Hesai Group (HSAI) shares are trading lower in Tuesday's premarket session, down 6.2% to $16.95, even as the company reported a solid second quarter. The lidar maker's net income jumped 60% year over year to 71 million Chinese yuan, marking its fifth straight quarter of GAAP profitability. That's no small feat, especially since the company is still pouring money into its Strategic Growth Initiatives (SGI).
Here's the interesting part: SGI actually generated revenue for the first time this quarter. Robotic actuation modules led the charge, with commercialization and demand exceeding expectations. Adjusted earnings came in at 1 cent per share, down from 7 cents a year earlier, but revenue climbed to $126.87 million from $98.61 million.
Shipments tell a compelling story. ADAS lidar shipments rose 60.1% year over year to 485,904 units, while robotics lidar shipments surged 193.4% to 142,371 units. Total lidar shipments increased 78.4% to 628,275 units. Clearly, the demand for lidar is expanding beyond cars.
CEO Yifan "David" Li said the core lidar business continues to scale as demand grows from humanoid robots and other intelligent machines. The company has already secured orders from Unitree, Robbyant, Galbot, Galaxea, Dexmal, and others.
Hesai is also pushing its Kosmo spatial intelligence platform, which turns physical environments into reusable, AI-ready 3D assets. This is meant to bridge the gap between simulation and real-world deployment. Prototype deliveries began in July, and the company has already landed orders from humanoid robotics companies, including Galbot. Initial revenue from Kosmo is expected in the third quarter under SGI.
Robotic actuation modules also started generating revenue in Q2, with Sharpa among the customers. The production line is operational, and shipments for dexterous hands are underway. Full-body joints are expected to ramp up soon.
Looking ahead, Hesai guided for third-quarter revenue of $162 million to $169 million. The company also raised its 2026 SGI revenue forecast to 200 million to 300 million yuan, up from 100 million yuan. And it expects SGI revenue to hit about $100 million in 2027, with the business breaking even that year.
So why the stock dip? It could be profit-taking after a strong run, or concerns about the adjusted EPS decline. But the underlying numbers suggest a company in transition, with robotics and spatial intelligence opening new avenues beyond its traditional automotive market.
