Quick Summary of Key Points
Recently, the well-known American humanoid robotics company Agility announced its intention to go public through a SPAC (Special Purpose Acquisition Company) deal, aiming to become the “first pure humanoid robotics company” in the United States. Upon completion of the transaction, the company will be valued at $2.5 billion and will raise an additional $620 million in financing, with Foxconn leading the investment with $200 million. However, the recently released 2025 financial report has completely reshaped industry perceptions: the company’s annual revenue was only $1.8 million, while its operating loss amounted to $140 million. This valuation of $2.5 billion is 1,400 times its annual revenue—compared to Yushu Technology, which has already listed on the STAR Market in China, achieved profitability with annual revenue of 1.7 billion yuan in 2025, and has a valuation of $9 billion, which is only 36 times its annual revenue. The staggering difference between the two companies is not simply due to American companies being better at “telling stories.” Instead, it reflects the completely different commercialization approaches of humanoid robotics in China and the United States. Additionally, the entire industry is currently facing a bottleneck of insufficient funding before mass production. The rush to go public and tap into the secondary market for long-term capital essentially represents a global bet on the future of humanoid robotics, with investors betting on whether these robots can overcome the cost barrier and become as widely adopted as electric vehicles.
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Detailed Analysis
What does a valuation of 1,400 times mean?
Many people struggle to understand a price-earnings ratio (P/E ratio) of 1,400 times. To put it in more relatable terms, imagine you own a small奶茶 shop with annual revenue of $10,000. If someone offers $14 million to buy the shop, most would consider it absurd. In contrast, Yushu’s P/E ratio of 36 times means a $360,000 valuation for a shop with the same annual revenue, which is still considered high but within a reasonable range for tech startups, considering the stable profitability and potential for expansion.
The underlying logic behind the valuations is vastly different. Yushu’s valuation is based on its current actual sales performance and future growth prospects, having already established a profitable business model. In contrast, Agility’s $2.5 billion valuation is largely based on future potential—investors are considering the potential for the company to expand into a national chain of 1,000 stores, with current revenue virtually negligible in the valuation.
Why does Agility, with robots operating for 60,000 hours, only earn $1.8 million?
Despite being among the most advanced in commercialization in the US humanoid robotics sector, Agility’s revenue is modest. Its business model, which involves monthly rentals of robots, is very different from Yushu’s. Customers don’t need to pay a one-time fee for untested robots but can rent them for $8,500 per month, with Agility covering all hardware, software, and maintenance costs. While this model is attractive to customers, it results in significant losses for Agility, as the company incurs substantial upfront costs to develop and deploy the robots before earning any revenue.
Why are both companies struggling financially?
The entire humanoid robotics industry is facing a critical phase of high capital expenditure before mass production. Many companies are racing to go public to secure funds for scaling up. For example, Agility needs to invest heavily in expanding production capacity, hiring engineers, and setting up service networks, which will accelerate its financial pressure. This is not unique to Agility; over 20 robotics companies in China are also seeking to go public to access the secondary market.
The industry’s common challenge
The current valuation of humanoid robots can be seen as a bet on their future success. Investors are buying “future prospects”—whether robots can become as widely adopted as electric vehicles. If costs remain high and adoption remains limited, these valuations could prove to be unsustainable. If, on the other hand, costs decrease significantly and robots become more affordable, the high valuations could be justified. The current rush to list reflects the global investment in the potential of humanoid robotics.
The implications for the industry
If the cost barrier for humanoid robots can be overcome, the industry could experience rapid growth, similar to the electric vehicle revolution. However, if costs remain high, many companies may struggle to survive. The current valuations are essentially bets on whether these robots will become a mainstream technology. Whether these bets pay off will determine the fate of the entire industry.