Kandi Technologies Reports Mixed 2025 Results as Margins Improve and Revenue Falls 31.5%
Kandi Technologies Reports Mixed 2025 Results as Margins Improve and Revenue Falls 31.5%
Kandi Technologies Group Inc. (NASDAQ: KNDI) reported a challenging but strategically important full-year 2025 performance, with revenue declining sharply while gross margin, cash flow, and liquidity showed notable improvement.
The companyâs 2025 revenue fell to $87.4 million, down 31.5% from $127.6 million in 2024. Management linked the decline mainly to weaker demand for electric vehicle products in China and fewer sales of crossover golf carts and other vehicle models.
Stronger Gross Margin Despite Lower Sales
Although sales dropped, Kandiâs gross margin improved significantly to 42.6% in 2025, compared with 30.8% in 2024. Gross profit was $37.3 million, only slightly lower than $39.3 million a year earlier.
The company said the margin improvement was helped by sales of previously impaired inventory. This suggests Kandi was able to manage older stock more effectively, even during a difficult demand environment.
Net Loss Widens
Kandi reported a net loss of $95.6 million for 2025, compared with a net loss of $51.0 million in 2024. Basic and diluted net loss attributable to shareholders was $1.12 per share, compared with $0.59 per share in the previous year.
Management pointed to higher expenses related to anti-dumping duties and litigation costs as key reasons behind the larger loss. The company also continued investing in research and development, with R&D expenses rising to $7.6 million.
Cash Position Strengthens
One bright spot was Kandiâs balance sheet. As of December 31, 2025, the company held $211.9 million in cash, cash equivalents, restricted cash, and certificates of deposit, up from $126.3 million at the end of 2024.
Kandi also generated $96.8 million in net cash from operating activities, giving the company more flexibility as it enters 2026. Management said this stronger cash position supports future investment in product development, supply chain improvements, and new growth areas.
North America Remains a Key Growth Market
Chief Executive Officer Feng Chen said Kandiâs future strategy will focus on two main growth engines. The first is the companyâs North American off-road electric vehicle business, including UTVs, golf carts, and electric off-road products.
Kandi plans to upgrade its North American UTV business through new model design, better product experience, improved dealer efficiency, and stronger supply chain response. The company has also brought in an outside automotive design team to help develop next-generation UTV products.
Rawrr Acquisition Adds Electric Motorcycle Opportunity
In December 2025, Kandi signed an agreement to acquire Rawrr, a premium U.S.-based electric off-road motorcycle brand. Management said Rawrr could become a meaningful new growth category in North America during 2026.
The company expects Rawrr to benefit from Kandiâs existing distribution network, supply chain, and product lineup. Kandi said its focus will be on brand integration, channel coordination, supply chain optimization, and product upgrades.
Battery Swapping Equipment Seen as 2026 Breakthrough
Kandiâs second growth engine includes battery swapping equipment and intelligent robotics. Management highlighted battery swap equipment as one of the companyâs most important opportunities for 2026.
In August 2025, Kandiâs subsidiary China Battery Exchange became a qualified supplier in CATLâs battery swap equipment supply chain and received its first heavy-truck battery swap station equipment order.
Market Reaction
Despite weaker annual revenue and a wider net loss, Kandi shares rose 2.47% in premarket trading to $0.747, according to Investing.com. The reaction suggests some investors focused on the improved margin, stronger cash balance, and managementâs 2026 growth plan.
Outlook
Kandi enters 2026 with clear challenges, including soft demand in parts of the EV market, trade uncertainty, inflation pressure, and competition in recreational electric vehicles. However, the company is also trying to reposition itself through higher-margin products, North American expansion, Rawrr integration, battery swapping equipment, and disciplined capital allocation.
Overall, Kandiâs 2025 results showed a company under revenue pressure but still financially flexible. The key question for investors is whether Kandi can turn its stronger cash position and new strategic initiatives into sustainable revenue growth and improved profitability in 2026.
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