China-based Pony AI (NASDAQ:PONY) stock gained on Tuesday after it reported its second-quarter results.
Sales of the autonomous driving technology developer grew 75.9% year-over-year (Y/Y) to $21.46 million (153.7 million Chinese yuan), mainly driven by rapid growth in Robotaxi services revenues.
Robotaxi services revenue climbed 157.8% Y/Y to $1.5 million in the quarter, primarily attributable to expanding user adoption, growing demand in tier-one cities and an increased fleet of deployed Robotaxi vehicles.
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Meanwhile, Robotruck services revenue declined 9.9% Y/Y to $9.5 million, reflecting its proactive operation optimization to focus on high-margin revenues.
Gross profit of $3.5 million increased from a loss of $41 thousand Y/Y. Gross margin was 16.1% compared to a loss of 0.3% Y/Y, driven by its focused strategy on prioritizing high-margin revenue sources within Robotaxi and Robotruck services.
The company reported a loss of 13 cents (or 0.93 Chinese yuan) per share, compared to a loss of 91 cents in the prior year’s quarter.
As of June 30, 2025, cash and cash equivalents, short-term investments, and restricted cash stood at $747.7 million.
Chairman and CEO Dr. James Peng said the quarter marked a significant milestone in Pony.ai’s large-scale production and deployment, reinforcing its leadership in the Robotaxi industry.
He said that since starting mass production two months ago, the company has produced over 200 Gen-7 Robotaxi vehicles, keeping it on track to meet the year-end goal of 1,000 vehicles.
He noted that Robotaxi revenues more than doubled, with fare-charging revenues surging over 300% Y/Y. As per Peng, the company made significant cost improvements in areas such as remote assistance and vehicle insurance, advancing toward positive unit economics.
He said that rapid scaling and operational breakthroughs in all four tier-one Chinese cities, along with expanded operations in Dubai, South Korea, and Luxembourg, positioned the company to accelerate its multi-year growth trajectory in the second half of the year.
Pony AI’s shares have risen a modest 3.7% this year, a performance likely dampened by ongoing U.S.-China tensions and a cooling electric vehicle market in China.
Price Action: PONY shares are trading higher by 4.37% to $15.53 premarket at last check Tuesday.
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