Momenta Releases First Semi-Annual Report After Listing, Approaching Break-Even Point

The last day of August 2026, Momenta, which listed on the HKEX just over a month ago, released its first set of results.

The numbers are indeed quite impressive: Revenue for the first half reached 1.602 billion RMB, a 75.9% increase. But what drew more attention was the loss issue frequently discussed within the industry; adjusted net loss narrowed by 96.6% to 14.097 million RMB.

Momenta's Main Financial Performance in the First Half of 2026

For a company wearing the halo of the "First Physical AI Stock" and constantly questioned about "burning money", this is almost saying: Give me a little more time, the break-even point is right around the corner.

In the subsequent financial report meeting, management focused their attention on a further-reaching chessboard: Implementing a "pervasive coverage" mass production strategy to cover more vehicle models, accelerate the flywheel driven by the millions-unit scale, and pave the way for the global implementation of Robotaxi and Robovan over the next three years.

"Competition in the automotive industry is becoming increasingly fierce; simply betting on a single model and hoping to create a one-time blockbuster is not enough to support the long-term survival of the enterprise." Therefore, Momenta takes the "Law of Large Numbers" as the strategic underlying logic. Through extensive layout of a large number of OEMs and vehicle model matrices, market risks brought by single auto companies/models can be effectively hedged. "Our strategy strives to gain a long-term competitive advantage in the rapidly changing and uncertain automotive industry."

01

Financials: From "Cash Burner" to "Approaching Profitability"

In the past few years, the two words the autonomous driving industry fears most to hear are "losses". Huge R&D investments of billions have caused many star companies to fall on the eve of commercialization.

The signal released by Momenta's financial report this time is very clear: Scaling is changing the financial model.

Financial report data shows that in the first half of 2026, Momenta realized operating revenue of 1.602 billion RMB, a year-on-year increase of 75.9%.

Momenta's Revenue from Two Major Businesses

Breaking it down, technology development service revenue was 995 million RMB, a year-on-year increase of 81.5%, accounting for 62.1% of total revenue; licensing service revenue was 607 million RMB, a year-on-year increase of 67.5%. The revenue growth of the two parts was driven respectively by the increase in new customer cooperation projects, the expansion of service delivery scope, and the increase in the number of mass-produced vehicle installations.

The above two major business parts belong to high-margin software and service businesses with extremely low marginal costs. Therefore, the profit-side data is also improving.

In the first half of this year, Momenta's gross profit was 1.173 billion RMB, a year-on-year increase of 79.4%, with a gross margin of 73.2%, higher than 71.8% in the same period last year. This is largely due to the business model; Momenta's revenue comes more from pure software algorithm licensing and services, and does not need to bear the cost pressure of hardware.

According to the adjusted net profit metric (which better reflects the true operating status, excluding non-cash items such as equity incentives, listing expenses, changes in fair value of preferred shares, etc.), Momenta's adjusted net loss for the first half was 14.097 million RMB, significantly narrowing by 96.6% compared to 416 million RMB in the same period last year. The distance to break-even is less than 15 million RMB.

Momenta's Loss Situation as of End of June This Year

According to IFRS standards, the loss for the period was 16.537 billion RMB, expanding 871.8% year-on-year. The source of the difference lies in a line of small text in the financial report notes: 16.31 billion RMB came from "changes in fair value of preferred shares and other financial liabilities".

Simply put, the company issued a large number of preferred shares before listing. According to IFRS requirements, these preferred shares need to be re-measured at fair value at the end of each reporting period. The higher the company valuation, the higher the fair value of preferred shares, and the larger the "book loss" generated. This is the result of accounting treatment under accounting standards requirements. Essentially, it is advance accounting for future equity conversion costs that may occur, which will not lead to future cash outflows. Moreover, after the July listing, all preferred shares have been converted into common shares, and the financial reports for the second half will not be affected by this.

However, the figure of 367% for the debt-to-asset ratio is still worth alerting. This is not due to "preferred share accounting treatment amplification", but rather the result of total liabilities being pushed up after preferred shares were included as financial liabilities before listing, reflecting the company's capital structure dependent on financing expansion in the past few years. With the completion of IPO and preferred share conversion, this liability will decrease significantly, net assets will increase significantly, and this indicator should improve significantly subsequently.

In terms of R&D, as of June 30, 2026, the company had 1,102 R&D personnel, accounting for 79.1% of the total number of employees. In the first half of this year, R&D expenses were 1.16 billion RMB, a year-on-year increase of 18.6%, with an R&D expense ratio of 72.6%.

Momenta Cash Flow

In terms of cash flow, the financial report shows that as of June 30, 2026, Momenta's operating cash flow net outflow was 381 million RMB, narrowing by 47% compared to 716 million RMB in the same period last year. Adding approximately 6.8 billion HKD raised in the July IPO, the company's cash reserves have exceeded 15 billion RMB. In the short term, capital reserves are sufficient to support subsequent R&D investment and global expansion.

02

Business Front: Clarifying "Pervasive Coverage" Strategy

Why is it possible to approach profitability so quickly? The answer is hidden in these four words: "Mass Production Scale".

Let's first look at a set of comparative data.

In 2022, Momenta delivered its first 100,000 unit mass production plan, taking 24 months. By the first half of this year, the delivery of the latest 100,000 units took only 36 days. From "two years" to "more than one month", the time unit was compressed from "year" to "month".

In specific numbers, as of June 30, Momenta has covered 26 OEM clients, with a cumulative 105 mass-produced models, and the cumulative installation volume of mass production solutions has broken through 1 million units. In the first half of the year, approximately 321,000 units were added, a year-on-year increase of 83.7%. The increase in just half a year exceeded the cumulative total before 2022. Cooperating brands include Mercedes-Benz, BMW, Audi, GAC Toyota, Hongqi, SAIC Volkswagen, Dongfeng Nissan, IM Motors, etc., reaching mass production business cooperation with 26 OEMs.

Momenta's Partial Partners

1 million cars running on the road, the greater value is data output.

The financial report disclosed that as of the end of June, relying on over 1 million mass-produced vehicles, Momenta has accumulated over 13 billion kilometers of real driving mileage, refining over 100 million segments of high-value "Golden Data", with daily simulated mileage exceeding 10 million kilometers.

The more the data rolls, the faster the algorithm runs; mass production scale accelerates data accumulation in return, forming a positive feedback loop. This is the concentrated release of Momenta's flywheel effect.

Of course, high data barriers do not equal no challenges.

On one hand, in the supply chain security logic of auto companies, core technology cannot be "sourced by a single company", and independent R&D must be maintained. While investing in Momenta, SAIC is also introducing Huawei solutions; Toyota's intelligent layout is also diverse, neither giving up independent R&D nor betting chips on a single supplier. This means that Momenta faces not only competition in order acquisition but also market space squeezing brought by auto companies' independent R&D routes.

On the other hand, Momenta is continuously increasing the intensity of going overseas; compliance costs in overseas markets, geopolitical risks, and differences in data regulation in each region are variables that need continuous investment to deal with in scaled expansion.

In addition, as of now, Momenta has cumulatively mass-produced 105 models, but there is a difference of over 110 models between the number of delivered models and cumulative projects exceeding 219 models. Whether these orders can be smoothly converted into delivery still carries the risk of production rhythm and customer cooperation changes.

Momenta "Flywheel Mode"

Overall, the "flywheel" has started turning; scale is accelerating, data is accumulating, and market share is expanding. What remains to be seen is whether this flywheel can maintain acceleration, and whether the technical leading advantage can be continuously converted into commercial orders.

At the business strategy level, "blanket coverage" (Pervasive Coverage Strategy) was explicitly proposed in the conference call. The essential goal is to expand business coverage as much as possible, access more OEMs, and cover a more diverse vehicle model matrix.

The underlying business logic is that competition in the automotive industry is becoming increasingly fierce; single blockbuster models are difficult to support long-term survival. Through extensive layout of a large number of OEMs and models, market risks brought by single auto companies or models can be effectively hedged, striving for long-term competitive advantage in an industry full of uncertainty with the "Law of Large Numbers".

03

Next Step: Robotaxi and Global Market Landing

If it is merely selling NOA solutions, Momenta's story can at most be considered a "good moneymaking business", but for capital markets willing to give high valuations, what they look at is definitely the next step.

The financial report disclosed that the self-developed Momenta R7 World Model will begin deployment in mass-produced vehicles from Q3 2026.

Momenta R7 World Model Three-Layer Architecture

The so-called "World Model" means letting AI understand the laws of the physical world, not just recognition and classification. Reflected in autonomous driving scenarios, it is to give the system human-like "common sense reasoning" capabilities, able to predict causal relationships between dynamic objects on the road, and not just responding to static rules.

If this technology is smoothly scaled and landed, it is possible to create a generational gap at the algorithm level. But it needs to be noted that from deployment to producing actual experience differences, the World Model still needs a period of data accumulation and iteration verification. Getting on board in Q3 is just the starting point; the true formation of user-perceivable experience advantages may come to 2027.

The bigger chessboard is: Robotaxi and Global Markets.

Momenta partners with RideNow to build a Robotaxi fleet based on pre-installation mass production

The financial report shows that Momenta's Robotaxi has conducted tests or operations in 6 cities of 3 countries globally, and plans to launch the first Robotaxi in Q4 2026.

According to the detailed schedule disclosed in the conference call: The end-of-2026 target is to obtain test licenses for over 10 cities globally, with fleet scale reaching hundreds of units; The 2027 plan is to expand to over 30 cities globally, with algorithm safety performance expected to reach 10 times that of ordinary human drivers; 2028 will become the first year of large-scale operations, Robotaxi will transform from pilot trial operation to normalized commercial travel services, completing the critical leap from technological leadership to large-scale commercial operations.

Momenta follows the route of "not building cars, but becoming an enabler". This means its Robotaxi can reuse the technical stack of passenger car mass production solutions, with marginal development costs lower than players starting from scratch. But Robotaxi's commercialization rhythm still depends on the pace of regulatory policy advancement in various places, as well as the verification of operational efficiency.

Overseas markets are also accelerating. Business has covered 10 countries and regions, including Norway, UK, UAE, Singapore, Australia, New Zealand, Thailand, etc. Momenta's global layout is advancing from two fronts simultaneously: besides supporting Chinese auto companies' models going global, it is also directly advancing international cooperation projects with multiple overseas OEMs.

For a Chinese autonomous driving company, being able to enter the supply chain system of overseas mainstream auto companies is itself an endorsement of technical capabilities and safety standards. However, global expansion also means higher compliance costs and geopolitical risks, which are variables that need to be tracked continuously.

Momenta Unmanned Delivery Business Lands in Suzhou

In addition, the conference call also disclosed a clear roadmap for Robovan (Unmanned Logistics Vehicles): Complete the commercial closed-loop verification of the V1.5 mass production version in two key cities within 2026; 2027 enter rapid replication and expansion, expand to dozens of domestic cities and land in the UAE market; 2028 achieve domestic full-scale operations, while completing deep layout in Middle East, Europe, Japan/Korea, Southeast Asia, aiming to become the world's number one Robovan unmanned logistics vehicle platform.

Returning to the initial question: Momenta's semi-annual report tells a relatively clear story; the main business is rapidly approaching profitability, the "flywheel" has started turning, and technical reserves and Robotaxi layout are also preparing for the next stage.

Of course, the financial burden of historical capital structure still needs time to digest; but from Momenta's response, these are phased costs of the initial listing, not fundamental issues of the business model. With preferred share conversion completed, losses continuously narrowing, and cash flow continuously improving, it is gradually evolving from a "startup needing capital transfusion" into a "mature enterprise growing by self-blood creation".