RMB 9.4 Billion in Sales, But Insta360’s Profit Collapsed

Original title: RMB 9.4 Billion in Sales, But Insta360’s Profit Collapsed

Author: Songbing

Source: BrandArk

Cover image source | pexels

On October 27, Insta360 (Yingshi Innovation) delivered its Q3 2026 report. Revenue for the first three quarters is approaching RMB 10 billion — but profit has shrunk to a sliver.

Per the report, in the first three quarters, Insta360 posted revenue of RMB 9.436 billion, up 42.73% year on year, nearly matching its full-year 2025 figure; net profit attributable to shareholders was RMB 47.84 million, down 93.9% year on year.

Revenue keeps climbing while profit collapses. New products keep coming and the market keeps expanding — where exactly is Insta360’s money going? And behind the growth, what profitability pressure is hiding?

Revenue keeps climbing

Zooming out, Insta360’s revenue curve is still on an expansion track.

From RMB 2.041 billion in 2022 to RMB 9.741 billion in 2025, Insta360’s revenue more than quadrupled in three years; 2025 alone added RMB 4.167 billion, its fastest expansion yet.

Revenue of RMB 9.436 billion in the first three quarters of 2026 has already reached 96.9% of full-year 2025 revenue — one step short of the RMB 10 billion mark.

Chart note: annual revenue and net profit attributable to shareholders, 2021–2025

Where does the growth come from? In the Q3 2026 report, Insta360 says revenue growth was mainly driven by continued market expansion, steady new-product launches, and further growth of online and offline sales channels.

On the product front, Insta360 is no longer confined to panoramic cameras, extending into more imaging hardware categories.

In June, Insta360 launched its first gimbal camera, Luna Ultra, expanding into the gimbal camera market. Per market reports cited by media, the product captured about 23.8% of the U.S. Amazon market share in its launch month.

On August 12, Insta360 launched the panoramic camera X6, further consolidating its lead in panoramic imaging. Per media reports, X6 topped the panoramic camera category charts on Tmall, JD and Douyin after launch, and ranked first in its category on Amazon U.S.

Image source: Insta360

Beyond new products, Insta360 is also expanding its sales channels.

In August 2026, its direct flagship store in Asakusa, Tokyo officially opened; in September, the New York Times Square flagship store began operations. The two openings mean Insta360 is extending physical touchpoints beyond online sales and third-party retail networks.

The product matrix and sales network are expanding together, supporting revenue growth. But selling more doesn’t mean earning more. In Q3 2026, Insta360’s gross margin fell to 33.70%, down from 47.64% in the same period last year.

Where did the profit go?

The 13.94-percentage-point gross margin decline is just the result. The real profit squeezers are several simultaneous expenditures and choices.

Per the report’s explanation, to ensure supply chain stability and security, Insta360 proactively adopted a forward-purchasing strategy, increasing strategic reserves of core components and new-product stock. This strategy directly pushed up inventory, which reached RMB 7.154 billion by the end of Q3, a sharp rise.

But rising inventory doesn’t mean the business is deteriorating. For Insta360, the real test is whether the goods stocked in advance can convert smoothly into sales. With inventory scaled up, sales velocity, turnover efficiency and the markdown risk from product iteration all deserve close attention.

Beyond inventory, R&D and marketing spending are also climbing. In the first three quarters, Insta360’s R&D investment reached RMB 1.675 billion, up 54.29% year on year, accounting for 17.75% of revenue; selling and administrative expenses also grew year on year.

These investments both stabilize the existing product base and pave the way for new growth directions. In recent years, Insta360 has launched gimbal cameras, expanded its panoramic drone business, and explored AI imaging technology and “photography robots” as new product forms.

But entering a new category isn’t just launching a product — the panoramic drone is a typical example.

Insta360 acknowledged in the report that this business is still in the market-education phase, has not yet reached scale, and its stage-by-stage investment has negatively affected overall profit. In consumer drones, where DJI has built a strong market advantage, it still needs to compete for space.

Meanwhile, the patent dispute with DJI adds uncertainty to its expansion. In March 2026, DJI sued Insta360 over the ownership of six patents; in June, the dispute extended to products such as gimbal cameras.

As their businesses increasingly overlap, competition between the two has moved from the product market to the patent arena, adding pressure on Insta360.

Image source: Insta360

BrandArk Brand Observation

For Insta360, revenue approaching RMB 10 billion is only one side of the growth story. The other side is that, as the product line extends and overseas markets expand, it must invest more in R&D and user acquisition, and also pay for not-yet-mature new businesses.

From panoramic cameras to gimbal cameras and panoramic drones, Insta360 keeps hunting for new growth curves. But entering a new track, launching a product is just the first step — whether the market truly opens and scale forms ultimately depends on whether consumers buy.

Especially against a formidable rival like DJI, Insta360 needs time and investment to stand firm. Whether those investments can turn into real profit is the hurdle Insta360 must cross.