Shares of Pony.ai (NASDAQ: PONY) dropped 13.6% on Thursday after the autonomous vehicle developer reported fourth-quarter results showing mixed performance.

The company posted a $75.5 million GAAP net profit, but the gain was largely due to a $132.5 million paper profit on trading securities. Core non-GAAP operating losses widened to $65.9 million as Pony.ai front-loaded investments to expand its fleet.

Total revenue fell 18% year-on-year to $29.1 million, dragged down by a 53% drop in licensing and applications revenue.

Pony.ai’s robotaxi business, however, showed strong momentum. Revenue from robotaxi services jumped 160% to $6.7 million, with fare-charging revenue surging more than 500%. Robotruck revenue grew slightly to $13.1 million.

“2025 marked an amazing year for Pony.ai,” said CEO Dr. James Peng, highlighting unit economics breakeven in multiple Chinese cities and a record daily net revenue of RMB394 per Gen-7 robotaxi in Shenzhen.

The company’s fleet surpassed 1,400 vehicles as of March 25, 2026, with plans to reach over 3,000 by year-end.

Expansion continues internationally, including new operations in Croatia, Hangzhou, and Changsha, and a strategic partnership with Uber Technologies (NYSE: UBER) to launch Europe’s first commercial robotaxi service in Zagreb.

Pony.ai ended 2025 with $1.5 billion in cash.