio, Inc. is a biotechnology company dedicated to developing and commercializing advanced immunotherapies aimed at enhancing the immune system's response to cancer and infectious diseases, with a market cap of approximately $7.25 billion. Operations: The company generates revenue of $140.98 million from its segment focused on developing next-generation therapies. Insider Ownership: 28.2% Earnings Growth Forecast: 64.1% p.a. ImmunityBio, a growth-focused company with significant insider ownership, is advancing its ANKTIVA treatment for BCG-unresponsive non-muscle invasive bladder cancer. Recent FDA acceptance of its supplemental Biologics License Application could expand ANKTIVA's indications. Despite expected revenue growth of 47.8% annually, ImmunityBio faces financial challenges with less than a year of cash runway and recent shareholder dilution. Analysts agree on potential stock price appreciation, though the company currently trades significantly below estimated fair value. Unlock comprehensive insights into our analysis of ImmunityBio stock in this growth report. Upon reviewing our latest valuation report, ImmunityBio's share price might be too pessimistic. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Li Auto Inc. operates in the energy vehicle market in the People’s Republic of China with a market cap of approximately $14.48 billion. Operations: Li Auto generates revenue primarily from its auto manufacturing segment, totaling CN¥109.37 billion. Insider Ownership: 33% Earnings Growth Forecast: 61.6% p.a. Li Auto, characterized by high insider ownership, is navigating growth amid challenges. The company forecasts a 13% annual revenue increase, outpacing the US market. However, recent earnings revealed a net loss of CNY 2.29 billion for Q1 2026 despite vehicle deliveries reaching over 1.7 million year-to-date. Li Auto's strategic moves include a US$1 billion share buyback and launching new models like the Li L9 to bolster its position in the competitive electric vehicle sector. Take a closer look at Li Auto's potential here in our earnings growth report. Our expertly prepared valuation report Li Auto implies its share price may be too high. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Ethos Technologies Inc. operates as a third-party administrator for insurance policies in the United States and has a market cap of approximately $1.06 billion. Operations: The company generates revenue primarily from its insurance broker services, amounting to $485.82 million. Insider Ownership: 22% Earnings Growth Forecast: 94.5% p.a. Ethos Technologies, with significant insider ownership, is expanding its digital life insurance offerings through strategic partnerships and technological advancements. Recent collaborations with Liberty Mutual and Banner Life Insurance enhance Ethos' reach and product portfolio. Despite a Q1 2026 net loss of US$166.39 million, revenue surged to US$193.1 million from the previous year. The launch of a ChatGPT app signifies their innovative approach to consumer engagement in the evolving insurance landscape, although insider selling has been noted recently. Navigate through the intricacies of Ethos Technologies with our comprehensive analyst estimates report here. Upon reviewing our latest valuation report, Ethos Technologies' share price might be too optimistic. Click this link to deep-dive into the 176 companies within our Fast Growing US Companies With High Insider Ownership screener. Curious About Other Options? This technology could replace computers: discover the 30 stocks are working to make quantum computing a reality. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years. Companies discussed in this article include IBRX LI and LIFE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]