Uxin Limited (UXIN) Q4 2025 Earnings Call Transcript

Access earnings results, analyst expectations, report, slides, earnings call, and transcript.

Overview

The earnings call highlights strong financial performance with significant revenue and sales volume growth, surpassing industry benchmarks. Despite a decline in gross margin due to new store ramp-ups, management expects recovery and stabilization in 2026. The strategic expansion plan and partnerships indicate potential for continued growth. Analysts' questions were addressed clearly, reinforcing confidence in management's strategy. However, the market cap is unknown, which could affect the stock's reaction magnitude. Overall, positive sentiment is driven by the robust growth outlook and strategic initiatives.

Key Financial Performance

Retail Transaction Volume (Q4 2025) 19,160 units, representing a 37% sequential increase and a 124% increase year-over-year. The growth significantly outperformed the overall China used car market, which recorded a year-over-year growth rate of approximately 6% during the same period.

Total Retail Revenue (Q4 2025) RMB 1.129 billion, up 38% sequentially and 104% year-over-year. The increase was driven by strong growth in transaction volume, despite a decrease in average selling price (ASP).

Average Selling Price (ASP) for Retail Vehicles (Q4 2025) Decreased from RMB 65,000 in the same quarter last year to RMB 59,000 this quarter, but slightly increased from RMB 58,000 in the last quarter. The decline was due to a shift toward a more affordable inventory mix.

Wholesale Units Sold (Q4 2025) 2,474 units, up 31% sequentially and 180% year-over-year.

Wholesale Revenue (Q4 2025) RMB 38.2 million.

Total Revenue (Q4 2025) RMB 1.198 billion, representing a 36% sequential increase and a 101% year-over-year increase.

Gross Margin (Q4 2025) 6.8%, down 0.7 percentage points from 7.5% in the last quarter. The decline was primarily due to promotional activities in the new car market and the early ramp-up stages of newly opened superstores.

Operating Expenses (Q4 2025) Increased due to the initial ramp-up of new superstores, including investments in staffing and infrastructure.

Adjusted EBITDA Loss (Q4 2025) RMB 27.2 million.

Retail Transaction Volume (Full Year 2025) 51,110 units, representing a 135% year-over-year increase.

Full Year Retail Revenue (2025) RMB 3.021 billion, up 19% year-over-year.

Total Revenue (Full Year 2025) RMB 3.24 billion, an increase of 79% year-over-year.

Gross Margin (Full Year 2025) 6.7%, remaining stable compared with last year despite lower margins during the early ramp-up stages of newly opened superstores.

SG&A and R&D Expenses (Full Year 2025) RMB 450 million, representing 13.9% of total revenue, a significant improvement from 24.3% last year. This reflects meaningful progress in cost control and operating leverage.

Adjusted EBITDA Loss (Full Year 2025) RMB 57.9 million, narrowing by 28% year-over-year. Adjusted EBITDA margin was minus 1.8%, an improvement of 2.7 percentage points from last year.

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Operating Highlights

Retail transaction volume: Reached 51,110 units in 2025, up 135% year-over-year, marking the second consecutive year of over 130% growth.

Revenue: Total revenues reached RMB 3.24 billion in 2025, representing a 79% increase year-over-year.

Inventory turnover: Inventory turnover days for vehicles available for sale remained stable at approximately 30 days.

Market expansion: Opened 3 new superstores in Wuhan, Zhengzhou, and Jinan in 2025, building on existing superstores in Hefei and Xi'an. Plans to open 4 to 6 additional superstores in 2026.

Market share: Mature superstores in Xi'an and Hefei achieved over 20% market share in their respective cities.

Pricing capability: Accumulated the industry's largest set of real transaction data, enabling precise pricing models and real-time market responsiveness.

Integrated factory warehousing retail model: Built an innovative model supported by used car reconditioning factories, offering full life cycle vehicle services and scalable advantages over traditional dealers.

Customer satisfaction: Net Promoter Score reached 67, with industry-leading customer satisfaction and brand reputation.

Strategic focus: Focused on delivering better products and professional services while driving higher standards for solutions across the industry.

Growth strategy: Plans to increase inventory and sales across existing superstores and expand the nationwide network with new openings.

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Risk or Challenges

Price competition in the new car market: Intense price competition in the new car market is creating challenges for the used car industry, potentially impacting profitability and market dynamics.

Gross margin pressure: Promotional activities in the new car market and the ramp-up of newly opened superstores have led to a decline in gross margins, affecting overall profitability.

Operational expenses for new superstores: The initial ramp-up of new superstores, including investments in staffing and infrastructure, has increased operating expenses, impacting financial performance.

Seasonal softness in the used car market: The first quarter is traditionally a weak period for the used car industry due to the Chinese New Year holiday, which could affect transaction volumes and revenues.

Inventory turnover efficiency: While inventory turnover days remained stable, scaling up inventory and sales could pose challenges in maintaining efficiency.

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Guidance & Outlook

Retail transaction volume and revenue growth: In 2026, Uxin plans to achieve over 100% year-over-year growth in both retail transaction volume and revenues. This growth will be supported by the ramp-up of sales volume and inventory at existing superstores and the opening of 4 to 6 new superstores.

Superstore expansion: Uxin plans to open 4 to 6 additional superstores in 2026, further strengthening its nationwide network.

First quarter 2026 outlook: Retail transaction volume is expected to be between 16,200 and 16,500 units, representing year-over-year growth of over 110%. Total revenue is expected to be between RMB 1.05 billion and RMB 1.07 billion.

Market opportunity and strategic positioning: Uxin anticipates benefiting from the modernization of China's used car industry, which is at an early stage of development. The company aims to capitalize on the significant market opportunity by focusing on scalability, operational efficiency, and customer value.

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Shareholder Return Plan

The selected topic was not discussed during the call.

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Key Q&A

Q:The company delivered strong growth in sales volume and revenue. How should we think about gross margin going into 2026 and ASP? Could management share their view on used car pricing trends this year?

A:Gross margin declined in Q4 2025 due to the ramp-up of new superstores, which adopt competitive pricing strategies initially. It takes 6-9 months for new stores to reach mature gross margin levels. Gross margin has started to recover in Q1 2026 and is expected to exceed 7%. Retail ASP increased sequentially for two quarters, reaching RMB 59,000 in Q4 2025, and is expected to exceed RMB 61,000 in Q1 2026. Used car prices are stabilizing due to factors like rising raw material costs and reduced price competition. Retail ASP is expected to show a stable to upward trend in 2026, with revenue growth outpacing transaction volume growth.

Q:How should we think about customer acquisition channels for new superstores compared to mature stores? Are there any key differences?

A:Customer acquisition for new superstores comes from three channels: leveraging Uxin's existing brand awareness and online traffic, marketing and PR campaigns (including collaboration with local governments), and partnerships with vertical automotive platforms and media. Over time, as stores mature, customer acquisition costs decline due to increased referrals, improved service quality, and enhanced customer experience.

Q:What is the long-term store expansion potential across China, and how many stores can Uxin ultimately roll out?

A:As of the end of 2025, Uxin had 5 superstores and plans to open 4-6 more in 2026, aiming for over 10 stores by year-end. China's large used car market supports significant expansion. Cities with vehicle ownership exceeding 500,000 can support superstores with 1,000+ units of inventory. There are over 200 cities in China with potential for Uxin superstores, supporting annual retail transaction volumes of over 3 million units.

Q:Review of Unclear Management Responses

A:None of the questions were avoided or lacked clarity. All responses were detailed and addressed the questions directly.

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Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

UXIN Transcript

Uxin Limited (UXIN) Q4 2025 Earnings Call Transcript

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The earnings call summary suggests strong growth in retail transaction volume and revenue, with improved profitability and gross margins. The Q&A section reinforced management's confidence in margin sustainability and expansion plans. While there are risks related to market conditions and strategic execution, the company's strategic partnerships and expansion plans are promising. The absence of unclear responses in the Q&A indicates transparency, and the optimistic guidance supports a positive sentiment. The overall sentiment leans positive, suggesting a likely stock price increase of 2% to 8% over the next two weeks.

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The earnings call revealed strong retail transaction volume growth and revenue increase, despite challenges in the wholesale segment and ASP decline. The Q&A highlighted management's confidence in handling expansion and profitability pressures, with successful ramp-up of the Wuhan superstore and plans for further expansion. The positive sentiment is supported by strategic market presence and operational efficiencies, outweighing the short-term financial pressures and margin decline.

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