NEWS WRAP: Hesai hits 2025 profit target one quarter ahead of schedule

The global leader in LiDAR solutions reported a record 256 million yuan profit in the third quarter, as its revenue and shipments grew significantly during the period

By Teri Yu

Hesai Group (HSAI.US; 2525.HK) on Tuesday reported a record profit in the third quarter, lifting it past its profit target for all 2025 one quarter ahead of schedule on strong gains for its industry-leading light detection and ranging (LiDAR) technology. The company’s quarterly net income totaled 256 million yuan ($36 million), bringing its profit to 283 million yuan for the first nine months of this year.

Following the stronger-than-expected profit, Hesai raised its full-year net income guidance to between 350 million yuan and 450 million yuan.

Hesai’s third-quarter revenue jumped 47% year-on-year to 795 million yuan, driven by “robust shipments and growing LiDAR adoption across both advanced driver-assistance system (ADAS) and robotics,” it said, especially as ADAS rapidly becomes a standard feature in many cars.

The company has been cementing its leadership in long-range LiDAR for seven straight months, taking 46% of the market in August. That puts it 1.5 times and 2.4 times ahead of the second and third largest players, respectively, according to industry tracker Gasgoo.

Hesai secured key design wins in the quarter from both of its top ADAS customers across all their 2026 models, said co-founder and CEO Dr. Yifan David Li. “We are excited to have recently signed new LiDAR supply agreements with leading global robotaxi and robotruck players, including Pony.ai, Hello Inc., JD Logistics, Motional, and others across North America, Asia and Europe,” Li added.

Meanwhile, the industry’s shift toward multi-LiDAR setups for Level 3 (L3) driving, driven by essential safety redundancy requirements and new regulations, is creating powerful tailwinds for product makers. In the third quarter, the company’s high-end ETX lidar, featuring the world’s longest detection range, secured another design win with a top 3 NEV automaker in China, paired with multiple FTX blind-spot LiDARs. Mass production is slated for late 2026 or early 2027. Each L3 vehicle is now expected to adopt three to six LiDARs, worth approximately $500 to $1,000 per car, expanding Hesai’s addressable market.

Hesai’s total LiDAR shipments during the quarter grew 228.9% year-on-year to 441,398 units with ADAS LiDAR shipments nearly tripling to 380,759 units. The company’s robotics LiDAR shipments jumped almost 14 times to reach 60,639 units. Hesai is also the first LiDAR company globally to surpass 1 million units in annual production.

The company’s gross margin for the quarter stood at 42%, while its operating expenses declined 23% year-on-year.

Established in Silicon Valley in 2014, Hesai is considered a leader in the market for high-end LiDAR products. It listed on the Nasdaq in February 2023, and raised $614 million through a second listing on the Hong Kong Stock Exchange this September.

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