Pony AI Inc. Sponsored ADR (PONY) AI Stock Analysis

• Market Cap: $7.25B
• Dividend Yield: N/A
• Average Volume (3M): 7.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.81
• Revenue Growth: 4.27%
• EPS Growth: -120.11%
• Country: US
• Employees: 1,460
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): -0.14
• Shares Outstanding: 274,203,800
• 10 Day Avg. Volume: 10,515,132
• 30 Day Avg. Volume: 7,437,756
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 55.60
• Enterprise Value/Gross Profit: 342.97
• Enterprise Value/Ebitda: -11.36
• 1Y Price Target: $21.84
• Price Target Upside: 6.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: $21.50 ▲(4.57% Upside)

Pony AI Inc.'s overall stock score reflects strong technical momentum and positive earnings call highlights, tempered by significant financial performance challenges and valuation concerns. The company's robust revenue growth and strategic expansions are promising, but profitability and cash flow issues need addressing.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, enhancing long-term business prospects.

Global Expansion

Securing driverless licenses in key markets strengthens Pony AI's competitive position and supports future growth opportunities.

Cost Reductions

Significant cost reductions improve margin sustainability and enhance the company's ability to scale operations efficiently.

Negative Factors

Profitability Challenges

Persistent losses and negative margins indicate ongoing profitability challenges, necessitating improved cost management for sustainability.

Cash Flow Issues

Negative cash flow highlights operational inefficiencies and poses a risk to long-term financial health unless addressed.

Increased Operating Expenses

Rising operating expenses may strain resources and impact profitability, requiring strategic cost management to maintain financial stability.

Pony AI Inc. Sponsored ADR Business Overview & Revenue Model

Company Description

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility in the People's Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. It also offers robotaxi services, including a suite of AV engineering solutions comprising AV software deployment and maintenance, vehicle integration and engineering, and road testing; and fare-charging robotaxi services. In addition, the company offers personally-owned vehicle intelligent solutions, including intelligent driving software solutions, proprietary vehicle domain controller products, and data analytics tools; vehicle integration services, software development, and licensing services; and vehicle-to-everything (V2X) products and services to enhance road safety. The company was incorporated in 2016 and is based in Guangzhou, the People's Republic of China.

How the Company Makes Money

Pony AI generates revenue by providing autonomous driving technology and services to automotive manufacturers, ride-hailing companies, and logistics firms. The company forms strategic partnerships with automotive OEMs to integrate its self-driving systems into their vehicles, enabling them to offer autonomous driving capabilities to consumers. Additionally, Pony AI monetizes its technology through pilot programs and commercial deployments of autonomous ride-hailing and goods delivery services in select markets. These initiatives not only validate Pony AI's technology but also create direct revenue streams from transportation services. The company may also receive funding from investors and strategic partners, which supports its research and development efforts.

Pony AI Inc. Sponsored ADR Financial Statement Overview

Summary

Pony AI Inc. is experiencing revenue growth but faces significant profitability and cash flow challenges. The balance sheet is robust with low leverage, but the company needs to address its operational inefficiencies and cash burn to improve financial health.

Income Statement

Pony AI Inc. shows a consistent increase in revenue over the years, with a TTM revenue of $76.64 million, up from $68.39 million in 2022. However, the company is struggling with profitability, as indicated by negative net income and EBIT margins. The gross profit margin is relatively low at 20.15% for TTM, and the net profit margin is significantly negative at -470.18%, reflecting substantial operational challenges. Despite revenue growth, the persistent losses highlight a need for improved cost management.

Balance Sheet

The balance sheet shows a strong equity position with stockholders' equity of $899.88 million in TTM, indicating a solid capital base. The debt-to-equity ratio is low at 0.01, suggesting limited leverage and financial risk. However, the equity ratio is high at 92.56%, which could indicate underutilization of debt financing. Overall, the balance sheet reflects stability, but the company may need to optimize its capital structure to enhance returns.

Cash Flow

Pony AI Inc. has negative free cash flow of -$145.8 million in TTM, which is concerning as it indicates cash burn. The operating cash flow to net income ratio is negative, suggesting operational inefficiencies. Despite substantial financing cash flow, the company struggles to generate positive cash flow from operations. This cash flow situation poses a risk to long-term sustainability unless addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	76.64M	75.03M	71.90M	68.39M	8.12M
Gross Profit	12.43M	11.40M	16.88M	32.06M	6.31M
EBITDA	-375.09M	-277.16M	-128.90M	-153.94M	-201.56M
Net Income	-360.31M	-274.12M	-124.81M	-148.02M	-224.70M
Balance Sheet
Total Assets	972.34M	1.05B	747.12M	771.51M	708.94M
Cash, Cash Equivalents and Short-Term Investments	629.95M	745.01M	589.55M	577.90M	418.75M
Total Debt	12.10M	13.80M	7.36M	13.04M	0.00
Total Liabilities	54.99M	82.11M	51.94M	1.31B	1.11B
Stockholders Equity	899.88M	951.12M	684.03M	-551.49M	-402.10M
Cash Flow
Free Cash Flow	-145.80M	-122.16M	-120.51M	-166.80M	-171.54M
Operating Cash Flow	-135.36M	-110.76M	-115.42M	-154.77M	-146.14M
Investing Cash Flow	-260.20M	-181.27M	136.49M	49.33M	54.83M
Financing Cash Flow	398.26M	407.39M	89.76M	191.57M	121.87M

Pony AI Inc. Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AL	82 Outperform	7.10B	7.72	11.89%	1.39%	8.08%	76.55%
AER	79 Outperform	21.60B	7.28	12.21%	0.87%	3.24%	4.46%
FTAI	61 Neutral	18.66B	44.37	269.35%	0.66%	55.05%	0.00%
PONY	58 Neutral	$7.25B	―	-33.58%	―	4.27%	-120.11%
HTZ	47 Neutral	2.11B	-0.82	505.56%	―	-7.58%	-225.06%
CAR	44 Neutral	5.55B	-2.49	80.95%	―	-2.25%	-395.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Pony AI Inc. Sponsored ADR Corporate Events

Pony AI Inc. Reports Strong Q2 2025 Results and Expands Robotaxi Fleet

Pony AI Inc. announced its financial results for the second quarter of 2025, highlighting a 76% year-over-year increase in total revenues, with Robotaxi fare-charging revenues surging over 300%. The company has produced over 200 Gen-7 Robotaxi vehicles since mass production began in June and is on track to reach a 1,000-vehicle fleet by the end of the year. Pony AI’s operations have expanded to include fully-driverless services in Shanghai and strategic partnerships in Shenzhen, Dubai, South Korea, and Luxembourg, positioning the company for sustained growth and enhanced market presence.

Pony AI Receives Permit for Driverless Robotaxi Services in Shanghai

Pony AI Inc. announced on July 26, 2025, that it has received a permit to provide fully driverless commercial Robotaxi services in Shanghai’s Pudong New Area. This achievement marks a significant milestone in the company’s efforts to advance Robotaxi commercialization in China, as it becomes the only company with such permits in all four of China’s tier-one cities. The launch will begin in the core business district of Jinqiao and Huamu, highlighting Pony.ai’s technological and operational readiness, and solidifying its leadership in autonomous mobility. The strategic location in Pudong, a hub for financial institutions and multinational corporations, offers substantial commercial opportunities for Pony.ai.

Pony AI Inc. to Announce Q2 2025 Financial Results on August 12

Pony AI Inc. announced that it will release its unaudited financial results for the second quarter of 2025 on August 12, 2025, before the U.S. market opens. The company will host an earnings conference call on the same day to discuss the results, providing stakeholders with insights into its financial performance and strategic direction.

Pony AI Inc. Advances Gen-7 Robotaxi Testing in Beijing

On July 23, 2025, Pony AI Inc. announced the commencement of road testing for its seventh-generation BAIC Robotaxi model in Beijing, marking a significant milestone in its major city testing rollout. This development, part of a multi-city testing initiative, underscores the stability and adaptability of Pony.ai’s autonomous driving system and propels the company towards its goal of expanding its fleet to 1,000 vehicles by the end of 2025, setting the stage for future large-scale commercial deployment.

Pony AI Inc. Begins Mass Production of Gen-7 Robotaxi Models

Pony AI Inc. announced on July 10, 2025, that it has begun mass production and road testing of its seventh-generation Robotaxi models, marking a significant milestone towards expanding its fleet to 1,000 vehicles by the end of the year. This development follows the unveiling of its Gen-7 autonomous driving system at the Shanghai Auto Show in April and highlights the company’s strong partnerships with Guangzhou Automobile Group and Beijing Automotive Industry Corporation. The Gen-7 system introduces advancements such as the use of 100% automotive-grade components and a 70% reduction in bill-of-materials costs, positioning Pony AI for scalable growth and substantial commercial opportunities.