This article first appeared on GuruFocus.
Net Revenues: RMB1.2 billion for the second quarter of 2026.
Media Services Revenues: RMB280 million.
Leads Generation Services Revenues: RMB560 million.
Online Marketplace and Others Revenues: RMB357 million.
Cost of Revenue: RMB274 million, compared with RMB503 million in the second quarter of 2025.
Gross Margin: 77.1%, compared with 71.4% in the same period last year.
Sales and Marketing Expenses: RMB552 million, compared with RMB630 million in the second quarter of 2025.
Product Development Expenses: RMB223 million, compared with RMB253 million in the second quarter of 2025.
General and Administrative Expenses: RMB96 million, compared with RMB133 million in the same period last year.
Operating Profit: RMB130 million, compared with RMB297 million in the same period of 2025.
Adjusted Net Income: RMB277 million attributable to Autohome, compared with RMB476 million in the corresponding period last year.
Non-GAAP Earnings per Share: Basic and diluted EPS were RMB0.62 and RMB0.61, respectively, compared with RMB1.01 for both in the corresponding period of 2025.
Non-GAAP Earnings per ADS: Basic and diluted EPS were both RMB2.46, compared with RMB4.06 and RMB4.04, respectively, in the corresponding period of 2025.
Cash and Investments: Cash, cash equivalents, short-term investments, and other long-term investments totaled RMB19.36 billion as of June 30, 2026.
Net Operating Cash Flow: RMB261 million generated in the second quarter of 2026.
Share Repurchase: Completed the USD200 million buyback program ahead of schedule, repurchasing approximately 10.63 million ADSs; announced a new USD400 million repurchase plan for the next 12 months.
Release Date: August 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Autohome Inc (NYSE:ATHM) successfully expanded its new retail business, launching the offline franchise chain ‘Autohome Good Car’ with over 100 stores in low-tier cities and replicating its online car purchase model to five cities, completing over 1,000 transactions in the pilot phase.
The company made significant strides in AI, unveiling ‘Cheese Car Butler,’ the automotive industry’s first standalone intelligent agent product, which received positive initial market feedback and enhances its differentiated competitive edge.
Autohome Inc (NYSE:ATHM) strengthened its traffic ecosystem through partnerships like with Alipay, becoming the exclusive provider of automotive services for Alipay’s AutoLiv channel, and saw daily active users grow to 76.5 million in June.
The used car export business achieved a key milestone with the first transaction completed in July, backed by an upgraded inspection system (expanded to 265 items) and official export qualifications, positioning the company for growth in this fragmented market.
Autohome Inc (NYSE:ATHM) demonstrated strong shareholder commitment by completing its USD200 million buyback ahead of schedule, announcing a new USD400 million repurchase plan, and distributing a RMB500 million cash dividend, supported by a robust balance sheet with RMB19.36 billion in cash.
Negative Points
Autohome Inc (NYSE:ATHM) faces a challenging auto market environment, with domestic passenger vehicle retail sales declining 20% year-over-year in the first seven months and full-year 2026 sales expected to fall 16%, pressuring revenue growth.
The company’s financial performance weakened, with adjusted net income dropping to RMB277 million in Q2 2026 from RMB476 million in Q2 2025, and operating profit falling to RMB130 million from RMB297 million.
Lead generation revenues are under pressure due to dealer financial strain, as 77% of dealerships failed to meet their first-half sales targets, leading to reduced spending on advertising and leads.
The new energy vehicle (NEV) segment, previously a growth driver, saw sales decline 8% year-over-year in Q2, and traditional ICE vehicles performed even worse with a 38% drop, indicating broad market weakness.
Industry profitability is at a historical low, with auto manufacturing profit margins at just 3.8% in the first half, which could limit automakers’ and dealers’ budgets for marketing services, impacting Autohome Inc (NYSE:ATHM)’s core business.
Q & A Highlights
Q: Can management comment on the second-half industry outlook for the auto market, and what is the latest progress and competitive edge in the used car export business?A: Craig Zeng (CFO): The auto market is under significant pressure, with domestic retail sales of passenger vehicles declining 20% year-over-year in the first seven months and NEV sales falling 8% in Q2. The CPCA now forecasts a 16% decline for full-year 2026, with total sales below 20 million units. The market is characterized by weak domestic demand, structural differentiation (high-end NEVs above RMB400,000 surging 46% while entry-level cars below RMB50,000 declined 55%), and exports as a key growth driver (passenger vehicle exports up 74% year-over-year). For used car exports, Autohome’s competitive advantages include its strong brand recognition, access to stable and compliant vehicle supply with a standardized inspection system (expanded from 128 to 265 inspection items), and digital one-stop services. The company officially obtained export qualifications in Q2 and completed its first used car export transaction in early July, marking a zero-to-one breakthrough.
Q: How does management view the sustainability of the shareholder return program, and how will the company balance cash reserves with shareholder returns? What is the strategic positioning for the new retail business?A: Craig Zeng (CFO): Autohome has established a dual-track return framework combining regular cash dividends with share repurchases. The USD200 million buyback program was completed ahead of schedule in less than six months, and a new USD400 million repurchase plan was announced on July 28, 2026, with approximately 10% already completed. The company distributed RMB500 million in cash dividends for the first half and remains committed to paying at least RMB1.5 billion in cash dividends for the full year. With a robust balance sheet and RMB19.36 billion in cash reserves, Autohome has the capacity for sustainable returns. For new retail, the strategy leverages the Autohome App for online transactions (Autohome Mall) and offline channels (Autohome Good Car franchise stores and authorized dealer stores) to create a comprehensive automotive service ecosystem covering the entire vehicle lifecycle from discovery to replacement.
Q: What are the drivers behind the auto market recovery, and how will media services trend in the second half of this year?A: Craig Zeng (CFO): While the overall market is expected to decline 16% for the year, growth opportunities exist in vehicle upgrades and replacements, particularly in the high-end NEV segment. Auto exports represent another significant opportunity, with NEV exports surging 124% year-over-year and accounting for over 50% of total passenger vehicle exports. For the media business in the second half, the traditional “golden September and silver October” season, combined with multiple new vehicle launches, should support a recovery. The company expects the market to show improvement in the second half of the year.
Q: Given the pressure on auto dealers, how does management think about the outlook for the sales leads business?A: Craig Zeng (CFO): Lead generation performance is highly correlated with overall market sales volumes, and the Q2 market decline was the main reason for the segment’s performance. According to CADA data, 77% of dealerships achieved less than 90% of their first-half sales targets, reflecting significant operating pressures. However, Autohome sees opportunities by increasing traffic and upgrading products to improve lead quality. The company is leveraging AI technology, including AI live streaming to empower dealers’ new media operations and smart store features with intelligent guided tours that use AI-generated voice commentary to create immersive experiences and increase user engagement. These product and service upgrades are expected to build a solid foundation for product renewals next year.
Q: What were the key financial results for the second quarter of 2026?A: Craig Zeng (CFO): Net revenues for Q2 2026 were RMB1.2 billion, comprising media services revenues of RMB280 million, leads generation services revenues of RMB560 million, and online marketplace and others revenues of RMB357 million. Gross margin improved to 77.1% from 71.4% in the prior year period. Operating profit was RMB130 million, and adjusted net income attributable to Autohome was RMB277 million. Non-GAAP diluted earnings per ADS were RMB2.46. The balance sheet remains robust with cash, cash equivalents, and investments totaling RMB19.36 billion as of June 30, 2026.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.