TL;DR
SenseTime expects to report its first consolidated profit since its Hong Kong listing, forecasting 500 million yuan to 700 million yuan for the first half of 2026. The estimate remains preliminary, and investment gains contributed to the projected turnaround while the core business still recorded an adjusted loss.
SenseTime Group expects to report a 500 million yuan to 700 million yuan profit for the first half of 2026, reversing a 1.49 billion yuan loss a year earlier and marking its first consolidated profit since its listing, according to the artificial intelligence company’s preliminary forecast.
The forecast covers the six months ended June 30 and represents an expected swing of about 1.99 billion yuan to 2.19 billion yuan from the prior-year loss. SenseTime has not yet published its full interim accounts, so the projected profit is not a completed financial result.
On a non-IFRS basis, SenseTime said its adjusted net loss probably narrowed by 60% to 70% from the 1.16 billion yuan adjusted loss recorded in the first half of 2025. That implies the underlying business remained loss-making after selected accounting items were excluded, even as its deficit declined.
SenseTime attributed the improvement to smaller losses in its core business segments and fair-value gains on investments in companies within its AI ecosystem. The company did not provide a breakdown showing how much of the expected profit came from operating improvements and how much came from investment revaluations.
SenseTime forecasts its maiden profit since listing
The AI company expects a consolidated first-half profit of 500 million yuan to 700 million yuan, reversing last year’s loss. But investment gains helped shape the turnaround—and the underlying business remains loss-making on an adjusted basis.
For the six months ended June 30, 2026
Reported for the first half of 2025
Full interim accounts had not yet been published
From the prior-year statutory loss
Projected reduction versus H1 2025
Opening move on August 17
Annual revenue exceeded 5 billion yuan
From a billion-yuan loss to a headline profit
At the midpoint of its forecast, SenseTime would report roughly 600 million yuan in consolidated profit—a dramatic change from the comparable period of 2025.
SenseTime remained deeply loss-making during the prior-year period.
The range would mark the company’s first consolidated profit since its Hong Kong listing.
Three signals tell different stories
The statutory result, adjusted result and cash performance are separate measures. Only the first two were addressed in the preliminary alert.
Headline profit expected
Positive: SenseTime forecasts 500 million yuan to 700 million yuan in consolidated profit.
Core deficit persists
The adjusted net loss is expected to shrink substantially, but the underlying business still did not reach adjusted profitability.
Not yet disclosed
Operating cash flow was absent from the profit alert, leaving the cash quality of the projected earnings unresolved.
SenseTime expects profit of approximately 500 million yuan to 700 million yuan for the six months ended June 30, 2026.
SenseTime profit alertOperating progress met valuation gains
SenseTime cited two contributors, but did not disclose how much profit came from each. That missing split is central to assessing durability.
| Profit driver | What it indicates | H1 2026 signal | Repeatability | Cash impact |
|---|---|---|---|---|
| Smaller core-business losses | Better economics in operating segments | ✓ Confirmed direction | ~ Needs full accounts | ~ Not disclosed |
| Fair-value investment gains | Higher valuations across AI ecosystem holdings | ✓ Cited contributor | ✗ Can fluctuate | ✗ May be non-cash |
| Adjusted profitability | Core performance after selected items | ✗ Still a loss | ~ Loss narrowing | ~ Not established |
| Operating cash generation | Whether reported earnings convert into cash | ~ Awaiting results | ~ Unknown | ~ Unknown |
Assessment reflects information contained in the preliminary forecast; the completed interim report may provide additional detail.
How the forecast becomes an investment conclusion
The announced profit is the starting point. Its significance depends on the composition, cash conversion and repeatability revealed in the full results.
Profit alert
A 500 million yuan to 700 million yuan preliminary profit range is announced.
Driver split
Investors separate operating improvements from fair-value investment gains.
Cash test
Operating cash flow shows whether accounting profit translated into cash.
Durability test
Margins, segment trends and guidance reveal whether the turnaround can repeat.
Full results face a higher bar
The market welcomed the forecast, yet the shares remained roughly 50% below their 52-week high—evidence that investors still question the turnaround’s staying power.
Five figures investors need
The interim report should clarify whether the projected profit represents a structural improvement or a valuation-assisted milestone.
The share of profit created by fair-value revaluations.
The remaining deficit across day-to-day business segments.
The degree to which earnings converted into cash.
Evidence of demand, pricing power and delivery economics.
Management’s view on maintaining profitability through 2026.
Until the completed accounts arrive, the forecast remains a preliminary board assessment rather than a finalized financial result.
A milestone—with an asterisk
SenseTime’s projected maiden profit represents a major headline turnaround, supported by narrower core-business losses. Yet the continuing adjusted deficit and undisclosed contribution from investment gains mean the forecast does not, by itself, prove that normal operations are profitable or that the result is repeatable.
Investment Gains Shape Turnaround
A first reported profit would mark a financial milestone for SenseTime, which has posted losses since entering the public market. The narrower adjusted deficit also points to lower core-business losses, though it does not yet establish that normal operations were profitable.
The distinction matters because fair-value gains can fluctuate with investment valuations and may not generate equivalent cash. Investors will need the interim report to judge whether SenseTime’s improvement reflects repeatable operating progress, non-cash valuation changes or a combination of both.
The market responded positively to the forecast. SenseTime shares opened 7% higher at HK$1.505 on August 17, according to Bamboo Works, but remained about 50% below their 52-week high. That gap indicates investors are still weighing the durability of the turnaround.
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Losses Had Been Narrowing
SenseTime reported a 1.49 billion yuan loss for the first half of 2025, including an adjusted net loss of 1.16 billion yuan. Its latest forecast extends a period of declining losses as the company directs resources toward AI infrastructure, multimodal models and commercial applications.
For 2025, SenseTime reported revenue above 5 billion yuan, up 33% from the previous year, while its annual net loss fell 58.6%. The company also said second-half adjusted EBITDA reached 380 million yuan, its first positive half-year reading for that measure since listing.
“SenseTime expects profit of approximately 500 million yuan to 700 million yuan for the six months ended June 30, 2026.”
— SenseTime’s profit alert
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Profit Quality Awaits Full Results
It is not yet clear how much of the forecast profit reflects day-to-day business performance rather than investment valuation gains. Revenue, gross margin, operating cash flow, research spending and segment-level results were not included in the profit-alert details.
The figures are based on a preliminary board assessment and may differ from the completed interim accounts. The forecast also does not establish whether SenseTime can remain profitable in the second half of 2026 or repeat the result without further fair-value gains.
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August Results Face Scrutiny
SenseTime is expected to publish its full interim results on August 26. Investors will be watching the investment-gain breakdown, core operating losses, cash generation and management’s outlook for the remainder of 2026 to determine whether the projected profit marks a lasting change.
Source: SenseTime
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Key Questions
Has SenseTime already confirmed a first-half profit?
No. SenseTime has issued a preliminary profit forecast of 500 million yuan to 700 million yuan. The completed first-half figures are due with its interim results.
How does the forecast compare with last year?
The company recorded a 1.49 billion yuan loss in the first half of 2025. The new range implies a turnaround exceeding 1.9 billion yuan at its lower end.
What drove the expected profit?
SenseTime cited narrower core-business losses and fair-value gains on AI ecosystem investments. It has not disclosed the amount contributed by each factor.
Was SenseTime profitable on an adjusted basis?
No. SenseTime still expects an adjusted net loss, although it projects that loss will be 60% to 70% smaller than a year earlier.
Source: SenseTime
