WeRide's Q3 2025: Contradictions Emerge in International Strategy, Revenue Models, and Partnership Focus

Date of Call: November 24, 2025

Financials Results

• Revenue: RMB 171 million, up 144% YOY
• Gross Margin: 33% (group gross profit RMB 56 million, up 1,124% YOY)

Guidance:

• Scale fleet in Middle East to >500 vehicles by 2026 and target tens of thousands by 2030
• Extend Abu Dhabi operations to 24/7 and raise utilization to ~25 trips/vehicle/day
• Replicate the "Abu Dhabi model" with platform partners (Uber/Grab) into similar cities/regions
• Increase AV test volume in Singapore 4x by year-end and pursue Europe trial rollouts H1 2026
• Continue heavy R&D investment while adopting a moderate, satellite expansion model to balance growth and profitability
• Seek shareholder approval to activate the USD 100 million repurchase program

Business Commentary:

* Global Expansion and Permits: - WeRide secured the world's first city-level fully driverless robotaxi commercial permit in Abu Dhabi, outside the United States. - This permit allows WeRide to operate without an in-car safety officer, demonstrating strong regulatory confidence in the company's technology.

• Revenue Growth and Robotaxi Sales:
• Total revenue for Q3 2025 was RMB 171 million, with a year-over-year growth of 144%, driven by fleet expansion and increased service penetration.

• Robotaxi revenue increased by 761% year-over-year to RMB 35 million, accounting for 21% of total revenue.

• Operational and Financial Milestones:

• Group-level gross profit increased by 1,124% to RMB 56 million for Q3 2025, achieving a 33% gross margin.

• The company's driverless operation in Abu Dhabi covers 50% of the city's core area, with plans to extend service hours to 24/7 and increase vehicle utilization.

• R&D and Investment Strategies:

• R&D expenses grew by 39% to RMB 288 million, driven by investments in global data compliance and advanced R&D efforts for pre-installed robotaxi.
• WeRide continues to prioritize R&D as the backbone of its strategy, focusing on leveraging its global data compliance and advanced R&D efforts to maintain a competitive edge.
  
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management emphasized milestone achievements (first city-level full driverless permit in Abu Dhabi), strong top-line acceleration (RMB 171m, +144% YOY), material gross profit improvement (RMB 56m, +1,124% YOY) and narrowed net loss (down 71%), and outlined near-term scaling targets (500+ vehicles in ME, 24/7 ops, 25 trips/day) supporting a constructive outlook.

Q&A:

• Question from Tim Hsiao (Morgan Stanley): In addition to volume upside to revised fleet sales, how should we quantify the long-run revenue opportunities from vehicle sales, revenue share and profit sharing?
  Response: International model is partner-led: vehicle sales (product revenue), annual licensing, and revenue-share on fares; at ~25 daily trips vehicle can generate strong recurring service revenue (example: ~$90k gross/year per vehicle, giving WeRide meaningful per-car service revenue depending on share).

• Question from Tim Hsiao (Morgan Stanley): Which markets could step up as key volume drivers beyond Abu Dhabi and Switzerland, and will WeRide need to accelerate R&D and selling spend into 2026 to finance overseas expansion?
  Response: Priority markets include UAE (Dubai), Saudi Arabia, Singapore and other East Asian and European markets; R&D investment will increase but expansion will follow a moderated satellite model to balance scaling and profitability rather than aggressive indiscriminate spend.

• Question from Alex Yao (JPMorgan Chase & Co): What is your view of robotaxi economics in China versus international markets, and how quickly can the Abu Dhabi driverless milestone be replicated elsewhere; what are fleet expansion plans, catalysts and hurdles?
  Response: China remains a core market—profitability likely in Tier-1 cities with >20 daily trips and healthy fares; the Abu Dhabi "model" (platform partnership + city permit) can be copied to similar markets (Dubai, Riyadh, Singapore, parts of Europe) but regulatory approvals are the key hurdle; expansion will proceed where local partners and regulation align.

• Question from Ming-Hsun Lee (BofA Securities): With more OEMs and ride-hailing companies announcing robotaxi plans, what are WeRide's key advantages and how should we think about future competition?
  Response: WeRide's advantages are integrated L2-to-L4 platform, dual flywheel data from robotaxi and mass-production ADAS, rapid AI-driven iteration, and global heterogeneous fleet experience—barriers to incumbents include long data/simulation accumulation and regulatory expertise, so competition will be limited in the near term.

• Question from Ming-Hsun Lee (BofA Securities): Can OEMs leverage data and AI to evolve from L2 to L4; is an L2-to-L4 progression feasible?
  Response: While OEMs can advance ADAS, moving from L2++ to full L4 is substantially harder and time-consuming due to simulation, data scale, redundancy and validation needs; direct L4 development or long multi-year effort required, leaving existing robotaxi leaders advantaged.

• Question from Liping Zhao (CICC): What tools and technical approaches help WeRide stay ahead of the curve?
  Response: WeRide cites a dual-flywheel strategy combining robotaxi and mass-production ADAS data, a global heterogeneous data set, and the Genesis physical-AI simulation/world-model integrated with end-to-end systems to accelerate safe iteration and generalization.

• Question from Liping Zhao (CICC): Update on the USD 100 million share repurchase program authorized in May?
  Response: No repurchases to date due to pre-IPO close periods and regulatory restrictions; company will seek shareholder ratification at an extraordinary general meeting to proceed.

• Question from Paul Gong (UBS): Robotaxi revenue grew ~7x YOY but showed fluctuation versus Q2; can you elaborate on the drivers of that fluctuation?
  Response: Quarterly fluctuations reflect timing of vehicle deliveries, permit upgrades and operating-area expansion; underlying trend is accelerating momentum with recent city-level driverless authorization in Abu Dhabi enabling faster future growth.

• Question from Paul Gong (UBS): After the Switzerland permit, what are the next steps for European expansion?
  Response: Focus on trials and foundation-building across Europe (Switzerland, Belgium, France, Germany), leveraging robobus/robosweeper and partner relationships (Uber, Renault, SBB) and targeting markets with favorable fares and labor shortages; expansion pace depends on local partners and regulatory approvals.

Contradiction Point 1

International Market Strategy and Partnership Focus

It indicates a shift in strategy regarding the focus on international markets and the role of partnerships in driving growth, which could impact WeRide's expansion ambitions and market positioning.

How do you assess the robotaxi industry in China and its potential economic impact on China and international markets? How quickly can Abu Dhabi’s autonomous driving milestone be replicated in other markets? - Alex Yao (JPMorgan Chase & Co)

2025Q3: We will balance our investment and resource allocation between China and international markets through strategic partnerships. Our international expansion will target markets with existing ride-hailing ecosystems. - Jennifer Li(CFO)

What are your plans for fleet expansion and geographic growth, and how do varying market regulations affect these plans? - Yawen Tan (BNP Paribas)

2025Q1: We will balance expansion between China and international markets through strategic partnerships. Fleet expansion will target markets with existing ride-hailing ecosystems. - Jennifer Li(CFO)

Contradiction Point 2

Revenue Opportunities from Vehicle Sales and Partnerships

It highlights differing expectations regarding the revenue potential of vehicle sales and partnerships, which are critical for WeRide's financial growth.

How should we quantify long-term revenue from vehicle sales, charging, and profit-sharing beyond revised fleet sales volume? Which markets are key volume drivers, and should WeRide accelerate R&D and sales spending in 2026 to support overseas expansion? - Tim Hsiao (Morgan Stanley)

2025Q3: The robotaxi business model in international markets involves revenue share from ride fare, annual licensing, and vehicle sales, which are considered product revenue. WeRide can scale fleets quicker by selling vehicles to partners. - Xuan Li(CFO & Head of International)

What prompted WeRide and Uber to expand their partnership, and what are the key details of the deal? - Tim Hsiao (Morgan Stanley)

2025Q1: We expect to generate meaningful revenue from our high-quality fleet sales in the second half of this year. We are also sharing technology with automakers and Tier-1 suppliers. - Tony Han(CEO)

Contradiction Point 3

Revenue Share and Profitability Model

It involves changes in the company's revenue model and profitability expectations, which are crucial for investors and stakeholders to understand the sustainability of the business model.

How should we quantify long-term revenue from vehicle sales, revenue charges, and profit sharing, excluding the volume upside from revised fleet sales? - Tim Hsiao(Morgan Stanley)

2025Q3: The robotaxi business model in international markets involves revenue share from ride fare, annual licensing, and vehicle sales, which are considered product revenue. WeRide can scale fleets quicker by selling vehicles to partners. A robotaxi vehicle can generate an annual revenue of over USD 90,000 at human-level utilization, with potential revenue share of USD 30,000 to USD 60,000 per car per year. - Xuan Li(CFO)

What is WeRide's Robotaxi business model, and what breakthroughs are expected? - Tim Hsiao(Morgan Stanley)

2024Q4: The robotaxi business model involves selling vehicles and services to local partners, charging a fixed service fee, and sharing revenue. The strategy focuses on collaborations with leading platforms to drive faster deployment and better pricing. - Jennifer Li(CFO)

Contradiction Point 4

Strategy and Focus on International Expansion

It highlights shifts in the company's strategic focus and expansion plans, which can impact growth trajectories and market positioning.

What is your view on the robotaxi business in China, and how do you see economic changes in China and international markets? - Alex Yao(JPMorgan Chase & Co)

2025Q3: WeRide expands internationally due to the demand from aging populations and rising labor costs in foreign markets. It seeks to engage local stakeholders and diversify revenue streams for resilience. International markets offer higher gross margins, supporting global expansion. - Xu Han(CEO)

Why expand internationally instead of focusing on domestic markets? - Li Ping Zhao(CICC)

2024Q4: WeRide expands internationally due to the demand from aging populations and rising labor costs in foreign markets. It seeks to engage local stakeholders and diversify revenue streams for resilience. International markets offer higher gross margins, supporting global expansion. - Tony Han(CEO)