Q2 2026 Hesai Group Earnings Call Transcript
Key Points
- Hesai Group (HSAI) reported strong Q2 2026 results with total net revenues of RMB861 million, up 22% year-over-year, and GAAP net income of RMB71 million, marking the fifth consecutive quarter of profitability.
- The company is expanding beyond lidar into a full-stack robotics infrastructure platform with three layers (see, understand, act), and its Strategic Growth Initiatives (SGI) segment, including robotic actuation modules and Kosmo, is gaining early commercial traction, with SGI revenue guidance raised to RMB200-300 million for 2026.
- Hesai Group (HSAI) continues to lead the ADAS lidar market, holding a 44% share in China's long-range ADAS lidar market in June 2026 and securing new design wins with major automakers like Great Wall Motor, Volkswagen, and GAC Toyota.
- Robotics lidar shipments nearly tripled year-over-year in Q2 2026, driven by strong demand from humanoid and quadruped robots, with expectations for another 2-3x increase in full-year 2026 shipments.
- The company's new products, including the Picasso SoC (full-color 6D lidar) and Kosmo spatial intelligence platform, are advancing rapidly, with Kosmo already securing initial orders within seven days of prototype delivery and expected to contribute revenue in Q3 2026.
- Hesai Group (HSAI) faces increasing competition in the ADAS lidar market, with customers like Xiaomi adding other suppliers (e.g., RoboSense) for certain models, which could pressure market share and pricing.
- The SGI segment, while growing, is still loss-making, with an operating loss of RMB64 million in Q2 2026, and the company expects it to only break even in 2027, indicating ongoing investment needs.
- The company's gross margin remained at 40% in Q2 2026, and management expects it to stay around this level for the full year, suggesting limited near-term margin expansion despite cost reduction efforts.
- There are potential regulatory risks, such as the FCC's recent actions on foreign-produced robotics devices, which could impact the robotics lidar business, although management currently sees no material direct impact.
- The company's reliance on a few key customers, particularly Sharpa for actuation modules, poses concentration risk, and the proposed increase in the annual cap for transactions with Sharpa to RMB300 million highlights this dependency.
Hello, ladies and gentlemen. Thank you for standing by. Welcome to the Hesai Group's second quarter 2026 earnings conference call. (Operator Instructions) Please note that today's conference call is being recorded.
I will now turn the call over to our first speaker today, Yuanting Shi, the company's Head of Capital Markets. Please go ahead.
Thank you, operator. Hello, everyone. Thank you for joining Hesai Group's second quarter 2026 earnings conference call. Our earnings release is now available on our IR website at investor.hesaitech.com, as well as via Newswire services.
Today, you will hear from our CEO, Dr. David Li, who will provide an overview of our recent updates. Next, our CFO, Mr. Andrew Fan, will address our financial results before we open the call for questions.
Before we continue, I refer you to the Safe Harbor statement in our earnings press release, which applies to this call as we will make forward-looking statements.
Please also note that the company
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