Uxin Q3 Earnings Call Highlights

Uxin (NASDAQ:UXIN) reported continued rapid growth and improving profitability in its earnings call for the quarter ended September 30, 2025, pointing to strong retail volume gains, steady inventory turnover, and a gross margin that reached its highest level in three years. Management also outlined progress on new superstore openings and provided fourth-quarter and full-year transaction and revenue outlooks.

Retail volume growth and operating metrics

Founder and CEO DK said the company sustained strong growth momentum in the third quarter, with retail transaction volume of 14,020 units, up 134% year-over-year. DK noted this marked the sixth consecutive quarter of year-over-year retail volume growth above 130%.

Despite a “significant expansion in inventory,” DK said inventory turnover remained around 30 days. The company also highlighted customer satisfaction metrics, with DK reporting a Net Promoter Score (NPS) of 67 in the quarter, maintaining an NPS of 65 or above for six consecutive quarters, which management described as the highest in the industry.

Superstore network expansion and ramp-up

DK said Uxin’s superstore expansion continued “smoothly and in line with our plan,” with the Jinan superstore commencing operations earlier in the week of the call. With Jinan joining Wuhan and Zhengzhou (both opened earlier in 2025), management said the company completed its three new superstore openings planned for 2025 and now has five superstores in operation.

Management provided operating milestones for the newest locations:

• Wuhan (opened February 2025): expected to reach nearly 1,800 retail units in December, with local market share “approaching 10%.”
• Zhengzhou (opened late September 2025): expected to achieve approximately 900 retail units in December, with market share “nearing 5%.” DK added that Zhengzhou has already become the largest used car retailer in its local market and is ramping sales and profitability faster than Wuhan did at a comparable stage.

DK also said Uxin has announced strategic partnerships with local governments in Tianjin, Guangzhou, and Yinchuan to jointly invest in and operate new used car superstores, each designed for a display and sales capacity of more than 3,000 vehicles. Looking to 2026, DK said the company plans to open four to six additional superstores, describing the move as a transition to “accelerated nationwide expansion.”

Financial results: revenue mix shift and margin improvement

CFO John Lin reiterated third-quarter retail transaction volume of 14,020 units, adding it rose 35% quarter-over-quarter. Lin reported retail revenue of RMB 820 million, up 84% year-over-year and 35% quarter-over-quarter.

The company’s average selling price (ASP) for retail vehicles was RMB 58,000, compared with RMB 59,000 in the prior quarter and RMB 74,000 in the same period last year. Lin attributed the ASP decline to a shift toward a “more affordable inventory mix,” while saying volume growth more than offset the pricing impact. He added that Uxin believes pricing has stabilized “at a rational level” and expects ASP to remain “relatively steady” in the near term.

In wholesale, Lin reported wholesale transaction volume of 1,884 units (up 81% year-over-year and 54% quarter-over-quarter) and wholesale revenue of RMB 33.2 million. Combined, total revenue was RMB 879 million, representing 77% year-over-year and 34% quarter-over-quarter growth.

Gross margin rose to 7.5%, up from 7.0% a year earlier and 5.2% in the prior quarter, which Lin said was the company’s highest level in the past three years. He attributed the improvement to easing price competition in the new car segment during the quarter—supporting a recovery in used car margins—and to improving performance at the Wuhan superstore as it moved beyond the startup phase.

Lin said adjusted EBITDA loss narrowed to RMB 5.3 million, representing a 43% reduction year-over-year and a 68% reduction quarter-over-quarter.

Management commentary: margin drivers and path to scale

On the Q&A, management addressed margin sustainability and improvement drivers. The company cited stabilization in new car pricing and improving profitability at both established and newer stores. Management said gross margin at the Xi’an and Hefei superstores exceeded 8% in the quarter, up nearly two percentage points sequentially.

Management identified several potential margin tailwinds:

• Policy efforts in China aimed at reducing “excessive competition” in the auto industry, which management said could support stable or rising vehicle prices.
• Improving data-driven pricing, with fewer pricing errors and a declining proportion of loss-making vehicles.
• Higher penetration of value-added services, which management said could lift gross margin as ancillary revenue becomes a larger part of the mix.

Over the long term, management said it is targeting a gross margin of around 10%, noting that existing superstores are “approaching this target.”

In response to a question about Zhengzhou’s faster ramp, management said Zhengzhou benefited from organizational learning from Wuhan, including construction, launch, inventory build, and sales ramp-up. The company also pointed to stronger pricing capability supported by a larger pool of transaction data. For a “standard” new superstore with planned capacity of about 3,000 vehicles, management expects break-even in about nine months, with inventory reaching planned capacity in 18 to 24 months, when sales volume and profitability are expected to reach more mature levels.

Management also discussed Carvana in response to an investor question, highlighting differences in channel strategy—Carvana as primarily online versus Uxin’s mix of offline and online. DK said over 70% of Uxin’s sales currently come from offline superstores, with roughly 30% from online, reflecting consumer preferences in China for in-person inspection and test drives. DK added that Uxin shares similarities with Carvana, including an own-inventory model, self-operated reconditioning facilities, focus on precise pricing, and emphasis on customer satisfaction.

Outlook for the fourth quarter and full year 2025

For the fourth quarter, management said it expects retail transaction volume to exceed 18,500 units, representing year-over-year growth of more than 110%. Lin added that total revenue is expected to exceed RMB 1.15 billion.

For the full year 2025, management expects retail transaction volume to exceed 50,000 units, implying year-over-year growth of more than 130%.

About Uxin (NASDAQ:UXIN)

Uxin Limited is a China-based online and offline used car e-commerce platform that connects vehicle buyers and sellers through an integrated digital marketplace. Headquartered in Beijing, the company operates a network of physical used-car malls alongside its proprietary online platform, enabling customers to browse, inspect and purchase pre-owned vehicles with transparency and convenience.

The company’s core business activities encompass sourcing, quality assurance and distribution of used vehicles.