How did Uxin's revenue and expenses shift in Q2 2025 compared to previous quarters?

Uxin's financial performance in Q2 2025 showed notable improvements compared to the previous quarters, particularly in revenue growth and profitability metrics.

1. **Revenue Increase**: Uxin's revenue for Q4 2024 was reported at RMB597 million (US$81.8 million), marking a significant upswing of 45.4% year-on-year. This growth was primarily driven by the retail vehicle sales revenue, which surged by 73.3% reaching RMB553 million in Q4 2024 compared to the same period in the previous year. The retail transaction volume also experienced a substantial increase, rising 177.6% year-on-year to 8,554 units.
2. **Expense Management**: Despite the revenue growth, Uxin's cost of revenue increased by 41.9% year-on-year to RMB555 million in Q4 2024. However, the company's gross margin improved significantly, rising to 7.0% in Q4 2024 from 4.8% in the same period of the previous year. This improvement was attributed to enhanced inventory turnover, improved pricing and sales capabilities, and increased penetration of value-added services.
3. **EBITDA Turnaround**: A notable financial milestone for Uxin was achieving a positive adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the first time in Q4 2024, amounting to RMB2.0 million (US$300,000). This marked a crucial turning point, as the company had previously reported significant losses in previous quarters. For instance, in Q2 2025, there were no available financial data, but in Q1 2025, the company's financial reports were not available either.
4. **Strategic Growth Initiatives**: Uxin's strategic plans for 2025 include expanding capacity at existing superstores, opening new superstores in key markets, targeting over 100% growth in retail transaction volume, and aiming for its first full-year positive adjusted EBITDA. These initiatives reflect confidence in sustaining the growth momentum and moving closer to profitability.

In conclusion, Uxin's Q2 2025 financials showcased robust revenue growth and a substantial improvement in gross margin, with a positive EBITDA for the first time. These developments indicate enhanced operational efficiency and a strong market positioning, supported by strategic expansions and improvements in sales and inventory management.