Hesai Group (NasdaqGS:HSAI) has just posted its FY 2025 third quarter numbers, with revenue of C¥795.4 million and basic EPS of C¥1.88 setting the tone for the latest update. The company has seen quarterly revenue move from C¥458.9 million in Q2 2024 to C¥719.8 million in Q4 2024 and then to C¥795.4 million in Q3 2025. Basic EPS has shifted from a loss of C¥0.56 per share in Q2 2024 to C¥1.13 in Q4 2024 and C¥1.88 in Q3 2025, pointing to a business where margins are increasingly in focus for investors weighing the quality of these results.

See our full analysis for Hesai Group.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the widely followed growth and profitability narratives around Hesai Group and where those stories might need a reset.

TTM profitability flips from loss to C¥429.7m profit

• On a trailing twelve month basis, net income moved from a loss of C¥461.7m in Q2 2024 to a profit of C¥429.7m by Q3 2025, with TTM basic EPS shifting from a loss of C¥3.63 per share to a profit of C¥3.24 per share over the same window.
• What stands out for the bullish narrative is that this move into profitability lines up with the view that earnings growth is a key pillar, as TTM net income of C¥429.7m now sits against forecasts that earnings could grow around 30.1% per year and has been described as growing strongly over the past five years.
  • Supporters point to this profitability shift as evidence that Hesai is starting to convert its LiDAR ramp up into bottom line results, which fits with the idea of strong long run earnings growth.
  • At the same time, the heavy R&D and capacity spending mentioned in both bullish and consensus narratives remains a watchpoint, because the current profit base is still relatively new in the context of earlier losses.

On this view, the recent move into the black is exactly what bullish investors wanted to see, but it still sits alongside the execution and spending risks they have been flagging, so it is worth reading how they connect these dots in more detail in the 🐂 Hesai Group Bull Case.

Revenue base climbs to C¥2.7b TTM

• TTM revenue has moved from C¥1.82b in Q2 2024 to C¥2.75b by Q3 2025, with quarterly revenue in FY 2025 stepping through C¥525.3m, C¥706.4m and C¥795.4m across Q1, Q2 and Q3 respectively.
• Bears focus on whether this growing revenue base can offset pricing pressure and intense competition described in their narrative, and the current figures create a mixed read through.
  • On one hand, the move from C¥458.9m in Q2 2024 to C¥795.4m in Q3 2025 suggests Hesai is selling significantly more product, which pushes back on fears that demand might stall quickly.
  • On the other, the bearish concern that average selling prices and margins may come under pressure remains relevant, because the raw revenue and net income data here do not break out gross margin or pricing to show how much of the profit is being driven by mix and scale versus pricing power.

Skeptical investors often anchor on these volume gains but still worry about long term pricing and competition, so it helps to see exactly how the cautious case frames those risks in the full bear write up in 🐻 Hesai Group Bear Case.

Premium 51x P/E with DCF fair value higher

• The shares trade on a trailing P/E of about 51x, which is well above the reported industry and peer averages of around 16.9x and 16.6x, while an internal DCF fair value of C¥30.21 and an analyst target of C¥32.35 both sit above the current share price of C¥20.24.
• Consensus narrative highlights strong forecast growth and higher profitability as reasons some investors accept this premium multiple, but the combination of a 51x trailing P/E and recent share dilution means the valuation case is not one sided.
  • The view that revenue could grow around 25.7% per year and earnings around 30.1% per year helps explain why some investors look at the gap between the current price and both the C¥30.21 DCF fair value and C¥32.35 analyst target as potential upside.
  • At the same time, the record of shareholder dilution in the past year and the reliance on continued high growth to support a P/E well above peers are exactly the factors many cautious investors monitor when they compare Hesai to other auto components names.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Hesai Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards in play, the real question is how you see the balance for Hesai Group. Take a moment to review the full picture and pressure test the numbers for yourself with the 4 key rewards and 1 important warning sign.

See What Else Is Out There

The recent shift into profit sits alongside concerns about a premium 51x P/E, past dilution and reliance on high forecast growth to support the valuation.

If that reliance on rich pricing and continued high growth makes you uneasy, compare Hesai against companies screened for quality and value using the 58 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.