Chinese Used-Car Retailer Uxin Reports Strong Q2 Results, Guides To First Quarterly EBITDA Profit: As Stock Rises Retail Gets Bullish

Beijing-based Uxin Limited ($UXIN) reported Monday before the market open improved fiscal-year 2025 second-quarter amid a rise in transaction volume, and the used-car retailer also issued an upbeat outlook.

Uxin reported break-even results in terms of the non-GAAP adjusted loss per share for the quarter that ended Sept. 30, 2024. This marked an improvement from a loss of 0.03 yuan per share on a non-GAAP basis reported for the year-ago quarter. 

The loss from operations narrowed year-over-year (YoY) from 66.4 million yuan to 38.6 million yuan. The non-GAAP adjusted earnings before interest, taxes and depreciation (EBITDA) was a loss of 9.2 million yuan, narrower than the year-ago adjusted EBITDA loss of 45.9 million yuan. 

Uxin said its revenue climbed 39.6% YoY to 497.2 million yuan. Sequentially, revenue was up a more modest 23.9%. The revenue growth came on the back of an 81.4% YoY jump and 25.7% rise in transaction volume to 7,046 units. Retail transaction volume was up 162.6% YoY and 46.8% sequentially, to 6,005 units.

Gross margin improved from 6.2% for the year-ago quarter to 7%.

Kun Dai, CEO of Uxin said, "We are excited to report another record-breaking quarter."

"Our superstore model has proven to be successful, showcasing strong competitiveness and significant growth potential," he added.

The executive also noted that customer satisfaction has been at the highest level in the industry for 11 consecutive quarters.

Looking ahead, Uxin said it expects retail transaction volume to be within the range of 7,800 units to 8,100 units for the third quarter, marking a 150% YoY increase.

Feng Li, CFO of Uxin, said, "Looking ahead, we are on track to achieve our first positive quarterly EBITDA in the upcoming quarter, a significant milestone in our financial performance."

"With these strong results, the company is now firmly positioned for sustainable, long-term growth."

The company also announced that it is changing its fiscal year to coincide with the calendar year, to "better align with customary practices and to synchronize the financial reporting cycles of our parent company and Chinese subsidiary."

In Monday’s premarket trading, Nasdaq-listed Uxin ADS was last seen trading up 3.01% to $6.31. The security has lost about 10% so far this year, having traded between a $1.41-$11.70 range over the 52-week period.

UXIN sentiment and message volume November 25, 2024, premarket as of 4:55 am ET | Source: Stocktwits

On Stockwits, retail sentiment toward Uxin ADS has turned bullish (67/100) from ‘neutral’ a day ago, with message volume spurting to ‘extremely high.’

A user of the Stocktwits platform said he would add to his position, given the strong results.