Hesai Group’s Q3 Growth Overshadowed by Margin Concerns, Stock Drops 9%
Hesai Group (NASDAQ: HSAI), a leader in lidar technology, reported robust Q3 2025 results with net revenues soaring 47% year-over-year to RMB795 million (US$112 million). Shipments surged to 441,000 units—nearly triple last year's volume—as demand for ADAS and robotics solutions accelerated. The company crossed one million units in annual production for the first time, signaling scaling capabilities.
Yet investor enthusiasm waned as gross margins contracted, triggering a 9% stock decline. The market's reaction underscores the tension between top-line growth and profitability in the competitive lidar sector. While Hesai's technology adoption is expanding globally, margin pressures reveal the challenges of balancing R&D intensity with commercial execution.
