Revenue fell 31.5% to $87.4 million in 2025 and net loss widened to $95.6 million ($1.12 per share), driven primarily by antidumping duty expenses, higher litigation costs and weaker demand for electric and recreational vehicle products.
Margins and liquidity improved: Gross margin increased from 30.8% to 42.6%, Kandi generated $96.8 million in net cash from operations and ended the year with $211.9 million in cash despite declining revenue.
“Twin-engine” growth plan for 2026 focuses on North American off-road electric vehicles (UTVs, golf carts and the acquisition of Rawrr), along with battery swapping equipment and smart robotics, including CATL qualification and a three-year cooperation for heavy-duty truck swapping stations and a joint venture with HawkRobo targeting a robotics demonstration by June 2026.
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Kandi Technologies Group (NASDAQ:KNDI) used its full-year 2025 earnings call to emphasize operational and balance sheet improvements despite a sharp drop in revenue and a wider annual net loss. Management described 2025 as a “pivotal year” and outlined a dual-engine strategy for 2026 focused on North American off-road electric vehicles and new businesses in battery swapping equipment and smart robotics.
Management cites stronger margins, cash flow and liquidity
CEO Feng Chen, speaking through an interpreter, said the company has been operating amid “a challenging macro context marked by evolving geopolitics, shifting trade policies and uneven demand in our end markets,” which affected performance. Still, Chen said Kandi achieved “significant improvements in operational quality, a stronger cash flow profile and a materially healthier balance sheet.”
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Chen highlighted margin and cash flow progress, noting that gross margin improved to 42.6% in 2025 from 30.8% in 2024. He also said the company generated $96.8 million in net cash from operating activities and ended the year with $211.9 million in cash on hand. “These results reflect our commitment to high-quality earnings, more sustainable cash flows and higher returns on invested capital,” he said.
2025 financial results: lower revenue, higher net loss
Chief Financial Officer Alan Lim reported net income of $87.4 million for 2025, down 31.5% from $127.6 million in 2024. Lim attributed the decline primarily to “reduced demand for electric vehicle products in the PRC market and lower sales of crossover golf carts and other vehicle models.” It also pointed to macro and political factors, saying that “current trade uncertainties, including potential tariffs and trade restrictions, along with persistent inflation and elevated interest rates,” hurt consumer demand for higher-priced recreational vehicles and reduced sales to Kandi’s core retail customers and dealers.
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Cost of goods sold fell to $50.1 million from $88.3 million, which Lim said was mainly due to declining sales. Gross profit was $37.3 million, up from $39.3 million a year earlier. Gross margin increased from 30.8% to 42.6%; Lim said the margin improvement was “mainly due to increased sales of previously impaired inventory.”
Total operating expenses decreased 12.6% to $91.5 million from $108.1 million. Within operating expenses:
Research and development rose to $7.6 million from $5.0 million, an increase of 52.6%, which Lim attributed primarily to “the completion of research and development projects during the current period.”
Sales and marketing decreased to $16.7 million from $21.2 million, down 21.5%, driven by lower freight and commission expenses in line with lower revenues.
General and administrative decreased to $54.4 million from $57.7 million, a drop of 5.7%, which Lim said was mainly due to lower depreciation and amortization following a “material deterioration of long-term asset provision in 2024.”
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Operating losses narrowed to $57.2 million from $68.8 million. However, the net loss widened to $95.6 million from $51.0 million in 2024. Lim attributed the change mainly to higher expenses linked to anti-dumping duties and higher litigation costs compared to the previous year. Basic and diluted net loss per share was $1.12, down from $0.59 in 2024.
Dual Motor Strategy 2026: Electric Off-Road Vehicles in North America and New Businesses Growing
Chen said that after reassessing “business boundaries, growth trajectory and overall long-term direction,” the company will enter a “new growth phase” starting in 2026, based on two core drivers.
The first driver is Kandi’s North American-focused off-road electric vehicle business, which encompasses UTVs, golf carts and other off-road electric products. Chen described this segment as Kandi’s “core franchise,” supporting stable cash flows and a developed distribution network. It said “core business remained stable” in the first quarter, with progress in distribution expansion and improved sales performance by distributor. Looking ahead to 2026, Chen said Kandi is driving its North American UTV business along four dimensions: development of next-generation models, improved product experience, improved channel efficiency and strengthened supply chain capabilities.
Chen added that Kandi has set internal sales targets “significantly above historical levels” and has hired an external automotive design team “with proven mass production experience” to help design next-generation UTV products, with the stated goal of improving competitiveness in the outdoor recreation and low-carbon mobility markets.
The second engine combines battery swapping equipment and intelligent robotics. Chen characterized the battery swapping team as the company’s “most important advancement opportunity in 2026.” He said that in August 2025, the company’s subsidiary China Battery Exchange was qualified as a supplier of battery swapping equipment within CATL’s supply chain and secured its first order for battery swapping station equipment for heavy trucks. In January 2026, Chen said China Battery Exchange signed a three-year strategic cooperation agreement with a subsidiary of CATL covering mass production and delivery of battery exchange station equipment for heavy trucks. “Based on our current order visibility and production schedule, we are confident of achieving significant revenue growth in 2026,” Chen said.
Rawrr Robotics and Acquisition Milestone Goals
Chen also discussed a deal to expand Kandi’s product portfolio in North America. He said that in December 2025, the company signed an agreement to acquire Rawrr, which it described as a premium US-based electric off-road motorcycle brand. With Rawrr, Chen said Kandi aims to establish off-road electric motorcycles as a “significant new growth category” in North America by 2026. He cited potential synergies with Kandi’s distribution network, supply chain and product line, and said integration priorities include “brand alignment, channel coordination, supply chain optimization and product development,” with an emphasis on turning the acquisition into a “significant and measurable revenue contribution.”
As for smart robotics, Chen said the company aims to deploy autonomous quadruped robots in security, patrol and logistics parking environments. He said Kandi entered into a strategic partnership with HawkRobo Systems LLC to form a joint venture, KH Robotics, aimed at developing localized testing, validation and commercial operations capabilities in North America. Chen said the company expects to complete a first functional demonstration “approximately June 2026,” followed by field testing and initial pilot deployments in the second half of the year, although he refrains from offering near-term revenue guidance given the initial stage of deployment.
Chen said Kandi intends to maintain a disciplined approach to capital allocation, arguing that the company’s cash position is intended to preserve flexibility in an uncertain environment. It added that future investments, acquisitions or capacity expansion would be evaluated against benchmarks including “business progress, cash recovery cycles and risk-adjusted returns.”
About Kandi Technologies Group (NASDAQ:KNDI)
Kandi Technologies Group, Inc is a China-based manufacturer focused on the design, development and production of electric vehicles (EV), batteries and charging infrastructure. The company offers a range of small and local electric vehicles (NEVs) under its own brand and supplies key components, including battery packs and electric propulsion systems, to automotive partners. In addition to vehicle manufacturing, Kandi is engaged in the development and operation of charging stations and battery swapping facilities intended to support the adoption of electric vehicles in urban environments.
Founded in 2002 and headquartered in Jinhua, Zhejiang Province, Kandi began operations by producing all-terrain vehicles (ATVs) and off-road recreational products.
The article “Highlights from Kandi Technologies Group’s Q4 earnings calls” was originally published by MarketBeat.
