Pony AI swings to profit, plans robotaxi expansion to 20 cities with Uber partnership

Pony AI Achieves First Profitable Quarter Amid Robotaxi Revenue Surge

Pony AI delivered its first profitable quarter ever, posting net income of $75.5 million in the three months ended December, though the windfall came primarily from an early investment rather than its core robotaxi business1

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. The full-year loss narrowed by 72% to $76.8 million, while revenue climbed 20% to $90 million1

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. A Pony AI unit's early investment in Chinese chip designer Moore Threads, whose shares surged as much as 425% when it went public in December, contributed significantly to the earnings beat1

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The company reported fourth-quarter adjusted earnings per share of $0.12, exceeding analyst expectations, with revenue totaling $29.1 million, topping estimates of $23.9 million3

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. Shares rose 2.81% in pre-market trading following the announcement3

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. The robotaxi revenue surge was particularly striking, with robotaxi services revenue jumping 160% year-over-year to $6.7 million in the fourth quarter, while fare-charging revenues soared over 500% year-over-year2

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Pony AI Plans Aggressive Global Expansion to 20+ Cities

Pony AI has set an ambitious goal of deploying robotaxis with partners in more than 20 cities worldwide in 2026, with plans to grow its global fleet to over 3,000 vehicles1

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. Nearly half of this robotaxi fleet expansion will target overseas markets as commercialization accelerates2

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. The company's fleet already expanded dramatically to 1,446 vehicles from fewer than 300 a year ago, while total users in China approached one million2

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"We are making front-loaded investment to drive our commercialization at a quicker pace," said Chief Financial Officer Leo Wang1

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. The adjusted net loss widened to $49 million from $41.3 million in the prior-year quarter, reflecting these front-loaded investments to accelerate commercialization3

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. However, the company maintains a strong cash position with $1.5 billion in cash and equivalents as of December 31, 20253

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Unit Economics Breakeven Validates Business Model in China

Pony AI achieved unit economics breakeven on a per-vehicle basis in Guangzhou and Shenzhen after launching its Gen-7 autonomous driving system robotaxi model1

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. The company reached consecutive unit economics breakeven in these tier-one Chinese cities within just four months of launching its seventh-generation robotaxi3

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. On March 22, 2026, daily net revenue per Gen-7 vehicle reached an all-time high of RMB394 with 25 orders per vehicle in Shenzhen3

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"2025 marked an amazing year for Pony.ai," said Dr. James Peng, Chairman and CEO. "We realized scaling-up in top-line, Robotaxi fleet size, operational footprint and user base, while validating our business model by achieving unit economics breakeven in multiple tier-one cities in China"3

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. The technology firm plans to replicate this business model globally and expand to more cities in China1

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Launch in Zagreb, Croatia Marks Europe's First Commercial Robotaxi Service

Pony AI, Uber, and Verne have partnered to launch Europe's first commercial robotaxi service, starting soon in Zagreb, Croatia, making it likely to be the first European city to have a fare-charging self-driving cab service1

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. On-road testing is already underway in Zagreb2

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. The Uber partnership combines Pony AI's autonomous driving system, Uber's ride-hailing platform, and Verne's fleet operations to scale the service2

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Verne will own and operate the fleet, while Uber will integrate robotaxis into its network, with Uber also planning to invest in Verne to support future expansion2

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. Testing is being conducted using Pony AI's Gen-7 system on Arcfox Alpha T5 vehicles, with preparations for fare-based rides in progress2

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. The partners aim to expand into additional European cities and grow the fleet size to thousands of vehicles over time. Pony AI is also conducting trials in Luxembourg, while Uber and Baidu Inc. are testing in London1

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Global Robotaxi Race Intensifies as Competition Heats Up

The global robotaxi race is heating up, with players in China and the US leading deployment1

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. Alphabet Inc.'s Waymo has expanded to 10 cities in America, while Chinese companies such as Pony AI, Weride Inc. and Baidu Inc.'s Apollo Go are working with partners such as Uber Technologies Co. and Lyft Inc. in markets such as the Middle East and the UK1

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"The foundation we have established in China will enable us to replicate this model in overseas market and build dual growth engines to support our next phase of accelerated growth," said Chief Executive Officer James Peng1

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. The company has expanded operations to Croatia, Hangzhou, and Changsha, and is targeting deployment in more than 20 cities globally by year-end3

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. Stock gain momentum continued with analyst consensus carrying a Buy Rating with an average price target of $22.362

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