Pony AI Inc. (Pony AI (PONY)) reported first-quarter results Tuesday that showed triple-digit revenue growth fueled by its robotaxi business, even as losses widened amid global expansion. The autonomous-driving company is betting big on scale, raising its 2026 fleet target and revenue expectations.

Revenue Growth Fueled By Robotaxi Expansion

The company reported first-quarter revenue of $34.25 million, up 145% year over year, driven by robotaxi services and intelligent solutions. Analysts had expected $51.09 million, so the miss was notable, but the growth trajectory is hard to ignore.

Robotaxi services revenue surged 395.4% to $8.6 million, while fare-charging revenue jumped more than 456.5%, thanks largely to the launch of the Gen-7 fleet. Robotruck services revenue also grew 31% to $10.2 million.

Margins Narrow As Losses Widen

Gross profit rose to $5.6 million from $2.3 million a year earlier, but gross margin narrowed slightly to 16.2% from 16.6%. Net loss widened to $50.41 million from $42.99 million, mainly due to lower investment income. Adjusted net loss increased to $40.86 million from $29.45 million.

Adjusted loss per share was 9 cents, compared with a loss of 8 cents a year earlier. Wall Street had projected a 25-cent loss, so the company beat expectations on that front. As of March 31, Pony AI held $1.44 billion in cash and equivalents, giving it plenty of runway.

CEO Raises 2026 Fleet And Revenue Targets

CEO James Peng said the company entered 2026 with "amazing momentum" as robotaxi revenue climbed on stronger fare growth and rising user adoption. Pony AI expanded its robotaxi fleet to more than 1,700 vehicles and raised its 2026 global fleet target to over 3,500 vehicles, up from a prior goal of 3,000.

Peng also increased the company's robotaxi revenue target to more than 3.5 times 2025 levels, up from a previous forecast of 3 times. The company plans to expand into more than 20 cities globally this year, growing operations across China and overseas markets.

Pony AI Global Expansion Gains Momentum

Peng noted that Pony AI now operates in nine countries and already offers public robotaxi services in Croatia, Qatar, Singapore, and South Korea. He highlighted the launch of Europe's first commercial robotaxi service in Zagreb, Croatia.

Executives Highlight Technology And Cost Reduction Plans

CTO Tiancheng Lou said Pony AI's ability to enter complex urban markets quickly reflects the strength of its autonomous-driving technology and operational capabilities. The company built its system around reinforcement learning and world models, rather than depending solely on large language model scaling. Lou added that Pony AI's vehicles include full-stack redundancy and fail-operational capabilities designed to maintain safe operations during hardware or software failures.

CFO Leo Wang said the company expects robotaxi bill-of-materials costs in China to fall below 230,000 yuan by mid-2027 through scale efficiencies, supplier negotiations, and engineering optimization.

Pony AI Stock Reaction

Pony AI shares were up 5.61% at $9.42 at the time of publication Tuesday.