Revenue growth has accelerated to 45.8% year-over-year in 2025Q3, while operating income has swung from a loss of $138.5M in 2024Q1 to a profit of $2.2M in 2026Q2, demonstrating emerging operating leverage.
Hesai Group (HSAI) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 3.34B | 3.03B | 2.08B | 1.88B | 1.2B | 720.77M | 415.51M | 348.08M |
| Revenue Growth % | 33.98% | 45.76% | 10.66% | 56.07% | 66.86% | 73.46% | 19.37% | - |
| Cost of Goods Sold | 1.98B | 1.76B | 1.19B | 1.22B | 730.68M | 338.97M | 176.6M | 103.38M |
| COGS % of Revenue | - | 58.21% | 57.41% | 64.76% | 60.76% | 47.03% | 42.5% | 29.7% |
| Gross Profit | 1.36B | 1.27B | 884.59M | 661.38M | 471.99M | 381.8M | 238.91M | 244.71M |
| Gross Margin % | 40.65% | 41.79% | 42.59% | 35.24% | 39.24% | 52.97% | 57.5% | 70.3% |
| Gross Profit Growth % | - | 43.02% | 33.75% | 40.13% | 23.62% | 59.8% | -2.37% | - |
| Operating Expenses | 1.23B | 1.14B | 1.09B | 1.23B | 850.2M | 647.08M | 340.73M | 392.76M |
| OpEx % of Revenue | - | 37.71% | 52.45% | 65.69% | 70.69% | 89.78% | 82% | 112.83% |
| Selling, General & Admin | 480.97M | 480.82M | 509.94M | 468.94M | 305.84M | 305.98M | 126.46M | 93.85M |
| SG&A % of Revenue | - | 15.88% | 24.55% | 24.98% | 25.43% | 42.45% | 30.43% | 26.96% |
| Research & Development | 850.26M | 796.94M | 855.64M | 790.55M | 555.18M | 368.44M | 229.65M | 149.82M |
| R&D % of Revenue | - | 26.32% | 41.19% | 42.12% | 46.16% | 51.12% | 55.27% | 43.04% |
| Other Operating Expenses | -4M | -136.2M | -276.09M | -26.52M | -10.82M | -27.33M | -15.38M | 149.09M |
| Operating Income | 127.77M | 123.54M | -204.91M | -571.59M | -378.22M | -265.29M | -101.81M | -148.05M |
| Operating Margin % | 3.83% | 4.08% | -9.86% | -30.45% | -31.45% | -36.81% | -24.5% | -42.53% |
| Operating Income Growth % | - | 160.29% | 64.15% | -51.13% | -42.57% | -160.56% | 31.23% | - |
| EBITDA | 546.38M | 247.33M | -118.64M | -485.32M | -324.58M | -237.05M | -82.6M | -138.33M |
| EBITDA Margin % | 16.37% | 8.17% | -5.71% | -25.86% | -26.99% | -32.89% | -19.88% | -39.74% |
| EBITDA Growth % | 275.72% | 308.47% | 75.55% | -49.52% | -36.92% | -187% | 40.29% | - |
| D&A (Non-Cash Add-back) | 0 | 123.79M | 86.27M | 86.27M | 53.63M | 28.23M | 19.21M | 9.72M |
| EBIT | 546.38M | 485.71M | -88.42M | -472.2M | -300.79M | -245.86M | -101.81M | 12.05M |
| Net Interest Income | 164.83M | 108.28M | 91.57M | 96.74M | 58.73M | 32.58M | 20.93M | 19.11M |
| Interest Income | 179.26M | 126.69M | 104.4M | 99.81M | 58.73M | 32.58M | 20.93M | 19.11M |
| Interest Expense | 14.43M | 18.41M | 12.83M | 3.07M | 0 | 0 | 0 | 0 |
| Other Income/Expense | 401.25M | 343.17M | 103.66M | 96.28M | 77.39M | 19.34M | -5.6M | 28.76M |
| Pretax Income | 529.02M | 466.71M | -101.25M | -475.31M | -300.83M | -245.94M | -107.42M | -119.29M |
| Pretax Margin % | 15.85% | 15.42% | -4.87% | -25.32% | -25.01% | -34.12% | -25.85% | -34.27% |
| Income Tax | 30.81M | 30.84M | 1.13M | 658K | -66K | -1.11M | -199K | 930K |
| Effective Tax Rate % | 5.82% | 6.61% | -1.12% | -0.14% | 0.02% | 0.45% | 0.19% | -0.78% |
| Net Income | 498.21M | 435.88M | -102.38M | -475.97M | -300.76M | -244.83M | -107.22M | -120.22M |
| Net Margin % | 14.93% | 14.4% | -4.93% | -25.36% | -25.01% | -33.97% | -25.8% | -34.54% |
| Net Income Growth % | 383.01% | 525.76% | 78.49% | -58.25% | -22.85% | -128.35% | 10.82% | - |
| Net Income (Continuing) | 498.21M | 435.88M | -102.38M | -475.97M | -300.76M | -244.83M | -107.22M | -120.22M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 5.99B | 5.54B | 0 | 0 |
| EPS (Diluted) | 3.05 | 2.87 | -0.79 | -3.81 | -5.95 | -23.39 | -1.19 | -1.36 |
| EPS Growth % | 342.47% | 463.29% | 79.27% | 35.97% | 74.56% | -1865.55% | 12.5% | - |
| EPS (Basic) | - | 3.08 | -0.79 | -3.81 | -5.95 | -23.39 | -1.19 | -0.96 |
| Diluted Shares Outstanding | 163.16M | 146.44M | 129.19M | 124.78M | 125.53M | 125.53M | 95.18M | 88.53M |
| Basic Shares Outstanding | 156.21M | 139.15M | 129.19M | 124.78M | 125.53M | 125.53M | 95.18M | 88.53M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying HSAI stock.
For fiscal year 2025, Hesai Group (HSAI) reported total revenue of $3.03B. This represents a 769.8% increase compared to $348.1M in 2019.
Hesai Group (HSAI) is profitable, generating $435.9M in net income for the fiscal year ending 2025 with a net profit margin of 14.4%.
Hesai Group (HSAI) reported an operating income of $123.5M, resulting in an operating profit margin of 4.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Hesai Group (HSAI) generated $1.27B in gross profit for the year, representing a gross profit margin of 41.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Geopolitical and trade restrictions
Robust Growth Driven by ADAS Volume
Hesai's revenue growth has accelerated significantly, reaching 45.8% year-over-year in the latest quarter, driven by the scaling of its ADAS segment for passenger vehicles.
The company's revenue trajectory shows a clear acceleration from a -16.5% decline in 2024Q1 to consistent double-digit growth, culminating in a 45.8% YoY increase in 2025Q3. This growth appears to be volume-driven, as the company has secured design wins with major Chinese OEMs, moving from a niche supplier to a high-volume producer. The durability of this growth is contingent on the continued adoption of LiDAR in mid-priced EVs and the successful conversion of its design win pipeline into sustained production shipments.
Resilient Gross Margins Amid Mix Shift
Despite a revenue mix shift toward lower-margin ADAS contracts, Hesai's gross margin has stabilized around 40-42%, suggesting effective cost control through its proprietary ASIC architecture.
Gross margins have shown resilience, holding in the 40-42% range over the past four quarters, a level uncharacteristically high for a traditional auto parts supplier. This appears to be a direct result of the company's vertical integration in chip design, which mitigates bill-of-materials costs. However, the slight compression from a peak of 47.7% in 2024Q3 to 40.1% in 2026Q2 may indicate the beginning of pricing pressure as the product mix tilts toward higher-volume, lower-ASP ADAS units. Investors should monitor whether the company can continue to reduce manufacturing costs via ASIC iterations faster than OEMs demand price concessions.
Operating Leverage Emerging at Scale
Operating income has swung from a loss of $138.5M in 2024Q1 to a profit of $2.2M in 2026Q2, demonstrating that revenue growth is beginning to outpace the growth of fixed R&D and SG&A expenses.
The company's operating leverage is becoming evident as revenue scales. While R&D and SG&A expenses have grown in absolute terms, they have declined as a percentage of revenue, from 84.9% in 2024Q1 to 40.4% in 2026Q2. This suggests that the high fixed-cost base, primarily R&D and manufacturing overhead, is being spread over a larger revenue base. The path to sustained profitability hinges on maintaining this operating leverage while defending gross margins, as the company's operating margin remains thin at 0.3% in the latest quarter.
Net Income Volatility and SBC Impact
Reported net income is highly volatile, swinging from a loss of $106.9M in 2024Q1 to a profit of $256.2M in 2025Q3, with stock-based compensation representing a significant non-cash expense that dilutes shareholder value.
The quality of earnings is complicated by large swings in non-operating items and the consistent impact of stock-based compensation (SBC). SBC has averaged approximately $28M per quarter, which is a material expense relative to the company's operating income. The large net income in 2025Q3 ($256.2M) versus a much smaller operating income ($77.4M) suggests significant non-operating gains, the nature of which warrants further investigation. This volatility makes it difficult to assess the underlying earnings power of the core business.
R&D as the Dominant Cost Driver
Research and development is the single largest operating expense, consistently consuming over 25% of revenue, which underscores the company's commitment to maintaining its technological edge in a rapidly evolving market.
R&D expense has been the primary cost driver, ranging from $183M to $242M per quarter. This high level of investment is necessary to prevent technological obsolescence and to develop next-generation ASICs. While this spending is a strategic imperative, it also represents a significant fixed cost that must be covered by gross profit. The company's ability to translate this R&D into market-leading products and maintain its cost advantage is critical to its long-term profitability.
Margin Sustainability Under Pressure
The strongest challenge to the income statement narrative is the potential for gross margin compression as the revenue mix shifts toward high-volume, price-sensitive ADAS contracts, which could erode the company's profitability.
While current gross margins are strong, the trend from 47.7% in 2024Q3 to 40.1% in 2026Q2 suggests that pricing pressure is already a factor. The company's growth is increasingly dependent on the Chinese automotive market, which is experiencing intense price competition. If Hesai is forced to sacrifice pricing to defend market share or if LiDAR technology becomes commoditized, the high fixed-cost structure could quickly lead to operating losses. Furthermore, the reliance on a single geographic market amplifies this risk, as any downturn in the Chinese EV sector would directly impact volumes and pricing power.