Pony AI Inc. American Depositary Shares Q4 FY2025 earnings call

1. 2025 was an amazing year with multiple milestones: robo-taxi revenues surged, Gen 7 robo-taxis in mass production and commercial deployment, fleet surpassed 1400 units, expanded footprint with over 1 million users in China, achieved UE breakeven in Guangzhou and Shenzhen. 2. 2026 to be a year of hyper growth with five pillars: fully driverless technology, policy support, mass production, large-scale operation, ecosystem maturity. 3. Executing dual-engine strategy for China and global markets, aiming to deploy robo-taxis in over 20 global cities by year end, partnering with industry leaders. 4. Robotruck made commercial breakthroughs, targeting mass production and deployment in 2026. 5. Licensing and applications business delivered robust growth.

Robo-taxi segment: Q4 2025 revenues surged 160% year-over-year to $6.7 million, full year 2025 revenues reached $16.6 million, growing over 129%. Fare charging revenues in Q4 skyrocketed by 501%, full year growth nearly 400%. Robotruck: Made technological leaps, introduced Gen 4 robot truck in 2025, targeting mass production and deployment in 2026. Licensing and applications: Autonomous domain controllers (ADC) sales reached six-fold in 2025, expanding application scenarios.

1. Confident to triple robo-taxi revenues in 2026. 2. Plan to grow fleet to over 3,000 units by end of 2026. 3. Deploy robo-taxis in more than 20 global cities by year end. 4. Expect accelerated growth in Robotruck revenues from second half of 2026. 5. Anticipate continuous investments in AI technology and talent for competitive edge.

No specific detailed risks discussed in the provided transcript regarding operational failures, but general market and regulatory risks may exist.

Q: Since you already have a target over 3,000 robot taxi fleet by the end of 2026, can you share your production ramp up and the deployment plan Now that you have achieved the UE break-even in Shenzhen and Guangzhou, what do you think about the future UE trajectory?

A: James responded on production ramp up focusing on producing Toyota BZ4X, Beijing Auto, and Guangzhou Auto vehicles to hit over 3,000 units by year end, deploying deeper into downtown hubs and new cities, expecting better UE in existing and overseas markets with joint deployment model.

Q: Regarding Pony's expansion strategy to enter over 20 cities this year, could you share details about which cities you plan to enter, and what's the split between China and the overseas market, and separately with geopolitical tensions escalating in Middle East, are you seeing any challenges or headwinds to your operation?

A: James responded that nearly half of 20 cities target to be overseas, already launched in Zagreb, Doha, Dubai, Singapore, exploring more European cities and doubling down in Asia, no material impact from Middle East geopolitical tensions so far.

Q: On technology, how does the technology generalize to new environments where the conditions could be very different from China, and what role does the world model play in accelerating our expansion plan?

A: Tiancheng responded that driving challenges are similar across different cities, our technology has been validated in demanding conditions in China, world model enables modeling interaction and negotiation dynamics, generating simulated scenarios to improve driving policy.

Q: About the joint deployment model, for vehicles, how do you plan to add this year? Can you elaborate a bit more on how you will apply the joint deployment model? And how should we think about the benefit of this model for the company and our value chain partners?

A: Liu responded that nearly half of new vehicles in 2026 will come through joint deployment model, partner funds vehicle CapEx and taps into value chain, win-win for both, creating additional revenue stream.

Q: Regarding the 1,000 local taxis already contracted with Toyota, how are you planning to deploy these vehicles? And do you expect any future scaling up or strategic initiatives with Toyota down the road?

A: James responded that collaboration with Toyota is deep and strategic, jointly developing vehicles, adding 2,000-plus new vehicles in 2026, nearly half being Toyota BZ4X Gen 7, joint deployment model adopted.

Q: How do management view the impact of NVIDIA launching their open source model for smart driving as a level 4 during this year?

A: Tiancheng responded that open source model is start point, big gap between model and commercial deployed fleet, our strength is full stack in-house development and real L4 deployment at scale.

Q: How do you plan to allocate your Hong Kong IPO proceeds? And given your accelerated development targets, Do you expect any upward revisions to the 2026 cost and expenditures?

A: Leo responded that ample cash reserve from IPO, will invest in business development, operation, marketing, fleet expansion, AI talents and infrastructure, strategic increase in investment for long-term market leadership.

Q: Regarding the raw materials installation such as memories. So could you share with me how does the inflation impact your production plan and product items?

A: Leo responded that impact on vehicle and ADK BOM cost is very limited, proactive supply chain strategy secured memory supply, confident to support 2026 Robotaxi production target, on track to reduce ADK BOM costs 20% in 2026.