Autohome Inc. Earnings Call: AI Advances and Revenue Challenges

AutoHome Inc. ((ATHM)) has held its Q3 earnings call. Read on for the main highlights of the call.

Autohome Inc. recently held its third-quarter earnings call, revealing a mixed sentiment. The company showcased significant advancements in AI integration and O2O strategies, alongside strong growth in NEV revenues and a robust cash position. However, challenges such as declining media services revenue, lower gross margins, and difficulties in the used car market were also highlighted.

AI and O2O Strategy Advancements

Autohome has made substantial progress in integrating AI into its products, enhancing both user experience and operational efficiency. The company has improved its O2O platform, offering a comprehensive customer journey with new features like the AI car selection system and AI vehicle diagnostics.

Launch of Global AI Technology Conference

The company launched its inaugural Global AI Technology Conference, which showcased advances in China’s intelligent automotive technologies. This event received endorsements from major automotive associations and support from key corporate partners, highlighting Autohome’s leadership in AI innovation.

Autohome Mall Soft Launch

Marking a significant milestone in its online-to-offline strategy, Autohome soft-launched the Autohome Mall. This initiative aims to enhance their new retail business model, reflecting the company’s commitment to innovation and growth.

Increase in NEV Revenues

Autohome reported a 58.6% increase in NEV revenues for the third quarter compared to last year, driven by its new retail business. This growth underscores the company’s successful expansion in the NEV market.

Strong Balance Sheet

As of September 30, 2025, Autohome maintained a robust balance sheet with cash, cash equivalents, and short-term investments totaling RMB 21.89 billion, reflecting its solid financial foundation.

Significant Operating Profit Increase

The company’s operating profit for the third quarter rose to RMB 147 million, up from RMB 83 million in the same period of 2024, demonstrating improved operational efficiency.

Dividend and Share Repurchase Program

Autohome approved a cash dividend of USD 1.20 per ADS, fulfilling its commitment to distribute no less than RMB 1.5 billion in dividends for 2025. The share repurchase program was extended, with 5.48 million ADS repurchased at a cost of USD 146 million.

Decline in Media Services Revenue

The company faced a decline in media services revenue year-over-year due to ongoing pressure from OEM price wars, impacting its overall revenue stream.

Lower Gross Margin

Autohome’s gross margin fell to 63.7% in the third quarter, down from 77% the previous year, primarily due to increased upfront investments in innovative business segments.

Adjusted Net Income Decline

The adjusted net income attributable to Autohome was RMB 407 million in the third quarter, a decline from RMB 497 million in the corresponding period of 2024, reflecting challenges in maintaining profitability.

Challenges in the Used Car Market

The used car market presented challenges with rising transaction volumes but falling prices. Over 70% of used car companies operated at a loss due to price wars and high customer acquisition costs.

Forward-Looking Guidance

Looking ahead, Autohome plans to continue focusing on AI and O2O strategies to drive business expansion and maintain stable shareholder returns. The company expects total dividends for 2025 to reach RMB 1.5 billion, and it remains committed to enhancing its AI assistant and expanding its retail business.

In summary, Autohome’s earnings call reflected a blend of optimism and caution. While the company has made strides in AI and O2O strategies, and seen growth in NEV revenues, it faces challenges in media services and the used car market. The forward-looking guidance suggests a continued focus on innovation and shareholder value, positioning Autohome for future growth.