WRD Holdings Announces 1 Billion USD Stock Repurchase, Narrows Q1 Net Loss 18%

WRD Holdings, Inc. (WRD.US) reported its unaudited financial results for the three months ending March 31, 2025. The company's revenue for the first quarter was 724 million yuan, representing a 1.8% year-over-year increase. The diluted loss per share was 0.46 yuan, compared to a loss of 3.95 yuan in the same period last year.

The company's net loss for the first quarter was 3.851 billion yuan (531 million USD), a decrease from 4.681 billion yuan in the same period last year. The net loss per ADS was 1.38 yuan (0.18 USD), compared to a loss of 11.85 yuan in the same period last year.

By the end of the first quarter of 2025, WRD Holdings' fleet size had grown to over 1,200 vehicles, with a cumulative public operation time exceeding 2,000 days. The revenue from the autonomous driving taxi service was 161 million yuan, accounting for 22.3% of the company's total revenue for the first quarter of 2025, an increase of 10.4 percentage points from the same period last year.

The company's gross margin for the first quarter of 2025 was 35%, remaining relatively stable compared to the fourth quarter of 2024. WRD Holdings has partnered with Uber, one of the largest collaborations to date, to expand its commercial autonomous driving taxi services to 15 additional cities following its entry into Abu Dhabi and Dubai. Uber has committed to investing an additional 1 billion USD in WRD Holdings on top of its existing investment.

As of March 31, 2025, the company had cash and cash equivalents, time deposits, and financial assets measured at fair value through profit or loss totaling 44.285 billion yuan, 17.477 billion yuan, and 14.7 million yuan, respectively. The company has approved a stock repurchase program, allowing it to repurchase up to 1 billion USD worth of Class A common stock over the next 12 months.

This stock repurchase program is a strategic move by WRD Holdings to enhance shareholder value and demonstrate confidence in its future prospects. The narrowing of the net loss in the first quarter indicates progress in operational efficiency and cost management. The repurchase program is expected to support the company's stock price by reducing the number of shares outstanding, potentially increasing earnings per share.

The announcement of the stock repurchase program signals that WRD Holdings' management believes the company's stock is undervalued. By buying back shares, the company is investing in itself, which can boost investor confidence and attract new shareholders. This move is likely to be well-received by existing shareholders, demonstrating the company's commitment to returning capital to them.

The stock repurchase program is part of WRD Holdings' broader strategy to optimize its capital structure and allocate resources efficiently. The company's decision to repurchase shares at this time suggests sufficient cash flow and financial flexibility to support this initiative. This move is also likely to benefit the company's long-term growth by reducing its cost of capital and improving its financial ratios.

In summary, WRD Holdings' announcement of a 1 billion USD stock repurchase program, coupled with the narrowing of its net loss in the first quarter, is a positive development for the company and its shareholders. This move demonstrates the company's confidence in its future prospects and its commitment to returning value to its shareholders. The stock repurchase program is expected to support the company's stock price and enhance shareholder value, making it a strategic initiative likely to be well-received by investors.