The Q1 miss and sharply lower Q2 guidance signal accelerating margin erosion and demand weakness. Monitor April delivery data (34,085 vehicles) and the all-new Li L9 launch for signs of a product cycle inflection. The large convertible note put (US$716.8M) indicates bondholder concern about credit quality. The share repurchase program provides a modest floor but cannot offset fundamental deterioration.
Price Chart
Executive Summary
Li Auto reported Q1 2026 results with total revenues of RMB23.0 billion (US$3.3 billion), down 11.4% YoY, and a net loss of RMB2.3 billion versus net income of RMB646.6 million a year ago. Vehicle margin collapsed to 6.1% from 19.8% YoY, and the company guided Q2 2026 deliveries down 10-14.5% YoY and revenues down 16-20.2% YoY, reflecting severe margin compression and a deteriorating demand outlook.
Key Facts
- Total revenues of RMB23.0 billion, down 11.4% YoY
- Vehicle margin fell to 6.1% from 19.8% YoY (down 13.7 percentage points)
- Net loss of RMB2.3 billion vs net income of RMB646.6 million YoY
- Operating loss of RMB3.0 billion vs operating income of RMB271.7 million YoY
- Free cash flow negative RMB7.4 billion vs negative RMB2.5 billion YoY
- Q2 2026 guidance: deliveries 95,000-100,000 (down 10-14.5% YoY), revenues RMB24.1-25.4 billion (down 16-20.2% YoY)
- US$716.8 million of convertible notes put back to the company in April 2026, leaving US$145.7 million outstanding
- US$1.0 billion share repurchase program: US$139.7 million deployed as of May 26, 2026
Financial Impact
Revenue decline of 11.4% YoY, gross profit collapse of 66% YoY, net income swing of -RMB2.9 billion YoY, vehicle margin compression of 13.7 percentage points
Risk Factors
- Further margin compression from product mix shift and pricing pressure in China NEV market
- Q2 guidance implies continued YoY delivery decline, suggesting demand headwinds persist
- Large convertible note put may signal credit stress and limit financial flexibility
- Negative free cash flow of RMB7.4 billion in Q1 alone raises liquidity concerns despite RMB94.3 billion cash position
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-067465 |
| Document: tm2615887d1_6k.htm | 0001104659-26-067465 |
| Document: 0001104659-26-067465-index-headers.html | 0001104659-26-067465 |
| Document: 0001104659-26-067465-index.html | 0001104659-26-067465 |
| Document: 0001104659-26-067465.txt | 0001104659-26-067465 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 8, 2026 20w ago | 6-K | $9.49 $5.90 | ▼ −37.83% | ▼ −41.15% | $5.90 (−37.83%) |
Jun 1, 2026 21w ago | 6-K | $9.49 $5.90 | ▼ −37.83% | ▼ −39.06% | $5.90 (−37.83%) |
Jun 1, 2026 21w ago | 6-K | $9.49 $5.90 | ▼ −37.83% | ▼ −39.06% | $5.90 (−37.83%) |
May 29, 2026 21w ago | 6-K | $9.49 $5.90 | ▼ −37.83% | ▼ −39.01% | $5.90 (−37.83%) |
May 28, 2026 21w ago | 6-K | $9.49 $5.90 | ▲ +37.83% | ▲ +39.01% | $5.90 (+37.83%) |
May 26, 2026 22w ago | 6-K | $9.49 $5.90 | ▼ −37.83% | ▼ −40.55% | $5.90 (−37.83%) |
May 15, 2026 23w ago | 6-K | $9.49 $5.90 | ▼ −37.83% | ▼ −42.34% | $5.90 (−37.83%) |
May 12, 2026 24w ago | 6-K | $9.49 $9.49 | · 0.00% | ▼ −4.38% | $5.90 (−37.83%) |
May 11, 2026 24w ago | 6-K | $9.49 $9.49 | · 0.00% | ▼ −4.39% | $5.90 (−37.83%) |
Apr 27, 2026 26w ago | 6-K | $9.49 $9.49 | · 0.00% | ▼ −4.78% | $5.90 (−37.83%) |
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