Senmiao Technology 2026 Q1 Earnings Net Loss Narrows by 63.8%

Senmiao Technology (AIHS) reported its fiscal 2026 Q1 earnings on August 19, 2025. The company posted a total revenue of $860,099, representing a 2.2% decline year-over-year. The earnings report highlighted a significant reduction in net loss to $276,438, a 63.8% improvement compared to the $762,818 loss in the prior year quarter.

Revenue
Total revenue for Senmiao Technology in Q1 2026 decreased by 2.2% to $860,099 compared to $879,009 in Q1 2025. The core revenue streams included operating lease revenues from automobile rentals at $695,403, service fees from NEVs leasing at $83,444, monthly services commissions at $35,825, and financing revenues at $22,331. Additional income sources included default revenue of $10,229, service fees from automobile purchase services at $1,270, and other service fees of $11,597.

Earnings/Net Income
Senmiao Technology significantly narrowed its net loss to $276,438 in Q1 2026, down by 63.8% compared to the $762,818 loss in Q1 2025. The company's earnings per share (EPS) improved from a loss of $0.64 to $0.15, representing a 76.6% reduction in the loss per share. Despite the improved performance, the company remains unprofitable.

Price Action
The stock price of Senmiao Technology (AIHS) has experienced mixed performance in recent trading sessions. Over the latest trading day, the stock dropped 3.66%, followed by a further decline of 4.97% during the most recent full trading week. However, the stock has surged 582.09% month-to-date, highlighting a strong recovery in the short term.

Post-Earnings Price Action Review
A strategy of buying Senmiao Technology shares following the Q1 2026 earnings report and holding for 30 days proved to be a poor investment decision. This strategy returned -52.45%, significantly underperforming the benchmark return of 53.10%. The excess return was -105.56%, with a CAGR of -22.64% over the three-year period, indicating substantial losses. The strategy also exhibited high volatility at 108.99% and a maximum drawdown of 0.00%, underscoring its risk profile and poor returns during market downturns.

CEO Commentary
The CEO of Senmiao Technology, Mr. Zhang Wei, acknowledged the company's ongoing challenges in achieving profitability, with a net loss of ¥276,438,000 and an EPS of -¥0.15. He emphasized the need to strengthen core competencies and optimize cost structures to drive long-term value. Strategic priorities include increasing R&D investments to enhance product innovation and strengthening the company’s market position in emerging technologies. Mr. Zhang expressed a cautious yet forward-looking tone, underscoring the importance of disciplined execution and adaptability in navigating current market uncertainties.

Guidance
The company has maintained a cautious outlook for the near term, with a focus on operational efficiency and strategic investments. While no explicit revenue or EPS guidance was provided, the company emphasized its commitment to long-term growth through innovation and market expansion. Mr. Zhang reiterated the importance of achieving a positive earnings trajectory, aligning with broader industry trends and internal performance benchmarks.

Additional News
In the three weeks following Senmiao Technology’s Q1 2026 earnings report, several key developments emerged. China First Automotive Industries (FAW) announced plans to acquire a 10% stake in Leap Motor, a strategic move that could reshape the competitive landscape in the NEV sector. Additionally, the Chinese government has taken steps to provide tax exemptions on child-rearing subsidies, aiming to alleviate the financial burden on families and promote long-term demographic stability. Another notable event was the approval of a 15 billion USD military procurement plan by the Israeli Ministry of Defense, signaling increased defense spending and potential implications for global geopolitical dynamics.