Hesai Group (HSAI) Q1 FY26 earnings call: guidance and Q&A

What are the volume, revenue, and margin contributions expected from the Mercedes-Benz L3 autonomy partnership over the next 1-3 years and longer term?

Management confirmed the Mercedes-Benz contracts are a continuation of existing collaboration with additional volumes and car models, but could not disclose specific financial details due to customer strategy. They highlighted the support from Hesai's Thailand manufacturing center, unified product architecture, and NVIDIA partnership for global ADAS market leadership.

“We will not be able to disclose further details on the strategies of the customer, but we do confirm the new contracts are a continuation of the existing collaboration with additional volumes and car models.”

asked by Tina Hou · answered by Yifan Li

Elaborate on Kosmo's fundamental differences, synergies with conventional LiDAR, comparable products, client base, consumer rollout timeline, and financial contribution.

Management described Kosmo as an AI algorithm-integrated spatial intelligence device that reconstructs photorealistic 3D models using custom LiDAR, sensors, and proprietary 3DGS/AIGC algorithms. They emphasized hardware and software advantages, significant efficiency gains (1/5 time of 3DGS, 1/50 of traditional workflows), and a scalable business model with recurring revenue streams. Early orders from diverse clients were noted, with initial 8-digit revenues expected this year, and long-term paths including 4DV and consumer-facing opportunities.

“Kosmo is much more than a sensor or a hardware device. I will describe it as the world's first AI algorithm integrated spatial intelligence device, combined or custom-lidar, multiple sensors and our in-house 3 DGS and AIGC algorithms together into one system, like allowing us to capture and reconstruct the physical world in a very seamless and photorealistic way.”

asked by Tim Hsiao · answered by Yifan Li

What is the progress of the Humanoid Robot Actuator business, current technical bottlenecks, potential customers, and whether actuators are for the body or hand?

Management explained that moving into robotic actuation is a natural extension of Hesai's expertise in precision mechanics from LiDAR, leveraging capabilities in material science, simulation, ASICs, and manufacturing of automotive-grade motors and encoders. They stated that early signals are encouraging with high performance metrics, but detailed information is not yet disclosed.

“Over the past decade, you see we have already developed and shipped more than 1 million automotive-grade motors and encoders into our lidar systems. And fundamentally, like the physics behind lidar scanning modules and robotic actuation modules are very similar.”

asked by Nora Min · answered by Yifan Li

Can you provide details on the ASP, revenue, and margin for both the Kosmo and Robotic Actuator modules?

Management stated that both are part of the new SGI segment, reported on a consolidated basis. SGI is expected to contribute RMB 100 million in FY26 revenues, scaling to RMB 500 million by FY27, and potentially comparable to the Core LiDAR business within 5 years. SGI is expected to be accretive to group gross margin over time, with Kosmo specifically having a structurally higher margin profile due to its hardware, software, and data integration, evolving towards a recurring ARR model. Current ASPs are highly customized and not representative of long-term economics.

“On the revenue side, we expect SGI to start contributing in the second quarter this year. With strong early customer interest and initial adoption we currently anticipate around RMB 100 million in full year 2026 revenues. Looking further out, we see a clear scaling path, potentially reaching around RMB 500 million in 2027.”

asked by Jessie Lo · answered by Peng Fan

How does Picasso 6D LiDAR interact with cameras, to what extent can it replace camera functions, how does Hesai's approach differ from peers' fusion solutions, and what is customer feedback?

Management explained that 6D full-color LiDAR combines color and depth, like human vision, and could replace cameras in future applications. They highlighted Picasso's 'early fusion' at the chip level (SPAD-SoC) as a differentiator from peers' system-level fusion, leading to better perception and safety. Customer feedback is encouraging, with a design win for Cargo Bot, and Picasso-equipped ETX is expected to enter SOP in H2 2026.

“With Picasso, our world's first 6D full-color SPAD-SoC with RGB color and precise 3D geometry directly at the chip-level from the very beginning, almost like the human brain naturally combining both eyes in real time. You can think of it as early fusion.”

asked by Unknown Analyst · answered by Yifan Li

What are the updated LiDAR revenue and shipment forecasts for Q2 and FY26, and the SGI contribution to revenue?

Management reiterated Q2 revenue guidance of RMB 850-900 million and provided Q2 LiDAR shipment guidance of around 650,000 units. They confirmed the RMB 100 million FY26 revenue contribution from SGI and reaffirmed the FY26 LiDAR shipment guidance of 3-3.5 million units.

“For the second quarter, we expect total revenues to be in the range of RMB 850 million to RMB 900 million with around 650,000 lidar shipments.”

asked by Ming Chung · answered by Peng Fan

How should the ongoing decline in LiDAR ASP be unpacked, and what is the long-term outlook for pricing as the market evolves?

Management explained that the headline blended ASP decline reflects healthy market expansion and a product mix shift towards lower-priced ADAS LiDARs. They highlighted that Level 3 autonomy drives significantly higher sensor content per vehicle (USD 350-1000), offsetting unit price declines. The advanced functionality of Picasso's 6D full-color LiDAR could also support premium pricing for advanced configurations, similar to how smartphone value evolved.

“We think it's important to look beyond headline blended ASP because what we are really seeing today is a reflection of strong market expansion and a clear product mix shift.”

asked by Zang Yu · answered by Yifan Li