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Pony AI Inc. Sponsored ADR (PONY)
:PONY
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Pony AI Inc. Sponsored ADR
(NASDAQ:PONY)
Rating:57Neutral
Price Target:
$16.50
▲(11.34% Upside)
Positive Factors
Cost Efficiency
The Gen 7 robotaxi achieves a 70% reduction in BoM costs for the ADK compared to Gen 6, significantly lowering production expenses.
Earnings
Pony AI reported 2Q25 revenue up 76% YoY at USD21.5mn, with Robotaxi services revenue from fare-charging growing over 300% YoY.
Operational Expansion
Pony AI received the permit to provide fully driverless commercial Robotaxi services in Shanghai's Pudong New Area, making it the only company with such permits in 4 tier-1 cities.
Negative Factors
Fleet Expansion Challenges
Pony AI's Robotaxi fleet size reached 500+ units, and management is confident to reach 1k units target by end of 2025.
Profitability Concerns
The gross profit margin improvement was driven by prioritization on high-margin business and optimization on Robotaxi cost items.
Pony AI Inc. Sponsored ADR (PONY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.19B
Dividend YieldN/A
Average Volume (3M)8.30M
Price to Earnings (P/E)―
Beta (1Y)2.67
Revenue Growth4.27%
EPS Growth-120.11%
CountryUS
Employees1,460
SectorIndustrials
Sector Strength76
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.14
Shares Outstanding274,203,800
10 Day Avg. Volume6,541,044
30 Day Avg. Volume8,300,240
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue55.60
Enterprise Value/Gross Profit342.97
Enterprise Value/Ebitda-11.36
Forecast
1Y Price Target
$21.50Price Target Upside45.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Pony AI Inc. Sponsored ADR Business Overview & Revenue Model
Company DescriptionPony AI Inc., through its subsidiaries, engages in the autonomous mobility in the People's Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. It also offers robotaxi services, including a suite of AV engineering solutions comprising AV software deployment and maintenance, vehicle integration and engineering, and road testing; and fare-charging robotaxi services. In addition, the company offers personally-owned vehicle intelligent solutions, including intelligent driving software solutions, proprietary vehicle domain controller products, and data analytics tools; vehicle integration services, software development, and licensing services; and vehicle-to-everything (V2X) products and services to enhance road safety. The company was incorporated in 2016 and is based in Guangzhou, the People's Republic of China.
How the Company Makes MoneyPony AI generates revenue by providing autonomous driving technology and services to automotive manufacturers, ride-hailing companies, and logistics firms. The company forms strategic partnerships with automotive OEMs to integrate its self-driving systems into their vehicles, enabling them to offer autonomous driving capabilities to consumers. Additionally, Pony AI monetizes its technology through pilot programs and commercial deployments of autonomous ride-hailing and goods delivery services in select markets. These initiatives not only validate Pony AI's technology but also create direct revenue streams from transportation services. The company may also receive funding from investors and strategic partners, which supports its research and development efforts.
Pony AI Inc. Sponsored ADR Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth, successful mass production of Gen-7 robotaxi vehicles, and global expansion. However, increased operating expenses, a decline in robotruck revenue, and a higher net loss were noted.Q2-2025 Updates
Positive Updates
Record Revenue Growth
Total revenues surged by 76% year-over-year, reaching USD 21.5 million, driven by robust growth in Robotaxi services and licensing and applications.
Mass Production of Gen-7 Robotaxi
The company finished building assembly lines for Gen-7 robotaxi vehicles, with over 200 vehicles produced, on track to reach 1,000 vehicles by year-end 2025.
Global Expansion and Licensing Success
Pony AI secured Shanghai's first fully driverless commercial license and expanded presence to Dubai, Seoul, and Luxembourg.
User Base and Engagement Surge
Registered users increased by 136% year-over-year, with a user satisfaction rate above 4.8 out of 5.
Significant Cost Reductions
Achieved a 70% reduction in BOM costs for Gen-7 vehicles and an 18% reduction in vehicle insurance costs.
Negative Updates
Robotruck Revenue Decline
Robotruck services revenue decreased by 10% year-over-year due to operational optimizations.
Increased Operating Expenses
Total operating expenses rose by 75% year-over-year, driven by increased investments in mass production and R&D.
Net Loss Increase
Net loss for the second quarter was USD 53.3 million, up from USD 30.9 million in the same period last year.
Company Guidance
During Pony AI Inc.'s Second Quarter 2025 Earnings Conference Call, the company provided strong guidance indicating significant progress and robust growth across various metrics. The company reported a 76% year-over-year increase in total revenues, reaching USD 21.5 million, with Robotaxi service revenues growing by 158% and fare charging revenues expanding by over 300%. Pony AI has ramped up production of their Gen-7 Robotaxi vehicles, with over 200 units produced and a target of exceeding 1,000 vehicles by the end of 2025. The company also highlighted a reduction in the Bill of Materials (BOM) cost by 70% compared to the previous generation, and a decrease in vehicle insurance costs by 18%. The registered user base surged by 136% year-over-year, maintaining a user satisfaction rate above 4.8 out of 5. Additionally, Pony AI expanded its global presence, securing a fully driverless commercial license in Shanghai and establishing operations in Dubai, Seoul, and Luxembourg. The company emphasized a focus on mass production, cost optimization, and scaling operations to drive future growth and enhance unit economics.Pony AI Inc. Sponsored ADR Financial Statement Overview
Summary
Pony AI Inc. is experiencing revenue growth but faces significant profitability and cash flow challenges. The balance sheet is robust with low leverage, but the company needs to address its operational inefficiencies and cash burn to improve financial health.Income Statement
Pony AI Inc. shows a consistent increase in revenue over the years, with a TTM revenue of $76.64 million, up from $68.39 million in 2022. However, the company is struggling with profitability, as indicated by negative net income and EBIT margins. The gross profit margin is relatively low at 20.15% for TTM, and the net profit margin is significantly negative at -470.18%, reflecting substantial operational challenges. Despite revenue growth, the persistent losses highlight a need for improved cost management.35
Negative
Balance Sheet
The balance sheet shows a strong equity position with stockholders' equity of $899.88 million in TTM, indicating a solid capital base. The debt-to-equity ratio is low at 0.01, suggesting limited leverage and financial risk. However, the equity ratio is high at 92.56%, which could indicate underutilization of debt financing. Overall, the balance sheet reflects stability, but the company may need to optimize its capital structure to enhance returns.50
Neutral
Cash Flow
Pony AI Inc. has negative free cash flow of -$145.8 million in TTM, which is concerning as it indicates cash burn. The operating cash flow to net income ratio is negative, suggesting operational inefficiencies. Despite substantial financing cash flow, the company struggles to generate positive cash flow from operations. This cash flow situation poses a risk to long-term sustainability unless addressed.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 76.64M | 75.03M | 71.90M | 68.39M | 8.12M |
| Gross Profit | 12.43M | 11.40M | 16.88M | 32.06M | 6.31M |
| EBITDA | -375.09M | -277.16M | -128.90M | -153.94M | -201.56M |
| Net Income | -360.31M | -274.12M | -124.81M | -148.02M | -224.70M |
Balance Sheet | |||||
| Total Assets | 972.34M | 1.05B | 747.12M | 771.51M | 708.94M |
| Cash, Cash Equivalents and Short-Term Investments | 629.95M | 745.01M | 589.55M | 577.90M | 418.75M |
| Total Debt | 12.10M | 13.80M | 7.36M | 13.04M | 0.00 |
| Total Liabilities | 54.99M | 82.11M | 51.94M | 1.31B | 1.11B |
| Stockholders Equity | 899.88M | 951.12M | 684.03M | -551.49M | -402.10M |
Cash Flow | |||||
| Free Cash Flow | -145.80M | -122.16M | -120.51M | -166.80M | -171.54M |
| Operating Cash Flow | -135.36M | -110.76M | -115.42M | -154.77M | -146.14M |
| Investing Cash Flow | -260.20M | -181.27M | 136.49M | 49.33M | 54.83M |
| Financing Cash Flow | 398.26M | 407.39M | 89.76M | 191.57M | 121.87M |
Pony AI Inc. Sponsored ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.76B | 7.28 | 12.59% | 1.44% | 8.08% | 76.55% | |
79 Outperform | $21.84B | 7.30 | 16.87% | 0.86% | 3.24% | 4.46% | |
68 Neutral | $15.30B | 36.91 | 389.50% | 0.80% | 55.05% | ― | |
64 Neutral | $10.95B | 16.37 | 8.81% | 1.96% | 2.68% | -15.33% | |
57 Neutral | $5.19B | ― | -33.58% | ― | 4.27% | -120.11% | |
46 Neutral | $1.77B | ― | -350.48% | ― | -7.58% | -225.06% | |
45 Neutral | $5.39B | 8.26 | 78.26% | ― | -2.25% | -395.93% |
* Industrials Sector Average
Performance Comparison
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HTZ
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82.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.