Analysis Report on Strategic Transformation of Insta360's Drone Business

Based on the searched information, I will systematically analyze Insta360’s drone business and its strategic transformation.

Insta360’s panoramic drone “Yingling Antigravity” is currently in the

. Mass production issues are still being resolved, and it has not been officially launched yet, so no actual revenue has been generated so far [1]. The product is expected to be trial-sold in some regional markets in Q4 2025 [2]. Notably, the product was selected into Time Magazine’s “2025 Best Inventions” list in October 2025 [2].

The company’s management stated that as a new category, the panoramic drone can achieve functions that traditional cameras and traditional drones cannot, cover more new usage scenarios, and attract users to create a new incremental market [1]. The company believes that the imaging market is more like an “open-world competitive game”, meaning scattered scenarios, large innovation space, and competition may open up more increments.

In the first three quarters of 2025, Insta360’s cumulative revenue reached

, of which the third quarter achieved operating revenue of 2.94 billion yuan, a significant year-on-year increase of 92.64% [3]. This growth rate is outstanding in the consumer electronics industry.

However, the net profit attributable to shareholders was

, and the third-quarter net profit was 272 million yuan, a year-on-year decrease of 15.9% [3]. The company pointed out that if excluding proactive investments for future layout, the third-quarter profit indicators were better than the same period last year.

The total R&D investment in the first three quarters of 2025 has exceeded

, of which the third-quarter R&D investment reached 524 million yuan, a year-on-year increase of 164.81%, and the R&D expense ratio accounted for 17.81% of revenue [3]. The main investment directions include chip customization, strategic projects, and forward-looking technology layout.

• In the panoramic camera field, Insta360 occupies
  67%
  of the global market share, and ranks second in action cameras [4]
• Industry data shows that the CR3 (concentration ratio of top three enterprises) of the global intelligent imaging equipment industry reached 78.9% in 2024, indicating high market concentration
• Insta360’s market share increased from 28.4% in 2023 to 35.6% in 2024, becoming the fastest-growing leading enterprise [2]

• As of July 2025, Insta360 has accumulated over
  6 million followers
  on major global social platforms
• Google Trends search index approached GoPro at the end of April 2025
• It has been selected into the “Top 50 Chinese Global Brands” by Google and Kantar for three consecutive years, ranking 24th in 2025 [4]

• As of the first half of the year, the company has accumulated nearly
  1,000
  authorized patents at home and abroad [2]
• It has deep technical accumulation and excellent innovative genes in the field of intelligent imaging equipment

• DJI has launched competing products in the panoramic drone field, forming direct competition
• There is still a gap in patent reserves compared with DJI, and continuous efforts in technological innovation are needed in the future [4]

• High-intensity R&D investment and marketing expenses put pressure on short-term profits
• The increase in sales expense ratio is related to market strategy adjustments

• Mass production issues have not been fully resolved
• As a new category, there is uncertainty about market acceptance

Comprehensive evaluation shows that Insta360’s strategic transformation is

, but there are short-term pains:

1. Correct Direction
   : Transforming from a hardware manufacturer to an integrated solution provider of “hardware + software + services” conforms to industry development trends

2. Appropriate Timing
   : Expanding boundaries after establishing advantages in the panoramic camera field and entering new categories using technical accumulation is a natural business extension

3. Strong Execution
   : High-intensity R&D investment and global layout provide support for the transformation

1. The mass production progress and commercialization effect of the drone business need continuous attention
2. Competitive pressure from competitors such as DJI may intensify
3. Geopolitical risks need to be noted against the background of globalization challenges

As a leading enterprise in the intelligent imaging equipment field, Insta360 has strong risk resistance capabilities during the strategic transformation process relying on its technical advantages and brand accumulation. It is recommended to pay attention to core indicators such as the mass production progress of its drone business, R&D investment output efficiency, and changes in market share.

---

[1] Investor Relations Activity Record of Insta360 Inc. (https://file.finance.qq.com/finance/hs/pdf/2025/09/12/b23efb868fab11f0a9c7fa163e39923a.pdf)
[2] Insta360’s Revenue Increased by 67% to 6.611 Billion Yuan in the First Three Quarters of 2025 (https://www.stcn.com/article/detail/3416631.html)
[3] Insta360, Which Once “Gave Money” to Employees, Saw Single-Quarter Revenue Grow by Over 90%, But Profits Fell by Double Digits (https://eu.36kr.com/zh/p/3528783773490049)
[4] Insta360 Company Research Report (https://www.kimi.com/share/zh/d19v3e8nnlr1nd3psl70)