- The company plans to scale its fleet to over 3,000 vehicles and expand operations to more than 20 cities worldwide in 2026.
- Pony AI partnered with Uber and Verne to launch its first commercial robotaxi service in Europe.
- BNP Paribas began coverage of Pony AI with a ‘Neutral’ rating and a price target of $12.50, a 10% upside of its last closing price.
Pony AI Inc. (PONY) garnered significant retail buzz on Thursday after the robotaxi operator posted its first quarterly profit and announced its foray into Europe in partnership with Uber Inc (UBER). However, a weaker overall revenue tempered enthusiasm.
PONY shares fell over 2% in pre-market trading at the time of writing.
Profit Milestone Overshadowed By Revenue Decline
In the fourth quarter, Pony.ai reported an 18% decline in total revenue to $29.1 million, primarily weighed down by a sharp drop in licensing revenue, which fell about 50% due to one-off project-based contributions recognized in the prior-year period. However, it still came above Wall Street’s estimates of around $23.9 million, according to Fiscal.ai data.
The company also reported GAAP net income of $75.5 million, its first-ever quarterly profit, compared to a loss of $181.1 million a year ago. Its earnings of $0.06 per share were below consensus estimates of $0.22 per share.
Robotaxi Business Is Real Growth Engine
Pony AI announced plans to scale its fleet to over 3,000 vehicles and expand operations to more than 20 cities worldwide in 2026, with nearly half of those markets outside China. Its fleet has already grown to 1,446 units, up sharply from under 300 a year ago.
This is crucial as its robotaxi revenue in the fourth quarter (Q4) surged 160% due to rapid fleet expansion. Notably, fare-charging revenue jumped more than 500% year over year following the rollout of its Gen-7 robotaxi fleet.
Partnership With Uber To Drive European Expansion
Separately, Pony AI partnered with Uber Technologies (UBER) and Verne to launch its first commercial robotaxi service in Europe, starting in Zagreb, Croatia’s capital city. The collaboration combines Pony.ai’s autonomous driving system with Uber’s ride-hailing platform and Verne’s operational infrastructure. The companies have already begun on-road testing using Pony.ai’s Gen-7 system.
“In China, our Gen-7 has achieved meaningful commercial scale, including unit economics breakeven in Guangzhou and Shenzhen, demonstrating the readiness of our technology and business model. By leveraging this experience, we are well-positioned to accelerate commercialization internationally,” said James Peng, Founder and CEO of Pony.ai.
Retail Traders Stay Bullish Despite Stock Dip
Despite the premarket sluggishness, retail sentiment for PONY on Stocktwits remained in the ‘extremely bullish’ zone over the past 24 hours, accompanied by ‘extremely high’ message volumes.
One user called Pony’s European plans a “massive move for autonomous mobility.”
Another user said they hope the stock climbs back above $20.
Meanwhile, BNP Paribas began coverage of Pony AI with a ‘Neutral’ rating and a price target of $12.50, according to The Fly. This represents a 10% upside from the stock’s Wednesday closing price.
Year-to-date, PONY shares have shed around 23%.
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