Horizon Robotics aims to lead advanced smart driving market by 2027
Horizon Robotics reported a 32.9% year-on-year revenue increase to RMB 2.055 billion (USD 305.4 million) for the first half of 2026, with gross profit also up 32.9% to RMB 1.356 billion. The company’s gross margin remained high at 66%. Product solutions contributed RMB 926 million, while licenses and services saw a 52.7% rise to RMB 1.129 billion, now accounting for 55% of total revenue. Horizon Robotics achieved a 50% share of the ADAS market among Chinese brands and secured design wins for nearly 500 vehicle models, including 60 for export. The company expects substantial growth in 2027 as its HSD driving system and Journey 6P chips scale up production and deployment.
Horizon Robotics' latest earnings show a significant shift in its business model, with licenses and services now generating 55% of total revenue and a 90.4% gross margin. This "Arm plus Android" approach, as CEO Yu Kai describes it, allows the company to expand its market share beyond direct chip sales by enabling partners to develop their own products using Horizon's IP. This strategy is critical for Horizon Robotics to compete with Nvidia in the advanced smart driving market, where it aims to be the leader by 2027. The company's strong performance in China's ADAS market, reaching 50% share among domestic brands, reflects the success of this dual strategy. However, the long-term challenge for Horizon Robotics will be sustaining the intensive R&D investment required to maintain its technological edge. While the company targets breakeven around 2028, its ability to fund future innovation depends on continued high gross margins and rapid revenue growth, particularly as it develops chips like Journey 7 for Level 3 and 4 autonomous driving applications.
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