Pony AI Inc.

Ladies and gentlemen, thank you for standing by, and welcome to Pony AI, Inc.' 's first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, there will be a question-and-answer session. As a reminder, today's conference call is being recorded, and a webcast replay will be available on the company's investor relations website. at ir.pony.ai. I would now turn the call over to your host, George Hsiao, Head of Capital Markets and Investor Relations at Pony AI. Please go ahead, George.

Thank you, operator. Hello, everyone. We appreciate you joining us today for Pony AI's first quarter 2026 earnings call. Earlier today, we issued a press release with our financial and operating results. which is available on our Investor Relations website. An earnings presentation, which we will refer to during the conference call, can also be accessed and downloaded on our Investor Relations website. Running on the call are Dr. James Peng, Chairman of the Board and CEO, Dr. Tiancheng Luo, CTO, and Dr. Liu Wang, CFO of the company. They will provide prepared remarks followed by a Q&A session. Before we begin, please refer to the safe harbor statement in our earnings release, which applies to this call as we'll be making forward-looking statements. Please also note that we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under GAAP in our earnings release, available on the Investor Relations website and filings with SEC and Hong Kong Stock Exchange. I will now hand it over to our Chairman and CEO, Dr. James Peng. Please go ahead.

Thank you, George. Hello, everyone. Thank you for joining our Endings Call. We kicked off 2026 with an amazing first quarter. This strong start defines our growth momentum for the whole year. Let me start with the highlight. I'm proud to report that in Q1 2026, our total revenue grew by 45% year-over-year, and we also achieved record high quarterly robo-taxi revenue. Specifically, our robo-taxi revenues grew nearly 400%, powered by a more than 50% surge in fare charging revenues. Our operational momentum is accelerating across the board. We have scaled our Robotech fleet to exceed 1,700 vehicles and amplified this expansion through a massive surge in user adoption. Now, our registered users grew more than 200% year-over-year in China. In fact, our weekly average paid orders so far in May grew more than 100% compared to the beginning of the year. Lastly, we continue to expand our operating area, currently broadening our service footprint into downtown Guangzhou. Globally, we have been advancing our operations in the capital of Croatia, realizing Europe's first commercial robot taxi service. Looking at our overall Q1 results, I'm thrilled that our strategic and execution modes translated directly into our exponential growth in Robotaxi and fare charging revenues. By scaling our fleet, user base, and paid order volume, we have achieved consistent month-over-month growth this year. This is a remarkable achievement as Spring typically is a low season for ride hailing. Our dual engine strategy, that is focusing on both China and the global market, and the joint deployment model started unlocking new and diversified revenue streams. China market remains our primary growth engine, where we have secured a dominant lead We are steadily ramping up our domestic fleet while simultaneously broadening our operational footprint. We expanded our operation in Guangzhou from Nansha and Panyu districts into Haizhou district, which is the heart of Guangzhou that covers high demand areas like Canton Tower, the Pazhou CBD, and the Canton Fair complex. In Shenzhen, we have been continuously increasing the size and the density of our fleet in Nanshan and Bao'an districts, the city's two busiest areas. For key transportation hubs, we are now providing comprehensive airport transfer services across Beijing, Shenzhen, and Guangzhou. Our international expansion is also gaining traction. We have now established a presence in nine countries and started services to the public in four overseas markets, including Croatia, Qatar, Singapore, and South Korea. In the capital of Croatia, Zagreb, we realized the first Robotaxi commercialization in Europe. In the Middle East, our footprint in Dubai and Qatar continues to expand. currently initiating driverless deployment in Dubai. These achievements serve as proof that our model can be applied smoothly across multiple regulatory and operational environments, ultimately creating solid revenue streams. As for the joint deployment model, we consistently make significant strides Because of our technology leadership, our operational success, and our commercial maturity, partners increasingly recognize us as their preferred collaborator. We have seen more partners from both domestic and international markets join forces with us, starting to contribute sizable revenue in Q1. Our Robotech's success is continuously driven by our innovation and execution, which helps us to achieve a large-scale fleet, excellent technology and operation, and superior user experience. Moving forward, we will focus on reinforcing these areas to expand market share and cement our industry leadership. Operating a scaled fleet with consistent stability is a powerful testament to our technology and operational maturity. As we scale, we are supercharging our growth engine. We continue to build competitive barriers and trust from policy makers and fortify our brand position at the forefront of user man share. Currently, we are accelerating the rollout of Gen 7 vehicles across Toyota, Beijing Auto, and Guangzhou Auto, exceeding 1,700 robo-taxi vehicles. At the Beijing Auto Show last month, we debuted our 2027 version of the robo-taxi for domestic markets. This upgraded version will achieve further bond cost optimization to less than 230,000 RMB. This competitive pricing facilitates rapid scaling of the Robotaxi fleet for the years to follow. Safety has always been the foundation of our company, which is ensured by our technological and operational advantages. Our industry-leading L4 technology, vehicle-level intelligence, and resilient fleet management help us to maintain uncompromised safety. This proven mastery of highly complex scenarios enable our robo-taxis to navigate peak rush hours, dense urban areas, and bad weather conditions, satisfying surging user demand. We have moved beyond a novel experience into a go-to daily transportation choice. The results speak for themselves. Our robotic taxi fares maintain a premium over the entry-level ride-hailing services. Despite this premium pricing, demand remains exceptionally robust, particularly during peak hours. Notably, our weekly average paid orders so far in May increased by more than 100% compared to the beginning of the year, significantly outpacing industry-wide growth. Beyond that, we are continuously optimizing ground operations from charging efficiency to dispatching algorithms. This, in turn, boosts our fleet utilization and reduce operational cost. Now let me move to our robotruck business. Our Gen 4 robotruck is slated for mass production in the second half of the year, with pre-production vehicles currently rolling off the production line. I'm also pleased to share that in Q1, robotruck revenues were up 31% year-over-year. This was driven by scaling up long-haul operation. We also strive to expand our addressable market across multiple fronts, particularly in intra-city urban logistics. To this end, we launched our L4 autonomous light truck in April, leveraging our fully automotive grade and fully redundant level four robo-taxi architecture. In terms of intelligent solutions, a business we recently renamed from licensing and applications to better reflect our expanding business in this segment. Field one, the ADC, Essentially, the autonomous domain controller shipment in this segment surged by over 500% year-over-year. This was mainly driven by domain controller deployment in low-speed delivery applications. 2026 is off to a strong start for Pony. We have achieved supercharged revenue growth in all three business lines, without any compromise in safety. Since the first day of our founding, we have been committed to provide safe and reliable autonomous driving services. It is our deepest moat, and it's now the perfect stage for Pony to demonstrate what a decade of rigorous engineering looks like. Our fourfold RoboTaxi revenue growth is fueled by accelerated user adoption in domestic Tier 1 cities and revenue contributions from our joint deployment model, both domestically and globally. Reflecting this powerful commercial momentum, I am now raising our 2026 annual target that we forecasted earlier this year. Upgraded fleet target. We are now on a clear path to surpass a fleet size of 3,500 vehicles, which is an upward revision from our initial 3,000 target. Second, accelerated revenue growth. We are now lifting our robo-taxi revenue target higher to more than three and a half times from our previous target of tripling. Third, scaling our domestic and overseas prices. As we continue to accelerate the scaling up in our existing markets, we are firmly confident to expand our footprint to over 20 cities, both domestically and globally. As an industry leader, our mission goes beyond our own role. We are here to lead the development of autonomous driving, that have sustainable societal benefits. By providing a safe, driverless technology that is safe and profitable at scale, we are building the future of mobility that the world can trust. With that, I'll hand it over to CTO Tien-Tien Lo to go over the technology that's powering our leadership. Tien-Tien, please go ahead.