[News] Moore Threads Reportedly Turns Profitable in 1Q26 but Remains Loss-Making in 2025 as R&D Hits RMB 1.3B

China’s domestic GPU maker, Moore Threads, reportedly turned profitable in Q1 2026, marking its first quarterly profit since listing on the STAR Market in December 2025. According to EE Times China, the company generated revenue of RMB 738 million in the first quarter, up 155.35% year over year. Net profit attributable to shareholders reached RMB 29.36 million, increasing by RMB 142 million from a year earlier and swinging from a loss to a profit.

However, net profit excluding non-recurring items attributable to shareholders recorded a loss of RMB 54 million, with the loss narrowing by 60.10% year over year.

The company’s turnaround was primarily driven by the transition of its products to large-scale commercialization. Specifically, as the report notes, in March 2026, Moore Threads secured a RMB 660 million order for its KUAE intelligent computing cluster, a 10,000-GPU system capable of end-to-end training of trillion-parameter models.

On the product front, Moore Threads’ flagship MTT S5000 AI training and inference card, based on its new-generation “Pinghu” architecture, has achieved large-scale commercial deployment. The card delivers up to 1,000 TFLOPS of dense AI compute per unit, supports full precision from FP8 to FP64, and features native hardware-level acceleration for advanced model architectures such as Transformer and MoE, the report adds.

Full-Year 2025 Losses Remain Despite Profit in Q1 2026

Although Moore Threads turned profitable in the first quarter of 2026, it remained loss-making for the full year of 2025. According to its annual report, the company generated revenue of RMB 1.505 billion in 2025, up 243.37% year over year, with gross profit reaching RMB 987 million, up 218.43%. Net loss attributable to shareholders came in at RMB 1.001 billion, the report notes.

Still, the report also notes that, excluding the impact of share-based compensation, Moore Threads reported a net loss of RMB 648 million in 2025, narrowing by RMB 847 million year over year on a comparable basis, a reduction of 56.65%.

The losses are rooted in the GPU industry’s exceptionally high R&D barriers. In 2025, Moore Threads recorded R&D expenses of RMB 1.305 billion, accounting for 86.68% of its revenue, as the report highlights.

Among China’s emerging GPU companies, including Moore Threads, MetaX, Iluvatar CoreX, and Biren Technology, all posted strong revenue growth in 2025 but remained loss-making overall, the report notes. Losses narrowed at Moore Threads, MetaX, and Iluvatar CoreX, signaling accelerating commercialization across China’s domestic GPU sector, while Biren Technology’s losses widened, partly due to higher R&D spending.

Notably, Cambricon achieved profitability in 2025, as highlighted by ijiwei. 21jingji adds that Cambricon reported revenue of RMB 6.497 billion, up 453% year over year, while net profit reached RMB 2.059 billion, reversing a loss of RMB 450 million the previous year.

Read more

• [News] China’s Moore Threads Unveils Huashan AI Chip, Reportedly Takes Aim at NVIDIA’s Hopper
• [News] China GPU Race Intensifies: Cambricon Turns Profitable in 2025; Moore Threads, MetaX Narrow Losses

(Photo credit: Moore Threads)