Revenue has contracted sharply for three consecutive quarters, culminating in a -15.7% YoY decline in 2026Q2, while gross margins have collapsed to 11.0% from a peak of 23.5%, indicating significant pricing pressure and unfavorable product mix shifts.
Li Auto Inc. (LI) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 104.22B | 112.31B | 144.52B | 123.83B | 46.08B | 26.66B | 8.94B | 283.6M | 0 |
| Revenue Growth % | -26.34% | -22.29% | 16.71% | 168.73% | 72.85% | 198.2% | 3052.47% | - | - |
| Cost of Goods Sold | 90.06B | 91.33B | 114.85B | 96.34B | 37.28B | 21.11B | 7.55B | 380.73M | 89.7M |
| COGS % of Revenue | - | 81.32% | 79.47% | 77.8% | 80.89% | 79.18% | 84.49% | 134.25% | - |
| Gross Profit | 14.16B | 20.99B | 29.67B | 27.49B | 8.81B | 5.55B | 1.39B | -97.13M | -89.7M |
| Gross Margin % | 13.59% | 18.68% | 20.53% | 22.2% | 19.11% | 20.82% | 15.51% | -34.25% | - |
| Gross Profit Growth % | - | -29.27% | 7.91% | 212.22% | 58.61% | 300.45% | 1527.35% | -8.29% | - |
| Operating Expenses | 21.12B | 21.51B | 23.31B | 20.35B | 12.52B | 6.56B | 1.99B | 1.74B | 1.09B |
| OpEx % of Revenue | - | 19.15% | 16.13% | 16.43% | 27.18% | 24.59% | 22.26% | 612.99% | - |
| Selling, General & Admin | 9.69B | 10.66B | 12.23B | 9.77B | 5.68B | 3.37B | 993.17M | 612.01M | 280.87M |
| SG&A % of Revenue | - | 9.5% | 8.47% | 7.89% | 12.33% | 12.62% | 11.11% | 215.8% | - |
| Research & Development | 8.45B | 11.31B | 11.08B | 10.58B | 6.84B | 3.19B | 997.3M | 1.13B | 804.46M |
| R&D % of Revenue | - | 10.07% | 7.66% | 8.55% | 14.85% | 11.97% | 11.15% | 397.2% | - |
| Other Operating Expenses | 1M | -473.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -6.96B | -521.12M | 6.36B | 7.14B | -3.72B | -1B | -604.08M | -1.84B | -1.18B |
| Operating Margin % | -6.68% | -0.46% | 4.4% | 5.77% | -8.07% | -3.77% | -6.76% | -647.24% | - |
| Operating Income Growth % | - | -108.2% | -10.97% | 292.03% | -270.37% | -66.23% | 67.09% | -56.22% | - |
| EBITDA | -3.08B | 4.11B | 9.42B | 8.95B | -2.51B | -413.75M | -283.08M | -1.72B | -1.11B |
| EBITDA Margin % | -2.95% | 3.66% | 6.52% | 7.22% | -5.44% | -1.55% | -3.17% | -606.2% | - |
| EBITDA Growth % | -126.36% | -56.31% | 5.25% | 457.12% | -505.49% | -46.16% | 83.53% | -54.25% | - |
| D&A (Non-Cash Add-back) | 2.91B | 4.64B | 3.06B | 1.81B | 1.21B | 590.4M | 321M | 116.39M | 60.5M |
| EBIT | -5.45B | 1.47B | 9.51B | 10.54B | -2.09B | -88.41M | -112.92M | -2.17B | -1.11B |
| Net Interest Income | 1.53B | 1.75B | 1.63B | 2B | 977.83M | 668.42M | 177.74M | -4.03M | 8.57M |
| Interest Income | 1.75B | 1.92B | 1.82B | 2.08B | 1.09B | 730.85M | 241M | 79.42M | 74.51M |
| Interest Expense | 225.94M | 168.08M | 187.83M | 86.24M | 108.21M | 62.43M | 63.26M | 83.44M | 65.94M |
| Other Income/Expense | 1.66B | 1.82B | 2.96B | 3.31B | 1.52B | 853.32M | 425.51M | -575.77M | -35.72M |
| Pretax Income | -5.3B | 1.3B | 9.32B | 10.45B | -2.2B | -150.83M | -178.57M | -2.41B | -1.21B |
| Pretax Margin % | -5.08% | 1.15% | 6.45% | 8.44% | -4.77% | -0.57% | -2% | -850.27% | - |
| Income Tax | -727.73M | 157.71M | 1.27B | -1.36B | -129.24M | 166.46M | -21.6M | 0 | 0 |
| Effective Tax Rate % | 13.74% | 12.16% | 13.64% | -12.99% | 5.88% | -110.36% | 12.1% | 0% | 0% |
| Net Income | -4.59B | 1.12B | 8.04B | 11.7B | -2.05B | -317.29M | -159.79M | -2.43B | -1.59B |
| Net Margin % | -4.41% | 1% | 5.56% | 9.45% | -4.44% | -1.19% | -1.79% | -857.53% | - |
| Net Income Growth % | -157.66% | -86.01% | -31.33% | 671.54% | -545.32% | -98.56% | 93.43% | -52.75% | - |
| Net Income (Continuing) | -4.57B | 1.14B | 8.05B | 11.81B | -2.07B | -317.29M | -156.97M | -2.41B | -1.21B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | -2.83M | -20.61M | -381.34M |
| Minority Interest | 0 | 520.49M | 445.5M | 432.6M | 327.61M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.56 | 1.04 | 7.54 | 11.06 | -2.10 | -0.34 | -0.85 | -3.62 | -2.12 |
| EPS Growth % | -161.5% | -86.21% | -31.83% | 626.67% | -517.65% | 60% | 76.52% | -70.75% | - |
| EPS (Basic) | - | 1.12 | 8.06 | 11.90 | -2.10 | -0.34 | -0.85 | -3.62 | -2.12 |
| Diluted Shares Outstanding | 1.01B | 1.07B | 1.06B | 1.06B | 970.62M | 926.66M | 904.96M | 904.96M | 904.96M |
| Basic Shares Outstanding | 1.01B | 1.01B | 996.6M | 983.93M | 970.62M | 926.66M | 904.96M | 904.96M | 904.96M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying LI stock.
For fiscal year 2025, Li Auto Inc. (LI) reported total revenue of $112.31B.
Li Auto Inc. (LI) is profitable, generating $1.12B in net income for the fiscal year ending 2025 with a net profit margin of 1.0%.
Li Auto Inc. (LI) reported an operating income of $-521.1M, resulting in an operating profit margin of -0.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Li Auto Inc. (LI) generated $20.99B in gross profit for the year, representing a gross profit margin of 18.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Negative operating leverage from revenue decline
Revenue Contraction Accelerates Sharply
Li Auto's revenue trajectory has deteriorated significantly, with a -15.7% YoY decline in 2026Q2 following a -32.4% drop in 2025Q4, suggesting a potential structural shift in demand rather than a temporary cyclical dip.
The sequential acceleration in revenue declines from -4.1% in 2025Q2 to -15.7% in 2026Q2 indicates the company is facing intensifying competitive pressure, likely from Huawei-backed AITO models and a broader market slowdown. This trend is particularly concerning given the company's historical growth profile, as the -24.4% YoY decline flagged in recent context appears to be part of a sustained downward trajectory rather than an isolated event.
Gross Margin Erosion Undermines Profitability
Gross margins have compressed from a peak of 23.5% in 2023Q4 to just 11.0% in 2026Q2, a 1,250 basis point decline that suggests significant pricing pressure and/or unfavorable product mix shifts.
The margin compression appears driven by both competitive pricing actions to maintain volume and a potential shift toward lower-margin models or configurations. With operating margins turning negative at -8.6% in 2026Q2, the company's fixed cost structure is now amplifying the impact of lower gross profits, creating a challenging operating leverage dynamic that will require either revenue stabilization or significant cost restructuring.
Negative Operating Leverage Amplifies Losses
Operating losses have expanded dramatically from $274.2M in 2025Q1 to $2.2B in 2026Q2, indicating that Li Auto's cost structure is not scaling down proportionally with revenue declines.
The company's R&D and SG&A expenses have remained relatively stable at $2.8B and $2.3B respectively in 2026Q2, while revenue has contracted significantly. This suggests management has been unable or unwilling to cut discretionary spending during the downturn, potentially to maintain competitive positioning in autonomous driving development and sales network expansion. The resulting negative operating leverage is converting what would be manageable gross profit declines into severe bottom-line losses.
Structural Margin Compression Risk
The most significant analytical challenge to Li Auto's income statement narrative is whether the current margin compression represents a temporary cyclical trough or a permanent structural shift as the company transitions from its EREV advantage.
Short-sellers would focus on the rapid deterioration from 23.5% gross margins to 11.0% as evidence that Li Auto's EREV cost advantage is eroding in the face of intense competition and potential technology commoditization. The negative operating margin of -8.6% in 2026Q2, combined with the -24.4% revenue decline flagged in recent context, suggests the company may be entering a period where it must sacrifice profitability to maintain market share—a scenario that could persist if the transition to pure BEVs proves more capital-intensive than anticipated.
Stock-Based Compensation Distorts True Profitability
Stock-based compensation of $206.7M in 2026Q2 represents a significant non-cash expense that, while lower than the $513.1M in 2024Q4, still materially impacts reported earnings quality.
The reduction in SBC from $826.6M in 2023Q4 to $206.7M in 2026Q2 suggests either improved capital discipline or potential concerns about dilution during a period of declining stock price. However, even with this reduction, SBC remains a meaningful percentage of the company's gross profit, indicating that reported net income figures may not fully reflect the true economic cost of employee compensation. Investors should monitor whether SBC trends stabilize or continue declining as a potential signal of talent retention challenges.
2024Q4 Marks Peak Performance Before Downturn
The fourth quarter of 2024 represents the clear operational inflection point, with $42.0B in revenue and $3.3B in operating income marking the peak before the subsequent deterioration.
This quarter demonstrated Li Auto's ability to achieve scale and profitability simultaneously, with 20.2% gross margins and 8.0% operating margins on substantial volume. The lasting impact of this peak is now evident in the stark contrast with current performance, as the company has been unable to maintain these levels despite its strong cash position. The inflection suggests that the competitive dynamics in China's premium EV market have fundamentally shifted, potentially requiring a strategic reassessment of Li Auto's product portfolio and cost structure.