Pony AI Inc. (NASDAQ:PONY) delivered a split fourth quarter, with explosive growth in its robotaxi business overshadowed by an overall revenue decline and weakening margins.
Revenue Declines Despite Robotaxi Surge
Pony AI reported fourth-quarter revenue of $29.1 million, down 18% year-over-year due to timing in licensing and applications revenue.
Street analysts expected a quarterly revenue of $23.94 million.
Robotaxi services revenue climbed 159.5% Y/Y to $6.7 million in the quarter. Fare-based revenue jumped more than 500% year over year, driven by strong order growth following the Gen-7 fleet launch, while improved fleet operations and premium services further increased demand and overall revenue.
Meanwhile, Robotruck’s services revenue rose 1.2% Y/Y to $13.1 million.
Margins Contract As Costs Rise
Gross profit of $3.7 million decreased from $7.5 million Y/Y.
Gross margin was 12.7% in the fourth quarter of 2025, compared to 21.0% in the fourth quarter …