Moore Threads, a leading domestic full-function GPU designer, has announced impressive financial results for the first three quarters of 2026. The company reported a total operating revenue of 3.29 billion yuan, marking a significant year-over-year increase of 319.15%. This surge in revenue has also led to a turnaround in profitability, with the company achieving a net profit attributable to the parent company of 37.6973 million yuan, a substantial improvement from the previous year’s loss.
Strong Performance Driven by AI Demand
The impressive growth is largely attributed to the burgeoning demand for high-quality computing power and full-function GPUs within the artificial intelligence industry. Moore Threads’ strategic focus on developing AI infrastructure, including its MUSA architecture and products like the “Kuai E” (夸娥) cluster and MTT S series GPUs, has resonated well with clients. These clients span crucial sectors such as internet and cloud service providers, large language model developers, AI innovation enterprises, telecommunications operators, and AI computing centers.
In the first three quarters of 2026, Moore Threads’ gross profit reached 1.766 billion yuan, up 263.88% year-over-year. While the gross profit margin slightly decreased by 8.16 percentage points to 53.71% compared to the same period last year, the company attributes this to the rapid growth phase, product delivery mix, and strategic inventory costs. However, the company anticipates that economies of scale will lead to significant improvements in quarterly profit levels.
Quarterly Highlights Show Accelerated Growth
The third quarter of 2026 alone demonstrated even more remarkable growth. Operating revenue for the quarter surged by an astonishing 1773.92% year-over-year, reaching 1.552 billion yuan. The company also achieved a net profit attributable to the parent company of 49.2604 million yuan and a non-recurring net profit of 20.0724 million yuan, indicating a confirmed profitability inflection point.
Commitment to Research and Development
Despite the rapid commercial success, Moore Threads continues to invest heavily in research and development. R&D expenditure for the first three quarters totaled 1.34 billion yuan, a 55.72% increase year-over-year. This investment is primarily directed towards core projects, including the development of its next-generation full-function GPU architecture, codenamed “Hua Gang” (花港). R&D spending currently represents 40.75% of the company’s operating revenue, underscoring its commitment to technological innovation.
Operational and Financial Health
In terms of cash flow, the net cash flow from operating activities for the first three quarters was -3.309 billion yuan. This negative figure is attributed to the expansion of production scale and strategic inventory buildup to meet market demand and ensure supply chain resilience. As of the reporting period, Moore Threads’ total assets stood at 17.743 billion yuan, with owner’s equity attributable to parent company shareholders at 11.986 billion yuan. The asset-liability ratio was approximately 32.45%, indicating a stable financial structure.
Future Outlook and Investment Potential
Analysts and institutions widely hold a positive outlook for Moore Threads, with many issuing “Overweight” or “Buy” ratings. The company is seen as well-positioned to benefit from the domestic substitution trend in the GPU market, offering significant long-term growth potential. As the company moves from a “high-growth, unprofitable” valuation model to one based on revenue, profit, and cash flow validation, its investment appeal is expected to grow. The ongoing development of the MUSA ecosystem and the large-scale deployment of its “Kuai E” AI computing clusters are key factors in its strategic advantage within the domestic full-function GPU sector.
The company’s focus on building “Model Training Factories,” “Large Language Model Production Factories,” and “Intelligent Agent Production Factories” further solidifies its position in the AI supply chain. The positive reception of its intelligent computing products, such as the MTT S5000, by key industry players is accelerating business adoption and expanding its market competitiveness.
The financial report highlights a company not only experiencing rapid revenue growth but also strategically investing in future innovation and solidifying its market position in the critical field of AI computing.
