Pony AI (PONY) Q2 2026 Earnings Call Transcript

Image source: The Motley Fool. DATE Tuesday, Aug. 18, 2026 at 8:00 a.m. ET CALL PARTICIPANTS Head of Capital Markets and Investor Relations - George Shao Chairman of the Board and Chief Executive Officer - Dr. James Peng Chief Technology Officer - Dr. Tiancheng Lou Chief Financial Officer - Dr. Leo Wang TAKEAWAYS Total Revenue -- $36.2 million, an increase of 68.8% year over year, driven by significant growth in the Robotaxi and Robotruck service segments. Robotaxi Services Revenue -- $12.1 million, representing a 691.2% increase from $1.5 million last year, reflecting the expansion of commercial operations and Gen-7 vehicle deployment. Fare-Charging Revenue -- growth of 849.3% year over year, accelerating from 395% growth reported in the first quarter of 2026. Robotruck Services Revenue -- $13.3 million, a 40.0% increase from $9.5 million last year, supported by higher freight transportation volume with Sinotrans. Intelligent Solutions Revenue -- $10.8 million, up 4.0% from $10.4 million last year, with growth moderated by autonomous domain controller delivery fluctuations. Robotaxi Fleet Expansion -- 1,975 vehicles as of June 30, 2026, with a year-end target to exceed 3,500 vehicles. Registered User Base -- more than 1.5 million registered users in China, driven by broader operational coverage and increased network density in tier-one cities. International Vehicle Commitments -- over 4,000 robotaxis, including more than 2,000 vehicles contracted for five European cities through a partnership with Uber. Gross Margin -- 17.5%, an improvement from 16.1% in the prior year, resulting from a higher revenue mix of higher-margin Robotaxi services. Non-GAAP Operating Expenses -- $63.0 million, representing 9.6% year-over-year growth, as research and development efficiency gains offset business expansion costs. Operating Loss -- $65.7 million, a 7.3% increase compared to $61.3 million last year. Operating Loss Margin -- negative 181.5%, an improvement from negative 285.6% last year, reflecting increased operating leverage as the business scales. Net Loss -- $45.4 million, representing a 14.9% narrowing from $53.3 million last year. Cash and Short-Term Investments -- $1.39 billion as of June 30, 2026, providing the financial resources to support full-year expansion targets. Quarterly Capital Expenditures -- $32.2 million, compared to $9.6 million last year, primarily used for Gen-7 fleet production and data center capacity. H1 Intelligent Solutions Revenue -- $26.3 million, representing 76.8% growth year over year, due to autonomous domain controller shipments for logistics and robotics. Guangzhou Service Area -- expansion of more than 300 square kilometers since the beginning of 2026, covering four major districts and a population of over 7 million people. Robotaxi Revenue Guidance -- management expects full-year 2026 revenue to exceed 3.5 times the 2025 level. Research and Development Expenses -- $56.2 million, up 14.7% from $49.0 million last year, driven by higher headcount for large-scale deployment and vehicle validation. Free Cash Flows -- negative $76.2 million for the quarter, compared to negative $35.0 million last year, reflecting strategic inventory and prepayment investments. Need a quote from a Motley Fool analyst? Email [[email protected]](fool.com) RISKS CFO Wang stated, "Other expenses, net was US$23.4 million... primarily attributable to a one-off impairment provision of US$25.0 million recognized on certain prepayments for long-term investments, which were determined to be unrecoverable," concerning financial losses from strategic business adjustments. Lou stated, "Proving safety takes time and mileage, and you cannot just shortcut by dumping thousands of cars on the street overnight," regarding the technical and regulatory difficulty of scaling autonomous fleets safely. SUMMARY Pony AI Inc.(PONY-0.93%) reported growth in its Robotaxi and Robotruck segments while expanding its international footprint through an asset-light joint deployment model. Management stated that the company achieved record quarterly revenue and improved operating loss margins through increased research and development efficiency. The company highlighted the launch of PonyWorld 2.0 to accelerate city-level expansion and reported achieving positive unit economics in the Guangzhou and Shenzhen markets. Management reported securing initial vehicle commitments from international partners including Uber and Bolt as it moves toward a target of operating in more than 20 cities by the end of 2026. The company also noted the mass production of its fourth-generation robotrucks and the introduction of a new autonomous light truck platform for urban logistics. Management stated that unit economics reached breakeven levels in Guangzhou and Shenzhen during the second quarter. Chairman Peng noted that the joint deployment model allows partners to fund the fleet, which "fundamentally enables faster scaling, lower unit costs and superior capital efficiency for our fleet expansion." The company reported expanding its robotaxi services into the city center of Guangzhou, covering an additional 300 square kilometers and a population of over 7 million people. Chief Technology Officer Lou stated that "PonyWorld 2.0 catches differences automatically" to facilitate expansion into international cities like Zagreb with minimal engineering resources. The company reported the commencement of commercial driverless robotruck operations at Shenzhen's Mawan Port in collaboration with China Merchants Port. Chairman Peng stated, "We recently expanded our partnership with Uber to target at premium markets," establishing a highly repeatable growth engine for international expansion. The company initiated a Level 4 light truck program with CATL, which has secured partnerships with SF Express and China Post. INDUSTRY GLOSSARY Level 4 (L4): High driving automation where the vehicle can perform all driving tasks under specific conditions without human intervention. Robotaxi: An autonomous vehicle that operates as a ride-sharing or taxi service without a human driver. Robotruck: An autonomous heavy-duty truck used for long-haul freight or port logistics. Seventh Generation (Gen-7): The latest iteration of the company's autonomous vehicle hardware and software integration. Virtual Driver: The company's proprietary autonomous driving software stack. PonyWorld 2.0: An upgraded simulation and training system used to validate autonomous driving software through large-scale AI-generated scenarios. Joint Deployment Model (JDM): A partnership framework where third parties fund and operate fleets using the company's autonomous technology. Unit Economics (UE): The direct revenues and costs associated with a single unit of production, in this case, an individual vehicle. Operational Design Domain (ODD): The specific conditions under which an autonomous driving system is designed to function safely. Bill of Materials (BOM): A comprehensive list of parts, items, assemblies, and other materials required to create a product. Full Conference Call Transcript Operator: Ladies and gentlemen, thank you for standing by, and welcome to Pony AI Inc.'s Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded, and a webcast replay will be available on the company's Investor Relations website at ir.pony.ai. I will now turn the call over to your host, George Shao, Head of Capital Markets and Investor Relations at Pony.ai. Please go ahead, George. George Shao: Thank you, operator, and hello, everyone. We appreciate you joining us today for Pony AI's Second Quarter 2026 Earnings Call. Earlier today, we issued a press release with our financial and operating metrics, which is available on our IR website. An earnings presentation, which we will refer to during this conference call can also be accessed and downloaded on our Investo