WeRide Inc. Reports Record 2025 Revenue Amid Continued Losses, Investor Sentiment Remains Optimistic

WeRide Inc. (Nasdaq: WRD), the Chinese‑origin autonomous‑vehicle startup, announced that its 2025 fiscal year revenue hit a new high of RMB 684.6 million (US$ 97.9 million), an increase of 90 % compared with the prior year. The company’s fourth‑quarter earnings also marked a record, with revenue of RMB 314.0 million, up 123 % year‑over‑year. The jump is largely attributed to the rapid expansion of its robotaxi service worldwide.

Revenue Growth Driven by Global Robotaxi Rollout

The company’s robotaxi business, which is delivered through a partnership‑based model, expanded into several new markets during 2025. This expansion is reflected in the steep rise in operating revenue, with the fourth‑quarter figure reaching a three‑quarter high. Gross profit for the year was RMB 206.8 million, translating to a margin of 30.2 %. The margin improvement suggests that the company is benefiting from economies of scale as it scales its fleet and reduces unit costs.

Losses Persist, but Shrinking Margin

Despite the revenue surge, WeRide remains unprofitable. Operating loss for 2025 was reported as US$ 12.5 million (converted to HKD at the prevailing exchange rate, roughly HK$ 97 million). Net loss widened to US$ 14.3 million, indicating that fixed costs, R&D expenditures, and market‑entry spend continue to weigh heavily on the bottom line. Analysts note that the company’s loss per share is expected to improve, but the current trend shows a loss of HK$ 0.26 per share for the latest quarter, down from HK$ 0.78 the year‑ago quarter. This contraction signals that the company is on a path to narrower losses, but profitability remains distant.

Analyst Coverage and Forward Guidance

Morgan Stanley has reaffirmed an “Overweight” rating on WeRide, setting a target price of HK$ 14.70 (approximately US$ 1.85) per share. Bank of America upgraded the price target in response to the company’s overseas expansion, citing the robust demand for robotaxi services in Asia‑Pacific and Latin America. The consensus of analysts is that the firm’s growth trajectory is sustainable as long as it can maintain its gross margin and reduce operating leverage.

The company also announced that it will host a quarterly earnings call on 23 March 2026 to present its financial results for the quarter ending 31 December 2025. The call will feature key executives, including CEO Xu Han and CFO Xuan Li, alongside research representatives from BofA Securities and Morgan Stanley.

Market Reaction and Investor Sentiment

Following the announcement, WeRide’s stock traded at HK$ 17.41 on 22 March 2026, below its 52‑week high of HK$ 25.98 (recorded on 6 January 2026) but above its 52‑week low of HK$ 7.23 (recorded on 22 June 2025). The price movement reflects a cautious optimism: investors appreciate the revenue upside while remaining wary of the ongoing losses and the capital intensity of the autonomous‑vehicle sector.

A recent list of “Best Stocks to Buy This Week” compiled by TipRanks highlighted WeRide alongside other high‑growth names such as Broadcom and Archer Aviation. The inclusion signals that market participants view the company’s trajectory favorably, especially given its rapid expansion and improving operational metrics.

Conclusion

WeRide Inc. has demonstrated that its robotaxi business can scale quickly, achieving record revenue and improving gross margin. Nonetheless, the company’s path to profitability remains long, with losses still significant. Analyst sentiment is cautiously bullish, as evidenced by the Overweight ratings and raised price targets from major banks. Investors who are comfortable with high‑growth, high‑risk profiles may find the current valuation attractive, particularly as the firm continues to expand its global footprint and refine its cost structure.