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Jun 30
Cheche Group Q2 2025 Earnings Report
Cheche Group reported strong bottom-line improvement in Q2 2025 driven by growth in NEV premiums and disciplined cost control.
Key Takeaways
Despite a decline in revenue due to lower fee rates on NEV policies, Cheche Group significantly reduced its net loss by 53%, supported by a leaner cost structure and higher gross margin driven by growth in NEV insurance premiums.
Revenue declined 17.7% YoY to $188.3M due to fee rate changes from NEV policies.
Gross profit increased 1.7% to $9.2M, with margins supported by the NEV segment.
Net loss improved 53.4% YoY to $3.6M; adjusted net loss improved 56.9% to $1.5M.
NEV written premiums rose to $361.3M with 810,000 embedded policies issued.
Cheche Group
Cheche Group
Cheche Group Revenue by Geographic Location
Revenue by Geographic Location
China Revenue
CapyFin.com Forward Guidance
Cheche revised its FY2025 revenue forecast downward due to business model changes but reaffirmed profitability guidance on an adjusted basis.
Positive Outlook
- NEV written premiums expected between $978M and $1.12B.
- Total written premiums guidance reaffirmed between $3.56B and $3.77B.
- Adjusted operating results expected to shift from loss to profit.
- Expanding internationally in Q4 2025 with AI-driven insurance tools.
- Higher gross margin supported by growing NEV premium mix.
Challenges Ahead
- Net revenue guidance lowered to $419M–$461M from $502M–$530M.
- Top-line moderated by lower NEV insurance service fees.
- Total operating expenses remain elevated relative to revenue.
- Continued impact of NEV mix shift on overall fee structure.
- Intensifying competition in China’s insurtech market.