WeRide Inc. Q1 FY2026 earnings call

• Technology Development

  • Launched WeRide Genesis, a self-developed general-purpose simulation world model that supports large-scale closed-loop AI training and validation, improving efficiency by thousands of times compared to traditional road testing and cutting dependence on large real-world testing fleets. Genesis supports both L2 ADAS and L4 autonomous driving applications, enabling WeRide to remain the only company with scaled commercialization of both L4 and mass production L2 vehicles.
  • Released WRD 3.0, a one-stage end-to-end ADAS solution powered by L4 technology that now supports multi-chip compatibility across NVIDIA, Qualcomm, and SiEngine platforms, and has secured production design wins for nearly 30 vehicle models with ongoing mass production.
  • The Chery Exceed Stereo model equipped with WRD 3.0 won four consecutive championships at the China Urban Intelligent Driving Competition, a new historic record.

• Robotaxi Commercialization

  • Global total robotaxi fleet reached ~1,300 vehicles by end of April 2026 (one of the largest globally), with ~1,000 vehicles in China and ~300 vehicles in international markets. Total L4 autonomous fleet (including robovans and robobuses) reached ~2,800 units, deployed or tested in 12 countries and over 40 cities worldwide.
  • In China, Guangzhou service area expanded 97% from end-2025; Q1 average daily orders per domestic vehicle hit 17 trips (peak 28 trips), with registered users doubling annually.
  • In the Middle East, launched the first fully driverless commercial robotaxi service in Dubai on the Uber platform, with service covering ~70% of Abu Dhabi's core area, and remains on track to deploy 1,200 robotaxis across Abu Dhabi, Dubai, and Riyadh by 2027.
  • In Singapore, launched the country's first public autonomous ride service with Grab in Punggol; in Europe, entered Slovakia (fourth European market) and progresses toward fully driverless commercial operation in Zurich.

• Partnerships

  • Extended collaboration with Lenovo for autonomous driving computing platforms, targeting joint deployment of 200,000 autonomous vehicles globally by 2030.
  • Partnered with Geely Farazan to deliver 2,000 purpose-built Robotaxi GXRs in 2026.
  • Holds ongoing partnerships with Uber, Grab, local European public transport operators, and multiple leading global OEMs.

• Financial Position

  • As of March 31, 2026, total cash reserves reached RMB 6.22 billion, providing sufficient capital to support ongoing growth and strategic initiatives. Under a $100 million authorized share repurchase program, the company repurchased ~$61.4 million in shares as of May 12, 2026.

WeRide's total Q1 2026 revenue was RMB 114 million, a 58% year-over-year increase. Product revenue, driven by increased Robotaxi and L4 vehicle deployment, rose 116% year-over-year to RMB 20 million, accounting for ~17.5% of total revenue. Service revenue increased 49% year-over-year to RMB 94 million, accounting for ~82.5% of total revenue. Group-level gross profit increased 56% to RMB 40 million, with a gross margin of approximately 35%. Total operating expense was RMB 469 million, of which R&D expense accounted for 77%: R&D expense increased 12% to RMB 363 million (16% increase to RMB 360 million excluding share-based compensation). Administrative expense decreased 33% to RMB 83 million (17% decrease to RMB 61 million excluding share-based compensation). Selling expense increased 63% to RMB 23 million (81% increase to RMB 22 million excluding share-based compensation). Reported net loss was stable at RMB 369 million; non-IFRS net loss increased 11% to RMB 326 million. International revenue accounted for approximately one-third of total group revenue in 2025, and the Middle East subsidiary achieved net profitability in 2025.

• The company remains on track to deploy 2,600 robotaxis worldwide by the end of 2026, the first milestone toward the long-term target of deploying tens of thousands of robotaxis globally by 2030, aligned with the joint Lenovo target of 200,000 global autonomous vehicles by 2030.
• International revenue is expected to grow faster than domestic revenue in 2026 and contribute a larger share of total group revenue, with the company on track to hit full-year 2026 revenue targets.
• Europe remains a key expansion focus in 2026, with additional deployment announcements expected in the near term. WRD 3.0 ADAS solutions are expected to launch on exported Chinese vehicle models in international markets in 2027.
• Long-term, outside China WeRide uses an established asset-light business model, and China is expected to transition to this model as utilization improves and revenue scales.

• Short-term softness in robotaxi utilization in the Middle East due to regional geopolitical tensions.
• China implemented a temporary halt on new autonomous driving vehicle approvals after a recent industry safety incident, though WeRide's existing operations remain unaffected.
• Achieving the required system robustness for safe L4 driverless operation takes multi-year real-world operational experience, and there is risk of market exit or safety incidents for less experienced entrants.
• Early-stage deployment in new markets incurs upfront homologation and localization costs that temporarily increase per-vehicle costs, though these are amortized as local deployment scales.

Q: Is WeRide on track for 2026 robotaxi expansion, and how do you see overseas business growth drivers, profitability, and contribution timeline amid growing global competition? / A: WeRide remains fully on track for its 2026 expansion roadmap, with 1,300 global robotaxi deployed by end of April 2026. It is the only provider of fully driverless commercial robotaxi hailing outside the U.S. and China, and holds first-mover regulatory and operational advantage with 8 international operating permits. In 2025, international revenue already made up one-third of total revenue, and the Middle East subsidiary was already net profitable. In 2026-2027, international revenue will grow faster, contribute a larger share of group revenue, and benefit from structurally stronger margins. The company selectively expands into new markets that can support long-term scalable, commercially viable operations with clear paths to thousand-vehicle deployment. Europe is a key 2026 focus, with additional deployment updates coming soon.

Q: How will China's temporary halt on new self-driving approvals impact WeRide, and what is the company's stance on the LiDAR/HDMAP vs camera-only autonomous driving technology debate? / A: Management views the approval halt as a short-term regulatory safety adjustment, not a structural industry change. WeRide has an excellent safety record, and has received confirmation that both central and local Chinese governments remain strongly supportive of the company, with its existing operations unaffected and order growth continuing. For the technology debate, WeRide uses a combined multi-sensor, redundant approach that blends LiDAR/HDMAP (critical for safe, reliable L4 robotaxi at the current stage) with the strengths of camera-only, world model-based approaches from Tesla. Leveraging the Genesis simulation platform, WeRide can flexibly combine both approaches to address dynamic road changes and maintain map freshness, a unique capability matched to its dual L2/L4 commercial footprint.

Q: What is the strategic balance between Chinese and international operations, given tighter domestic regulatory scrutiny and stronger international unit economics? / A: Both China and international markets are strategically important to WeRide. In the near to medium term, many international markets offer clearer, faster paths to commercially attractive robotaxi unit economics due to favorable pricing, partnerships, and regulations, and demonstrating early profitability is critical for building self-sustaining growth. WeRide built its international footprint starting in 2021, giving it hard-to-replicate global deployment and regulatory expertise. China remains a key long-term core market as the company's home, with unmatched market size and ecosystem. A global footprint creates a flywheel effect: more cross-market deployment delivers more data to improve performance and build regulatory trust, accelerating further expansion and commercialization.

Q: What is the current status of Uber's shareholding, and what is WeRide's go-to-market model across different regions? / A: Uber holds over 5% of WeRide as a strategic shareholder and key partner, a strong endorsement of WeRide's technology and commercial strategy. WeRide already deploys with Uber in more non-U.S. cities than any other autonomous driving company, and will expand to additional markets with Uber in 2026. WeRide uses a flexible, localized go-to-market model: it operates its own app in China alongside third-party aggregators, partners with Grab in Southeast Asia, and works with local platforms and public transport operators in Europe. Outside China, it uses an established asset-light model where it focuses on software and operations, leveraging local capital for vehicle ownership, and expects China will transition to this model long-term as utilization improves.